The core idea
Rousseau’s account focuses on an individual’s beliefs about reciprocal obligations between themselves and an organisation. These beliefs can develop through recruitment, managers’ statements and everyday treatment. They need not be shared or accurately understood by the other party. A perceived broken promise can damage trust even when no written contractual term has changed. The psychological contract is conceptually distinct from a legally enforceable employment contract.
Source and attribution [1]Using it in practice
Ask what employees understood, not only what the policy technically says. Make recruitment claims concrete and avoid promises managers cannot deliver. When circumstances change, acknowledge the earlier expectation and explain the decision, options and impact. Train managers to distinguish aspirations from commitments. Do not promise confidentiality, progression or flexibility beyond what the organisation can genuinely support.
An example, not a reported case
Worked example · illustrative
A new starter was told that development would be a priority. Six months later, every learning session is cancelled for urgent work. The manager points to an unchanged contract, but the employee experiences a broken commitment. The response is to discuss the specific expectation, agree protected learning time and review whether workload makes it realistic. A fresh promise without capacity would repeat the problem.
What to watch for
Not every disappointment is a perceived contractual breach. Different employees may interpret the same message differently, so investigate rather than assume.
Take it into your next conversation
Three useful questions.
- What promise did the person believe they heard?
- What behaviour reinforced it?
- What can we now commit to honestly?
Related terms
Go to the evidence
Sources & attribution
[1] Rousseau, D. M. (1989). Psychological and implied contracts in organizations. ↗
The core idea is an original summary of the cited work. Application notes, examples and sketches are our interpretations, not quotations or reproductions of the authors’ figures. Publisher records may require access to read the full original work.
Published 2026-09-20 · Reviewed 2026-09-20. Editorial approach