ISSN: IJSB: 2520-4750 (Online), 2521-3040 (Print) JSR : 2708-7085 (online)

Psychological Contract of Local Employees in Multinational Companies

Author (s)

WonJoung Choi


As the globalization pressures the companies to expand multi-nationally, the human resource management (HRM) issues are becoming more challenging with cultural factors involved. A growing literature emphasizes that HRM play important part in the success of MNCs. Then what are the HR practices that attracts local staff? What is the belief of local staff that MNCs will provide to them? This research uses the concept of psychological contract to search the answers of above questions by investigating the dynamics of local staffs working for MNCs in Korea. The qualitative methods by conducting in-depth interviews from 9 local staffs and organizing focus group meetings at the Korean subsidiaries of oversea are executed to analyze the psychological aspects of the workers. The performance base rewards and its home country cultures were one of several factors that influenced psychological contract. The change of contract and causes of psychological contract violation is also examined. Recommendations generated from the findings are drawn for MNC HR managers.

Key words: psychological contract; cross-cultural management; multinational companies; international business research; performance base rewards.

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Title: Psychological Contract of Local Employees in Multinational Companies

WonJoung Choi

Journal Name: International Journal of Science and Business
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
Media: Online
Volume: 4
Issue: 3
Acceptance Date: 22/02/2020
Date of Publication: 05/03/2020
Free download: Available
Page: 94-119
First Page: 94
Last Page: 119
Paper Type: Research Paper
Current Status: Published

Cite This Article:

WonJoung Choi (2020). Psychological Contract of Local Employees in Multinational Companies. International Journal of Science and Business, 4(3), 94-119.  doi: 10.5281/zenodo.3698100

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About Author (s)

WonJoung Choi, Department of Business Administration, University of International Busienss and Economics(UIBE), Beijing, China.


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