HRM, rhetoric and the psychological contract: a case of 'easier said than done'

Abstract

This article argues that employee expectations play an important role in the formulation of the psychological contract under HRM. It goes on to suggest that a key feature of the psychological contract and the expectations that it encompasses is the way in which the expectations are influenced by management rhetoric. The article presents a theoretical framework of how this occurs and uses case-study evidence in order to illustrate the process. It finds that the task for management is to match what their rhetoric promises to reality while also sustaining its appeal. A failure to do so is indicative of a failure to meet employee expectations and this has a number of negative implications for an organization's performance.