How do psychological contracts impact workplace effectiveness?
- Published on 4 Oct 2013
- Anne-Marié Pretorius
The violation of a perceived psychological contract is a leading cause of disgruntled employees and even destructive behaviour in the workplace. This contract is built from perceived expectations, obligations and promises that the employee and employer build when they enter into a working relationship. This particular contract is not only influenced by personal beliefs but also through social and legal contracts.
The psychological contract isn’t something that is widely known or understood, but it can have far-reaching effects on the relationship between a company and an employee. Expectations are sometimes already set at the final interview or offer stage where the company and the job is often ‘talked up’, and less pleasant elements of the role are not discussed for fear of alienating a promising candidate. As a result, the violation is worse with strong, competent candidates who might be bitterly disappointed with the reality of the situation.
Example
John is a lawyer and accepts a job offer at one of South Africa’s top firms. Before even walking into the job, he has already built a set of expectations based on the firm’s good reputation. In his mind, he envisions receiving:
- A good starter salary,
- A nice office, and
- Perks like using the canteen.
John’s superior appears very supportive and he builds a further expectation that this company will be supportive towards him.
On his first day, he finds that:
- There is no office, rather a compact cubicle,
- There is no office canteen,
- The salary is not close to what he expected, and
- When he asks for help with his first assignment he gets no assistance.
John feels disappointed as this is not what he perceived the job would be like. He decides to not put as much effort into his work because his expectations were not met. John eventually quits his job three months into his appointment.
You can also experience a psychological contract positively
This is usually in the case where an employer or employee finds their expectations and perceived promises are matched or exceeded. This can lead to feelings of loyalty, a positive work morale, dedication and heightened levels of quality in work assignments. From the employer’s side, they may decide to extend the employee’s work contract, give the employee more responsibility and so forth. In essence, a positive experience of the psychological contract can help foster trust relationships and increase loyalty from both sides.
The best way to manage the psychological contract actively is to be as clear and as honest about the:
- Job, and
- Culture, highs/lows as well as pros and cons of the organisation, company, job and division.
The situation requires mature managers who are willing to be transparent early on in the process to ensure that expectations are actively managed.
