Managing The Psychological Contract And The Challenges Associated With Doing

2549 Words Aug 1st, 2014 11 Pages
Managing people assignment
1. In the context of the contemporary employment relationship, critically discuss the importance of ‘managing’ the psychological contract and the challenges associated with doing so.

This essay will critically discuss the importance of ‘managing’ the psychological contract and the challenges associated with doing so in context of the contemporary employment relationship. It will analyze the literature produced over the years in this topic area, finally coming to a conclusion about what should be done and also any future plans.
The psychological contract is the exchange relationship between firm and employee ranges the entire contract spectrum from strictly legal to entirely psychological (Spindler 1994). In Schein’s view is can also be defined as set of unwritten reciprocal expectations between an individual employee and the organization (Schein 1977). The function of the psychological contract can be described in a number of ways. Robinson, Kraatz and Rousseau 1994 characterize is as ‘psychological contracts represent an essential feature of organizational life, serving to bind individuals and organizations together and regulate their behavior’ whereas another view from Sparrow and Hiltrop 1997 suggest that psychological contracts aid to achieve two objectives; to help predict the types of production employers will get from employees and also to help foresee what kind of reward the employee will get from investing time and effort in the…

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