The paper "Scott Walkers' Psychological Contract " is a perfect example of a business case study. A psychological contract refers to a set of expectations, promises and informal obligations between an employer and an employee. They are usually informal, assumed and partially vocalized and only identifies mutual duties and responsibilities in a generalized form. According to an organizational scholar Denise Rousseau, the psychological contract represents the mutual beliefs, perceptions and informal obligations between an employer and an employee. It marks the commencement of a relationship between an employee and the employer. This concept takes place during the recruitment process where the employer and the employee agree on what they can offer.
These agreements are used to set expectations on the part of the business and promises on the part of the employee. The company may, for example, promise healthy working environment for the employee, and this will apparently put the employee in a given state of expectations that may lead to disappointment or satisfaction during the actual working condition. Intelligent employers should, therefore, be careful not to give these promises on documents for the purpose of preventing certain future consequences in case of their failure.
It is why most of these agreements are usually informal. Therefore, the employee has no other option but to trust the employer so as to find out the outcome of the agreement in the future. A psychological contract is a two-way process where the employer and the employee trust are put to test. This means that both parties have to act up to their words or rather their promises. The employee has to give details that he can match up to while on the other hand, the employer has to give promises that he can fulfill.
The psychological contract determines what the parties will do and what they will not do and how they will do them. This, therefore, means that breaching of the psychological contract can also be either way depending on the employer-employee relation. Breaching of the psychological contract usually can be identified after the first year of employment. This offers room for assessment of employee through supervision and confirming whether the employer has matched up to his personal details issued during the interview.
Also, the employee critically analyzes the working condition including payment among other promises made by the employer. An employment relationship is not however only guided by the contract. This means that how the employer, the supervisor, the employee and other people in the organization will change how they relate from day today. Through this, the aspect of renegotiating the contract is done from day to day due to interpersonal relationships formed in the workplace. When the expectations of the employer-employee relationship are met, the level of loyalty and trust are likely to be on the rise and so will the outcome of the work.
However, the employee is most likely to develop negatively when he is disappointed. This happens when employees conclude that an organization has failed to achieve its promises. This leads to demotivation reduced level of trust and loyalty. This decision usually comes up after a year of experience in the workplace. The attitude of an employee may affect the performance of an organization whether positively or negatively and thus should be maintained on the active side.
What is a psychological contract? (n.d.). Retrieved March 18, 2015, from http://www.alchemyformanagers.co.uk/topics/6ixdhhPwDvZFjsZc.html
Related materials. (n.d.). Retrieved March 18, 2015, from http://www.businessballs.com/psychological-contracts-theory.htm
The psychological contract. (n.d.). Retrieved March 18, 2015, from http://www.cipd.co.uk/hr-resources/factsheets/psychological-contract.aspx
What is a Psychological Contract? (2013, July 26). Retrieved March 18, 2015, from http://www.hrzone.com/hr-glossary/what-is-a-psychological-contract
Psychological Contract. (n.d.). Retrieved March 18, 2015, from http://www.laboursolutions.com/psychological contract.htm
Understanding Psychological Contracts at Work: A Critical Evaluation of Theory and Research. (n.d.). Retrieved March 18, 2015, from http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780199280643.001.0001/acprof-9780199280643
Influence of Psychological Contract on Employee-Employer Relationship. (n.d.). Retrieved March 18, 2015, from http://www.academia.edu/5694622/Influence_of_Psychological_Contract_on_Employee-Employer_Relationship
Career Development International. (n.d.). Retrieved March 18, 2015, from http://www.emeraldinsight.com/doi/full/10.1108/13620430210414856