Definitions
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Psychological contract
All definitions
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The psychological contract refers to "people's unconscious expectations of an organization to respond to their psychological needs and support their psychological defenses in exchange for meeting the organization's needs" (Rousseau, 1995).
In other words, individuals believe that, if they fulfill their part of an unstated agreement with the organization, the organization will fulfill its part with respect to their needs. For example, some employees may believe that if they do their jobs well, they will continue to remain employed by the organization. That aspect of their psychological contract may be breached or violated if their employment is terminated due to outsourcing or corporate downsizing. Implications for managers Issues of potential concern to organizations may become important when individuals perceive that the organization has not kept its part of their bargain. When breach or violation of the psychological contract occur, will individuals be harmed? Will their behavior at work change in ways that do not benefit the organization? More broadly, will breach and violation negatively impact organizational performance by promoting a culture of mistrust and suspicion? Does the expectation of breach become part of the culture? Implications for students If you are researching the psychological contract or writing about it for other scholarly uses, you may need to discuss it beyond the definition provided above. Some of important issues are whether breach and violation are different as well as whether psychological contracts exist only in the mind of the individual. In addition, the concept has evolved significantly since in was introduced, and that evolution informs an understanding of the theory in its current state. An excellent resource for this use (as well as an and addition to your organizational psychology library) is Conway and Briner's (2005) Understanding Psychological Contracts at Work: A Critical Evaluation of Theory and Research. References Conway, N, Briner, R. (2005). Understanding psychological contracts at work: A critical evaluation of theory and research. Oxford: Oxford University Press. Rousseau, D. (1995). Psychological contracts in organizations: Understanding written and unwritten agreements. Thousand Oaks: Sage. Read a practice exam essay in response to:
"Critically evaluate the notion of the boundaryless career as it relates to the theory and practice of career management." Exam essay practice answer |
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