Impact of Psychological Contract on Employment Relations & Employee Motivation

The psychological contract is an abstract term that ‘pundits’ like to coin while vaguely referring to the relationship between employers and employees (Clutterbuck, 2005). Although the concept of psychological contract is widely researched in recent years, this concept can be traced back to the work of Argyris (1962, cites in DelCampo, 2007). Rousseau (1995) specifies ‘Psychological Contract’ as the views and opinions of the employees, which is shaped by the organization, towards the expressions of the mutual agreement between employees and their organization. Continue reading