How the psychological contract has changed?

Psychological contract, the unwritten agreement between an employer and employee, is changing in the post job security economic environment. This change in the psychological contract has implications on organizations that seek to have a work force that is motivated and committed towards the organizations goals.

What is included in a psychological contract?

Unlike a formal, codified employee contract, a psychological contract is an unwritten set of expectations between the employee and the employer. It includes informal arrangements, mutual beliefs, common ground and perceptions between the two parties.

What is a psychological contract example?

Promises over promotion or salary increases, for example, may form part of the psychological contract. Perceived breaches of the psychological contract can severely damage the relationship between employer and employee, leading to disengagement, reduced productivity and in some cases workplace deviance.

What are the types of psychological contract?

Following these two dimensions, four types of psychological contracts were identified: mutual high obligations, mutual low obligations, employee over-obligation, and employee under-obligation.

What happens if the psychological contract is broken?

Breaches of the psychological contract can lead to an employee becoming disengaged with their job and, if not resolved, can continue to cause disaffection and demotivation that further results in a decline in performance.

What is a relational psychological contract?

The relational psychological contract refers to reciprocal promises among individuals based on utmost trust and implicit emotional attachment. Traditionally, in literature psychological contract consists of employer and employees.

Who is the best psychologist of all time?

Sigmund Freud

Is it ever ethical for a manager or subordinate to violate a psychological contract What if violating a psychological contract may have negative consequences for some employees but benefit other employees?

Mutual expectations are established through psycho- logical contracts. Yet because the psychological contract is an informal rather than a formal agreement, there may be no repercussions when an employer or an employee violates that agreement.

What is a healthy psychological contract?

A healthy Psychological Contract is one where both sides agree that a fair balance of give and take exists.