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

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  • DGDavid Grant
    David Grant
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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.