The increased use of temporary contracts has instigated debates on possible implications for employees' attitudes, well-being and behaviour. The complex issues related to this debate are reviewed from a theoretical, empirical and conceptual point of view. First, the definitions of temporary employment that are currently used in OECD countries are reviewed. Second, theoretical views concerning possible determinants are elaborated. The theoretical frameworks discussed include Work Stress Theory, Social Comparison Theory and Social Exchange Theory. The determinants proposed in these theories have served to form the basis of hypotheses on differences between temporary and permanent workers on various psychological outcomes. Third, research on associations between temporary employment and the variables job satisfaction, organizational commitment, well-being and behaviour are reviewed. These variables are most frequently used in the realm of temporary work research. This review concludes that research results have been inconsistent and inconclusive, unlike the predictions that follow from the theoretical frameworks. This leads to a fourth section in which potential explanations for these inconsistent findings are advanced. In conclusion, a conceptual model is developed to inspire future research.

SummaryBased on the theoretical framework of newcomer sensemaking this study examines factors associated with changes in newcomers' psychological contract perceptions during the socialization process. More specifically, two mechanisms are addressed that could explain changes in newcomers' perceptions of the promises they have exchanged with their employer: (1) unilateral adaptation of perceived promises to reality and (2) adaptation of perceived promises as a function of the reciprocity norm. To test our hypotheses, a four-wave longitudinal study among 333 new hires has been conducted, covering the first year of their employment relationship. Results show that changes in newcomers' perceptions of the promises they have made to their employer are affected by their perceptions of their own contributions as well as by their perceptions of inducements received from their employer. Changes in newcomers' perceptions of employer promises are affected by their perceptions of employer inducements received, but the impact of perceived employee contributions is less clear. The data provide limited support for the idea that the adaptation of perceived promises to perceived inducements and contributions occurs to a stronger extent during the encounter stage than during the acquisition stage of socialization.

The psychological contract in retrospectPicture the scene. Dixon, the main character in Kingsley Amis' book`Lucky Jim ' (1953) has a temporary position as lecturer at a provincial English university. His full professor and the senate of the university have yet to take the crucially important decision on extending his contract for a further period. Although in the ®rst instance Dixon tries to do his utmost to meet the myriad of expectations over job tasks and job performance ( for example, be greatly appreciated by his colleagues and students, publish proli®cally in respected journals, and so forth) all his valiant attempts to achieve this lead to a succession of woeful failures. After this succession of disappointing under-achievements, motivation wanes. This culminates in the dramatic ®nale to Amis' tale when Dixon is apparently drunk when giving a lecture to local and university dignitaries. His content and presentation style at ®rst makes the attenders astonished, later indignated. Dixon's appointment is, as could be expected, not extended. Amis' tale of the unfortunate Dixon all too vividly illustrates that organizations set demands on the job performance of employees, based on multiple and varied notions of what an employee is obligated to do and not to do whilst at work. On the other hand, employees also have multiple and varied notions about what the organization should be providing them with. This may include, for example, job content, job security, training and development, rewards and bene®ts, and future career prospects ( for a compelling account of such expectations, see Herriot and Pemberton, 1995).Most employees (in contrast perhaps with Dixon) develop a positive and enduring psychological bond with their organization, based on a pattern of expectations about what the organization should oer them, and what it is obligated to provide them with (e.g. Rousseau, 1995). If, whatever the reason may be, the organization is not able or willing to ful®l these expectations and obligations, this may lead to strong emotional reactions (e.g. Schalk and Freese, 1993). In the relationship between employer and employee, mutual obligations are the central issue. These mutual obligations are partly put on record in the written formal contract of employment, but are for the most part implicit, covertly held and only infrequently discussed.

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This paper presents a dynamic perspective in which the psychological contract is treated as a structured set of beliefs that are held by individual employees about the mutual obligations of the organization as employer and themselves as employees. This set of beliefs is assumed to produce a state of commitment to the organization in which the employee is willing to accept work roles and tasks offered by the organization, and to carry them out in accordance with certain standards. The dynamic model that is presented can help to explain why the commitment of employees remains relatively stable over time, and why it may suddenly decrease or increase under circumstances that are perceived as critical by the employee. The model assumes that the employee's evaluation of the organization's behavior changes over time, but that the structure of the psychological contract and the associated commitment change only when certain limits are overstepped. This perspective on changes in the psychological contract transforms the concept into a powerful construct that may lead to fruitful research on the dynamics of organization‐employee relationships. Implications for future research are discussed.