Presentation on Psychological Contract

8/3/2019 Presentation on Psychological Contract

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By: Sadia AshrafID# Fall-MM-0049

Program: MBA (Regular)


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Psychological ContractApsychological contract represents the mutual

beliefs, perceptions, and informal obligations betweenan employer and an employee.

Mutual obligations, values, expectations andaspirations that operate over and above the formalcontract of employment.
http://en.wikipedia.org/wiki/Employerhttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Employer


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Significance of Psychological

contract Incorporation ofbeliefs, values, expectations and

aspirations of employer and employee

These expectations are not necessarily made explicit. Itcan be regarded as the implicit dealbetweenemployers and employees.

An important aspect of the notion of a psychological

contract is that it can be continuallyre-negotiated,changing with an individual's, and an organisation's,expectations


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Violation of the Psychological

Contract In relation to job security, opportunities for

development or ethical principles, referred to asviolation of the contract. This can lead to feelings ofinjustice, deception or betrayal among employees.

There is also evidence that employees with differentunderstandings of their psychological contracts

respond differently to contract violation and toplanned organisational change .


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Importance of Psychological

Contract Useful concept for understanding what employees and

employers expect of a job and a work environment.

Expectations of tenure or promotion but also sense ofentitlement to work-life benefits and flexible workingarrangements.

Work-life balance or integration can be a key factor in

establishing a positive psychological contract.


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Factors Associated with Psychological

Contract Development Both individual and organisational factors appear to

be associated with the development of thepsychological contract.

Individual determinants include experiences andexpectations which may have been formed about theemployment relationships, prior to employment,

during recruitment. These experiences and expectations may vary

according to individual difference factors such as age,gender, level of education.


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Generational and Life Cycle Change

in the Psychological Contract There is evidence that older members of the workforce

feel that the psychological contract, as theyunderstand it, has been violated.

The assumptions feeding into the psychologicalcontracts perceived by these young adults thus appear

to reflect the changing realities of the labour marketand the employment relationship.


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Implications for Policy and

PracticeWhile the violation of the psychological contract has

received much attention, research into fulfilment ofthe contract has been neglected.

Factors which give rise to 'mutuality', the agreement ofcommitments between employer and employee.

Employees questions about their perceptions of fit

with regard to the psychological contract, and foundthat greater fit was associated with higher jobsatisfaction and a reduced intention to quit.

Documents

Presentation on Psychological Contract