The Benefits of a Psychological Contract

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INTRODUCTION Psychological contract is expectations of an employee or workforce towards employer that somewhat loosely refers to the actual. It represents basic senses that are obligations, rights, and also rewards (www.wikipedia.com.my). An obligation is a duty of employee of their task. The employee must know their task and do it effectively. Everyone have their right, employees also have it. So the employees and employers must know their right. While reward is one of the powerful influences on individual performance is an organization’s reward system (Miguel 2011:18). By the rewards it will make the employee feel motivate to do the job. By this psychological contract we will specifies what we can offer to employer and we can expect in return. Sometimes, the employers will discuss with interviewee during the recruitment what they can offer in the prospective relationships. If both of them have reached the agreement, most employers will make a standard form of contract and put all duties of employee or interviewee to be clarified “on the job”, but some of the employers just make it just a informal statement and may be remembered as promises and give rise to expectation. Whether both of them are in cooperated into the parallel psychological contract will depend on them believe that should be treated as part of the relationships. It better if the organized the psychological contract because to make them be careful to reduce the risk of raising false expectations and also avoid from disappointed. Psychological contract also make both of them which is employers and employees more understanding each other personalization. Based on the writer comprehension about the psychological contract, the writer has state... ... middle of paper ... ...g or can have a good relationship without any problem. They also can have a good communication and the top do not put a gap between them and co-workers. They can belief each other even to communicate the problem of company and find the solution and also have a good decision making to make profit for company or save company from other problem that can make company loss. REFERENCES Book • John M. Ivancevich, Robert Konopaske, Michael T. Matteson, [2011] “Organizational Behavior and Management”, United States of America:McGraw-Hill Irwin Website • Alexander, “The formation of the contract”, http://www.laboursolutions.com, [2 April 2014]. • Glick, “Employees want in return”, www.forbes.com, [2 April 2014]. • John, “10 Tips to Keep Motivated Employees and Bring the Passion Back into the Workplace”, http://www.cpsa.com/knowledgecentre, [4 April 2014].

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