Critically discuss the concept of the psychological contract. Explain why an understanding of the concept is argued to be important in the effective management of human resources.
HUMAN RESOURCE MANAGEMENT
Human Resource Management
Question 5
Critically discuss the concept of the psychological contract. Explain why an understanding of the concept is argued to be important in the effective management of human resources.
It would seem that with evidence of trends facing towards globalization, downsizing and the restructuring of organizations Psychological Contracts are now playing a more vital part in modern and contemporary employment relationships. Sandra L. Robinson (1996) believes that as a result of this organizations have made rapid and constant changes, and have had to alter their employment relationships and the Psychological Contracts that underlie them. This essay will describe in detail what Psychological Contracts are the extent to which they are used, breaching of Psychological Contracts and then evaluate the contracts drawing on apposing and supporting theories.
This term ‘Psychological Contracts’ first used in the 1960’s, has come to be more widely used recently as a guideline for the analysis of the impact of changes in employment on the individual Rousseau 1995; Guest (1998). Descriptions and definitions of the Psychological Contract emerged in the work of organizational and behavioral theorist Chris Argyris and Edgar Schien. There have been many others who have contributed ideas to the subject, either choosing to focus specifically on the psychological contract, or trying to gain a new perspective entirely. The Psychological contract is a wide and varied concept and has been subjected to a range of theoretical studies and interpretations.
The key fundamental element of Psychological Contract is that it is concerned with the often implicit expectations, obligations and promises that each side, the individual and the organization, is believed to have made about what each other owes and expects to receive from the other. Put in another way the contract refers
Human Resource Management
Question 5
Critically discuss the concept of the psychological contract. Explain why an understanding of the concept is argued to be important in the effective management of human resources.
It would seem that with evidence of trends facing towards globalization, downsizing and the restructuring of organizations Psychological Contracts are now playing a more vital part in modern and contemporary employment relationships. Sandra L. Robinson (1996) believes that as a result of this organizations have made rapid and constant changes, and have had to alter their employment relationships and the Psychological Contracts that underlie them. This essay will describe in detail what Psychological Contracts are the extent to which they are used, breaching of Psychological Contracts and then evaluate the contracts drawing on apposing and supporting theories.
This term ‘Psychological Contracts’ first used in the 1960’s, has come to be more widely used recently as a guideline for the analysis of the impact of changes in employment on the individual Rousseau 1995; Guest (1998). Descriptions and definitions of the Psychological Contract emerged in the work of organizational and behavioral theorist Chris Argyris and Edgar Schien. There have been many others who have contributed ideas to the subject, either choosing to focus specifically on the psychological contract, or trying to gain a new perspective entirely. The Psychological contract is a wide and varied concept and has been subjected to a range of theoretical studies and interpretations.
The key fundamental element of Psychological Contract is that it is concerned with the often implicit expectations, obligations and promises that each side, the individual and the organization, is believed to have made about what each other owes and expects to receive from the other. Put in another way the contract refers