8 Psycholgical Contract
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Transcript of 8 Psycholgical Contract
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Psychological Contract
BA Business Administration
MT0928A
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Psychological Contract
The psychological contract refers to the idiosyncratic set of
reciprocal expectations held by employees concerning their
obligations and their entitlements (McLean, Parks, Kidder &
Gallagher, 1998 The psychological contract has proved crucial in shaping
employees attitudes and behaviours and in predicting
employees well being (Anderson & Schalk, 1998)
The non-fulfilment or violation of the psychological contract has
been found to elicit intense attitudinal and emotional responses
(Robinson & Rousseau 1994)
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Two distinctions:
Transactional and relational- Relational psychological contract focuses upon socio-
emotional exchange, with job security in exchange for
loyally as core elements. It includes dynamic andsubjective content terms, and in long term in duration.
- The transactional psychological contract focuses upon
economic and short-term exchanges of benefits and
contributors, with pay for attendance as a prototypicalexample, its content is precisely defined, and its time
frame is finite and short term.
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Model of Psychological contact (Guest, Conway 2004)
IndividualAge; gender;
education
Unionmembership
Type & hours ofwork
Employmentcontract
Marital status &children
Tenure & income
Managed careerprogressionOrganisational
Sector, size,location
Fairness
Trust
They
deliver
on the
deal
Attitudinalconsequences
Organisationalcommitment
Life & workSatisfactions
Work-life balanceStress
Excitement
Loyalty
Backgroundfactors
State ofthe PC
Outcomes
Distal
HR policy andpractice
Flexible workpractices
Jobalternatives
Proximal
Supervision
leadership
Promises made
High qualityworkplace
Behaviouralconsequence
MotivationIntention to
stay/quit
Organisationalcitizenship
influence
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Employee Engagement Model
CIPD Working life research report
Individual
factorsGender
AgeEducation
Dependants
Status
Ethnic group
Disability
Working lifeWorking hours and
leave
Flexible working
Work-life balance
Pay
OccupationBullying and
harassment
Mmt & Ldsp &
comPerceptions of line
and senior mgrsCommunications
Appraisal
Perception of orgn
performance
Attitudes to wrkSatisfaction
Commitment
Stress & Pressure
Emotional
Responses
Loyalty
EngagementEmotional
Cognitive
Physical
Advocacy
Outcomes
Individualperformance
Intent to quit
Absence levels
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Managing the Psychological
contract Management policy and practice shapes the state of the
psychological contract through:
- Its use of HR practices
- Its provision of scope for control and autonomy
- Its creation of a work climate that fosters various forms of
social support
