Although the amount of literature and research were done on the Psychological contract, this widely used concept still does not have a universal definition. Below given are some of the widely accepted definitions provided based on unwritten mutual expectations, implicit contract, understandings, and beliefs.
'A set of unwritten reciprocal expectations between an individual employee and the organisation' (Schein, 1978). 'An implicit contract between an individual and his organisation which specifies what each expects to give and receive from each other in their relationship' (Kotter, 1973). 'The perceptions of both parties to the employment relationship, organisation, and individual, of the obligations implied in the relationship. Psychological contracting is the process whereby these perceptions are arrived at' (Herriot and Pemberton, 1995).
Psychological Contract is an agreement exchanged between individuals and their organisation based on the individual's beliefs shaped by the organisation (Rousseau et al., 1998). Since the presentation of the proper research-backed concept of the psychological contract (Rousseau, 1990), it has been subjected to continuous evolving, receiving the much factual, theoretical and experimental attention in organisational/industrial psychology and behaviour (Zhao et al., 2007). Guest (1998) indicates that the way individuals move in a relationship by perceiving the promises and the fulfilment of them will result in the employees' actual behaviours (Figure 1.0).
Psychological Contract is an agreement exchanged between individuals and their organisation based on the individual's beliefs shaped by the organisation (Rousseau et al., 1998). Since the presentation of the proper research-backed concept of the psychological contract (Rousseau, 1990), it has been subjected to continuous evolving, receiving the much factual, theoretical and experimental attention in organisational/industrial psychology and behaviour (Zhao et al., 2007). Guest (1998) indicates that the way individuals move in a relationship by perceiving the promises and the fulfilment of them will result in the employees' actual behaviours (Figure 1.0).
Figure 1.0: Guest's model of the psychological contract
The research conducted by Guest and Conway (2002) led to the conclusion that: The management of the psychological contract is a core task of management and acknowledged as such by many senior HR and employment relations managers and shows that it has a positive association with a range of outcomes within the employment relationship and is a useful way of conceptualizing that relationship.
ReplyDeletePsychological contract is an emotional attachment between organization and employee. It is more like good will in a balance sheet. But it plays a key role in a success or failure of an organization. When an employee has a positive psychological contract with the organization the results are amazing. According to a research undertaken by Rousseau, 1995 it was revealed employees psychological commitment towards the organization was far greater than wise versa. Further it is the connection or mutual obligations placed with the employer.
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