Sustainable Psychological Contract and Organisational Life [Video]

As organisations aim to understand and improve the dynamics of the employment relationship, the concept of psychological contract plays a crucial role. The psychological contract is based on the mutual expectations and obligations between employees and the organisation, shaping their working relationship.

In this article, we will explore the effect of the psychological contract on organisational life, including the consequences of breach or violation, the different types of psychological contracts, and the relationship between psychological contracts and human resource management.

A psychological contract is an unwritten, informal contract between employees and their employer that outlines each party’s expectations, obligations, and values for the relationship. It’s essentially the “human side” of the employment relationship, going beyond the legalities of a formal contract.

Key Points About Psychological Contracts

• Unwritten and informal: Unlike a formal contract, no written document outlines the psychological contract. It’s formed through implicit and explicit communication, actions, and behaviours between the employer and employee.
• Mutual expectations:Both the employer …