Psychological Contract Theory

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Psychological contract theory

Psychological contract theory


The paper begins with the definition of Psychological Contract and its implications on organizational structure as well as the impact it has on organizational performances. Psychological contracts have become common in the way they are employed and accommodated in the organizations. This paper demonstrates the concept of psychological contracts and their link and connection with organization and employees. (Stone-Romero, E.F. &Rosopa, 2008, pp. 326-52)

The relation between organizations and their employees cannot be questioned as employees form the workforce of an organization. This overview follows the research concept and this is followed by the trends in the human resource management and the role that is played by human resources as a part of practising psychological contract of employees. Literature review on the various human resources practices, which are conducted as a contribution to psychological contract of organizational employees is subsequently reviewed. Many cases and data have been collected to come to a concrete result regarding the link between organizations and their employees. The methodologies behind the overview and the implications of all the aspects of psychological contracts are discussed in detail. Adopting the much-advocated meso approach, paper illuminates the relation between the macro-variable human resource practices and the micro-variable psychological contracts that can conclude the proposal given by a conceptual model. (Podsakoff, MacKenzie, Lee, & Podsakoff, 2003, pp. 879-903)

Responding to the amendments caused by the various factors resulting from the nature of employment and work, a large body of literature is presented. The information here mainly focuses on exchanging relationships between the employees and their respective organisations, which has emerged in the past two decades. Amongst the several employment relationship constructed, there has always been a lacking in the overall process. This has caused the emerging of research on psychological contracts, which has caused the theory to blossom. (Stone-Romero, E.F. &Rosopa, 2008, pp. 326-52)

Psychological contract characterizes the employer-employee relationships and emphasizes organizational achievements of desirable results by understanding employees' expectations. It attempts to locate the relation between the psyche of employees with that of the organizational performances and organizational behaviour. (Podsakoff & Organ, 1986, pp. 531-44)

The requirement of being competitive has risen because resulted in organisations introducing various measures for attaining financial control. (Raja, Johns & Ntalinais, 2004, pp. 350-67)

Withdrawn. Psychological contracts are very common now a day in organizations as the theory itself has been successfully in the way it encompasses various organizational aspects. (Robinson, 1996, pp. 574-99)

Structures of Relationship in an Organisation

British social theorist Anthony Giddens's theory of structuration presents some key insights about the extent to which social structures (organizations, social networks, and societies) are influenced by human interaction. Giddens's theory addresses the debate about the complex relationship between individuals and society. On the one hand, one may argue that human action is influenced and even constrained by the rules, norms, and institutions that are central in human social systems. (Stone-Romero, E.F. &Rosopa, 2008, pp. 326-52)

On the other hand, it may be argued that creative human action and human will are ...
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