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The Psychological Contract in Explaining Organizational Behavior. Psychological contract between employer and employee, impact on employee performance and behavior.
The Psychological Contract in Explaining Organizational Behavior (#2)
The psycho-social component is critical to an employee’s performance at the workplace – and therefore, to the proper functioning of an organization. Employers and employees are more than just contractual entities, and in order to ensure organizational success, employers have to make sure work conditions are more than satisfactory to all employers. The psychological contract theory suggests that a formal work contract is necessary, but not sufficient in order to achieve this.
The psychological contract refers to a set of perceptions, mutual beliefs and informal obligations between the actors within an organization – the employer and the employee. It is not a part of the formal written contract which sums up general obligations, duties and responsibilities of both parties.
It has been previously stated the psychological contract can offer valid, reliable, predictable explanations and valuable insight of mechanisms that may lead an organization to failure or success. The aim of this essay is to critically analyze this statement and draw a personal conclusion based on the underlying evidence which will be subsequently presented.
For the past few decades researchers have wondered what makes people behave in a certain manner while at the workplace. No matter how rational human beings are, it is natural for emotions to influence one’s behavior and sometimes beliefs. In modern organizations there is a clear distinction between “personal life” and “professional life”, which automatically involves behavioral “adjustments” as part of the transition from an environment (personal) to another (professional).
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