With the growing numbers of competitors and high technologies in the market, where company will be an increased need for skilled employees at every level and department of the organization. (Neilson, 2000) Have a better understanding of what individual desire and how to attract talent people is important. This paper aim to look at the connection between psychological contract and motivation theory by analyzing commitment and trust model The Herzberg theory, Vroom’s expectancy theory, and McGregor motivation theory will be discussed to see how psychological contract align with employee motivations.
Psychological Contract
Psychological contracts has been defined as a ‘motivator’ that employees will give in the way of contribution when employees are confident that employer will reciprocate fulfill commitment, such as rewarding work, promotion or other forms of career advancement. (Rousseau, 2004). Research conducted by Robinson & Morrison demonstrated that employees holding different types of psychological contract (relational, transactional) treat perceived violations differently. (Crossman, 2004)
In the dynamic global environment, downsizing, organization restructuring, corporate mergers and acquisition, then these trends make it difficult for organization to fulfill anticipated results in psychology contract. Rousseau.(2004)Robinson (1996) showed that the effects of psychological contract violations could reduce employee contributions. That is why organization will need to reduce violations and learn how to manage if it is unavoidable. (Eau, 2001)
Psychological contract was rooted in three main principle constructs; the relationship, trust and commitment, these not only contribute to the construction or reconstruction of the psychological contract, but also identified an inter action between each; (Shore L.M & Tetrick E.L, 1994) ‘motives change may alter trust, which will in turn change the commitment form, meanwhile, changes in trust and