Pyschological Contract
Kinh Do Corporation
Expectations and Obligations of The parties underlying Psychological Contract
Robinson & Morrison (2000), mentioned “psychological contracts refer to employees’ perceptions of what they owe to their employers and what their employers owe to them”. Psychological contract is the exchange of the parties in fulfillment obligations through their expectations and how they fill up their promised obligations for each other overtime (CIPD, 2015).
The expectations of the parties are forming a belief which has been made in exchange of contributions by making promises of the parties (e.g. promotion opportunity, pay high for good performance; Rousseau, 1989). John & Julia (2015), explains expectations of employees are the reasonable levels of responsibility requirement, reward appropriately from employers. In return, the employer requires high responsibility, contribution, enthusiasm for the work as well as the company.
Shein (1965) explained the expectations of employees including salary or pay rate, working hours, benefits and privileges which go with a job, the expectations of organization including employees are loyal, enhance the organization’s image, keep secret of information and business strategic of organization, contribute as much they can to develop the company.
Robinson & Rousseau (1994), suggests that employer and employee may have different perceptions of the obligations and how these obligations can be filled. Obligations are linked to job satisfaction and organizational commitment which has directly impact on the employee outcomes (Coyle-Shapiro & Kessler, 2000; Sturges et al. 2005).
According the views of employees and managers of Kinh Do Corporation and literature reviews, the expectations and obligations of the parties are shown below:
Depending on the expectations of the parties, psychological contract is created and the party has to commit to fill these expectations for other. The psychoological contract is the way to motive employees and build the relationship between employees and organization by understanding and filling the expectations for each other.
Schalk & Roe (2007), psychological contract is created at a curtain time and it can be changed and developed over time. Psychological contract is about the mutual obligations of the parties which creates based on the expectations and mutual trust (promises) at the point time and it will be changed or developed over time in order to satisfy the parties and increase performance (Anderson & Schalk, 1998).
Henderson et al. (2008) suggests when the employees receives more than resources that had been promised, they will feel an obligation to engage in behavior (contribution) that is beneficial for the company. Psychological contract does not only change itself over time but it also modifies the contract as well as adding new expectations or reinforcing the existing expectations (Morrison, 1994, p. 354).
Further Reading :
References
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Anderson, N. & Schalk, R. (1998). The psychological contract in retrospect and prospect. Journal of Organizational Behaviour, 19: 637-647.
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CIPD. The psychological contract. Available at: http://www.cipd.co.uk/hr-resources/factsheets/psychological-contract.aspx. Accessed 28 August 2015.
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Coyle-Shapiro J. & Kessler I. (2000) Consequences of the psychological contract for the employment relationship: a large scale survey. Journal of Management Studies 37(7), 903–930.
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Henderson, D.J., S.J. Wayne, L.M. Shore, W.H. Bommer and L.E. Tetrick, 2008. Leader-member exchange, differentiation and psychological contract fulfillment: A multilevel examination. J. Applied Psychol., 93: 1208-1219.
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Morrison, D.E. (1994). Psychological contracts and change. Human Resource Management, 33(3), 353–372.
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Robinson, S. L., & Morrison, E. W. (2000). The development of psychological contract breach violation: A longitudinal study. Journal of Organizational Behavior, 21, 525–546.
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Robinson, S.L. and Rousseau, D.M. (1994), “Violating the psychological contract: not the exception but the norm”, Journal of Organizational Behavior, Vol. 15 No. 3, pp. 245-259.
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John Rodwell & Julia Ellershaw (2015). What is exchanged in psychological contracts? Multiple sets of obligations, targeted effort and uncertainty reduction. . Emerald Group Publishing Limited, Vol. 37 No. 2, 2015 pp. 232-247.
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Schalk, R. & Roe, R.E. (2007). Towards a dynamic model of the psychological contract. Journal for the Theory of Social Behaviour, 37(2): 167-182.
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Schein, E. (1965), Organisational Psychology (Engelwood Cliffs, NJ: Prentice-Hall).
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Sturges J., Conway N., Guest D. & Liefooghe A. (2005) Managing the career deal: the psychological contract as a framework for understanding career management, organizational commitment and work behavior. Journal of Organizational Behavior 26, 821–838.