The Psychological Contract: A Hidden Force in Workplace Management
Psychological Contract:
What do you feel about this term? Have you had experience where your boss did
not appreciate your extra effort on something you have done? This happened because
of the unwritten contract between you (employee) and the employer.
When an employee starts a
job, he or she signs a paper contract. But this psychological contract is very
much different from that contract. It is the expectation where the employee forms
in their mind about the workplace and the relationship (Conway and Briner,2009).
Psychological contract
includes:
- How much admiration or respect employees expect.
- Employees' hard work is likely to lead to a potential promotion.
- When a personal issue comes up, employees expect to understand that from the boss.
These unwritten expectations are heavily influenced by how employees feel about their jobs, how they behave at their workplace (Rousseau,1995).
An intro to THE
PSYCHOLOGICAL CONTRACT in the workplace 👍
Changing Nature of
Psychological Contracts
Employers met those
expectations, then their employees feel much more comfortable and loyal to the
organisation, they started to work harder, and they will stay with the company
for a much longer period.
However, when these
psychological contracts are broken, then employees will not trust the
management, they will lower their performance, and they will start to leave
their jobs often (Armstrong, 2020).
Context in Sri Lanka
Sri Lankan organisations also face this unique
challenge with employees' psychological contract. Mostly employees'
expectations are shaped typically by cultural factors like respect, collective
thinking,(Opatha 2009), and in today's skill development is more valuable than
job security. Modern psychological contract now focuses on employees' personal
growth rather than climbing the professional ladder.
Conclusion
These invisible contracts can have a huge impact in
the workplace and they are pretty much real. This can lead to building a strong
relationship between the employee and the employer and ultimately to a
satisfied employee, which will bring better performance and a much healthier
workplace. It will be effective for managing the human resource of the
organisation.
References
Conway, N. and Briner, R.B. (2009),Understanding
Psychological Contract at Work: A Critical Evaluation of Theory and Research (January
2011). [online] Available at https://www.researchgate.net/publication/288469676_Understanding_Psychological_Contract_at_Work_A_Critical_Evaluation_of_Theory_and_Research.
Accessed on 04th March 2025.
Rousseau, D.M. & Schalk, R.(2009) Psychological
Contracts Employment, ResearchGate.net, [online] Available at file:///C:/Users/Chinthana/OneDrive%20-%20Tropicoir%20Lanka%20(Pvt)%20Ltd/Private/ESOFT/Assesments/References/Post%202/schalkenrousseau.pdf.
Accessed on 04th March 2025.
Armstrong, M. (2006) Armstrong's Handbook of Human
Resource Management Practice. 10th ed.[online] Available at https://nibmehub.com/opac-service/pdf/read/A%20Handbook%20of%20Human%20Resource%20Management%20Practice.pdf.
Accessed on 04th March 2025.
Opatha, H.H.D.N.P. (2019) Sustainable Human Resource
Management. Expanding Horizons of HRM. (Jan 2019) ResearchGate.net, [online]
Available at https://www.researchgate.net/publication/330421801_Sustainable_Human_Resource_Management_Expanding_Horizons_of_HRM.
Accessed on 04th March 2025.
Physiological contacts , employees feel more valued, leading to higher job satisfaction, increased motivation, and improved productivity
ReplyDeleteChanging nature of psychological contracts highlights the critical role of trust and mutual expectations in workplace relationships. In Sri Lanka, where cultural values like respect and collective thinking shape employee expectations, organizations must adapt to the shift toward skill development and personal growth. Employers who prioritize open communication and career development opportunities will foster stronger employee commitment and higher performance. A well-managed psychological contract leads to a healthier work environment and long-term organizational success. Great insights on this important HR aspect!
ReplyDeleteThe concept of the psychological contract is often overlooked, yet it plays a crucial role in employee engagement and organizational success. By fostering trust and clear expectations, both employers and employees can work together more effectively. Addressing breaches in this contract can prevent dissatisfaction and turnover. Great perspective on how important this "hidden force" is in shaping workplace relationships!
ReplyDeletePhycological contracts enhance employees' engagement, job satisfaction and productivity. This creates positive work environment and strengthens trust and loyalty. Well maintained contact reduces employee turnover as well.
ReplyDeleteMuch of a underrated topic in HRM however the more or less practice in sri lankan context. As you discussed this will be a challenging thing as these kinda of contracts are not documented and subjective
ReplyDeleteGood discusaion.The strong Psychological contract in the workplace expectarion between employer and employee,foster trust,commitment and engagement leading to improved employee morale,Productivity,retention. also employer reputation can be created.
ReplyDeleteThe psychological contract is important in the relationship between employers and employees, but it often goes unnoticed. It includes the unwritten expectations and beliefs that both sides have about their roles and responsibilities. When these expectations are met, employees tend to feel engaged, trusted, and loyal. If the psychological contract is broken, it can lead to dissatisfaction, lower motivation, and higher turnover. To manage people effectively and create a healthy workplace culture, it is essential to understand and maintain a positive psychological contract.
ReplyDeleteEnhancing the psychological contract can be a key factor in retaining employees within an organization. By fostering a positive and supportive work environment, organizations can strengthen the mutual obligations and expectations between employer and employee, ultimately leading to increased job satisfaction, reduced turnover rates, and improved overall performance.
ReplyDeleteYou've thoroughly explained the psychological contract in your blog post. From my perspective, fostering this understanding helps build a strong relationship between employer and employee, leading to greater job satisfaction, improved performance, and a healthier workplace overall. I appreciate the detailed insights you've shared and look forward to more content like this!
ReplyDeleteThe psychological contract shapes employee expectations, trust, and commitment in the workplace. When organizations uphold fairness and transparency, they foster a positive work environment that enhances engagement and retention.
ReplyDeleteThe psychological contract indeed acts as a silent, yet powerful influence on workplace interactions, affecting relationships and organizational culture deeply. Recognizing and actively managing it contributes to healthier, more engaged, and loyal teams.
ReplyDeleteThe psychological contract plays a crucial role in shaping employee expectations and loyalty. Understanding this invisible agreement can improve workplace relationships and overall organizational success.
ReplyDeleteAlthough psychological contracts are much important to be established, it is very much tough to practice those in a larger organization and proper methodologies should be adopted to make the maximum use of them. Moreover, periodical reviews also needed to measure whether the desired outcome is matching with the actual output.
ReplyDelete