The Role of Trust in Psychological Contracts: A TESCO Analysis

This report examines the critical role of trust in maintaining psychological contracts within UK-based organizations, using TESCO as a case study. The study explores the factual concept of psychological contracts, different types of contracts, and the relationship between trust and these contracts. The methodology includes a literature review, research philosophy, approach, and design, along with data collection and analysis methods. Findings are presented through thematic analysis, leading to conclusions and recommendations for TESCO to improve employee trust and maintain psychological contracts. The report aims to provide strategies for fostering a trustworthy workplace environment and improving employee relations, offering valuable insights for leadership and management within the organization. The report includes sections on background, rationale, aims, objectives, limitations, significance, and structure of the dissertation, along with a literature review, research methodology, findings, and conclusions with recommendations.

TRUST/PSYCHOLOGICAL
CONTRACT

EXECUTIVE SUMMARY
The recent study is carried to ascertain the importance of trust in maintaining the
psychological contracts in UK based organisations. For which, a renowned establishment of UK
named TESCO has hereby taken into consideration to interpret a need base role of trust in
maintaining the psychological contracts at their workplace. It is however with an intact context
of maintaining a trust level to further prolong the existence of psychological contacts in between
them. It is basically known to be an unwritten clause among the employees and employers where
it mainly concerns about the mutual expectations of one another. The first part of this dissertation
has outlined the factual background of the overall study by together defining its configured aims
and objectives that are required to be accomplished within a set time period. Another most
important part of the study is literature review in which the researcher has referred to distinguish
the carried views of different authors.
This part is entirely based upon the defined objectives of the study that has assisted the
researcher in succeeding towards the factual goals of the study. It is then followed by yet
another crucial section of this thesis named as research methodologies. Thus, on referring to the
showcased title of the chapter, it is believed that this part has defined the applied tactics of the
research to investigate the elected subject matter of this study. Another chapter entitled as
research methodologies has interpreted the obtained facts and findings of this research work with
a prime reflection of primary data collection. Wherein, the last unit has summarised the overall
survey with some concluding points to recommend certain viable strategies to TESCO in
accordance to maintain the trust level of their employees. This will in turn help them in a prime
maintenance of their psychological contracts.

TABLE OF CONTENT
EXECUTIVE SUMMARY.............................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Background............................................................................................................................5
1.1.1 Rationale of the study.........................................................................................................6
1.2 Analysis and framework of the study....................................................................................6
1.3 Aim and objectives................................................................................................................7
1.4 Limitation and delimitations of the study..............................................................................7
1.5 Significance of the proposed research study..........................................................................8
1.6 Structure of the dissertation...................................................................................................8
CHAPTER 2: LITERATURE REVIEW.......................................................................................11
2.1 Introduction..........................................................................................................................11
2.2 Factual concept of psychological contracts in UK based organisations..............................11
2.3 Different type of psychological contracts in the organisations............................................13
2.4 Relationship between trust and psychological contacts at the workplace...........................16
CHAPTER- 3.................................................................................................................................18
RESEARCH METHODOLOGY...................................................................................................18
3.1 Introduction..........................................................................................................................18
3.2 Research philosophy............................................................................................................18
3.3 Research approach...............................................................................................................19
3.4 Research design...................................................................................................................20
3.5 Data collection.....................................................................................................................20
3.6 Sampling technique..............................................................................................................20
3.9 Data Analysis.......................................................................................................................21
3.10 Ethical consideration..........................................................................................................21
3.11 Research limitation............................................................................................................22
CHAPTER- 4.................................................................................................................................23
FINDINGS AND ANALYSIS......................................................................................................23
4.1 Introduction..........................................................................................................................23
4.2 Thematic Analysis...............................................................................................................23

CHAPTER- 5.................................................................................................................................36
CONCLUSION AND RECOMMENDATIONS..........................................................................36
5.1 Introduction..........................................................................................................................36
5.2 Conclusion...........................................................................................................................36
5.3 Recommendations................................................................................................................37
REFERENCES..............................................................................................................................39
APPENDIX....................................................................................................................................43
QUESTIONNAIRE...................................................................................................................44

