Scribd
Upload
10 views

presentation

Uploaded by

mamalicanada94
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
10 views

presentation

Uploaded by

mamalicanada94
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 14

Understanding the Psychological

Contract: Building Trust and


Commitment in the Workplace

The psychological contract is a powerful concept that shapes the relationship between employees
and their organizations. This presentation delves into the theory, exploring its key concepts,
applications, and implications for managers. We will also touch upon the criticisms and
limitations of the theory in the context of modern work environments.

Bazvand & Khalili


Key Concepts of the Psychological Contract

Mutual Expectations Rights and Obligations


Both parties hold expectations of what the other will contribute and Employees believe they have certain rights, such as fair treatment and
receive in the relationship. This includes responsibilities, rewards, career development opportunities, while organizations have
and support. obligations to provide these.
Types of Psychological Contracts

1 Implicit Contracts 2 Informal Agreements


These are unwritten agreements These are more explicit but may
based on shared assumptions, not be formally documented,
values, and beliefs. relying on verbal
communication or social cues.

3 Temporary vs. Long-Term Contracts


The nature of the agreement can vary based on the duration of the relationship.
Ways to fulfil the terms of the psychological contract

1 Communication

2 Observing

3 Official information
Importance of Psychological Contracts

Employee Motivation Retention


A strong psychological contract Employees who feel valued and
fosters trust, commitment, and a respected are less likely to leave,
sense of belonging, leading to contributing to a stable and
higher engagement and experienced workforce.
productivity.

Organizational Success
Healthy psychological contracts promote a positive work environment,
improve collaboration, and drive overall business performance.
Applications and Outcomes of
the Psychological Contract

1 Job Satisfaction and Motivation

2 Organizational Conflicts

3 Employee Retention and Turnover


Dimensions of the Psychological Contract

Employee Commitment
The extent to which employees feel a sense of obligation and loyalty to the organization.

Organizational Commitment
The extent to which organizations feel a sense of responsibility and commitment to their employees.

Trust and Loyalty


Trust is a crucial element, as it facilitates open communication, cooperation, and a positive work environment.
Formation of Psychological Contracts

Initial recruitment and onboarding processes play a crucial


1
role in establishing early expectations.

Ongoing communication and interactions, including


2
performance reviews and feedback sessions, shape and
refine the contract.

The organizational culture, leadership styles, and


3
employee relations practices influence the overall
understanding of mutual expectations.
Theoretical Models of the
Psychological Contract
Relational Models Breach of Contract Models
Emphasize the ongoing nature of
the relationship, focusing on how Explore the consequences of
expectations evolve over time. violations of the psychological
contract, such as decreased
motivation and job satisfaction.

Adaptation and Alignment Models


Focus on how individuals and organizations adapt their expectations to
maintain a mutually beneficial relationship.
Criticisms and Limitations of the Psychological Contract

Modern Work Environments


The rapid pace of change and the rise of gig work challenge traditional contract models.
1

Operationalizing the Theory


2 Difficult to quantify and measure individual expectations and perceptions.

Subjectivity and Interpretation


3
Ambiguity can lead to misunderstandings and conflict.
Suggestions for Future Research on the Psychological Contract

Psychological Commitments
1 Exploring the role of different types of commitments, such as affective, normative, and continuance commitment.

Impact of Technology
2 How technology influences the formation, maintenance, and breach of psychological contracts
in the digital workplace.

Cross-Cultural Differences
3 Understanding how cultural norms and values shape expectations and
perceptions in different contexts.
Managing Psychological Contracts Effectively

Clear Communication
1
Openly discuss expectations, responsibilities, and rewards to ensure mutual understanding.

Fair and Consistent Treatment


2
Treat employees fairly and consistently, regardless of their roles or contributions.

Flexibility and Adaptability


3 Recognize that psychological contracts can evolve over time and be willing to adapt to
changing circumstances.

Strong Employee Relations


4 Build trust and open communication channels to address concerns and
ensure a positive work environment.
Conclusion and Managerial Implications

1 2 3
Managerial Importance Strengthening the Contract Proactive Engagement
The psychological contract is crucial for Clear communication, fair treatment, and Regularly assess employee perceptions and
building a strong and positive relationship opportunities for growth are essential. adjust expectations accordingly.
between employees and organizations.
Thank you!

You might also like