Editing Psychological contract (section)

{{Short description|Concept in organizational theory}}
A '''psychological contract''', a concept developed in contemporary research by organizational scholar [[Denise Rousseau]],<ref name=":0">{{cite journal |last=Rousseau |first=Denise M. |date=June 1989 |title=Psychological and implied contracts in organizations |journal=Employee Responsibilities and Rights Journal |volume=2 |issue=2 |pages=121–139 |doi=10.1007/BF01384942 |url=https://www.researchgate.net/publication/226857215}}</ref> represents the mutual beliefs, perceptions, and informal obligations between an [[employer]] and an [[employee]]. It sets the dynamics for the relationship and defines the detailed practicality of the work to be done. It is distinguishable from the formal written [[contract]] of [[employment]] which, for the most part, only identifies mutual duties and responsibilities in a generalized form.

Although Rousseau's 1989 article<ref name=":0" /> as highlighted by [[Jacqueline Coyle-Shapiro|Coyle-Shapiro]] "was very influential in guiding contemporary research",<ref>{{cite book |last1=Coyle-Shapiro |first1=Jacqueline A.-M. |last2=Parzefall |first2=Marjo-Riitta |date=2008 |chapter=Psychological contracts |editor1-last=Cooper |editor1-first=Cary L. |editor2-last=Barling |editor2-first=Julian |title=The Sage handbook of organizational behavior |location=London; Los Angeles |publisher=Sage Publications |pages=17–34 |isbn=9781847875877 |oclc=260201157 |url=https://archive.org/details/isbn_9781412923859/page/17 |url-access=registration |chapter-url=https://www.researchgate.net/publication/41308893}}</ref> the concept of the psychological contract was first introduced by [[Chris Argyris]] (1960): <blockquote>Since the foremen realize the employees in this system will tend to produce optimally under passive leadership, and since the employees agree, a relationship may be hypothesized to evolve between the employees and the foremen which might be called the "psychological work contract." The employee will maintain the high production, low grievances, etc., if the foremen guarantee and respect the norms of the employee informal culture (i.e., let the employees alone, make certain they make adequate wages, and have secure jobs).<ref>{{cite book |first=Chris |last=Argyris |title=Understanding Organizational Behavior |location=Homewood, Ill. |publisher=Dorsey Press |page=[https://archive.org/details/understandingorg00argy/page/96 96] |date=1960 |oclc=228977 |url=https://archive.org/details/understandingorg00argy/page/96 |url-access=registration}}</ref></blockquote>

Psychological contracts are defined by the relationship between an employer and an employee where there are unwritten mutual expectations for each side. A psychological contract is rather defined as a philosophy, not a formula or devised plan. One could characterize a psychological contract through qualities like respect, compassion, objectivity, and trust.<ref name=":3">Chapman, Alan. "The Psychological Contract.", Theory, Diagrams, Definitions, Examples of in Work, Businesses, Organizations and Management. Businessballs Corp, n.d. Web. 20 Oct. 2016.</ref> Psychological contracts are formed by beliefs about exchange agreements and may arise in a large variety of situations that are not necessarily employer-employee.<ref name=":22" /> However, it is most significant in its function as defining the workplace relationship between employer and employee. In this capacity, the psychological contract is an essential, yet implicit agreement that defines employer-employee relationships. These contracts can cause virtuous and vicious circles in some circumstances. Multiple scholars define the psychological contract as a perceived exchange of agreement between an individual and another party.<ref name=":22" /> The psychological contract is a type of social exchange relationship.<ref>Turnley, William H., and Daniel C. Feldman. "Re-Examining the Effects of Psychological Contract Violations: Unmet Expectations and Job Dissatisfaction as Mediators." ''Journal of Organizational Behavior'' 21.1 (2000): 25–42. {{jstor|}}.</ref> Parallels are drawn between the psychological contract and social exchange theory because the relationship's worth is defined through a cost-benefit analysis.<ref name=":12" /> The implicit nature of the psychological contract makes it difficult to define, although there is some consensus on its nature. This consensus identifies psychological contracts as "promissory, implicit, reciprocal, perceptual, and based on expectations."<ref name=":1" />

These psychological contracts can be impacted by many things like mutual or conflicting morals and values between employer and employee, external forces like the nudge theory, and relative forces like Adams' equity theory.<ref name=":3" />