Skip to main content
Log in

Psychological and implied contracts in organizations

  • Articles
  • Published:
Employee Responsibilities and Rights Journal Aims and scope Submit manuscript

“Promise is most given when least is said.” (George Chapman,Hero and Leander, 1598)

Abstract

Two forms of unwritten contracts derive from relations between organizations and their members. Psychological contracts are individual beliefs in a reciprocal obligation between the individual and the organization. Implied contracts are mutual obligations characterizing interactions existing at the level of the relationship (e.g., dyadic, interunit). Employee/employer relations and changing conditions of employment give rise to issues not addressed in conventional transaction-oriented models of motivation and individual responses. The development, maintenance, and violation of psychological and implied contracts are described along with their organizational implications.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Adams, J. S. (1965). Inequity in social exchange. In Berkowitz, L. (Ed.),Advances in Experimental Social Psychology (Vol. 2, pp. 267–299). New York: Academic Press.

    Google Scholar 

  • Adams, J. S., & Freedman, S. (1976). Equity theory revisited: Comments and annotated bibliography. In Berkowitz, L., & Walster, E. (Eds.),Advances in Experimental Social Psychology (Vol. 9, pp. 43–90). New York: Academic Press.

    Google Scholar 

  • Averill, J. (1979). Anger. In Howe, H., & Dienstbier, R. (Eds.),Nebraska Symposium on Motivation (Vol. 26, pp. 1–80). Lincoln: University of Nebraska Press.

    Google Scholar 

  • Argyris, C. (1960).Understanding Organizational Behavior. Homewood, IL: Dorsey Press.

    Google Scholar 

  • Baiman, S. (1982). Agency research in managerial accounting: A survey.Journal of Accounting Literature, 1, 154–213.

    Google Scholar 

  • Barnard, C. I. (1973).The Functions of the Executive. Cambridge: Harvard University Press.

    Google Scholar 

  • Bateman, T. S., & Organ, D. W. (1983). Job satisfaction and the good soldier: The relationship between affect and employee “citizenship”.Academy of Management Journal, 26, 587–595.

    Google Scholar 

  • Benton, D. A. (1980). A guide to workforce reduction planning.Personnel Journal, April, 281–316.

    Google Scholar 

  • Bible (1971). Cleveland: Catholic Press.

  • Bies, R. J. (1987). The predicament of injustice: The management of moral outrage. In Cummings, L. L., & Staw, B. M. (Eds.),Research in Organizational Behavior (Vol. 9, pp. 289–319). Greenwich, CT: JAI Press.

    Google Scholar 

  • Bies, R. J., & Moag, J. S. (1987). Processual justice: Communication criteria of fairness. In Bazerman, M., Lewicki, R., & Sheppard, B. (Eds.),Research on Negotiations in Organizations (Vol. 1, pp. 43–55). Greenwich, CT: JAI Press.

    Google Scholar 

  • Brockner, J. (1988). The effect of work layoffs on survivors: Research theory and practice. In Staw, B. M., & Cummings, L. L. (Eds.),Research in Organizational Behavior (Vol. 10, pp. 213–255). Greenwich, CT: JAI Press.

    Google Scholar 

  • Cahn, E. (1949).The Sense of Injustice. New York: University Press.

    Google Scholar 

  • Chapman, G. (1598).Hero and Leander. London: Kingston.

    Google Scholar 

  • Copus, D. A., & Lindsay, R. A. (1985). Successfully defending the discrimination/wrongful discharge case.Employee Relations Law Journal, 10, 456–467.

    Google Scholar 

  • Corbin, A. L. (1952).Corbin on Contracts. St. Paul, MN: West Publishing.

    Google Scholar 

  • Eccles, R. G. (1985). Transfer pricing as a problem of agency. In Pratt, J. W., & Zuheuser, R. J. (Eds.),Principles and Agents: The Structure of Business. Cambridge: Harvard Business School Press.

    Google Scholar 

  • Farnsworth, E. A. (1982).Contracts. Boston: Little, Brown.

    Google Scholar 

  • Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement.American Sociological Review, 25, 161–179.

    Google Scholar 

  • Heshizer, B. (1984). The implied contract exception to at-will firing.Labor Law Journal, 35, 131–141.

    Google Scholar 

  • Hirsch, P. (1987).Pack Your Own Parachute. Reading, MA: Addison-Wesley Publishers.

    Google Scholar 

  • Homans, G. C. (1958). Social behavior as exchanges.American Journal of Sociology, 63, 597–606.

    Google Scholar 

  • Joyce, W. F., & Slocum, J. W. (1984). Collective climates: Agreement as a basis for defining aggregate climates in organizations.Academy of Management Journal, 27, 721–742.

    Google Scholar 

  • Kaufmann, P. J., & Stern, L. W. (1988). Relational exchange norms, perceptions of unfairness, and retained hostility in commercial litigation.Journal of Conflict Resolution, 32, 534–552.

