Managing the Psychological Contract
The psychological contract as a management tool was seen as a means of individualizing the employment relationship and, by making implicit beliefs explicit, it was felt that the psychological contract could be relatively easily controlled and managed. The psychological contract appears to be used by many organizations. Psychological contract surveys consistently show that employees report high levels of perceived promises, indicating that organizations could potentially benefit from successfully managing the psychological contract. This chapter discusses key issues in managing the psychological contract and offers suggestions for managing its two key areas: contents and breach. As most current recommendations for managing psychological contracts are from an employer's perspective, this chapter looks at what employees can themselves do to manage the psychological contract. The chapter concludes by considering some of the difficulties and dilemmas faced by employees and employers when attempting to manage the psychological contract.
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