Skip to main content

Types of psychological contract
There are two levels of psychological contracts as individual and organizational (Anderson et al., 2009). There are two types of psychological contracts as transactional contracts and relational contracts. Differences between these two types discussed by using five dimensions; the focus of the content, time frame, stability and tangibility( Anderson et al., 2009; Lynn, McFarlane & Tetrick, 1994; Rousseau 2014).

Relational Psychological contract


This contract shaped by socio-emotional factors such as statues, culture, rituals and norms. Therefore this contract leads to attach employees emotionally with their organization that create a long-term relationship with each other (Anderson et al., 2009; Dundon, 2017; Lynn, McFarlane & Tetrick, 1994; Robinson & Rousseau, 1994).

For instance, my organisation is maintaining relational p.c through employee welfare fund. This fund helps the whole employees from the top management to the co-worker in difficult situations. My previous company is organizing annual welfare fair with duty-free furniture and electronics. It helps to make a long-term relationship between the employee and the organisation.

Transactional Psychological contract


Transactional Psychological contract more Focus on short-term monetary obligations. Therefore this type of contract more concern about compensation and benefits from other parties rather than being emotionally attached to the other party (Anderson et al., 2009; Dundon, 2017; Lynn, McFarlane & Tetrick, 1994; Robinson & Rousseau, 1994).


As a banker, I met the idea of transactional p.c once the organisation gave me the monthly target which has to pursue. Therefore all the officers engaged with the target in order to get the monthly bonus whatever the work-life balance is.

Reference 
Cavanaugh, M.A. & Noe, R.A., 1999. Antecedents and consequences of relational components of the new psychological contract. Journal of Organizational Behavior, 340(May 1997), pp.323–340.
Conway, N. & Briner, R.B., 2002. Full-Time versus Part-Time Employees : Understanding the Links between Work Status, the Psychological Contract, and Attitudes. Journal of Vocational Behavior, 301(1), pp.279–301.
Coyle, S. & Jacqueline, A, M., 2006. Article ( refereed ) A psychological contract perspective on organizational citizenship behaviour. Journal of organizational behaviour, 23(8), pp.927–946.
Dundon, T., 2017. The psychological contract : A critical review. international journal of management reviews, 8(November), pp.113–129.
Elizabeth, Wolfe, M. & Sandra, L., R., 1997. Morrison Robinson 1997_ AMR22_1_PsychologicalContractViolation.pdf. The Academy of Management Review, 22(1), pp.226–256.
Guest, D. and Conway, N. (2004). Exploring the paradox of unionised worker  dissatisfaction. Industrial Relations Journal, 35(2), pp.102-121.
Guest, D., 2007. Oxford Handbook of Human Resource Management. 1st ed. P. Boxall, J. Purcell, & P. Wright, eds., New York City: Oxford university press.
Henderson, D.J., Wayne, S.J., Shore, L.M., Bommer, W.H. & Tetrick, L.E., 2008. Leader-

Comments

  1. NadaniNovember 25, 2019 at 7:49 AM

    As you said in term of employee perspective, most common understanding of psychological contract contents are pay, promotion, job security or opportunities for development, work-life balance, motivation, and manageable stress level (Guest, 2007) and according to employer perspective; effort, loyalty and the ability for organizational inducements most commonly seeing contents of psychological contracts (Elizabeth, Wolfe & Sandra, L., 1997; Thomas et al., 2003).
    But the thing is the satisfaction of the employee. If the employee doesn't satisfy about himself then it will be the problem to the employer. But they don't think about the employee. So the employee become unmotivated.

    ReplyDelete
  2. RMM KaleelJune 8, 2020 at 11:59 AM

    There are pronounced differences between psychological contracts and contracts of
    employment. The former clearly covers a wider range of things and is based on the
    importance of understanding and managing the beliefs and attitudes of the parties in an
    employment relationship while the latter tends to involve the more formal aspects of the contract and ultimately can be enforced through semi-legal (grievance or disciplinary procedures) or legal remedies (Middlemiss, 2011). Rousseau (2004) stated that employment contracts are a legal contract which is much varied from a psychological contract. A psychological contract creates an enduring mental model of the employment relationship. This mental model provides a stable understanding of what to expect in the future and guides efficient action without much need for practice.

    ReplyDelete

Post a Comment

Popular posts from this blog

Transactional Psychological contract Transactional Psychological contract more Focus on short-term monetary obligations. Therefore this type of contract more concern about compensation and benefits from other parties rather than being emotionally attached to the other party (Anderson et al., 2009; Dundon, 2017; Lynn, McFarlane & Tetrick, 1994; Robinson & Rousseau, 1994). As a banker, I met the idea of transactional p.c once the organisation gave me the monthly target which has to pursue. Therefore all the officers engaged with the target in order to get the monthly bonus whatever the work-life balance is. Reference  Cavanaugh, M.A. & Noe, R.A., 1999. Antecedents and consequences of relational components of the new psychological contract.  Journal of Organizational Behavior , 340(May 1997), pp.323–340. Conway, N. & Briner, R.B., 2002. Full-Time versus Part-Time Employees : Understanding the Links between Work Status, the Psychological ...
Post a Comment
Read more
Psychological contract management Liefooghe et al., (2014) argue that psychological contract as a main index of the changing employment relationship. Further, they claimed that organizational commitment possibly will mediate concerning breaches of the psychological contract. On behalf of that, the best thing is engaging discussions about expectation and capacities to ensure both parties perception regarding employment relationship (Morrison & Robinson, 1997). It is important to have a better understanding of unvoiced obligations in each party (Dundon, 2017). The organization which I work for is a leading commercial bank. The bank uses some strategies to manage the psychological contract between the bank and its’ employees such as, · Rough recruitment process which includes a written exam and four interviews. Most of the time this process can absorb best-fit employees to the company and its’ P.C. · Defining expectations of the company during recruitment and induct...
Post a Comment
Read more

The psychological contract involves

According to Wayne et al. (2007)   psychological contract (P.C.) introduces as individual views, formed by an organization, in term of conversation deal between individuals and their organization. A psychological contract is not a documented agreement between two parties such as employee and employer  ( Anderson et al., 2009; Dundon, 2017) .  In other words,   it is   a set of expectations between two parties (Dundon, 2017) .  Therefore psychological contract can introduce as mutual beliefs, insights and informal obligations between two parties only identify mutual duties and responsibilities from the relationship among them  ( Anderson et al., 2009; Dundon, 2017). These expectations not only cover the nature of performance or the payment structure but also an entire set of obligations, privileges and rights (Dundon, 2017). Contents of P.C.   Psychological contract relay with ...
34 comments
Read more