The Effects Of Psychological Contract On The Human Resource Management Discipline

1047 Words5 Pages
The psychological contract describes the relationship between employer and employee in terms of the unwritten, informal and implicit expectations that exist in the workplace (D’Annunzio-Green & Francis, 2005). There are vast amounts of literature surrounding the psychological contract and its many impacts on the Human Resource Management discipline (Cullinane & Dundon, 2006). It is suggested that the formation of the psychological contract begins in the recruitment process (Rousseau, 1990), and therefore it is critical that management first performs a valid job analysis to provide potential employees with a set of realistic expectation. In order to understand the complex nature of the psychological contract, it is vital to understand the previous research into the psychological contract, the psychological contract theory, the implications that breaching the contract may have, and the strengths and weaknesses of this field of study that the literature reveals. By understanding what research has been conducted in the past in the field of the psychological contract, it allows future literature to unearth more complex and innovative findings. Argyris (1960) first used the term ‘psychological work contract’ to describe the values held by both the organisation and individual in relation to the employment relationship. This concept has evolved through time and now the psychological contract encompasses pay for performance, training, duty of care and promotion opportunities,
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