While much is known about the consequences of the psychological contract, comparatively less is understood about how the contract is actually formed in the first instance. We argue that a closer examination of the fundamental building blocks of the psychological contract will facilitate a better understanding of how it should be effectively managed. Based on its cognitive underpinnings, we make the case for the development of a schema theory perspective on the contract formation process. Specifically, we explore how previous employment experiences and both individual and organizational sources of contract-related information differentially influence the formation of the emerging psychological contract in the new firm. Arising from this, we advance several linked propositions to direct future research in this area. Finally, we discuss the methodological challenges facing researchers seeking

to access employee–employer schemata and propose how some of these

may be addressed.