A psychological contract is an economic and psychological concept that explains the relationship between a company and workers, and can also be used to describe other types of relationships. It involves expectations and perceptions, which can change over time and affect the relationship.
A psychological contract is an economic and psychological concept that generally explains the dynamics of the relationship between a company and workers. The basic concept can also be used to describe dynamics in many types of relationships in which people hope to benefit each other. At the simplest level, a psychological contract with an employer usually involves some set of expectations regarding the work the employee is expected to provide, while the employer generally provides a specific work environment and some sort of security about the future. Whether an employee or employer is comfortable with a psychological contract can have major implications for the workplace relationship going forward.
The first vestiges of the psychological contract are formed in the early stages of the interview and hiring process. The employer and employee usually let each other know what they hope the future relationship will look like. In many cases, the employer can explain the type of work the person can expect and can mention unwritten benefits that come with the job.
When a person starts working for a company, they may find that the actual psychological contract is very different from the perception given in the interview. For example, the employer may have said that all employees at a company should exert their own weight, but once the person starts working, it may become clear that some people are not doing their fair share, and the company may be allowing this without punishment. These experiences often change the person’s perception of the terms of the psychological contract, and in these cases, the perception often becomes reality.
It is likely that other psychological contract changes will also occur due to changes in business. For example, if a company changes to a different product, this process will often change many people’s jobs in many ways. As companies change, the contract typically evolves. Eventually, the changes can become big enough to leave the employee or employer dissatisfied with the entire relationship.
A psychological contract can also exist in other types of relationships. For example, two friends may be in a relationship with a variety of underlying psychological expectations about certain things they will provide for each other. When these bonds of mutual benefit are severed, a friendship built along these lines can suffer greatly.
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