Psychological Contract

A psychological contract is the set of mutual beliefs, perceptions and informal, unwritten obligations that an employer and an employee hold about their working relationship, shaping the practical dynamics of the work itself. It is distinct from the formal written contract of employment, which for the most part states only mutual duties and responsibilities in general terms. The concept in its modern form was developed by the organizational scholar Denise Rousseau, whose 1989 article proved highly influential in guiding later research, though the underlying idea traces back to the organizational psychologist Chris Argyris, who in 1960 described a similar unwritten understanding between foremen and employees as a psychological work contract.