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A psychological contract encompasses the informal beliefs, ambitions, obligations, and expectations the employee and the employer perceives. Essentially, it’s how both parties understand their relationship outside of the written and signed employment contract and what they expect the other party to provide.
A contract is a promise that the legal system recognizes; the psychological contract is the promise that the parties themselves recognize. Denise Rousseau, a professor and researcher of organizational behavior, first argued for the existence of psychological contracts distinct from written, enforceable contracts
Nov 1, 2019 · Psychological contract is the perceptions of both parties to the employment relationship, organization and individual, of the reciprocal promises and obligations implied in that relationship....
Unlike the legal contract of employment, the psychological contract is not tangible. It’s built on the everyday actions and statements made by one party and how they are interpreted by the other. This factsheet explores the psychological contract in the context of the employment relationship.
While an employment contract is a legal agreement printed on paper, the psychological contract is built from the everyday actions, statements and promises of one side of the relationship and how they are received by the other.
Difference from Legal Employment Contracts. Unlike legal contracts, psychological contracts aren’t written or legally binding. They’re based on what people think they owe each other through daily interactions. This makes them flexible but also open to misunderstandings.
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What is the difference between a legal contract and a psychological contract?
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Differences Between a Psychological Contract and a Legal Contract. Psychological contracts describe how parties understand their employment relationship in the form of a commitment, voluntary agreement or promise that facilitates expectations and obligations to receive something in return.
