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    Psychological contracts

    Keith Jackson

    SOAS, University of London / IFAVF, Stuttgart

    [email protected]

    London School of English 2013

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    Questions for todays workshop

    What is a psychological contract?

    How relevant are psychological contracts to international

    organisations / employers today?

    How relevant are psychological contracts to you in your

    experience & expectation of a professional career?

    2

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    Contracts

    Have you signed anemployment contract?

    If yes, why?

    If no, why not?

    Do you have a written contract

    with the London School?

    How often do you / employeesgenerally tend to look atcontracts?

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    The psychological contract

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    Defining the psychological contract

    Individual beliefs, shaped by the organization, regarding terms of an

    exchange agreement between the individual and their

    organization

    Source: Rousseau, D. M. (1995) Psychological Contracts in Organisations:

    Understanding the Written and Unwritten Agreements

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    Context: systems theory

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    The psychological contract as a system

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    Input: expectations

    Which expectations did you bring to your current job, and why?

    Which expectations did you bring to your studies at the London

    School, and why?

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    Context: national culture

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    Psychological contracts: the influence of cultures

    Individual beliefs shaped by the

    organization

    = socialisation / expectations?

    regarding terms of an exchangeagreement

    = transaction / deal?

    between the individual and their

    organization

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    The psychological contract: focus on the linkages (causality)

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    Process: experiencing psychological contracts

    What is the nature of the deal between you and your organisation / the

    London School?

    To what extent do you trust your organisation / the London School?(Give practical examples)

    To what extent do you believe your organisation / the London School

    trusts you? (Give practical examples)

    To what extent do you believe your organisation / the London Schooltreats you fairly? (Give practical examples)

    Overall, and on a score out of ten, how healthy do you consider yourcontract with your current employer to be?

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    !"#$%&$' )*+,# -%."*-/% +,#,0%+%#$ 12345

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    Context: globalisation

    challenging established perceptions & expectations

    redefining boundaries of organisations & teams

    redefining boundaries of business decision-making

    reducing space & time for strategic decision-making

    increasing risks associated with strategic decision-making

    increasing opportunities to interact with geographically spreadbusiness partners (strangers)

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    Consequences: intention to stay / quit

    Why did you leave your previous job?

    What could the organisation have done differently in order to

    retain you, and why?

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    Contract stability: loyalty

    A child must first learn filial piety(xiao)

    Then brotherly love (di)

    Then extend love beyond the family

    to others (ren)

    In your behaviour, set a moralexample to others.

    Practise empathy (shu): 'never do toanother what you do not desireyourself'

    Source: Confucius,Analects(15:24, 12:2)

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    Perceived contract breach: trust

    !"

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    Psychological contracts: a Shanghai Chinese perspective

    The idea of the psychologicalcontract has come as an entirelynew concept learned from Westernhuman resource management; itwas perceived from the start asforeign, and interacted in largely

    negative ways with ways the mutualtrust-based relationships native toChinese culture.

    Source: Si, S. X., Feng, W. & Li W. (2009)The effect of organizational psychologicalcontract violation on managers' exit, voice,

    loyalty and neglect in the Chinese context

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    Process: experiencing psychological contracts

    Cause:

    What promises did your current employer explicitly / implicitly make toyou during

    i) the recruitment process

    ii) the selection process?

    iii) the induction process?

    Process:

    To what extent do you believe your employer has fulfilled these

    promises? (Give practical examples)

    To what extent do you believe your organisation / the London Schooltrusts you? (Give practical examples)

    Overall, and on a score out of ten, how healthy do you consider your

    contract with your current employer to be?

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    Contact

    Dr Keith Jackson

    Email: [email protected]