Psychological Contracts: Changing Relational Levels, a Dynamic Model for a Changing Environment

This paper examines the issue of change in the relational level of employer-based psychological contracts. Based on prior research in Organizational Citizenship Behavior (OCB), Social Exchange Theory, and the Norm of Reciprocity, a dynamic model is developed to explain how contract-level changes take place within the relationship. The model also identifies subsequent employee attitudes and behaviors and offers two new relational modalities, “at risk” and “mercenary,” to explicate relational conditions that had not previously been recognized. We conclude by examining the various issues surrounding employee-employer relations and their importance to firm performance and job satisfaction.