Psychological Contract for Sustainable Leadership in Organizations

Phycological contract can help
in developing sustainable
leadership in organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Psychological contract a refers to recognition of responsibility from both parties in terms
of communication and behaviour. It is the one which provide information and remind for
potential impact to support productivity level on long term. It is also set of implicitly and
explicitly which is given promises that includes entitlement and duty between employee and
employer. Sustainable leadership refers to a adopting of responsible approach which can have
high impact on action on society along with environment. This may include a stakeholder group,
natural system and operation within limit (Lam and et. al., 2021). It also refers to a source of
competitive advantage for the organisation which create a opportunity with innovation
improvement and competitive advantage on long-term success. In this essay, there is discussion
about the understanding of psychological contract which can be effective and help in developing
sustainable leadership within an organisation or a team.
MAIN BODY
Within an organisation psychological contract includes a believes obligation, ambitions,
individual expectations as perceived by employer and employees. This was the effective concept
help to understand the employment relationship (Aboramadan and et. al., 2021). Understanding
of psychological contract allow constantly evolving working relationship that are refines
according to communication and behaviour which goes on between employee and employer. In
this, employee work effectively and inputs things like ideas, effort and commitment and
sacrifices for the company where employer provide him some specific benefit. Individual should
not confuse with the psychological contract and written employment contract. They are two
different things where employment contract refers to legal and building argument between two
parties. Whereas, psychological contract provides better relationship with feeling each others
expectations within organisation without any legal agreement.
There are various aspects of psychological contract which can include opportunity for
promotion, jobs, security, employees reputation in society and opportunity to learn and improve.
It also include supportive manager and perception which can contribute in positively to society,
perceived fairness of pay along with perception of internal processes (Patiar and et. al., 2020).
This may also include expectation to go above and beyond and perceived fairness in parks and
benefit package. There is need to understand that psychological contract is different than written