People Management - Coursework Example

The employer is expected to protect the employee’s interest and respect the role they play in the organization. On the other hand, the employee is expected to perform tasks as per the guidelines of the employer. In essence, psychological contract enhances a silent working environment and promotes respect between the employees and the employer. George (2009) argues that the basic feature of a psychological contract is the mutual obligation between the employer and the employee. Both parties to the contract have responsibilities and obligations to fulfill in relation to each other.

Even though the content of the contract is not presented in writing, both parties have to know their responsibility as far as the subject matter is concerned. The obligations of each party are intangible and cannot be measured by the available conventional means. In this regard, the obligations are inbuilt, and it is only the parties to the contract who understands them. In essence, both the employer and the employee must perform their responsibilities accordingly to enhance quality performance and timely completion of tasks.

Psychological contracts are unique in that the terms and conditions are a matter of personal perceptions. The psychological contract is complex since no available source can be found to ascertain that the contract was entered. Further complexity is observed in the fact that people’s perceptions change regular, and it is usually hard to comprehend what other people are thinking or planning to do. In addition, in case of a breach of the psychological contract, a third party cannot intervene since the contract is only known to the employee and the employer.

Essentially, it is crucial to recognize that perception are sometimes seasonal and, therefore, understanding the content of the psychological contract by a third party can be extremely