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Psychological contract


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Psychological contract

  1. 1. Chapter 8 Psychological Contracts Group 3 : 1. Nguyễn Vân Anh 2. Cao Thị Hà Duyên 3. Hoàng Vũ Dương 4. Nguyễn Thị Hiên 5. Nguyễn Văn Linh 6. Lại Thanh Trang
  2. 2. Outline
  3. 3. Definition • Psychological contract: An employee’s perception of his or her exchange relationship with an organization: outcomes the organization has promised to provide and contributions the employee is obligated to make. • Perceptual in nature: – Subject to errors and biases – Idiosyncratic • Perceived relationship: – Employees & organization – Reciprocal promises & obligations
  4. 4. • Psychological Contracts 'iceberg' diagram below is a helpful way to illustrate some of the crucial aspects and influences within Psychological Contracts theory.
  5. 5. Determinants
  6. 6. Type of psychological contract Transactional Contracts:  Short term  Narrow and specific  Limited promises and obligations Relational Contracts: Long term General and evolving Extensive and broad promises and obligations
  7. 7. Advantages and Disadvantages 1.The advantages: • Loyalty - When both parties honor the psychological contract, a bond of loyalty is formed between the two. • Empathy - In this kind of working relationship, the ability to understand one another as human beings can make a big difference. • Open communication - When trust has been established through the psychological contract, it makes easier for both parties to exhibit openness and honesty. • Satisfaction - When the terms of the psychological contract are honored, all aspects of the working relationship should run more smoothy.
  8. 8. 2. Disadvantages • There is no agreement, written of psychological contract; hence it is doubtful whether it can be considered a contract at all. • Organisations consist of many different individuals have specific expectations about their rights and obligations those individuals and groups. • Violation of the psychological contract carries a clear view of a broken promise.. • It may be redundant and complicated concept. It goes beyond with other psychological constructs such as job satisfaction and organisational commitment.
  9. 9. Conclusion • WUlC8