What Does the Term Psychological Contract Mean

A psychological contract between an employee and an employer works in the same way – for this relationship to thrive in the long run, both parties must feel that it is balanced and that their contribution is fair. Stewart and Joines continue: “. Such changes usually pose a challenge to a person`s frame of reference. The practitioner [therapist] and the client [patient] are likely to enter into their working relationship with a secret agenda. An important function of a treaty is to make the hidden agenda explicit. Much of the theory surrounding psychological contracts is intangible and difficult to present in absolutely measurable terms. Diagrams can be useful for understanding and explaining intangible concepts. Here are some interpretations of diagrams proposed here as useful models for understanding psychological contracts. The term “psychological contract” refers to the expectations, beliefs, ambitions and obligations of the individual as perceived by the employer and the employee. The concept was born in the early 1960s and is at the heart of understanding the employment relationship. Based on knowledge of psychology and organizational behavior, it provides employers with a strong reason to pay attention to the “human” side of the working relationship. Although the concept of psychological contract describes the expectations of employers and employees, the concept has been studied primarily from the employee`s point of view.

With this in mind, the psychological contract can also be used in recruitment to define job descriptions. When hiring new team members, the beliefs affirmed by the psychological contract will undoubtedly influence how recruiters select new team members. This “positive cycle” greatly facilitates organizational change management and means that employees are less likely to react negatively to a relatively small incident or anomaly in the overall psychological contract. HR professionals are familiar with contracts. In almost every industry, companies require potential new employees to sign at least one form or another. In some cases, there are several types. However, there is one contract that is not signed: the psychological contract. The psychological contract is markedly different from a contract or physical document – it represents the term “relationship” or “trust” or “understanding” that may exist for one or more employees, rather than a tangible sheet of paper or legal document that may vary from one employee to another. Ultimately, a written employment contract that a team member has with their company doesn`t have much impact on their day-to-day work experience.

The red arrows represent the tendency of the iceberg to rise with success and maturity in the work and, to some extent, in the success and maturity of the employer`s organization. More mature, experienced, and high-performing employees will tend to see their personal icebergs rise, so more and more hidden contractual factors will become visible and written into formal employment contracts, beyond the waterline, so to speak. Employees usually want the iceberg to rise. The same goes for enlightened and progressive employers. They want the hidden unwritten aspects of the psychological contract that are beneath the surface to become applicable and contractually visible and formalized. A growing iceberg means an increasing contribution of employees to the company`s performance, which is usually rewarded with ever deeper rewards and benefits. Earlier in this article, the term “violation” was used. A violation is the result of a psychological contract that has gone wrong.

A violation occurs when one party perceives the other as unsatisfied. These include: Without an effective two-way conversation, the contract between the employee and the employer (or even the employee and the employee) can become unbalanced and a “violation” can occur. Violations and how they occur will be discussed later in the article. Other more controversial elements around the psychological contract also occur. There are disadvantages to disseminating psychological contracts without proper supervision. ROUSSEAU, D. (1995) Psychological Contract in Organizations: Understanding Written and Unwritten Agreements. Newbury Park, California: Sage. Measure employee attitudes: Employers should regularly monitor employee attitudes to determine where actions are needed to improve performance. A positive psychological contract usually supports a high level of employee engagement. During a “contract repair process,” people try to restore the balance, either by looking for other ways to meet their expectations or by reducing their expectations.

For example, employees who have a “relational” psychological contract (for example. B overtime in exchange for better career opportunities) can withdraw their behavior outside the role and move to a basic “transactional” agreement. Others may respond by behaving proactively and treating the situation as an opportunity to learn how to compensate for the loss of position and uncertainty. To successfully manage contract repair and prevent individuals from leaving the organization, individuals must have the psychological and social resources and develop resilience skills in advance. Read Zurich Life and Isos Housing`s case studies on managing changes in staff supply. The term “contract” (lowercase “c”) in the context of communication is not yet clearly defined and generally does not refer to the psychological contract. As discussed below, “procurement” generally refers specifically to the “agreement of mutual expectations” in the context of transactional analysis (a specialized therapeutic or coaching/consultation methodology) and perhaps also in other forms of therapy. (THE “Contracting” TA is specifically described in modern TA theory.) Violations of the psychological contract by an employer are not always avoidable. .