Psychological contract – diferences between state-owned and private organizations

Abstract

Psychological contract, the unwritten agreement between employee and employer, has a strong connection to employees’ organizational commitment, to their level of satisfaction and to a good quality of work relationships, and respecting this contract offers to both employees and organizations the chances to develop and succeed. The violation of this contract has different consequences on organizational behavior and could even make the employee leave the organization. This study aims to investigate possible differences between employees’ perceptions from state-owned and private organizations on psychological contract fulfilment. The results indicate significant differences in job content, organizational policies and rewards between the two groups.