Essay About Relational Contract And State Of The Psychological Contract

Human Resource
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the employment relationship between employer and employee. The nature of this
relationship may be viewed as a continuum. At one end is the relational contract,
characterized by broad, open-ended and long-term obligations based not only
on exchanges around monetizable elements (pay for service, etc.), but also on
socio-emotional elements (such as loyalty and support). At the other end is the
transactional contract, comprising specific short-term monetized obligations.37
The condition or state of the psychological contract, shown as the horizontal axis
in Figure 4-3, is regarded as a regulator of the employment relationship over time.37,38
The psychological contract refers to an employees belief regarding reciprocal obligations
between the person and the employing organization. Intactness may be
regarded as the positive side of the psychological contract. The employee considers
that there has been fair treatment, reciprocal trust and both parties have delivered on
the deal, thus creating a perception of balance between what the employee has
contributed and the inducements proffered by the employer. Violation is the
emotional and affective state brought about by a belief that the organization has not
fulfilled its obligations.39,40 Unspoken expectations about behaviors and attitudes that
may predate the current work situation, along with feelings about trust and loyalty,