Critically Discuss the Psychological Contract in the Contemporary Organisation

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Introduction Every human being is an unique individual. This is an undeniable fact, thus organisations have to explore the various antecedences of the psychological contracts between employees and the organisation. Employees have different perceptions and thinking over the concept of psychological contracts. Generation Y is slowly filling up the positions in contemporary organisations. Therefore, what are the influencers revolve around this power craving group of people? Research has concluded that employees and employers have different perceptions on job support and resources (Attridge 2009, 392; Kahn 1990, 708) and even job satisfaction (McShane and Travaglione 2007, 180). Employee disengagement has been occurring more and more often…show more content…
The psychological contract can help both employee and employer to gain awareness on contemporary employment relationships; indeed, it has been debated that perceived obligations within the psychological contract are usually more vital to work related attitudes and behaviour than are the official and explicit elements of contractual acknowledgement (Grant, Branka and David 2010, 6-7). Employees trust that the employer has the obligations to facilitate them the following: career advancement, incremental salary, salary based on the current working efficiency, upgrading, safe long-term employment, opportunities to build their career as well as support in case personal problems occur (Mario, Sandra and Dr. Ljiljana 2010, 233). On the other hand, the employees believe that they have the following obligations towards their employer: working overtime, staying loyal, taking initiative to take up new responsibilities at work, providing a beforehand notice when taking another position, be ready for transfer, rejecting support to rivalry, protecting confidential company information, spending a minimum of two years doing the routine (Mario, Sandra and Dr. Ljiljana 2010, 233). Many studies indicated that personal and psychological factors have significant influence on

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