ABSTRACT

The central tenets in psychological contract theory posit that employees create expectations about what the organization owes to them and what they owe to their organization (Robinson, 1996). As a result, the psychological contract at work is understood as an exchange relationship about the belief of implicit agreements between employees and employers (Herriot and Pemberton, 1997; Kotter, 1973; Rousseau, 1990, 1995). It is this perceptual nature of the psychological contract that makes it different from a working or legal contract (Robinson, Kraatz and Rousseau, 1994). The psychological contract is essentially subjective, personal and idiosyncratic (Turnley and Feldman, 1999a), or, as noted by Rousseau (1989: 123), “[it lies] in the eye of the beholder.”