UNDERSTANDING EMPLOYMENT RELATIONSHIP IN INDIAN ORGANIZATIONS THROUGH THE LENS OF PSYCHOLOGICAL CONTRACTS

This paper tries to come out with a model for understanding employment relationship through the concept of psychological contracts. Psychological Contract has significant influence on valuable workplace outcomes. Most of the research on Psychological contracts and resulting employment relationship has been done on the Anglo-Saxon context, the results of which may not be totally valid for India. Based on the notion of consistency of HR practices, we argue that HR system across organizations form two archetypal extremes and each of these give rise to a different perception of breach of psychological contract. With the help of published case studies in the Indian context and based on social exchange theory, we propose a model wherein trust mediates the relationship between the perception of breach of the psychological contract and HR systems. Implications for practitioners are highlighted.Psychological contract, HR systems, Organizational trus