presentation on psychological contract
TRANSCRIPT
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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.