ABSTRACT
This chapter highlights how organizations operating in seasonal markets may benefit from facilitating for value co-creation through developing strong psychological contracts with their employees. The concept of a psychological contract generally describes the formation of individual perceptions by employees regarding what is owed by themselves and the organization, such that a psychological contract is the "subjective beliefs regarding an exchange agreement between an individual and, in organizations typically, the employing organization and its agents". Employees with transactional contracts tend to do what is expected of them and little more. They also tend to seek employment elsewhere when conditions change or when employers fail to live up to their obligations. Organizational citizenship behaviour (OCB) refers to employee behaviour that provides extra-role behaviour and that further promotes organizational effectiveness. The chapter reveals that tourism companies working under challenges such as seasonality may build loyalty and commitment among their seasonal workers through relational psychological contracts.
