Psychological Contract Theories

The term psychological contract has been around since the 1960s and ever since then there has been many definitions. Roehling (1997) credits Argyris with introducing the term psychological contract. He referred to the relationship between the employee and the foreman suggesting that this relationship had a stronger influence on attitudes and performance of employees than that of their actual written contract. This theory was further developed by respected authors such as Sparrow and Schein. Armstrong (2006) quotes Scheins definition as “the notion of a psychological contract implies that there is an unwritten set of expectations operating at all times between every member of an organisation and the various managers and others in that organisation”.

The psychological contract develops and evolves constantly based on communication, or lack thereof, between the employee and the employer. Promises over promotion or salary increases, for example, may form part of the psychological contract.

Managing expectations is a key behaviour for employers so that they do not accidentally give employees the wrong perception of action which then does not materialise. Employees should also manage expectations so that, for example, difficult situations or adverse personal circumstances that affect productivity are not seen by management as deviant.

Perceived breaches of the psychological contract can severely damage the relationship between employer and employee, leading to disengagement, reduced productivity and in some cases workplace deviance. Fairness is a significant part of the psychological contract, bound up in equity theory. Employees need to perceive that they are being treated fairly to sustain a healthy psychological

Granted, there are occupations where employees face significant risk for injury, such as protective services jobs in police and fire departments. However, employees expect that they can work collaboratively without worrying that they will face threatening acts or unsafe conditions in the workplace. In my opinion, employees expect safe working environment because they need a peaceful environment for working. Peaceful environment will make employees feel enjoy to work. Employers should provide such as fire extinguish, first aid box for safe working environment that expected from