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  1. Rousseau distinguishes four phases in psychological contract formation and evolution. Firstly, in the pre‐employment phase, professional norms and societal beliefs play a general role. Secondly, more specific components of psychological contracts are formed in the recruitment process.

    • What Is The Psychological Contract?
    • How Is The Communication Is A Key element?
    • Contract Diversity
    • Exploring The Psychological Contract
    • Contracts Gone Wrong
    • Conclusion

    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 the em...

    Since the contract itself is not formal and codified, it exists in a state of flux. It is constantly developing based on communication between the employer and the employee. While consistent communication positively impacts the psychological contract, it is worth noting a lack of communication can negatively impact the contract. This includes conve...

    The benefit of a psychological contract versus a more codified contractis that it is individually focused. Every psychological contract is different because each employee is different. Do not underestimate the impact of diversity. This can make a huge impact on both the employee and the employer. Individual psychological contractsallow the employee...

    As previously stated, what makes up the "contract" can vary with the unique needs and aspirations of each employee, but that does not imply an organization should seek to satisfy each employee’s unspoken expectations. It is, however, an area where an organization can leverage the employee-manager relationshipby equipping and encouraging managers to...

    Earlier in this article, the term “breach” was used. A breach is the result of a psychological contract gone wrong. A breach occurs when one party perceives the other as failing to fulfill promises. Those include: What happens when breach occurs? Typically, employers will see negative emotions from the employee such as anger, betrayal, or sadness. ...

    At the end of the day, the psychological contract is the responsibility of both the employee and the employer. Both have separate responsibilities to guard against potential breaches. For the employer, it is about making sure not to give the wrong perception to an employee and to make sure promises are upheld. For the employee, it is about managing...

    • Mason Stevenson
  2. The final part of the chapter considers how researchers and practitioners are currently using the concept. Chris Argris (1960) was the first to apply the psychological contract to the workplace. He believed that employees and their organization created psychological contracts that allowed the expression and gratification of each other's needs.

  3. 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.

  4. 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 ...

  5. 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 ...

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  7. We provide a review of psychological contract research, beginning with past conceptualizations and empirical evidence. We tailor this retrospective look by reviewing the antecedents and outcomes associated with psychological contract breach and discussing the dominant theoretical explanations for the breach-outcome relationship. This synthesis of past evidence provides the foundation for ...

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