The psychological contract: A concept in need of closer scrutiny?

Abstract

Abstract The psychological contract is currently a popular concept. It has been used in several recent analyses of individuals' careers. However, there are a number of unresolved conceptual and empirical issues surrounding the psychological contract. These are described and discussed. The main issues concern the extent to which the psychological contract between employee and employer is mutual, the importance or otherwise of the promissory element, the distinction between transactional and relational contracts, and the detection of, and response to, contract violation. It is concluded that the psychological contract is probably a valuable concept, but that it needs more careful definition and more rigorous empirical testing.