The role of the psychological contract in knowledge management

Abstract

This article presents an analysis of relationships between the psychological contract and the propensity for knowledge to be created, stored, and transferred within an organization. It is widely known that using knowledge increases organizational capability, and that the quality of relationships between employers and employees has an effect on how strongly the latter are committed to their organization, including activities other than those required in their job descriptions. The awareness of these facts makes knowledge management more effective and, consequently, raises organizational capability determined by the psychological contract to a higher level. This article discusses the outcomes of pilot focus group interviews conducted with respondents employed at three banks. Four main factors contributing to effective knowledge management and thereby to the development of the psychological contract in the organization are identified: the prevalence and opportunity for knowledge sharing, the character of interpersonal relations, cultural aspects for knowledge management, and the level of perceived safety.