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Theory of Psychological Contract - Critical Analysis and Usefulness in an Organizational Context - Research Paper Example

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This paper, Theory of Psychological Contract, achieves the aim of the paper by first tracing the origins of the theory of psychological contract, then exploring certain theoretical contributions that have played an important role in promoting the knowledge and understanding about the theory…
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Theory of Psychological Contract - Critical Analysis and Usefulness in an Organizational Context
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Download file to see previous pages In an organizational context, the psychological contract is simply the balance or fairness as visualized by the employees between the effort employees make in a job and the way they are treated by the employer. In this description of the theory of psychological contract, the words “staff”, “workforce” or “employees” are equally usable. The concept of the psychological contract becomes more complex as well as significant in management and work when assessed at a deeper level, particularly when studied in the context of change management in large corporations. The principles and theory of psychological contract can be applied well beyond the organization to include human relationships as well as the society as a whole. Unlike a vast majority of the traditional theories of behavior and management, the theory of psychological contract and the ideas surrounding this theory are quite fluid in that they are yet to be completely understood and defined in their entirety. Accordingly, they are yet far from a very wide use and recognition in the organizations.
Although the theory of psychological contract does not integrally belong to the field of Human Resource Management (HRM), yet it is frequently used as an analytical device for the explanation and propagation of the HRM matters. The practitioners and educationalists have equally expressed interest in the theory of psychological contract since sustaining the commitment and motivation of employees is a common concern for both. This imparts the need to scrutinize and evaluate the underlying theoretical assumptions that underpin the theory of psychological contract; specifically, the managerial discourse of the theory that is frequently used to understand the meaning of the positive psychological contract. ...Download file to see next pagesRead More
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