Mutuality or mutual dependence in the psychological contract: a power perspective

Abstract

PurposeThere have been increasing calls to explore the psychological contract from the lens of power. By addressing this gap, the purpose of this paper is to investigate the assumption of mutuality in relation to power dynamics in the employment relationship.Design/methodology/approachA total of 43 in-depth interviews are conducted with 6 managerial and 37 non-managerial respondents in three major call center organizations in Pakistan. Template analysis is used to analyze the data.FindingsBy undermining the assumption of implicit mutuality, the analysis reveals indeterminacy, an issue that has been frequently underplayed in the psychological contract research. The results further suggest that – in reality – employability, flexibility and employee training do not promote mutuality to the extent that is theoretically assumed because of the employers’ manipulation of these issues in their own favor.Research limitations/implicationsThe focus on call centers limits the generality of findings with further qualitative research needed in other industries to explore how power asymmetries impact upon mutuality in different working environments.Practical implicationsThe research implications suggest the significance of timely and explicit communication in order to curtail indeterminacy in the employment relationship. This will not only reduce the development of breach perceptions among employees but will also reinforce their psychological contracts with the organization.Originality/valueThis research contributes by highlighting the significance of mutual dependence rather than mutuality in the psychological contract. The mutual dependence approach efficiently acknowledges the implications of power asymmetries which remain largely under-researched in the psychological contract theory.