The Psychological Contract Theory on Individual and Work-Related Outcomes: A Systematic Literature Review (SLR)

Abstract

The aim of this article was to present evaluation-based themes related to the psychological contract theory, specifying the influence this theory has on individual and work-related outcomes as reported in articles published between January 2009 and December 2020 through a systematic literature review. The individual and work-related outcomes in this study lack a systematic literature review (SLR) despite enormous number of published articles with these outcomes. A systematic literature review method was used to gather data, which was analysed using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Following the PRISMA guidelines, 45 eligible studies were included from various industries and countries, and findings were reported using descriptive synthesis and tabulation. Scoping evaluation was used to capture the state of current, relevant literature, to acknowledge gaps, and make recommendations for upcoming studies. The findings of the systematic literature review showed that perceived psychological contract is embedded in the fulfilment of the employer obligations, which influences the employees’ perception of the state of the psychological contract, and both the employee and employer obligations need to be precise. This study aimed at aggregating and collecting fragmented academic knowledge on the individual and work-related outcomes related to the psychological contract. This systematic literature review emphasises the importance of the psychological contract in organisations in managing the employment relationship. The review made suggestions for practical implications for organisations, limitations and recommendations for future studies.