To What Extent Is Psychological Contract Applicable in the 21st Century?

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).

Note that this diagram is an example of a very basic employee/employer relationship in which only work and pay are formally agreed and contracted. In reality a representation of the Psychological Contract for most modern work relationships would include several more mutual obligations with work and pay 'above the water-line', i.e., formally contracted and agreed.

Organizational commitment is one of the widely researched areas among Researchers, psychologist and human resource management practitioners. The objectives will be presented the study about to analyze the relationship between overall job satisfaction and organizational commitment. The focus will be the study towards analyzing the general behavior of the private sector employees towards work motivation and job satisfaction which may build higher levels

A personally identified violation of a psychological contract is one of a negatively emotional occurrence. The contract breach has caused me feelings of anger and stress and I feel very deceived. I have experienced displeasure and disillusionment with the overall relationship. (Morrison and Robinson, 1997)

From the 1950’s to the 1970’s, the workforce had more of a “traditional” approach. The focus was more on the relationship between the employee and the organization. According to Personal and Career Development The Best and Worst of Times, by Gerard A. Callanan and Jeffrey H. Greenhaus, the relationship is based off of a psychological contract between the employee and the organization. The "…psychological contract is one that promises security and the possibility of advancement

In particular cases, the high rate of staff turnover and absenteeism are associated with low level of organisational commitment (Morrow, 1993). The employee who works on this level must be dissatisfied with the organisation; such an employee may stay because he or she needs to stay for the monetary benefits linked to the continuance dimension (Meyer & Allen, 1997). In simple words, it can be inferred that lower level of commitment is interconnected to continuance commitment among the three dimensions of commitment.

Psychological contract is an organizational-individual contract that is not spoken of and is unwritten but is understood that the violation of this contract may create conflict within the organization. As TCI’s president, the organizational structure was established from the beginning and each team member bought into it. Each member’s expectations were fulfilled as the team became stronger and stronger as the week progressed. Each person was accountable for his/her actions and trusted one another, as the unwritten psychological contract was never violated, allowing our team to succeed throughout the week. The acknowledgement and the understanding of the psychological contract will benefit me in the future as I start my career, as now I am aware

The use of deception in psychological studies has been prevalent for many years. In the 1950’s, only around 10% of social psychological involved deceptive methods. This number increased to over 50% in the 1970’s (Gunderman). Psychologists have mostly accepted the use of deception as a necessary evil in order to gain the whole truth. Even though there is benefits to prohibiting deception, the field of psychology would not have valuable data that has been discovered using deception.

Limitations that could be identified in the study were the small sample size that included only managers, was conducted only in New Zealand and therefore may not be able to be generalized to other countries (Cable, 2010). Results and discussion suggests that future research could expand the understanding on how the fulfillment of the psychological contract could impact an individual employee’s attitudes and behaviors (Cable, 2010).

Lester (2002) submitted that employees are likely to experience a diminished level of commitment, a decreased level of work performance, and they are likely to witness to the fact that their psychological contract had being breached. In addition, Conway & Briner (2002) stated that the psychological wellbeing of employees is likely to reduce when there is a breach in the psychological contract and as result, talent retention in an organisation will diminish (Tekleab & Taylor, 2003).

Critically evaluate the utility of the psychological contract for understanding the contemporary employment relationship. (2500 Words)

During times of harsh macroeconomic conditions, it can be extraordinarily challenging to maintain high levels of morale. One way to describe the challenges is that there are massive amounts of uncertainty on all levels. Employees especially often may have job uncertainty that contribute to job-related stress. In such situations employees might become so stressed that it makes it difficult for them to perform their job duties especially when job security is one of the issues that they are concerned

Organizational change management is a three word three word term that refers to a framework used to manage the effects brought through business processes, organizational structure changes or changes found in an organization. On the other hand, the psychological contract, developed by a scholar named Denise Rousseau, involves informal arrangements, mutual beliefs, common ground and perceptions between an employee and the employer. The theory behind it, according to Rousseau’s article (1998), defines the state of the relationship and defines detailed practility of the work to be done. This paper emphises on the importance of organizational change agents to understand the psychological contract theory, the barriers to organizational change and the methods and techniques involved in organizational change management

At times employees go to work each day knowing they have to complete the daily task of doing so. Some individuals may not like their current job or what occupation they currently hold for one reason or another. At times, it may not be the fact they may not like their job, but the working conditions, policies or even the people they make work with. Job satisfaction and organizational commitment are two of the most important roles people live with each and every day.

Companies and organizations with tremendous potential for success are using involuntary intention as a means of dismissing employees or eliminating positions (Ghayas & Siddiqui, 2012).In the past few years, however, organizations have used the economic meltdown and downturns in business to justify involuntary intentions as a necessity for organizational survival in today’s competitive environment (Mbah & Ikemefuna, 2012). Economic meltdowns and adverse recessionary trends are cited as major causes for creating and sustaining employment fear psychosis among non-managerial employees working for the City of Nashua Public Works Division, resulting in greater work turnover and job attrition losses, which are not replaced due to ostensible economic distress, thus creating major job demotivation, lowered morale and increased job dissatisfaction among current employees, impacting their job productivity, performance and profitability. Although the exercise is being done humanely, studies indicate that it can cause employment-induced fear psychosis and other negatives that can affect employees’ performance (Ali, & Jan, 2012; Farooq & Farooq, 2014). The