CHAPTER 1: INTRODUCTION
1.1 Background
Today's modernised prospect of work duly necessitates the organisations to adopt some
prompt and effective measures to accomplish their undertaken goals and objectives within a
scheduled span of time. These projected means are however with reference to handle the
appointed workforce in the enterprise who plays a vital role in carrying out the configured
operations of the business (Bal and et. al., 2013). It is also with reference to work in today's
contemporary set of business in which the establishments reflects to be a collective set of two
leading bodies called the employees and employers. It is hereby important for the entities to
outlook an affirmative relationship among both these bodies with a foremost consideration of the
employers to aptly treat their employees. It is basically to create a vital sense of collaboration in
them to work with a prime consideration of attaining the organisational goals and objectives.
This is also in context to operate with a relative sense of incorporating one other to carry
out a stipulated work related agenda. A principle sense of coordination to cooperate each other is
usually done with a prime concern of working in teams where a group work is evident to bring
some considerable outcomes for the entire organisation at the end (SageDane, 2010). It has
hereby created a vital term of psychological contracts among the employees and employers in an
enterprise to detect their carried relationship with one other. It is however with an intact context
of maintaining a trust level to further prolong the existence of psychological contacts in between
them. It is basically known to be an unwritten clause among the employees and employers where
it mainly concerns about the mutual expectations of one another.
Company overview
The recent study is carried to ascertain the importance of trust in maintaining the
psychological contracts in UK based organisations. For which, a renowned establishment of UK
named TESCO has hereby taken into consideration to interpret a need base role of trust in
maintaining the psychological contracts at their workplace. TESCO is an illustrious retail sector
organisation in UK where they are working with a foundation year of near about 98 years (). It is
a public limited venture headquartered in the Welwyn Garden City Hertfordshire area of
England. On measuring its yearly profits, it is rated to be at 3rd largest position in the globe where
in accordance to its revenue, it is referred to be the 5th largest retail organisation in the world. It is

presently operating with around 476, 000 number of employees and approximately 6, 902
number of stores at a worldwide level.
1.1.1 Rationale of the study
It is the most significant part of the study that will hereby refer to discuss upon the
importance of the elected subject matter of this survey. With reference to which, it is hereby
carried to determine a substantial role of trust in maintaining the psychological contracts at the
workplace of UK based organisation. Wherein, such contracts are referred to intend the
unwritten set of clauses among the employees and their employers. With reference to which, the
mutual expectations among the workers is being specified over here where each of the parties
tend to set a vital expectation of work (MacKenzie, 2016). In simple terms, a psychological
contract is evident to depict the carried relationship among the employees and their employers
with a specific concern of defining their mutual anticipations of input and outputs. It thereby
tends to measure the pertinent feelings of the employees by together representing their varied
viewpoints. It often depicts to be an advantageous tool for the employees with a reliable sense of
their employers to treat them in an appropriate manner.
However, its feasible understanding is a principle requisition for both the organisational
bodies where the employees are together required to work as per the standardised criterion of
work with a due pursuit of their operational norms. Herein, it has reflected a prime role of the
appointed leaders and managers of TESCO to work with a united sense of achievement with
their subordinates (McDermott, and et. al., 2013). A trustworthy factor is hereby referred to be a
significant matter of concern for the organisations working in today's competitive edge of
market. This has postulated to be a chief cause behind selecting this particular topic of research
that will largely serve the readers to draw some liable conclusions on the basis of its acquired
findings. By which, they can together refer to discover some prompt strategies to maintain a
trustworthy prospect for operating at the workplace that will turn support them in a considerable
maintenance of their psychological contracts as well.
1.2 Analysis and framework of the study
This section has referred to depict an undertaken methodology of research referred by the
investigator to conduct a directional set of survey. It has hereby inferred the adopted tools and
techniques of study that has been undertaken by the surveyor over here in context to discuss
upon the design of the study. Wherein, the researcher has hereby referred to conduct an

