Leadership and the Psychological Contract

Harold Fuqua
Joseph Cangemi
Kay Payne


DOI: 10.2190/B53T-N0HX-W9BP-4HQX

Abstract

This article defines and describes the psychological contract. It explains the reciprocal obligations of employees and employers who psychologically agree to fulfill unwritten reciprocal obligations. It describes opportunities for change from old notions of psychological contracts to new ones. Violations and consequences of those violations of the psychological contract increase the likelihood of psychological withdrawal and sabotage in organizations. Trust is the key to making the unwritten, reciprocal, contractual agreement work.

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