Psychological Contract Essay

In Schein’s definition the expectations can be concerned with economic issues, such as pay to be received in return for the work done. However, the main feature of the psychological, as an opposition to the economic, contract is that expectations concern non-tangible, psychological issues. Hence, broken expectations produce feeling of disappointment and anger.
The Psychological Contract plays an important role in the relationship between the employer and the employee in every organization. This unwritten set of expectations, additional to the formal written contract, ensures that all of the job requirements are met. This contract covers a range of rights, privileges, behaviour and duties, which are not a part of formal agreement but still, have an

The breach of the psychological contract is subjective experience and is based on person’s perception that another person failed to do his promised obligations and duties of the psychological contract (Rousseau, 1989, pp. 121-139). Provision of training is often the main problem that employees complain about. The breach of the contract is that workers either received no training or that the training was not as promised when joining the organization. Other examples of breach relates to promotion, benefits, co-workers, job security. It is difficult to assess the extent of the psychological contract breach, because various organizational circumstances may change the relationship between employer and employee. These circumstances include the variety of changes such as downsizing, reorganizations, restructuring or compulsory redundancy.
If breach of the psychological contract has occurred there are few types of consequences that people are facing.
• Emotional reaction of the employees who perceive that their contract was breached;
• Possible changes of the psychological