Essays Psychological Contracts

Similarly, Jean-Jacques Rousseau in 1762 examined the relationship between the state and the individual in what he termed the ‘Social Contract’ (Rousseau 1994).

Chris Argyristook this a little bit further when he described the understanding of organizationalbehavior, explaining that the psychological work contract “refers to the implicitunderstanding between a group of employees and their foreman” (Wellin2008).

The term has been defined in different forms, but taking a closer look at the concept, it seems to be something of a contradiction.

A contract can simply be defined as the legal arrangement between two or more parties that involves the exchange of a legal tender for a commodity or service.

The limited scope and academic requirements constrained a more elaborated view on the causes of psychological contract breach and a wider approach on the several PC models have already been developed.Moreover, the results indicate that organizational identification mediates the joint effect of psychological contract breach and negative reciprocity belief on abusive supervision.Theoretical and practical implications, limitations, and future research directions are discussed.The Harvard model is used as a "map of the HRM territory" (Beer et al., 1984) to depict how the HR-policies can empower the two, examined, psychological contract types. Written and unwritten agreements regulate exchanges that are made between different parties.CHAPTER ONE: INTRODUCTION 1.1 Background The psychological contract is a widely researched issue that has affected many business organizations.And this is a challenge that many employees and their organizations face in trying to keep up the pace with a constantly changing business environment.In this study, we propose and test a mediated moderation model to explore the interactive effect of psychological contract breach and negative reciprocity belief on abusive supervision, and the mediating effect of organizational identification.Using a sample of 268 dyads of employees and their immediate supervisors (N = 536) from six companies and two industries in China, we find that when supervisors experience breaches in psychological contract they are likely to increase abusive behaviours toward subordinates, and that the positive association is stronger the more the supervisor holds negative reciprocity beliefs.A psychological contract can be understood as a ‘deal’ between employer and employee concerning ‘the perception of the two parties, employer and employee, of what their mutual obligations are towards each other.This is an essay, written for the LSE Summer School 2013, focused on the comparison and analysis of transactional and relational, Psychological Contracts (PC) and their intreconnection with different working environments.

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