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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.

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. If the psychological contract consists of perceptions about mutual promise-based obligations, an important question is how these perceptions are structured. How are the different perceptions weighed, compared and integrated? What happens when perceptions are in-congruent? These questions concern the general psychological processes taking place(Guest, Isaksson & Witte, 2010). Also in addition to what you've mentioned before the framework of social exchange theory suggests that along with economic expectations, social expectations are relevant for an employee when he or he enters an employment relationship(Rupp and Cropanzano, 2002). This means that it is not only the formal employment contract that characterizes the employment relationship. The value of the informal and implicit content of the relationship between employees and their employer should be taken into account too (Shore and Tetrick, 1994).

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  2. The psychological contract includes solid agreements between company and its employees beyond the written contract, specifying their contributions, Expectations, beliefs, promises and obligations between both parties. Their management requires the definition of the concept of psychological contract, the analysis of its main characteristics and contents and the identification of its stages of development.
    For organization, new contractual forms provide greater flexibility and a good deal of enforceable (Marsden, 2004; Silla et al., 2005). Instead of career paths and job security a new kind of security called “employ ability security” is established (Hiltrop, 1995; Schein, 1996). This is the promise that the employee’s skills will be enhanced, and access to other tasks and assignments will be facilitated. Moreover, a new pay system is applied based on flexibility bands to encourage the members to develop new skills (Hiltrop, 1995; Kinnie et al., 1999; Silla et al., 2005). On the other hand new contractual forms are getting employees to broaden their skills by organizational learning and training programs and identify the development of additional skills as a prerequisite for advancement (Schuler and Jackson, 1987). Workers receive higher salaries linked to performance and skills.

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  3. In addition, the content discussed above regarding psychological contract, organizations are required to consider about way how manage changes to the psychological contract. Therefore, relevant managers are required to recognize organizational changes will often imply changes to the psychological contract in advance even if they do not encompass changes to the official employment contract and conditions (Chaubey and Bist, 2016). To act with such changing scenarios, effective strategies are required to be enabled for anticipating, recognizing and managing employee resistance and accommodating the expectations that employees might have. Some strategies could be implemented for managing employee resistance as follow (Brown and Harvey 2006).
    - Education and communication concerning the need for change
    - Creating and reinforcing the vision of where the organization is headed
    - Ensuring participation and involvement of those affected in the change process
    - Facilitating and supporting change through training and resources
    - Negotiating with resistors
    - Use of reward systems to encourage changed behaviors
    - Use of explicit or implicit coercion

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