Supervisors’ Reciprocation Decisions in the Psychological Contract

Organizational effectiveness depends in large part on the relationship between employees and supervisors (Bolino, Turnley, & Bloodgood, 2002). This relationship can be described in terms of the psychological contract that exists between employees and supervisors. Grounded in inspiring studies (Argyris, 1960; Levinson, Price, Munden, Mandl, & Solley, 1962; Schein, 1965), psychological contract theory has been developed by Rousseau (1989; 1995) as a framework for understanding the employee-supervisor relationships. Psychological contracts concern the beliefs held by employees and supervisors regarding the terms and conditions of their exchange agreements (Rousseau, 1989; Robinson, Kraatz, & Rousseau, 1994; Turnley, Bolino, Lester, & Bloodgood, 2003). Specifically, psychological contracts are about the reciprocal exchange of inducements for contributions between employees and supervisors. Employees promise and deliver contributions of time and effort toward organizational goals to their supervisors. In return, supervisors’ promise and deliver inducements of compensation and other rewards to their employees.


This study contributes to psychological contract theory in three ways. First, PI will develop a theoretical model for supervisors’ perspective of their psychological contract. Second, will develop a theoretical approach to reciprocity and predict specific exchanges of inducements for contributions. Third, PI will examine supervisors’ perspective of breach and fulfillment of specific contributions and their reciprocation with specific inducements.


Principal Investigator (PI): Paata Brekashvili, Caucasus University Professor.


Project was funded in the frame of the Shota Rustaveli National Science Foundation of Georgia grant call for Young Scientists research funding.