Trust and the Role of the Psychological Contract in Contemporary Employment Relations

Abstract

The traditional collective system of employment relations that dominated much of the twentieth century appears to be less viable in the twenty-fi rst century. In its place we see the increasing individualisation of the employment relationship. Of course, such a sweeping claim needs to be qualifi ed. While many employees, particularly in countries such as the USA and UK, with relatively weak institutional frameworks for employment relations, may never have experienced collective employment rela- tions, employees in many European countries continue to have access to a system of legislated collective arrangements within the context of social partnership. Nevertheless, in all countries, there are a number of pressures leading, if not to the demise of collective arrangements, then to the greater emphasis on the individual – organization relationship. Even where traditional systems of employment relations have survived, they have sometimes played a less central role. Consequently, to understand and analyse contemporary employment relations, we need new concep- tual frameworks and in this chapter it will be argued that one approach that has particular utility is the psychological contract.