The Psychological Contract (Word DOCX)

In management and Human Resources, the term 'the Psychological Contract' commonly and somewhat loosely refers to the actual – but unwritten – expectations of an employee or workforce towards the employer. The Psychological Contract represents, in a basic sense, the obligations, rights, rewards, etc., that an employee believes he/she is 'owed' by his/her employer, in return for the employee's work and loyalty.

The Psychological Contract applies to any employer-employee relationship. This notion applies to a group of employees or a workforce, just as it may be seen applying to a single employee.

The Psychological Contract is quite different to a physical contract or document – it represents the notion of 'relationship' or 'trust' or 'understanding' which can exist for one or a number of employees, instead of a tangible piece of paper or legal document which might be different from one employee to another.

This 27-page document explains the concept of The Psychological Contract ins detail. It discusses the theory of psychological contracts in organisational employment, as well as wider 'psychological contracting' in relationships, communications, and societies.