Usefulness of the psychological contract concept: the definition and conceptual considerations

Abstract

This paper focuses on the review, analysis and synthesis of literature on the psychological contract. The main purpose of the synthesis in the extensive literature review is to delineate the scope in which interpersonal relations and employment relations can be created in an organisation. The article is part of broader theoretical considerations aimed at exploring and explicating the foundations of the psychological contract as a concept, and at conducting a chronological analysis of its development. Tracing this evolution provides a basis for exploring the significance of psychological contract as a regulator of employment relationships between employers and employees. The analysis and synthesis of the findings constitutes a contribution to efforts aimed at identifying gaps in existing reflection, and indicates implications for future research. To date, no comprehensive attempt has been made to present a systematic chronology and to capture changes in the terminology of psychological contract over the years.