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The Psychological Contract Essay

2111 words - 9 pages

Introduction
The Psychological Contract is an increasingly relevant aspect of workplace relationships and human behavior. This essay will provide a basic definition of psychological policy, explain and analyze the role of the psychological control in managing human resources by different perspectives from people involved. Moreover, it will point out issues with the Raffles merger, address these issues and detail how it strengthens the contract in the Raffles merger by three inter-related human resource polices. It will also provide the reason as to why these three inter-related polices have been chosen.

Definition of psychological contract
In 2005, Gilbreth state the defection of ...view middle of the document...

Normally, there are seven aspects of expectation in the psychological contract which comprise of good work environment, task coincide with career orientation, security and belonging, remuneration, promotion, value identification and opportunities of training and development. In several factors, the main focus is about feelings and attitudes of employees, in another words, the core concept in psychological contract is employment satisfaction (Dicke, Howerda and Kontakos 2007).

Role of psychological contract
In the working environment, employer and employee have different needs and requirements for each other, meanwhile, those needs are inter-reactive. For employee, they are more concerned about the working condition and commitments provided by company in their careers, which include fair work wage, guaranteed standard environment, sense of belonging, job security, friendly colleague and opportunity for individual development (Branham 2006) . In the enterprise, manager shave needs for employee, the common aspects are employee’s loyalty and good work ethics. They also focus on employee’s ability to innovate and manage and whether worker abide by organization, keep good social relationship between colleague and leader(Branham 2006).

Psychology of Management plays a significant role in human resources. Every person who works for the company plays different roles and having different needs. Psychology control is the tool which helps worker and employer meet their needs and achieve higher performance. There are series different roles psychology control paled in the organization.
For employee, the most significant role is to reduce the sense of job insecurity. As the formal written contract cannot include every aspect of employment relationship, psychology control fill in these blanks. Any unstable factor which affects their job opportunity would make worker feel insecure. For example, workplace layoffs or colleague in-fighting would increase the job insecurity of staff (Weline 2007). Psychology control provides job security and friendly organizational environment, thus helping worker reduce the sense of job insecurity. Another role of psychology control is to promote good communications between employer and employee. Communication is a key success factor of any merger. It is an effective way to guarantee no communication gap between employer and employee (Weline 2007).
Likewise, psychology control also plays a significant role from the manager’s perspective. It helps to increase the loyalty of worker and working faithfully for firms is the key issue what employer care about. However, worker will decrease loyalty to the company if working in an unfair working environment or when they are faced with dishonest behavior from the manager. Psychology control helps management to guarantee a fair working environment and standard right for staff, which will lead to the increase of the loyalty from customer. Happy staff leads to happy customers.
The secondary...

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