The impact of SHRM on the psychological contract of employees

Abstract

Purpose The purpose of this paper is to provide a holistic and systematic conceptualization of the impact of strategic human resource management (SHRM) on the psychological contract. Specifically, this paper aims to explore how the alignment of HR-systems and organizational communication influences the congruence and breach of the psychological contract. Design/methodology/approach The paper applies the signaling theory as a lens to develop a typology of four “ideal types” of SHRM configurations, each characterized by differences in the alignment of the HR-system and communication quality. Based on this typology, the influence of these different SHRM configurations on the congruence and breach of the psychological contract is being proposed. Findings The typology shows that the alignment of HR-systems and communication quality impact differently on the formation and breach of the psychological contract. It highlights that employees require both, highly aligned HR-systems and a high-quality communication to form congruent contract perceptions. Originality/value The configurational arguments embedded in the typology allow the conceptualization of the interrelationships between the alignment of HR-systems, organizational communication and the congruence and breach of the psychological contract. The propositions derived from the typology can guide research on SHRM as an antecedent of the psychological contract and shed light on the role of the psychological contract as a linking mechanism between SHRM and the employees’ reactions.