Saturday, March 5, 2016

HOW PSYCHOLOGICAL CONTRACTS DEVELOP

Psychological contracts are not developed by means of a single transaction. There are many contract makers who exert influence over the whole duration of an employee’s involvement with an organization. As Spindler (1994) comments:





Every day we create relationships by means other than formal contracts... As individuals form relationships they necessarily bring their accumulated experience and developed personalities with them. In ways unknown to them, what they expect from the relationship reflects the sum total of their conscious and unconscious learning to date.


The problem with psychological contracts is that employees are often unclear about what they want from the organization or what they can contribute to it. Some employees are equally unclear about what they expect from their employees. 


Because of these factors, and because a psychological contract is essentially implicit, it is likely to develop in an unplanned way with unforeseen consequences. Anything that management does or is perceived as doing that affects the interests of employees will modify the psychological contract. Similarly the actual or perceived behaviour of employees, individually or collectively, will affect an employer’s concept of the contract.


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