Psychological contracting: is it still a valid concept?

Abstract

[Abstract]: In dynamic change environments the concept of the psychological contract is tested as organisations pursue more transactional relationships with their employees and as employees are encouraged to pursue protean careers. With such increased emphasis on self-serving personal and organisational strategies, one may question whether apsychological contract continues to serve a useful purpose in establishing effective relationships between organisations and their employees. This paper reviews the literature in respect to the psychological contract and the changes taking place within the context of such contracts. It is argued that the investigation and maintenance of such contracts still makes a valuable contribution to organisational relationships.