International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Effect of Human Resource Management Practices on Psychological Contract in Organizations
Waiganjo Esther Wangithi, Ng’ethe Jane Muceke

A psychological contract underpins the employment relationship and is viewed as a set of unwritten expectations that exist between employees and their employers. It is generally accepted that a psychological contract is concerned with an individual’s subjective beliefs, shaped by the organization, regarding the terms of an exchange relationship between the individual employee and the organization. A psychological contract governs the continuing development of the employment relationship which evolves over time, with the expectations of the parties taking the form of unarticulated assumptions that calls for discussion and agreement with individuals and teams. This paper provides an overview of the concept of psychological contract with the authors also reviewing literature concerning the effect that human resource management practices have on psychological contract in the context of modern organizations.

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