The psychological contract has been defined as an individual’s beliefs, shaped by the organization,
regarding terms of an implicit agreement between the individual and the organization (Rousseau,
1995). As such, a psychological contract emerges when the employee believes that ‘a promise has been
made and a consideration offered in exchange for it, binding the parties to some set of reciprocal obligations’
(Rousseau, 1989, p. 123). The notion of a psychological contract between employer and
employee has gained currency in recent years as a means of understanding changes in the employment
relationship. The popular view is that the ‘traditional’ promise of job security in return for hard work,
or an organizational career in return for loyalty and hard work, has been eroded by organizational
changes, such as downsizing, delayering and redundancy (Guest, 19981a).