Changing Psychological Contract & its Impact on Human Capital Management Free Essay, Term Paper and Book Report
Psychological contract is defined as the perception of the two parties, employee and employer, of what their mutual obligations are towards each other. (Rousseau, 1994) These perceived obligations are often imprecise whereby they may be inferred from current or past actions, as well as statements made by employers and employees for example during the recruitment process or in performance appraisals.
Guest (2000) has suggested that the strength of the psychological contract is dependent on how fair the individual believes the organisation is in fulfilling its perceived organisation obligations above and beyond the formal written contract of employment. This in turn determines commitment to the organisation, motivation, job satisfaction and the extent to which they feel secure in their job. It is thus important for both parties to comply with the contract in order to maintain a stable work environment.
Psychological Contract Model (Guest and Conway, 2000)
The psychological contract model encompasses both individual and organisational background factors and policy influence......
Word Count: 3673
Page Count: 14.6 (250 words a page / double spaced)
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