The Impacts of an Employer's Breech of Psychological Contract

1422 WordsFeb 17, 20186 Pages
1.0 Introduction 1.1 Background study Before one assumes the status of an employee in any job firm or institution, a lot of paper work goes in; right from application for employment and submission of curriculum vitae, to writing of aptitude tests and attending interviews then finally receiving your employment letter and signing of ‘employment contract.’ This employment contract, as defined by is an oral or written, express or implied, agreement specifying terms and conditions under which a person consents to perform certain duties as directed and controlled by an employer in return for an agreed upon wage or salary. On the other hand, psychological contract consists of employee’s expectations about what they owe their employers such as hard work, loyalty and commitment in exchange of what their employers owe them such as opportunities for skill development, career growth, competitive compensation, healthcare benefits, among others. (Coyle-Shapiro and Kessler, 2000 as cited in Vikalpa, 2013). This psychological contract is unwritten. Now, a breach of this psychological contract can be defined as an employee’s perception that his or her organization has failed to fulfill one or more obligations associated with perceived mutual promises (Gakovic and Tetrick, 2003 as cited in Ballou, 2013). Most researches over the years have tried to establish a relationship between breach of psychological contract and job outcomes or commitment of employees and

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