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    • What is the Psychological Contract? | Theory & Practice ...
      • Because a psychological contract is based on an employee’s sense of fairness and trust, when an organization is perceived to break its promises, violate its norms or not honor the ‘deal’ between them it doesn’t just reduce job satisfaction, it also lowers employees’ commitment and performance.
      www.personio.com/hr-lexicon/psychological-contract-explained/
  1. On the other hand, when the psychological contract is violated or broken by either party, feelings of betrayal, resentment, and disengagement can occur, negatively impacting productivity and morale. A strong psychological contract can help retain employees as they commit to the organization and feel they belong. Types of psychological contracts

  2. Oct 28, 2019 · Unlike a formal, codified employee contract, a psychological contract is an unwritten set of expectations between the employee and the employer. It includes informal arrangements, mutual beliefs, common ground and perceptions between the two parties.

    • Mason Stevenson
  3. Mar 23, 2011 · Whenever the psychological contract breaks, the results are negative both for the employer and the worker. Both wind up losing.

  4. This blog post explains the reality of psychological contracts, why they’re important, and what happens when employees break their psychological contract and mentally ‘check out’ from their work.

  5. The generation of intense negative psychological states can explain the negative influence of psychological contract breach on employee well-being, operationalized as job satisfaction, organizational trust, and other attitudes.

  6. 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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  8. When expectations are not met, this can cause negative emotions, and the person who feels the contract hasn't been met may withdraw some or all of his or her commitment to the organization. We may think of this as a contract between a worker and an organization, but the psychological contract is essentially formed by the worker.