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The psychological contract is key to the relationship between employees and employers. It shapes the culture of an organization and affects how people work together. It outlines what employees expect and what employers must do. Recent studies have shown how important this contract is for employee health. A study with 3,870 employees in Germany ...
- The Definition
- The Pros
- The Cons
- The Impact on The Bottom Line
As editor, I have written about this form of ‘contract’ on occasion. Below is an excerpt from The Importance of the Psychological Contract. Vera Hillman, a former HR Exchange Network contributor, has also written about the concept. In her piece, The Psychological Contract: Relevance for Our Everyday Business Operations, Hillmann outlined what she c...
Having defined the psychological contract in greater detail, let us turn the focus now to the pros and cons.
Not-On-Paper
As previously mentioned, the psychological contract is not a physical contract; it’s not documented in any way. This makes it very difficult to execute. In fact, some say it is for this reason alone a PC cannot actually be defined as a contract.
Inconsistent
The psychological contract isinconsistent. Every single employee develops their own PC with the company. While these contracts may be similar across the board, they are still just as unique as each member of the company workforce.
Redundant
There are some that believe the concept of the psychological contract is redundant, even obsolete. Why? There are other ways to measure the employee-employer relationship. This includes employee engagement and pulse surveys.
Like it or not, the psychological contract is real and in force for every employee. Ignoring this fact can be a detriment to the company. Why? These contracts, while the responsibility of both parties, are not created by the employer, but the employee. Additionally, they can change those contracts on a whim and there is no notice required to the em...
- Mason Stevenson
Third, as past research on psychological contract breaches and fulfillment and their outcomes has primary focused on employment relationships, currently, some proposals are trying to apply the psychological contract approach to other not work-related relationships, as the link between students and universities or doctoral supervisory relationships . These attempts of widening the application ...
Simply, in an employment context, the Psychological Contract is the fairness or balance (typically as perceived by the employee) between: how the employee is treated by the employer, and. what the employee puts into the job. The words 'employees' or 'staff' or 'workforce' are equally appropriate in the above description.
First, the continued use of the contractual. concept in the literature is questioned. Second, we deal with the possibility of mixed messages. and divergent expectations surrounding the. delivery of the deal. Third, we present. psychological contract violations within a wider. political economy of capitalism.
May 3, 2018 · The concept of the psychological contract was originally developed by Denise Rousseau. Rousseau is a H. J. Heinz II University Professor of Organizational Behavior and Public Policy at Carnegie Mellon University. Unlike a formal, codified employee contract, a psychological contract is an unwritten set of expectations between the employee and ...
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As for the emerging and developing themes on the psychological contract, Coyle-Shapiro et al. (2019) point out that they focus mainly on (a) those who investigate an expansion of psychological contracts beyond social exchange, the so-called psychological contracts with a strong ideological charge and their relation to organizational commitment, the presence of this type of contract in the ...
