The psychological contract between employer and employee

This article explores the concept of the psychological contract, and broadens previous definitions of that phenomenon. Origins of the concept, the nature and elements of a psychological contract, and the manner in which it becomes an obligatory aspect of the employer-employee relationship and a powerful guide for workplace interactions are discussed. Its contractual nature is emphasized through a comparison with the necessary elements of a contract in business law. A model is presented showing the relationships among the validated, unvalidated, and unrealized expectations of the parties to the psychological contract. The contract is seen as highly dynamic; contract revisions are necessary, even expected, and critical points for psychological contracting in the work relationship are identified.