The Importance Of The Psychological Contract

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According to Mathis, Jackson and Valentine (2013) the Psychological Contract refers to the unwritten expectations employees and employers have about the nature of their work relationships.
Thankfully I have worked for more employers who have, for the most part, gotten the psychological contract right. I am an extremely engaged employee. I always say “ I work like I own the place”. Do not misunderstand, I am no Miss Goody Two Shoes but I work very hard to uphold my end of the psychological contract. Therefore, after working overtime for the majority of a fiscal year, taking on special projects (notice the “s” at the end and I was actually appointed by company execs to a couple of projects ) and then consistently demonstrating that my worth, …show more content…

However, with that being said, the reality of how my company executed the psychological contract also triggered me to make adjustments on my end. Needless to say my motivation to perform suffered a serious decline. Not necessarily because I did not get a raise but, because I gave more than what was required and received absolutely nothing extra in return. Well I did get some advice on how I could exceed expectations. This advice did not give me any desire to want to do more. For the first time in my life I actually decided mediocrity was just fine, because this company was after blood, sweat and tears and they feel no need to fairly compensate for anything less than those three elements. This blood, sweat and tears concept is not healthy and certainly does not promote a job-life balance. Gallo (2013) states that organizations that breach the psychological contract and do not effectively communicate sound reasons for the breach may decrease their employees’ motivation to perform tasks that would be helpful in meeting organizational

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