During a «contract repair process,» people try to restore the balance, either by looking for other ways to meet their expectations or by reducing their expectations. For example, employees who have a «relational» psychological contract (for example. B overtime in exchange for better career opportunities) can withdraw their behavior outside the role and move to a basic «transactional» agreement. Others may respond by behaving proactively and treating the situation as an opportunity to learn how to compensate for the loss of position and uncertainty. To successfully manage contract repair and prevent individuals from leaving the organization, individuals must have the psychological and social resources and develop resilience skills in advance. Read Zurich Life and Isos Housing`s case studies on managing changes in staff supply. Typically, HR and talent management can easily do this by assigning a number of incentives to both the employer and the employee. As long as there is no ethical compromise or the culture of an organization is not violated in any way, the psychological contract is valid and can be fulfilled. An employment contract deals with the transactional exchange of work for reward. The psychological contract describes the more informal perception of what each part of the relationship engages in and what it might receive in return. Even if it doesn`t technically exist, the psychological contract is still incredibly important and effective. This is because even though it cannot be seen or touched, it can be felt.

Trust and loyalty between the employer and the employee are seriously compromised in the event of a breach of contract. Both consider that it is the duty of the other to respect the contract and consider that the other has not fulfilled his obligations against the contract. Vertical psychological contracts reflect the traditional employer-employee relationship in organizations. Together they regulate the social relationship between people who work in a traditional hierarchical environment (e.B. leader – follower). It is very important for any organization to engage people at work by letting them know what to expect and understanding what people expect, so that the organization and people can make deals to know what they need to do for each other. In addition, the psychological contract determines and shapes the scope of people so that they can use and develop their talents and skills to achieve and achieve the goals of the organization, which is a key achievement for any organization. In addition, a psychological contract can allow companies to understand and predict how people behave at work, allowing organizations to better align them with customers and strategic goals. Therefore, it will be easy to engage people at work to achieve the strategic goals that underpin the psychological contract (Michael, 2012).

Since there are unwritten rules in the psychological contract, it can be difficult to fulfill both and not fulfill them. There is extreme resentment between the employer and the employee because they do not fulfill the contract. Several factors influence psychological contracts, such as (Rousseau, 2001) violations can take three forms: accidental, disruptive or disdainful. The fact that victims identify the cause of the violation as the reluctance or inability to comply has an impact on how the violation is experienced and what victims do in response to it. Therefore, a psychological contract is more of a philosophy than an elaborate plan and includes qualities such as respect, compassion, and trust. Psychological contracts are crucial in self-employment, and the nature of employment changes every day; At the same time, the psychological contract is becoming more and more important. As far as possible, common ground is found and defined before the psychological contract continues. Disgruntled employees can even damage a company`s reputation, especially if they express their concerns on social media (which they might do, whether your written contract prohibits it or not). But the psychological contract is a very important part of the employer-employee relationship. Here`s why it`s important to stick to this tacit agreement. Most of the time, if a company has an employee churn problem or low employee engagement, that problem can be directly related to a psychological contract that seems unfair and unbalanced.

So how can we maintain the unwritten rules of a psychological contract and ensure that procedural justice and interaction justice remain intact? Psychological contracts are tacit, that is, they are understood or implied without being spoken or written. It is therefore likely that they contain vague beliefs and unconfirmed assumptions. The violation of the psychological contract, in which an employee believes that the organization has not kept its promises, has serious consequences. Want to know more about the pros and cons of the psychological contract? Click here! But the «terms» of a psychological contract are not pronounced anywhere (even if you have a cultural code, there is still room for what is acceptable behavior and what is not). A metaanalytical review also found support for the relationship between psychological contract violations and negative emotional responses (Zhao et al., 2007) and additional research supported metaanalytical findings (Suazo, 2009). While it can be relatively easy to see the signs, it`s not always easy to find out what drove them to change their behavior. «Selfish bias» occurs when employees rank themselves and their own contributions positively and evaluate employer contributions less positively. With such preconceived ideas, the employee who created the contract will demand, whenever the psychological contract is fulfilled, recognition of its performance. And when it comes to breaches of contract, these employees place their own non-performance of a contract on external terms such as other people in the organization, the global economy, or the organization. The importance of a high climate of engagement and HRM practices such as providing learning, education and development opportunities, a focus on job security, promotion and career, minimising status differences, fair reward systems and comprehensive communication and participation processes will all contribute to a positive psychological contract. The steps needed to develop a positive psychological contract are listed below: there is no definitive list of expectations and obligations that describe the content of the psychological contract. Instead, many scientists have chosen to focus on certain aspects, such as .B research on the duration or stability of the exchange.

For example, a manager may talk directly to his subordinates about getting a big assignment, against which the manager will give a big raise. Something like this will take weeks to be approved, not to mention the fact that several people are involved. Instead, the manager opted for a psychological contract to get the job done right away. If the employee remains honest with his words and receives the order, the employer should remain honest with his word and try to increase as much growth as possible. Taking this information into account will help prevent a breach and lead to a balanced contract between the two parties. Research also provides evidence that many employees experience a psychological contract violation several years after starting work (Conway and Briner, 2005), and research shows that this violation negatively affects employee productivity and retention (Robinson, 1996). The CIPD reminds managers to consider these important points when a change occurs that disappoints team members: in addition, HR practices and psychological contracts are both linked to organizational strategy. HR practices initially affect employees` skills, attitudes and behaviors, which impact one impact after another on the company`s performance. HR practices convey strong messages to individuals about what the organization expects of them and what they can expect in return. .