The changing nature of the Psychological contract and Employment relationship

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The changing nature of the Psychological contract and Employment relationship.

        Course: Human Resources Management

        Module Subject: Managing Work Behaviour

        Assignment Tutor: Hazel Shanahan

        Student Name: Irina Antonyuk

        Submit Date: 7th of May 2008

Introduction

In this assignment I will discuss the changing nature of Psychological Contract and Employment relationship. The study also will outline future trends of psychological contract relationship what employer’s can in order to maintain both for the good of the company and employee contribution to the employer.

Fundamentally, the psychological contract expresses the combination of beliefs held by an individual and his or her employer about what they expect of one another. Also it can be described as the set of reciprocal but unarticulated expectation that exist between individual employees and their employers. Schein (1965) defined psychological contract as “The notion of psychological contract implies that there is unwritten set of expectations operating at all times between every member of an organisation and the various managers and others in that organisation.” Employees develop a set of informal unwritten assumptions about and expectations from their employing organisation. These are said to be depend on employee trust, perceptions of fairness and reliable delivery of the deal over a range of issues such as job satisfaction, career progression, reward, relationships with managers etc. CIPD defines Psychological Contract as the perceptions of employee and employer about their mutual obligations towards each other. Legal contract is also important it is written and describes what both parties are agreed to do, but in many cases legal contract has little to do with actual employee behaviour and expectations. It is important to notice, that when psychological contract is broken it wont have any legal implication for the employees and employer but as far as employees are concerned, breach of psychological contract by the management will have a negative effect on job satisfaction and commitment and on the psychological contract as a whole.

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Why Psychological contract is so important?

“A Psychological Contract creates emotions and attitudes which form and control behaviour” Spinder (1994). It makes workers work more effectively and be more committed to the organisation.

 By creating and having positive trustful atmosphere at work it would beneficial for both employees and employer. Some times there are could a breach of psychological contract between parties and it happens because of the number of reasons like, mistrust, not meeting expectations, no rewording, etc. Hr manager and other managers should clearly understood the nature of psychological contract, and one of their key roles ...

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