Leading the Psychological Contract

The psychological contract refers to an individual employee’s personal perception of the promises and obligations that exist between the employee and the employer regarding the employment relationship and job responsibilities. Previous research has demonstrated that the quality of the psychological contract impacts employee well-being, commitment, and job performance. The dimensions of leadership of the psychological contract have received little research attention. In this chapter, we analyze the phenomenon of the psychological contract in light of previous research through the lens of leadership theories. The research questions are: What does ‘leading the psychological contract’ mean? What strategies can be applied to leading the psychological contract? We provide a theoretical analysis of the psychological contract from the perspectives of positive leadership, servant leadership, and human-centered leadership theories. The chapter contributes to the discussion on how a positive leadership approach can guide leadership of the psychological contract.