Old and New Psychological Contracts: are they Different or the Same Wine in
Abstract
This paper explores whether there have been any shifts in Employees‟ and Organizations‟ Psychological Contract, and whether these shifts have culminated into any distinction(s) between the Old and New Psychological Contracts. The paper reports that as Employees and Organizations move through their life, their needs change just like their expectations of each other. As a result, the prevailing Psychological Contracts in Organizations have shifted from emerging, through bureaucratic, towards one characterized by adhocracy; and has consequently culminated into the existence of both the Old and New Psychological Contracts. The paper reports further that the Old and New Psychological Contracts differ very significantly in relation to, among others, the change environment, culture, rewards, motivational currency, promotion bases, mobility expectations, tenure guarantee, responsibility, status, trust, and employee development, hence, the conclusion that the Old and New Psychological Contracts do exist, the two differ very significantly, and therefore, are different “wines” in different bottles.