Basics of Psychological contract as per Organizational behaviour concepts

1. Psychological Contract
Gohar

2. What is Psychological Contract
• An “unwritten” agreement that exist in between employee and
employer.
• The agreement sets out mutual expectations: what management
expects from workers and vice versa.

3. Management Role:
• Management is expected to:
• Treat employees Justly.
• Provide acceptable working conditions
• Clearly communicate what is fair’s days work.
• And give feedback that how well employee is doing.

4. Employees Role:
• Employees are expected to respond by:
• Demonstrating good attitude.
• Following Directions
• And showing loyalty.

5. If Management derelicts from it’s part of
bargain, then:
• Company will see higher turnover rate
• Lower Productivity
• Higher Rate of theft
• Greater work withdrawal

6. If Employee derelicts from it’s part of bargain,
then:
• Will be unprofessional for a longer term
• Cannot achieve work and life goals
• Cannot be trusted
• Cannot learn to compromise and stand up on right time