Psychological contract and small firms: A literature review

Psychological contract is one of the most well-known terms in the field of human resources management. Used by many as an analytical tool to describe the employment relationship or a theoretical platform to understand employee responses to workplace changes, it is nonetheless an intriguing theme. Going through the relevant literature, the paper focuses not only on the internal working of the psychological contract theory, but also on the organisational linkages and, in particular, on research in small firms. The investigation endeavours to ascertain the depth current literature shows with regard to smaller firms and the formation of the psychological contract in these business entities.