MEET THE PSYCHOLOGICAL CONTRACT

Attainment of employment often brings about a lot of excitement both on the side of the employer and employee. For a university graduate that has been on the search for jobs for a long period of time, the news is received with utmost joy and jubilation.

Pens glide along paper as contracts are signed and exchanged by both parties. This normally leaves the newly employed amazed, I mean who wouldn’t be! Imagine what you have been praying for and working so hard towards is finally handed over to you.

What is many times forgotten is that these employees are not to be managed by papers but rather human beings and that the contracts that they sign are contracts of employment and not management.  These contracts therefore do not account for the relationship between the employees and employers mentioned, the relationship in many cases is to result from a principle known as the “Psychological contract”. It is the set of unwritten expectations between the employer and the employee.

The contract operates in the sense that the employer expects the employee to treat them in a particular way aside from their usual performance. The employer may expect the employee to be fully committed to the values of the organization, enhance the image of the organization and also be loyal and compliant to them and in turn the employee expects to be treated in a particular way like being treated fairly, given work that matches their abilities, be rewarded equitably in accordance to their performance and many others.

The inherently subjective, promissory and perceptual concept is the foundation for all the relationships between the managers and subordinates. It influences the performance of employees since it greatly determines how good they fit into the organization and blend in to work towards meeting the targets of the organization.

It is however important for all current and prospective employees as well as employers to note that this concept evolves over time and we need to decide which contract we need to work within.

Understanding the psychological contract will enhance our work giving us a broader understanding of what happens in our different work places.