Jarlath Duffy - Change from Within

Sometimes dissension in the workplace is as a result of a breaking, perceived or otherwise, of the psychological contract. The psychological contract is a very subjective concept which influences employees' beliefs and behaviour in the workplace. A psychological contract is commonly understood as an individual's belief about the terms and conditions of a reciprocal exchange agreement with an employer or manager; a belief that some form of promise has been made and that the terms are accepted by all involved. Essentially, it is an unwritten set of expectations between everyone in an organisation and, unlike the written contract, is continually changing. By nature it is a highly flexible and undefined set of terms which are extremely interpretive by the individual. Although it is unwritten (being implicit), it can be a significant determinant of behaviour in organisations and perceptions of violation can have lasting effects.

It involves an individual's beliefs of reciprocal exchange between two parties pertaining to trust, loyalty and the well-being of all involved. In an ideal situation the employer respects and looks after the well-being of the employee throughout the duration of employment. In return the employee is loyal and trustworthy which consequently increases productive behaviour and thus the success of the organisation. An individual may form beliefs pertaining to their expectations and obligations in an organisation as soon as they enter the recruiting phase, or even before. Eager to recruit the best candidates, employers at this stage may exaggerate the details of some aspects of the position leading to the formation of incorrect opinions by the new employee.

Even with the best intentions from both the employer and employee, relations can break down and the psychological contract can be violated. Violation of the contract is a perceived failure to comply with its terms and conditions and can be potentially damaging to all involved. In order to establish if a violation has occurred, given the subjectivity of the psychological contract, one must first consider how an individual might interpret the circumstances in which the failure has happened. It is this interpretation which establishes whether or not a violation has actually been experienced.

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