    Google Scholar 

  • Leonard, M. (1983). Challenges to the termination at-will doctrine.Personnel Administration, February, 45–56.

    Google Scholar 

  • Levinson, H. (1962).Men, Management, and Mental Health. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Lorber, L. Z., Kirk, J. R., Kirschner, K. H., & Handorf, C. F., (1984).Fear of Firing: A Legal and Personnel Analysis of Employment-at-Will. Alexandris, VA: ASPA Foundation.

    Google Scholar 

  • MacNeil, I. R. (1974). The many futures of contracts.Southern California Law Review, 691–816.

  • MacNeil, I. R. (1985). Relational contract: What we do and do not know.Wisconsin Law Review, 483–525.

  • March, J. G. (1971). The technology of foolishness.Civil o konomem (Copenhagen),18(4), May.

  • Mayer, D., & Thayer, R. (1979). Sticky wages and implicit contracts: A transactional approach.Economic Inquiry, 17, 559–574.

    Google Scholar 

  • Miles, R. E., & Snow, C. C. (1980). Designing strategic human resource systems.Organizational Dynamics, 36–52.

  • “More companies use free-lancers...” (1986).Wall Street Journal, April 18.

  • Mowday, R. T., Porter, L. W., & Steers, R. M. (1982).Employee Organization Linkages: Psychology of Commitment, Absenteeism and Turnover. New York: Academic Press.

    Google Scholar 

  • Murray, J. E. (1974).Contracts. New York: Bobbs-Merrill.

    Google Scholar 

  • Nicholson, N., & Johns, G. (1985). The absence culture and the psychological contract—Who's in control of absence?Academy of Management Review, 10, 397–407.

    Google Scholar 

  • Nisbett, R., & Ross, L. (1980).Human Iference: Strategies and Shortcomings of Social Judgment. Englewood Cliffs, NJ: Prentice Hall.

    Google Scholar 

  • Oliver, A. T. (1982). The invisible handshake and the inflationary process.Challenge, January–February, 5–12.

    Google Scholar 

  • Oxford English Dictionary (1971). Oxford: Oxford University Press.

  • Pfeffer, J., & Baron, J. N. (1988). Taking the workers back out: Recent trends in the structuring of employment. In Staw, B. M., & Cummings, L. L. (Eds.),Research on organizational behavior, Greenwich, CT: JAI Press, 257–303.

    Google Scholar 

  • Peters, T., & Waterman, R. (1982).In Search of Excellence. New York: Harper.

    Google Scholar 

  • Rousseau, D. M. (1985). Issues of level in organization research. In Cummings, L. L., & Staw, B. M. (Eds.),Research in Organization Behavior (Vol. 7, pp. 1–37). Greenwich, CT: JAI Press.

    Google Scholar 

  • Rousseau, D. M. (1985). Human resource management for the future. In Hage, J. (Ed.),Managing the Future. Lexington, MA: Lexington.

    Google Scholar 

  • Rousseau, D. M. (in press). New hire perceptions of their own and their employer's obligations: A study of psychological contracts.Journal of Organizational Behavior.

  • Rousseau, D. M., & Anton, R. J. (1988a). Fairness and implied contract obligations in job terminations: A policy-capturing study.Human Performance, 1, 273–289.

    Google Scholar 

  • Rousseau, D. M., & Anton, R. J. (1988b). Fairness and obligations in termination decisions: The role of contributions, promises, and performance. (under review).

  • Salancik, G. R., & Pfeffer, J. (1978). A social information processing approach to job attitude and task design.Administrative Science Quarterly, 23, 224–253.

    Google Scholar 

  • Schein, E. H. (1980).Organization Psychology. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Steil, J., Tuchman, B., & Deutsch, M. (1978). An exploratory study of the meanings of injustice and frustration.Personality and Social Psychology Bulletin, 4, 393–398.

    Google Scholar 

  • Tavris, C. (1982).Anger: The Misunderstood Emotion. New York: Simon and Schuster.

    Google Scholar 

  • U.S. Bureau of the Census (1984).Statistical Abstract of the United States: 1984–1985. Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Weick, K. (1981).The Social Psychology of Organizing. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Williamson, O. E. (1975).Markets and Hierarchies: Analysis and Anti-trust Implications. New York: Free Press.

    Google Scholar 

  • Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations.Journal of Law and Economics, 22, 233–261.

    Google Scholar 

  • Williamson, O. E., Wachter, M. L., & Harris, J. E. (1975). Understanding the employment relation: The analysis of idiosyncratic exchange.Bell Journal of Economics, 6, 250–278.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Rousseau, D.M. Psychological and implied contracts in organizations. Employ Respons Rights J 2, 121–139 (1989). https://doi.org/10.1007/BF01384942

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01384942

Key Words

Navigation