Human factors in organisational resilience: Implications of breaking the psychological contract

Jackie Mccoy and Alan Elwood
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Alan Elwood: Risk and Resilience Ltd, UK

Journal of Business Continuity & Emergency Planning, 2009, vol. 3, issue 4, 368-375

Abstract: Employees and employers have established and codified relationships defined within such documents as terms of employment, contracts and organisational Human Resources (HR) policies. Such overt documents represent tangible ‘contracts’ but importantly there is an intangible contract that represents the mutual expectations held by both employer and employee as to how each other should and must behave in their relationship. This is known as the psychological contract, which is underpinned by the concept of mutuality and creates significant risk to business continuity and operational resilience if damaged or broken. In normal times this should be concerning but in times of extreme change and turbulence (such as the current economic crisis) it may prove disastrous. As such, the state of the psychological contract should be of extreme interest to those charged with developing and maintaining organisational resilience.

Keywords: leadership; psychological contract; organisational resilience (search for similar items in EconPapers)
JEL-codes: M1 M10 M12 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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