exploratory study to examine the newer conceptions of this investigation topic (Cooper and et.
al., 2006). In relation to which, this unit has together presented some other configured measures
to conduct the study by referring to both primary and secondary collection of data. It is where the
primary data has been gathered by conducting some pivotal techniques of group interviews and
other observatory methods. It is with another tactic of secondary data collection that has been
done by referring to some authenticated publications by referring to some genuine set of books,
journals and online articles, etc.
1.3 Aim and objectives
A prior aim of this study is “To determine the significance of trust for maintaining
psychological contracts in modern day workplaces of UK- A study on TESCO”. This is yet
again based upon some vital objectives that are as specified below-
 To explore the factual concept of psychological contacts in UK based organisations.
 To analyse distinct type of psychological contracts in TESCO.
 To discover the relationship between trust and psychological contacts in TESCO. To recommend some prompt strategies to uphold the trust level of employees for a
prime maintenance of psychological contracts in the TESCO.
Research questions
 What is the factual concept of psychological contracts in UK based organisations?
 What are leading types of psychological contracts that are being employed at the
workplace?
 How trust is interrelated with the conception of psychological contracts?
1.4 Limitation and delimitations of the study
It is basically in association to discuss upon such limited prospects of study where the
surveyor is hereby required to deal with various constricting means such as a limited period of
time and a restricted budget to carry out the research work. It is therefore important for them to
carry out a planned study with a pre-scheduled division of tasks that are required to be carried
out to reach the formulated aims and objectives of the investigation (Lapointe, Vandenberghe
and Boudrias, 2013). Gantt chart is hereby referred to be such assistive tool that greatly supports
them in timely achievement of their stipulated goals and targets. Apart from this, a planned
allocation of fiscal resources is yet another prime concern to eliminate the relative consideration
of funds.

1.5 Significance of the proposed research study
This is to discourse upon the perpetual importance of this survey where it has been
carried out to determine the role of trust for a chief maintenance of psychological contracts at the
modernised set of workplace in UK based organisations (Ren and et. al., 2013). For which, the
researcher has hereby referred to conduct an analogous study that is based upon a notable retail
enterprise of UK entitled as TESCO. It is referred to be substantial proposal of the research that
will in turn aid the researcher to acknowledge today's contemporary set of businesses in
association to create a trustworthy environment at the workplace.
1.6 Structure of the dissertation
This particular section has referred to determine the overall structure of the study that has
been carried out the researcher over here. Into which, the surveyor has hereby referred to
discover a prime importance of trust for maintaining a psychological contract with the employees
at the workplace. The entire investigation with reference to which has been carried out in a step
wise format with a primary formulation of varied objectives that are required to reach out its
ultimate goal. In context to which, the investigator has hereby assessed the valuable information
that are necessary for the in regard to acknowledge such influential traits that are will be
accountable to address improved ways for executing the research activities. For which, it is
hereby required to guesswork those areas that are factually liable to impact upon the trust level of
today’s contemporary set of workers. Besides this, this outlined structure is also based upon
accepting and signifying those aspects which are needed to be assessed in a strategic manner.
With respect to which, the below mentioned structure has been pursued and enforced to
accomplish an in-depth evidence to reach out the aimed objectives of the study:
Chapter 1 Introduction: It is the foremost part of the present research work that has provided
concise information regarding the elected subject matter of the study. It has basically defined the
selected topic of the survey by together describing the prime reason behind its selection. Apart
from this, introduction section has together depicted some other vital requisition of the
investigation by outlining its aims and objectives, rationale of the study, significance of the topic,
a brief overview of the study background and its conceptual framework, etc. It is where all these
portions are significantly required for the readers to interpret the factual composition of the
investigation.

