In developing an analytic framework that considers not just the psychological contract but its context, we can again draw on the systems framework of traditional industrial relations to explore the causes, nature, and consequences of the psychological contract. Context is recognised in the limited research on the employer’s perspective. The work of Tsui and her colleagues has highlighted the need to consider business strategy, ownership, and employment relations policy. Guest and Conway (2002) point to the need to consider human resource practices. Rousseau and Schalk (2000), Thomas, Au, and Ravlin (2003), and Wang, Tsui, Zhang, and Ma (2003) all point to the need to consider national culture, and it seems important also to consider organisational culture. This list can be extended but the key point is that the wider context and, within the organisation, the more relevant policy aspects need to form part of the analysis of the input to and influence on the exchange relationship and responses to it. At the individual level there are also likely to be differences in response related to personal circumstances but also to differing work values or career anchors (Schein, 1996). The range of variables that help to shape the context at both the organisational and individual level, as well as some of the key aspects of policy and practice, are listed on the left hand side of Figure 1.