The Psychological contract
The
psychological contract refers to the unspoken, often informal and mutual
obligation expected between an employer and employee. The psychological
contract is based on mutual fairness, trust and the belief that each party will
honor said contract. As defined by Rousseau
& Schalk (2000), “The psychological contract is individual beliefs,
shaped by the organization, regarding terms of an exchange arrangement between
the individual and their organization.”
Figure 1:The
Psychological Contract iceberg diagram (source:
So what happens when our psychological
contract gets damaged? When we feel that the balance has swung too far to the
employer's side and we start to feel used?
Remember that the employer is unlikely
to agree with our opinion; or to be able to see the breaches of our
psychological contract from their perspective. Repeated violations will mean we
trust our employer less, our job satisfaction will erode, and our performance
will drop. This can turn into a vicious cycle, where both parties end up relying
clause by clause on the IEA.
Gottschalk (2013), feels that when this happens, it is important to
look at "the underlying dynamic[s]" of the situation. She suggests
that we - the employee and the employer - need to evaluate:
· The value of the rewards from
the employee's perspective
·
The health of the communication channels
to discuss the psychological contract. If there are no mechanisms for psychological
contract conversations, create them
·
Inter-party trust levels
on "career support, behavioral consistency and integrity"
·
The expertise in creating employment
relationship transparency
·
Performance feedback systems
for both organizational and individual goals
·
If staff are encouraged to work to
their strengths
It is rare that
breaches are purposely caused or are driven by malice. In general, it is created by the employer by not being able to put himself
in the place of the employee; and from there it feeds on a lack, and sometimes
a deliberate lack, of shared understanding of each other's position.
If organizations can make employment a conversation with employees, everyone benefits. And each of us must remember that our own leadership acts have an impact on our psychological well-being and that of others.
References
BUSINESSBALLS, 2021. BUSINESSBALLS. [Online]
Available at: https://www.businessballs.com/building-relationships/the-psychological-contract/
[Accessed 16 December 2021].
Gottschalk, M., 2013. Mending the
Psychological Contract at Work. [Online]
Available at: https://www.linkedin.com/pulse/20130815133307-128811924-mending-the-psychological-contract-at-work
[Accessed 16 December 2021].
Rousseau , D. & Schalk, R., 2000. Psychological
Contracts in Employment Cross-National Perspectives. California: SAGE
Publications.
Phycological contract is more than a legal contract it influence more towards a better understanding leaders and subordinates. A wonderful topic to enhance our knowledge.
ReplyDeleteIt is very important topic, psychological contract. Specially for sectors involve in product development & Innovation it plays a critical role for the company.
ReplyDeletePsychological contract is very important specially when working offsite & working from home. A good psychological contract will lead to higher productivity and job satisfaction
ReplyDeletePsychological contract is a powerful thing which bonds the employer and employee together in a understanding beyond normal one. This is mostly an unspoken, silence understanding brewed over the years trusting each other and honoring each others' views and decisions. Must encourage all organization to practice this
ReplyDelete