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Psychological Contract

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Psychological Contract
EXECUTIVE SUMMARY

The purpose of the report is to discuss the theory of psychological contracts in organizational employment and to see its evolution by discussing various theories of different authors, its present form, issues related to it and its importance in training and apprenticeship programs.
This report basically discusses both the theoretical and practical aspects of psychological contract. This report shows how that how the concept of psychological contract has evolved and what different authors have said about this. And sees through what changes psychological contract has gone through and what shape it has adopted now finally.
Psychological contracts are becoming complex day by day. Its complexity and implications are discussed. The new psychological and the old psychological contracts are discussed. How the role of communication effects this is also seen. The role of psychological contract in training and apprenticeships programs are also explained in this report. The issues related to the psychological contracts and how these can be minimized so that both the employees and employers may be satisfied is also emphasized in this report.
Finally the analysis of the report is given and conclusions are made.

The Psychological Contract
INTODUCTION:
'The Psychological Contract ' is an increasingly relevant aspect of workplace relationships and wider human behavior that’s why I have selected this topic for the assignment.
Simply, in an employment context, the Psychological Contract is the fairness or balance (typically as perceived by the employee) between:
• How the employee is treated by the employer, and
• What the employee puts into the job.
At a deeper level the concept becomes increasingly complex and significant in work and management - especially in change management and in large organizations.
Interestingly the theory and principles of the Psychological Contract can also be applied beyond the employment situation to



References: Argyris, C. (1960), Understanding Organisational Behaviour (Homewood, Illinois: The Dorsey Press Inc) Schein, E. (1965), Organisational Psychology (Engelwood Cliffs, NJ: Prentice-Hall) Menninger, K, M.D., The Vital Balance, The Viking Press, New York, 1963 Levinson, H, et al. Management and Mental Health, Harvard University Press, Cambridge, Ma, 1966 Kotter, J. P. and Schlesinger, L. A. (1979), ‘Choosing strategies for change’, Harvard Business Review, Vol. 57, no. 2, 106-114. Schein, E. H. 1980. Organizational Psychology. Englewood Cliffs, NJ: Prentice- Hall

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