Psychological Contract

PSYCHOLOGICAL CONTRACT

 

      Psychological contract is an agreement between employee and employer relation of how they can perform a certain job with mutual benefit, this includes written responsibilities of both parties of how the employer assigned their employees and how they are going to follow such rules. This contract can be done or measured according to capacity, education or identity of the employee and employers capacity to pay their service. A verbal agreement on a simple basis like an instant job or an emergency job in a short period of time that is considered a work for trust is not considered a psychological contract in fact there is no contract at all in fidelity trust.        

      Employer have the rights to dictate their requirement before giving such contract they may want to accept such qualification according to their company’s needs and they can’t do anything about it even if they are qualified but employers assessment is not quite impressive, while on the part of the employee they also have the rights to refuse such contract. The role of the government is to provide a standardized benefit for the protection of employees. The legislative body may provide a law that can state a basic salary standard or a working environment safety standard for the benefits of employee. 

      The following contract is now being practiced in most companies and offices nowadays all over the world. People may presume that a psychological contract may have different variation according to employment status.

      Contractual – A newly hired employee is considered contractual if they are new to the company, they may be given a five month employment period and they may receive basic salary and other benefits but their length of services has a maximum allowed scheduled according to the specified period of time. Management or Human Resource may take into consideration additional extension according to the employee’s performance but then again performance is based on company’s regulation. Regulation may include complete attendance, meeting production quota or sales quota, ability to perform multi- task and etc.

      Probationary – An employee to be considered a probationary may also include a written contract and they have the opportunity to be promoted or regularly hired but they also need to conform to the written specific rules and regulation that the company has initiated, usually an employee who are in probationary period are already knowledgeable about the job they may also reach more than 5 months or services to the company and by this time they are on the spot for promotion or regularization.

      Regular –This type of employment may require at least a year of service, the employer has already tested the quality of the employee’s service and they may be guaranteed of full benefits. The regular employees are highly trusted and may assume to have a stable position in the company. Although there may be limitation and they are also entitled to company policy obedience but this time employers are less lenient and they may have additional benefits rather that basic salary company to contractual and probationary employees.

       Breach of contract may also arise if the employee or employers has not performed their written agreement or if they have violated such rules that has been stipulated and signed. Example would be if a certain confidential report is sent to other person, if a certain job specification has been neglected or if there is a deep mistrust and damages in the company’s production or operation. The employees who committed such violation will be given a specific punishment according to their contract or according to the company’s rules and regulation. Employers may also breach contract if they for example they have violated the rights of their employees like physical, verbal or monetary abusive behavior or worst they may even be criminally liable within this reasons. If an employer’s treatment may be perceived as subtle or unjust.

      In order to protect a massive group of employees labor union has been developed. This union is an organization of laborers who would require their employers a better working condition, rules and regulation or additional benefits. They may also negotiate for their protection against imbalance workflow and unconditional firing or mass retrenchment without consideration. If employer recognized such unionization they have developed a collective bargaining agreement.  

       A mutually benefitting psychological contract is when employer and employee have a give and take relationship and this is called an interpersonal relationship that can be developed through cooperation and trust. If employees will perform their job according to their given task, employee will recognize their loyalty and confidence; they may all be a part of a wonderful organization that is best performed to work and succeed. Although this behavior is not included in the contract, can be both beneficial for both employees and employer in their working condition.    

     

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