ABSTRACT

The psychological contract is a working agreement between the consultant and the chief executive officer (CEO)* spelling out each party’s expectations and obligations for the duration of the organization development (OD) project (Boss, 1985). It is based on trust (and, therefore, on clarity and truthfulness). Its strength lies in each party’s understanding that nothing valuable can be accomplished without a clear consensus on aims and methods, and in each party’s belief that the other needs and wants the project to succeed. Its weakness, obviously, lies in the possibility of misunderstanding or deceit. Of course, even a good psychological contract cannot alone ensure success (Boss, 1979); but a fuzzy or disingenuous one virtually guarantees failure.