The paper "Psychological Contracts and Generation Y" is a great example of management coursework. Psychological contracts differ from employment contracts because each type of contract elicits different types of emotions from employees. Whereas employment contracts are more formal than psychological contracts, the former does not evoke the same type of emotional commitment. Therefore, psychological contracts are slowly emerging to be the most binding type of contract between employers and employees, especially generation Y employees (Yow, 2013). A quick review of literature sources reveals that one of the areas of focus has been to what extent psychological contracts promote talent retention.
Researchers have attempted to provide evidence that this type of contracts facilitates better talent retention compared to traditional employment contracts. Consequently, it is prudent to review this information and attempt to ascertain its validity. Additionally, psychological contracts have been associated with career development. Thus, the focus is on how psychological contract influences the career development of generation Y employees. It is also critical to look at the process of the development of psychological contracts among generation Y employees. This information is critical in providing insights on why there is a general belief that it is a better type of contract compared to the employment contract.
Lastly, before embarking on this topic, it would be beneficial to understand the brief background of psychological contracts and its importance in organization behavioral studies. Background of Psychological Studies The history of psychological contracts dates back as far as the late fifties and early sixties. This type of contracts came into being because of the changing relationships between employers and employees. The earliest works on psychological contracts studies were not defined as so; it was only in the early sixties that the term emerged to describe the increased desire for better relationships between employers and employees.
There was an increased tendency among employees to adopt an informal working culture whereby the employer would cater for more than the financial expectations of the employees and thus the idea was conceptualized. Therefore, it is important to point out that the idea of psychological contracts germinated during the generation X era, but it gained more popularity and significance among generation Y. The relationship between psychological contracts and organizational behavior is that this topic enables stakeholders to comprehend why people behave the way they do, especially during different engagements.
Thus, some of the earliest attempts to quantify the impact of psychological contracts focused on how this type of contract influenced different job factors such as Herzberg motivators and performance indicators. Chris Argris was the first person to implement psychological contracts at the workplace (Briner, 2011). An overview of the history of the psychological contract would not be complete without mentioning the contributions of Rousseau. Her works on this topic are regarded as authoritative and provide valuable insights on the matter.
Her most important contribution is her statement that psychological contracts draw their strength from the fact that they evoke a strong sense of obligation founded on the perceived promises as indicated in her definition of psychological contracts.
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