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North Lake College Psychological Contracts Across Ethical Boundaries Responses

North Lake College Psychological Contracts Across Ethical Boundaries Responses

Question Description

There are two replies. You have to provide reply based on their post for that question. You have to provide your opinion about their post. Each reply can limit minimum 350-450 words.

Question: Explain the concept of the ‘psychological contract’ and how motivation is linked to individual performance. Give examples from your experience where the ‘contract’ was broken. How can a supervisor clarify the ‘contract’ with his or her team members?

Person 1 post:

by Rupa – Saturday, 3 April 2021, 6:14 PM

The concept of psychological contract was developed by Denise Rousseau (Stevenson, 2018) which refers to the unwritten set of expectations between employer and employee that includes mutual beliefs, informal arrangement, common ground and perceptions. This contract develops constantly depending upon the communication between the two parties. Consistent and constant communication positively impact the contract whereas lack of communication can seriously hamper the contract. Furthermore, there must be two-way communication between employer and employee, otherwise, there may be breach of contract. It is very important and linked with the motivation of employee performance. Research have showed that fulfilling psychological contract helps to enhance the feelings of being valued that, in fact, brings positive outcome in the employees. Moreover, it is argued that proper management of psychological contract can lead to enhanced job performance and lower turnover rate (HRMBD, 2017). Nowadays, gaining trust of employees is very crucial to the employers and it can be done by maintaining mutual understanding and relationship between employee and employer. In fact, psychological contract can help build this relationship which is based on mutual understanding.

I think it is very important to communicate and be open and honest in order to foster trust. While I was doing an internship, I was allowed to take personal calls and use personal phones in the office. However, when a new supervisor was assigned for the project, he stops us from taking personal call during office hours and not use personal phones at all. This, at first, felt like bullying and kind of psychological contract breach. At first, I did not feel like working and felt the need of phone. However, over the course of time, it was beneficial for the both parties as there was less distraction and more work involved. Moreover, the supervisor also explained the reason behind no phone policy which was actually beneficial. Thus, the supervisor can clarify psychological contract with the employees by communicating, being transparent, building trust, providing feedback and recognition as required.

Person 2 Post:

by Summer – Friday, 2 April 2021, 7:50 PM

A psychological contact refers to the belief and unwritten expectations between the employer and employee. This unwritten rule is that the employer will provide appropriate wages and benefits, a fair work and home life blackness as well as developmental opportunities in place for the employee’s contributions whether by increased productivity and professional improvements, loyalty through tenure and going above and beyond in the position when needed. An employee who completely understands the expectations of them within the organization, how their contributions promote the overall success of the company as well as feel a mutual respect from their superiors will most likely feel a greater responsibility to perform well and exceed those set expectations.

An experience of this contract being broken has recently been experienced inside this student’s current company. A colleague was being groomed for a promotional opportunity within the organization. The expectations were discussed and the unwritten belief as interpreted by the employee was that if they met all of the criteria and minimum entrance requirements for the position when it was open the promotion would be theirs with no competition. The psychological contract included that by the employee doing all of the necessary things to be eligible for the position it would automatically be theirs, with no obligation to apply and no interview requirement. However, when the position became vacant it was posted both internally and externally and interviews did occur and the employee who had completed as asked all of necessary improvements and growth and educational requirements was not chosen for the promotion. In this instance the supervisor could have clarified that the requirements being shared with the employee was simply listing what was needed in order to be eligible to apply and be considered for the promotion, not that the opportunity would simply be handed over.


Jackson, J., Mathis, R., Meglsich, P., Valentine, S. (2020). Human Resource Management. Cengage Learning, Inc.

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