Abstract:

scenarios are changing and organizations in recent years have been striving much harder more than ever to remain competitive nationally as well as internationally. This quest results in adapting various strategies such as cutting costs, restructuring, outsourcing, layoffs, and downsizing. Such changes have evolved the psychological contracts between the employees and employers and pushed the organization into a different kind of work arrangements. The origin and traces of the construct Psychological contract can be found in the research work of Roehling (1997), in which he cited various theories to provide an understanding of psychological contract such as social exchange theory. According to the literature available on psychological contract, it was in the early 1960s and till the late 1980s the concept of psychological contract gone through the emergence stage, and this concept experienced the development stage from the late 1980s to the present. A comprehensive literature review was conducted on psychological contract and on its breach from peer-reviewed scientific journals of repute to set future research agenda. Although extensive work on the psychological contract has been conducted in the western world, however, there was a missing link in the literature of psychological contract in the context of developing word. This conceptual research paper has set an agenda for future research on psychological contract its breach, its exploration in the developing world particularly in Asian countries with special reference to its effects of employee's work outcomes.

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