Report on Psychological Contract between Employer and Employee

Psychological Contract
Past Experiences

Psychological contract is a complicated element as it is essentially a relationship between two individuals which is hard to classify at times. The relationship between an employee and an employer can be many types but they are mainly divided between transactional and relational types. Psychological contract is determined considering how an employer treats an employee and not likewise as the employer holds the reins in this scenario. I can describe my psychological based on a past experience which clearly helps me analyze the psychological contract between me and my employer. If taking the very basic type of classification into account, my contract with my employer was of a transactional type with bare minimum signs of a relational element (Bal, Chiaburu, & Jansen, 2010).
The type of work and the type of payment system was also a determinant of this relationship but it wasn’t a definite factor. I used to get paid on the basis of how much work I had completed and this was a positive factor as it motivated me to work harder to get paid more. But this negatively impact my relationship with my employer. When under training I did not deal with my employer but with my trainer which was a person who provided sufficient motivation. But my employer had a strictly monetary based relationship considering work and gave me salary at the end of the month for the amount of work I did and I was always told to be productive and get more work done without the consideration of many previous instances where I had worked harder than others and exceeded my own expectations. The amount of emotional attachment was barely minimal as the employer and I never got around to talking about interests. He always used to communicate with other departmental heads and communicated with me when there was a problem in work or when there was a work related information which could not be communicated via e-mail.
General Perspective

Taking a general perspective, through observation of experiences by friends and family I think there are many factors which affect job satisfaction and the relationship with the employer cannot be given full credit for that. The type of work, the pay scale, relevance of interest and progression play a huge role in job satisfaction. According to my observation people who are satisfied with their work only form 30% of the total workforce. Some people work because they have to, some people work to follow through with their career, some also work because they have been doing the same for a long time. When these kind of factors compel a person to keep working, the level of job satisfaction tends to get low.
When an individual gets a job which he likes to do and is efficient at it, he remains happy. In certain scenarios a high amount of pay also motivates a person and brings satisfaction. A good relationship with the employee just becomes an additional factor of job satisfaction. If a person is lucky enough to get a job which he likes to do, then even if the pay is low, he individual will feel happy at work. Sometimes, even if the work is straining, the motivation an employee gets at work gets the employee through the work which gives a satisfactory experience. This improves the job satisfaction level in an organization.
Participative Management Programs

Participative Management can be better understood by the term employee engagement which is an activity of motivation. Employee engagement is not a necessary activity in business terms but it has diverse range of results in the organization. Effectively engaging with the employee improves communication and coordination between an employer and an employee. Employee engagement supports the most basic and essential tenets of human resource management and has robust bond with the process of motivating employees. Motivation is also another process that has its own features and benefits like increase in productivity through better coordination, employee retention through sustenance of high morale, etc.
Managers have to make efforts in engaging with the workforce which can be in the form of empowerment of employees, encouragement of teamwork and collaboration, aligning the collective efforts of employees with strategies, providing help and support during distress, etc. The ultimate key towards employee engagement is better communication which paves the way towards the improvement of other factors. Robust training systems, promotion of employees, listening to the demands of the employees, provision of adequate incentives, and the cultivation of an open employee culture can help in propagating the vitality of participative management. It has been acclaimed before that improved employee engagement leads to better performance (Markos & Sridevi, 2010).
Bal, P. M., Chiaburu, D. S., & Jansen, P. G. (2010). Psychological contract breach and work performance: Is social exchange a buffer or an intensifier? Journal of Managerial Psychology, 252-273.
Markos, S., & Sridevi, M. S. (2010). Employee Engagement: The Key to Improving Performance . International Journal of Business and Management , 89-96.


Posted on

March 8, 2018

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