The Role of Psychological Contract in Employee-Employer Relationship

Assignment
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
The psychological contract refers to the unwritten set of expectations of employment
relationship in context of formal, codified employee contract. It will be considered as important
concept that help for defining the relationship between employee and employer’s relationship.
This report will discuss about the brief concept of Psychological contract and how will
application within organization. It will discuss the different step up that needs and expectation of
each and every employees. Furthermore, this documentation will describe about the role of
psychological contract and how will respond to change the expectation of particular staff
members in organization.
MAIN BODY
Brief idea of Psychological contract
The Psychological contract can develop or evolve constantly based on the effective
communication, or lack of coordination between employers and employees. Usually, it plays
important role within organization which help for maintaining the promotional activities, salary
increases. At that time, it applicable psychological contract while managing an expectation is
consider as important part of employers and representing as key behaviour. This cannot do
accidentally give staff members in wrong perception of particular action. In some situation,
existing employees should manage their own expectations (Arasli, Arici and Çakmakoğlu Arici,
2019). For Example- it may arise difficult situation and adverse personal circumstances that
directly affecting on the business productivity and profitability but not completely managed in
proper manner.
Perceived breaches of Psychological contracts that can directly damage relationship of
employee as well as employer. In this way, it is leading disengagement, reduce productivity. In
context of Psychological contrast, fairness is important part which bound up equity theory among
employee. In order to the handle the complex situation and being treated fairly to sustain a
healthy psychological contract.
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