Chapter 2 Literature Review: It has depicted to be yet another potent section of this survey in
which, the researcher has hereby referred to critique distinct viewpoints of different authors in
regard to conceptualise its elected subject matter. In context to which, this section has explicated
varied topics that are needed to be evaluated by critically studying and assessing the formulated
aims and objectives of the investigation. It is however done by defining certain themes in
accordance to the aimed objectives of the study. With the help of it, the investigator has critically
reconsidered the information about each relative prospect of the survey in a systematic manner.
Likewise, this practice of discovering the subjects as a mean of generating liable set of
information is highly beneficial to interpret the significance of trust in maintaining the
psychological contracts at a modern workplace.
Chapter 3 Research Methodologies: This unit has defined the adopted methodologies of the
researcher in order to carry out the study in a directional manner. Wherein, the entire data has
together been gathered, evaluated and measured with a convergent courtesy and determination of
the researcher over a definite period of time. For this, several strategic techniques have been
undertaken by the investigator over here with a fundamental concern of accomplishing improved
understanding of research topic. In recent investigation, the prompt tools of data collection that
has been employed by the researcher are primary and secondary measures along with a
qualitative analysis of the acquired findings and an inductive approach of the surveyor.
Chapter 4 Data analysis: Likewise, this chapter has enlightened the acquired facts and findings
of the research work by together depicting the data obtained from distinct resources. Herein, the
investigator has hereby referred to employ both primary and secondary measures of data
collection. It has been done by referring to some genuine set of books, journals and varied
internet articles from several online publications as some secondary measures of data collection.
It is where the primary survey has been done by directly approaching the targeted set of
respondents with a framed set of questionnaire to investigation the formulated queries from
them.
Chapter 5 Conclusion and recommendation: It is the endmost unit of this investigation that has
summarised the overall verdicts in regard to correspond it with its formulated aims and
objectives. It is another most prudent section in this overall research work that has further made
some substantial recommendations in order to propose some more improved ways in which the
trust level of the employees can be maintained in a modern set of workplace. It has hereby

referred some proficient commendations that will in turn assist TESCO to maintain the
undertaken psychological contracts among the workers. This unit is thereby divided into two
vital sections with a foremost part named conclusion to depict the assimilated objectives of the
study. This in turn supports to formulate prompt recommendations by the surveyor based upon
the overall analysis of the research topic.

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
It is another most important part of the study in which the researcher has referred to
distinguish the carried views of different authors. This part is entirely based upon the defined
objectives of the study that has assisted the researcher in succeeding towards the factual goals of
the study. It also gives a clear understanding of the subject matter by generating better resultants
at the end. Apart from which, it also tends to examine some conceptual areas of the research
topic in order to explore its overall prospects. It is basically a course of studying the stipulated
aims and objectives of the survey that is further based upon some realistic themes that have been
designed with a special consent of reaching towards its leading agenda. This in turn supports the
investigator to carry out the entire research work in a fluent manner where this procedure of
theme development in vital to direct the efforts.
It together guides the surveyor in acquiring a considerable cognition of the subject matter
that ultimately generates some pivotal ideas and materialistic intelligence to address the aims and
objectives of the research. It is therefore in regard to carry out the present research work, where
the investigator has vitally focussed on critiquing the three leading themes of the study. This has
involved a foremost consideration of underlying the core concept of psychological contracts in
UK based organisations with a precise interpretation of its factual orientations at their workplace.
The subsequent topic has referred to underline the yet another interlinked term called social
contracts as a mean of acknowledging its linkage with a maintained psychological contracts in an
organisation. The last subject matter has referred to ascertain the association between the trust
levels of the employees with that to a collaborated psychological contract.
2.2 Factual concept of psychological contracts in UK based organisations
According to the view of Yuan, Zhang and Dai, (2016) physiological contract is an
applicable concept of workplace relationship. It refers to a relationship between an employee and
employer and concern with mutual expectation and input and outcomes. It is a feeling of
employee but full appreciation is needed for understanding it from both the side employee and
employer. The physiological contract should be fairness and balance in term of employment. In
this it includes the way worker are treated by owner and what are the factor which put employees
in a job. As per view of Restubog, Zagenczyk and Chapman, (2015) there exists varied

organisational theories and practices that can be applied in an employment situation to base upon
a maintained relationship between the humans. There are various factors in a physiological
contract that is employee satisfaction, wellbeing and flexibility this all are both causes and
effects. Employee feeling and attitudes of employee are same at the time when expectation is
reward. Further, it can be stated that workforce attitude in the retail based organisations like UK
such as TESCO and feeling act upon two level that is if employee are treated well-mannered at
work it is an aspect of flexibility contract.
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