This study describes the transformation of the psychological contract in two service companies privatized in the years of 1997 and 1998. Data were collected through 42 in-depth interviews in two states in the South and one state in Southeast Brazil. Interviews occured in all hierarchical levels, including 2 human resources top managers, 17 middle managers and 23 white and blue collar employees. According to Rousseau (1996)'s model, four stages of the transformation process were identified: (1) challenging of the old contract; (2) preparation for change; (3) new contract generation; and (4) living in the new contract. According to the study, transformation of the psychological contract requires not only understanding those aspects related to explicit or implicit promises, but also aspects external to the contract such as trust, changes in the firm's external environment (competition, labor market), and changes in the internal environment (organizational culture, technology).
psychological contract; change management; human resources
