The Psychological Contract

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 psychology contract “The Psychology of Management means the effect of the mind that is directing work upon that work which is directed, and the effect of this undirected and directed work upon the mind of the worker. The emphasis in successful management lies on the man, not on the work”. In this contract, it refers to the mutual expectations of employers and employees. It includes the rights, privileges and obligations, specifically concerning mutual expectations of inputs and outcomes within the employment relationship. It includes such notions as employee engagement, beliefs about fairness，emotional intelligence, equity and trust. Although psychological contract is not a tangible contract, it plays the role of tangible contract in the enterprises.

Enterprises need to clearly understand each employee needs and desire for development, and try to satisfy them. Meanwhile, employee dedicated their time and effort to the development of enterprises. Although the development of enterprise and employee is not specified by a contract, both of them work hard t...

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