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

Author

Listed:
  • Mccoy, Jackie
  • Elwood, Alan

    (Risk and Resilience Ltd, UK)

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.

Suggested Citation

  • Mccoy, Jackie & Elwood, Alan, 2009. "Human factors in organisational resilience: Implications of breaking the psychological contract," Journal of Business Continuity & Emergency Planning, Henry Stewart Publications, vol. 3(4), pages 368-375, August.
    • Handle: RePEc:aza:jbcep0:y:2009:v:3:i:4:p:368-375
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    Cited by:

    1. Kevin Baird & Sophia Su & Rahat Munir, 2023. "The mediating role of levers of controls on the association between sustainable leadership and organisational resilience," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 167-200, June.

    More about this item

    Keywords

    leadership; psychological contract; organisational resilience;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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