Understanding the changing nature of psychological contracts in 21st century organizations

Abstract

In recent years, scholars have increasingly recognized that the theoretical underpinnings of employee-organization relationships (EOR) are in need of further extension in light of recent organizational changes. In prior research, the study of EOR has been based on social exchange theory, and the psychological contract (PC) has played a central role in understanding this crucial aspect of organizational life. The main objective of this paper is to provide an integration of the existing literature by adopting a multiple-foci exchange relationships approach. Specifically, we looked at identification; the quality of relationships and exchanges with the leader, coworkers, and other organizational agents; justice perceptions involving several organizational sources; and perceived organizational, leader, and coworker support to expand our understanding of the PC. Overall, we advocate a multiple-foci exchange relationships approach that will ultimately enable us to develop a more comprehensive understanding of the complex nature of PCs in 21st century organizations.