managing the psychological contract

1999 Words8 Pages
Human resource management (HRM) plays an important role in the organisation. It not only helps the employer evaluate employee accurately but also supports the firm’s development. Hence, the appearance of psychological contract is one of the most effective tools to help the organisation improve their HRM issues. However, it also has some challenges for the manager to overcome. Therefore, the main aim of this essay is to analyse the importance of the psychological contract in many aspects and support more evidences and experiences to support employers’ view in managing people. Psychological contract is the unwritten contract that illustrates a set of expectations exists between the individual and the organisation (Sonnenberg et al, 2011). Svensson & Wolven (2010) point out that it can be a relationship between the members of a group, the people who work in the same company, department or organisation, several groups or parties in an organization, etc. It includes the work performance requirement, job security, training, potential development, compensation and subside. Psychological contracts are the mental representations, so it may help the employees and employers get rid of a complicated employment relationship. For instance, the employees and employers may understand very clearly about the terms and conditions and what they have been agreed upon. (Ekelund et al, 2010, 1438). Combined with a few exceptions, some researches cite that psychological contract is only regarding to the employee–manager relation and the term that mostly used is in industrial or organizational psychology (Svensson & Wolven, 2010, 186). Generally, psychological contract is identified by three main factors: expectations, obligations and promises perceived ... ... middle of paper ... ...yer, employees will justify their behaviours to reframe the events. The employer may give some useful advices for the employees to maintain the psychological contract as the breach occurred (Parzefall & Coyle-Shapiro, 2011, 21). Maybe, it is the best way to help the organisation solve the breach in this process. In conclusion, the psychological contract is the new method that helps the firm to manage their employees better. It is due to the responsibility of each individual is the key content in contract fulfillment. Managing the psychological contract is such a hard exercise that every employer has to face with it, so an excellent understanding of its concept is necessary and essential. Therefore, this essay may support some useful information for organisation to both apply the concept more suitably and improve the contemporary employment relationship effectively.
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