Posted: April 15th, 2015

t is easy in practice for organisations to explicitly define the psychological contract

Critically evaluate the statement “It is easy in practice for organisations to explicitly define the psychological contract” in essay format.

 

AIM: 1200 words

 

My argument: It is difficult in practice for organisations to explicitly define the psychological contract.

 

STRUCTURE:

Introduction: (100w)

• Preview of the essay
• Makes a general statement about the issue
• Sets out the main structure of the essay
• Sets out your thesis (point of view)
• Be brief but include all your main ideas

 

Body: (1000w)

• Assemble the evidence of your research and thinking
• Point out any weaker areas or gaps in research that could be improved
• Critically evaluate information and evidence (in terms of significance, relevance, contradictions, linkages to theory)
• Identify all relevant factors pertinent to the essay question and recognises the significance of any interrelationships. (e.g. how one issue ties in with another, or is dependent on another)

Argument 1: (250w) Hard to define because of each individual’s perception, maybe lead into line managers carrying it out? And dependent on their understanding too?? Not sure.

Topic sentence:

 

Argument 2: (250w)

Topic sentence:

 

Argument 3: (250w) It is difficult for an organisation to maintain promises, leading to distrust in the psychological contract or different perceptions. (Conway and Briner 2004, 69% broken promises)?? Not sure.

Topic sentence:

Argument 4: (250w)

Topic sentence:

 

 

Conclusion: (100w)

• Clear, concise summary of the essay
• Main argument or thesis is outlined
• No new information!
• Makes reference to the KEY TERMS of the ESSAY QUESTION (i.e. easy, in practice, explicitly define, psychological contract)
• May suggest recommendations, indicate significance or implications that follow from the conclusion

 

POTENTIAL SOURCES:

 

Argyris (1960) and Schein (1978:48)

 

First discussion of psychological contract, defined as:

 

“A set of unwritten reciprocal expectations between an individual employee and the organisation”

 

Rousseau, (1995:6)

 

“Individual beliefs, shaped by the organisation, regarding the terms of an exchange between individuals and their organisation.”

 

Rousseau positions it as subjective, individual and ‘in the eye of the beholder’. He further distinguishes between transactional contracts and relational contracts.

 

Transactional – Based primarily on economic incentives such as pay, focus on short-term exchanges.

 

Relational – Less tangible and focus on broad, open-ended exchanges (e.g. loyalty in return for job security) and are longer term.

 

Suggests that HR practices send out strong messages to individuals regarding what the organisation expects of them and what they can expect in return (e.g. during the recruitment process or in performance appraisals) – this perspective is useful in explaining the HR causal chain.

 

Tietze and Nadin, 2011

 

Relational contracts are considered more important since they can signify increased commitment and strong identification with the organisation and its goals.

 

Conway and Briner, 2004

 

An important point about the PC is that it is based on expectations believed by the employee to be part of the relationship with the employer and can be inferred from action in the past as well as statements and promises made by employers. Promises can be explicit and implicit, written and unwritten. (See implicit and explicit promises in textbook table)

 

They found that broken and exceeded promises occurred regularly at work (69% of participants reported at least one broken promise over the period of analysis) and in relation to many aspects of the work. Line managers were main agents for this.

 

Guest and Conway (2002):

They refer to the ‘state’ of the psychological contract, which is viewed through the lens of fairness, trust and ‘delivery of the deal’. When the contract is positive, (i.e. expectations are met and promises fulfilled), increased employee commitment, satisfaction and motivation will result and have a positive impact on behaviour and business performance.