Essays on Complex Engineering Ltd - Psychological Contract Case Study

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The paper "Complex Engineering Ltd - Psychological Contract " is an outstanding example of a business case study.   The psychological contract is often defined as the individual’ s belief concerning some terms and conditions of an exchange deal with another party or even parties as claimed by Kiazad, K. et al. (2014). It is usually regarded with fairness and balance on how the employer treats the employee. It is also regarded on what the employer invests in the job. A good example is a case whereby, apart from the basic pay, the employer provides a psychological contract that may include the provision of security, training and many more but in exchange of effort, loyalty and many others from the employee.

According to O’ Leary-Kelly et al. (2014), there is a direct relationship existing between the perception of a balanced psychological contract and the commitment of the employee to the company. A psychological contract also increases the innovation and trust of the employee towards the firm. However, the problem that may be associated with these psychological contracts is that it brings about the tendency of relaxation for employees making them neglect some of their roles in their jobs. There are various importance’ s associated with the psychological contract in any organization.

First, the content of the psychological contract is usually informal and unwritten. Typically, the employers and employees have different views pertaining the content of the contract and thus any party is free to give out its opinions about the obligations it will take as found out by Restubog et al. (2015). This enables employers to assess positively their employees, and thus it may create the feeling of trust that leads to an open working environment.

The channels of communication are effective since the contract is informal, and thus the views of the employer and the employee are effectively communicated. This enables the employer to address the expectations he or she has on the employee. The nature of openness of the psychological contracts is very essential in cases where there are negative changes in the organization since employees are free to express their views. Secondly, the psychological contract is very essential in organizations since it makes the employers consider balancing the existing contract as posited by Restubog et al.

(2015). A good example is when the employer wants to change the working hours. This affects what the employees give to the company and thus the employer should also consider changing what he or she offers to the employee so as to maintain balance and flexibility. For the case study of Complex Engineering Ltd, there are significant amounts of negative feedback from the staff that is faced by the company. The objective of this essay will be to explain how the company can integrate psychological contract to restore the lost truth and loyalty from the employees towards the organization considering these negative feedbacks from the dissatisfied employees. How the Psychological Contract can be integrated into Complex Engineering Ltd. Considering the significant amounts of employee dissatisfaction from the negative feedbacks there is a need to integrate Psychological contract in the organization.

There are various ways by which the Psychological Contract can be integrated into the organization. First, is through communicating and supporting the employees when there is a problem in the organization. Communication should be done towards the employees to accept changes that may take place in the company.

The employers of Complex Engineering Ltd should assure the employees good working conditions in the company.


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