How do innovative human resource practices effect psychological contracts of employees?

![CDATA[This literature review is the first stage of the linking process between innovative human resource practices and psychological contract. It begins by outlining the background issue and the context of service industry in Fiji. The Pacific Island countries rely largely on donations by developed nations and it is prudent that these funds are used effectively to maximise outcome. Tourism Services is the dominant income earner of Fiji and portrays an important area of research within the field of human resource management (HRM). Innovation being the buzz-word in today’s HRM circles could be deemed an expensive process, however third world countries are mainly rich in one resource only and that is human labour. Within human labour, existing literature seems to indicate that culture has an impact on innovativeness and psychological contracts of employees. However there has been little specific research conducted in this area. Workers in Fiji can be “reserved”, sending out signals that they need to be “understood” before their full potential could be realised. In order to gain maximum benefit for both, the people of Fiji and the donor countries from which financial aid is received, this paper proposes a study of the area which crosses boundaries between human resource management, innovation and psychological contract.]]