Psychological Contract as a Mediator on the Relationship Between Human Resource Management Practices and Organizational Performance and Organizational Innovation

Technological advancements are major cause of development the world over and they also impact significantly on employment and work relations. As a result, employment contracts have been impacted in numerous ways. It is against this reality that the present study seeks to develop a framework for finding out how psychological contract (employer-employee) mutual relationship would mediate on the link (relationships) that exist between human resource management (HRM) practices, organisational performance (OP) and organisational innovation (OI) within the context of Nigerian Manufacturing Industries. Findings from literatures show that employees agree with employers' contract terms and conditions; as such any default in these terms of contracts will result to inverse expected performance. These create serious challenges in managing Human Resource practices, especially from employees' psychological perspective. This conceptual paper contributed to the existing body of knowledge, since it explored the mediating role of PC in the organizational performance (OP) and organizational innovation (OI) which have not been studied in the Nigeria manufacturing context hence the Gap. It suggests that an empirical study should be conducted in future.