Exploring psychological contract contents in India: the employee and employer perspective

This paper aims to examine psychological contract contents, as perceived by two parties of the employment relationship, the employee and the employer.

The study is conducted in two phases. Study 1 employs critical incidence technique (CIT) to elicit from individuals their perceptions regarding organization obligations. Study 2 is designed to corroborate the findings of the first study through a survey of 401 employees and 66 employer representatives (functional heads).

The results of the two studies are consonant with existing literature; nevertheless the role of culture on psychological contract contents is visible. The study reveals variation in employee and employer perspective regarding organizational obligations.

In India, recruiters need to go far beyond the discussions on compensation and focus on building relational aspects of job such as the job content avenues for career growth as well as creating a supportive work culture.

The study contributes to existing literature by examining content of psychological contract, a relatively neglected area of research in a fast growing Asian economy, India.