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Aligning employee expectations with the company’s goals
- A well-managed psychological contract enhances organizational performance by aligning employee expectations with the company’s goals. When employees understand and agree with what is expected of them and what they can expect in return, they are more likely to be motivated, productive, and committed to the organization’s success.
www.shiftbase.com/glossary/psychological-contractPsychological Contracts and Their Impact on Business Outcomes
The theory of the psychological contract shows as a key factor the perceived adequate performance of the contract between two parties involved, where subjectively one of the parties considers that the other has not adequately performed the obligations promised (Robinson, 1996).
Mar 23, 2011 · In this context, the "psychological contract" — an unwritten pact that complements the economic arrangement between the employee and the company and defines the psychological commitment between ...
Oct 15, 2024 · A well-managed psychological contract enhances organizational performance by aligning employee expectations with the company’s goals. When employees understand and agree with what is expected of them and what they can expect in return, they are more likely to be motivated, productive, and committed to the organization’s success.
Nov 29, 2020 · Subsequent to the signing of an employment contract, the psychological contract (employee expectations vs employer obligations) evolves a nd shifts as both employer and employee modify their ...
Results have shown negative effects on both attitudes and behavior toward the organization. Over the last decades, there has been an increasing interest in the interaction and processes involved in developing and maintaining psychological contracts and repairing them after perceptions of breach.
Key Takeaways. Psychological contracts are unwritten agreements between employees and employers. They significantly impact employee engagement, motivation, and retention. Fairness and trust are fundamental to strong psychological contracts. Effective communication is vital for managing expectations.
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We highlight the practical implications of research to date on psychological contracts and end with directions for future research to include the need for greater attention given to ideological currency, employee health, polycontextual approaches, the role of psychological needs, and post-breach/violation.