According to the views of managers and employees of Kinh Do Corporation, there are two side impacts of psychological contract which includings negative and positive impact. 

 

  Postive impact: 

 

          If  the company keeps the promises and meets the expectations of employees so they will be happy with the job, feel a part of the company and proud of the company. Moreover, they will completely believe in the company, try their best to contribute for the company, willing to do the job, share and help the company to get over when the company is in trouble or difficult time. They will be loyal to the company and complete the tasks with high quality and productivity.

 

         If the company feels satisfied with employees, the company will provide advantage conditions for employees to can learn and develop themselves as well as promote all ability to complete the given tasks. Moreover, they will recognize the performances of employees and try to satisfy them more. The relationship of company and employees will getting better and closer so it is a foundation to develop company and workforce.

 

   Negative Impact:

 

        If other party does not fill the expectations for them, they will lose the faith and trust. The relationship of them is getting worse, they do not believe in each other.

 

        The employees  will feel bored with their jobs so they just come and work like robots as long as they finish the tasks or they not willing to do the job, less contribute. If the problems are not solved and repeated overtime they will find another job with other company therefore it makes the company lose workforce, company’s image and negative effect on the productivity.

 

        Meanwhile, the company will lose trust with employees, get angry with them, try to figure out what happen to them to find the way to fix that problems by communicating with them. If the problem cannot solve, the company will give less opportunities for employees to improve themselves or tasks. If the relationship gets worse and cannot heal, they will fire that kind of employees because they effect on other’s attitude and behavior and performances of the company.

 

    In summary, the Psychological Contract has big impact on the company commitment, job satisfaction and company performances. Therefore, Psychological Contract plays an important role in human resource management which helps the company can motivate and monitor employee's behavior and attitude as well as increase productivity, performance and employee satisfaction.

 

Further reading:

 

 

  

 

References.

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