Redefining psychological contracts with the U.S. work force: A critical task for strategic human resource management planners in the 1990s

TLDR: In this paper, the authors provide empirical support for the transformational effect layoffs have had on psychological contracts and discuss the critical role human resource management must play in establishing and developing new contracts to guide future employment relationships between employers and employees.

Abstract: The well-publicized waves of layoffs in recent years have destroyed the long-standing psychological contract between employees and their employers which promised pay, promotion, and job security in exchange for worker skills, effort, and loyalty. This article provides empirical support for the transformational effect layoffs have had on psychological contracts and discusses the critical role human resource management must play in establishing and developing new contracts to guide future employment relationships between employers and employees. Implications for both academics and practitioners are provided. © 1998 John Wiley & Sons, Inc.