Psychological Contract Fulfillment: Understanding Its Importance in the Workplace
In every workplace, there are unwritten agreements between the employer and the employee that go beyond the formal employment contract. These agreements are known as psychological contracts and they shape the expectations and obligations of both parties. Psychological contract fulfillment refers to the degree to which these expectations and obligations are met by each party.
The concept of psychological contract was first introduced by organizational psychologists Chris Argyris and Edgar Schein in 1978. They defined it as « an individual`s beliefs regarding the terms and conditions of a reciprocal exchange agreement between that focal person and another party. » In simpler terms, it is a mutual understanding between the employer and the employee about what each can expect from the other.
Psychological contracts are not legally binding, but they are just as important as the formal employment contract. They include promises made by the employer, such as job security, opportunities for career development, fair treatment, and work-life balance. The employee, on the other hand, promises to deliver quality work, meet deadlines, and follow company policies.
Psychological contract fulfillment is vital for both the employer and the employee. When the employee perceives that the employer is fulfilling its obligations, he or she is more likely to be motivated, committed, and engaged in the job. In turn, this leads to higher productivity, better performance, and lower turnover rates. When the employer perceives that the employee is fulfilling his or her obligations, he or she is more likely to invest in the employee`s development, provide feedback, and offer rewards and recognition.
However, if the psychological contract is breached, it can lead to negative consequences for both parties. When employees perceive that the employer is not fulfilling its promises, they may become demotivated, disengaged, and cynical. This can lead to absenteeism, lower productivity, and higher turnover rates. On the other hand, when the employer perceives that the employee is not fulfilling his or her obligations, he or she may become reluctant to invest in the employee`s development, leading to a lack of career growth opportunities.
To ensure psychological contract fulfillment, both the employer and the employee need to communicate openly and honestly about their expectations and obligations. Employers should make realistic promises and deliver on them, while employees should fulfill their obligations to the best of their abilities. Additionally, both parties should be open to feedback, be willing to negotiate and adjust expectations when necessary, and be respectful of each other`s needs and desires.
In conclusion, psychological contract fulfillment is a critical aspect of workplace relationships. It is important for both employers and employees to understand and meet the expectations and obligations of the psychological contract. By doing so, they can foster a positive work environment, increase productivity and performance, and strengthen their relationship.