Outline the features and purpose of psychological contract
“Psychological contract is the foundation of employee – employer relationship.” (Shahnawaz and Goswaki, 2011)
Notably Schein (1970; p.12) mentions “The notion of the psychological contract implies that the individual has a variety of expectations of the organisation and that the organisation has a variety of expectations of him. These expectations not only cover how much work is to be performed for how much pay, but also involve the whole pattern of rights, privileges, and obligations between worker and organisation” which explains in more detail that in an work environment employees and organisation are bonded by more than just an employment contract, that there is an additional …show more content…
Guest’s model consists of five influential stages. First: Contextual and Background Factors that can be divided into two separate sources – individual (age, gender, education, type of work, income etc) and organisational (ownership, business strategy, size etc). Second: Policy and Practise that reflects organisation from within (HR policy and practises, employment relations, organisational culture). Third: Psychological Contract that shows both previous stages in action, the fuse of reciprocal promises, inducements and obligations caused by enforced policies and practises to individuals with different backgrounds in the same organisation. Fourth: State of the Psychological Contract, wheatear and how the deal has been delivered and fairness generally thereby organisation can earn or damage its employee trust. Fifth: Outcomes that indicates consequences both in attitude and behaviour that can again influence the second …show more content…
Grimmer and Oddy (2007) explained that there are two conditions that can boost the perception of violation. The first is where employer has knowingly not fulfilled the obligations due to unwillingness or inability. Secondly, not an obvious violation but rather the understanding that something has changed or needs to be changed to save the working harmony is not seen by both parties the same way or seen at all. Grimmer and Oddy (2007) concluded that breach of psychological contract leads to outcome in which commitment and trust of employees worsens.
Similarly, Jiang et all (2015) wrote that breach is the dominant concept of psychological contract literature stating that it occurs when organisation neglects to fulfil what has been promised though employee completed his part. Moreover the strength of perception of breach increases when individuals share their opinion with colleagues. After the study Jiang et all (2015) conducted that employees with higher sense of breach of contract reported lower levels of job security and satisfactions, and higher levels of work-family conflict and burnout meaning their work productivity decreased.
Above all, it is important not only to understand psychological contract (the features and purpose) and its possible breach, but also its context to ensure positive employee outcome with no issues or misunderstandings (Jiang et all,
“Psychological contract is the foundation of employee – employer relationship.” (Shahnawaz and Goswaki, 2011)
Notably Schein (1970; p.12) mentions “The notion of the psychological contract implies that the individual has a variety of expectations of the organisation and that the organisation has a variety of expectations of him. These expectations not only cover how much work is to be performed for how much pay, but also involve the whole pattern of rights, privileges, and obligations between worker and organisation” which explains in more detail that in an work environment employees and organisation are bonded by more than just an employment contract, that there is an additional …show more content…
Guest’s model consists of five influential stages. First: Contextual and Background Factors that can be divided into two separate sources – individual (age, gender, education, type of work, income etc) and organisational (ownership, business strategy, size etc). Second: Policy and Practise that reflects organisation from within (HR policy and practises, employment relations, organisational culture). Third: Psychological Contract that shows both previous stages in action, the fuse of reciprocal promises, inducements and obligations caused by enforced policies and practises to individuals with different backgrounds in the same organisation. Fourth: State of the Psychological Contract, wheatear and how the deal has been delivered and fairness generally thereby organisation can earn or damage its employee trust. Fifth: Outcomes that indicates consequences both in attitude and behaviour that can again influence the second …show more content…
Grimmer and Oddy (2007) explained that there are two conditions that can boost the perception of violation. The first is where employer has knowingly not fulfilled the obligations due to unwillingness or inability. Secondly, not an obvious violation but rather the understanding that something has changed or needs to be changed to save the working harmony is not seen by both parties the same way or seen at all. Grimmer and Oddy (2007) concluded that breach of psychological contract leads to outcome in which commitment and trust of employees worsens.
Similarly, Jiang et all (2015) wrote that breach is the dominant concept of psychological contract literature stating that it occurs when organisation neglects to fulfil what has been promised though employee completed his part. Moreover the strength of perception of breach increases when individuals share their opinion with colleagues. After the study Jiang et all (2015) conducted that employees with higher sense of breach of contract reported lower levels of job security and satisfactions, and higher levels of work-family conflict and burnout meaning their work productivity decreased.
Above all, it is important not only to understand psychological contract (the features and purpose) and its possible breach, but also its context to ensure positive employee outcome with no issues or misunderstandings (Jiang et all,