Managers: caught in the middle of a psychological contract muddle

Abstract

This study examines reciprocity between the employer and employees’ psychological contract from the employer’s perspective through the lens of middle and senior managers. In addition, the effects of a manager’s own psychological contract with the employer, on how they construe the employer’s psychological contract with employees, is explored. Using longitudinal data, the findings support the norm of reciprocity from the employer’s perspective. A manager’s own psychological contract was found to influence how the individual manager interpreted the employer’s obligations to employees and how well the employer is fulfilling those obligations. The implications and limitations of the employer’s perspective are discussed