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Define and Explain Psychological Contract

As an SEO copy editor, it is important to understand and explain complex ideas and concepts in a way that is clear and concise for readers. In this article, we will define and explain the psychological contract, a concept that is commonly used in organizational psychology and human resources.

What is the psychological contract?

The psychological contract refers to the unwritten expectations and obligations that exist between an employer and employee. These expectations are not explicitly stated in an employment contract, but they are understood by both parties based on the mutual exchange of promises, beliefs, values, and attitudes. The psychological contract is a concept that is used to describe the relationship between an employer and employee beyond the formal employment agreement.

Why is the psychological contract important?

The psychological contract is important because it shapes the relationship between an employer and employee and influences how they interact with one another. When the psychological contract is positive, employees are more likely to feel valued, committed, and loyal to the organization. When the psychological contract is negative, employees are more likely to feel disengaged, unhappy, and likely to leave.

What are the expectations of the psychological contract?

The expectations of the psychological contract vary depending on the organization and the employee. However, some common expectations include job security, fair compensation, opportunities for professional development, supportive work environment, and a sense of belonging. These expectations are often shaped by an organization`s culture and values.

What happens when the psychological contract is broken?

When the psychological contract is broken, employees may feel betrayed or disillusioned by the organization. This can lead to a decrease in trust, loyalty, and job satisfaction. In some cases, employees may leave the organization altogether. Therefore, it is important for organizations to be aware of the psychological contract and to actively work to maintain a positive relationship with their employees.

In conclusion, the psychological contract is a concept that is important in understanding the relationship between an employer and employee beyond the formal employment agreement. It is based on the mutual exchange of expectations, beliefs, values, and attitudes and shapes the way employees interact with their organization. As an SEO copy editor, it is important to be able to explain complex concepts like the psychological contract in a clear and concise manner for readers.


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