Psychology at the workplace is an important concept to discuss and to become aware of the behavior, attitudes, and values carried by the workers. Due to lack of understanding of the workplace psychology, the breach of the psychological contract could be received. On the whole, the workplace culture becomes highly deteriorated leading to low morale amongst the employees and leading to non-attainment of the goals and objectives (Fuchs, 2012).
There is a huge list of organizational behavior theories that play a vital role in becoming cognizant of the way workplace psychology is to be formed. Scientific Leadership, Decision-Making Approach, Human Relations Approach, Systems Approach, and Neo-Human Relations School and Bureaucracy are the names under the Organizational Behavior Theories (Chance, 2013).
Scientific Leadership aims more towards making the job done in the most efficient manner. Along with this, the standards are formed in order to achieve the determined objectives. Decision-Making Approach is an approach through which the decision taken should opt from the list of the alternatives. From this list, the most optimal one is to be selected. Human Relations Approach states about the worker productivity that can be obtained by mean of the development of formal and informal organizations and understand the importance of the group norms. Systems Approach and Neo-Human Relations School lay stress upon Maslow Hierarchy Needs Theory along with X and Y theory. These theories play the significant role in understanding the prominence of the worker’s active participation towards organizational growth and performance. At last, the Bureaucracy stresses upon designing of a formal organizational hierarchy, Management by rules, hiring and selection of the potential candidates on the basis of their skills and expertise levels, forming an up-focused approach (Miner, 2005).
The above-mentioned theories are very much successful in analyzing the psychological contract breach and its effects on employees. On non-comprehension and abidance with these theories, the psychological contract breach could be felt at its highest possible level. This results in making workers pessimistic and unenthusiastic towards the workplace. In particular, employee attitudes would become negative and filled with agony. Employee and employer relationship would become hostile and leads to the most terrible level of behavioral job outcomes (Borkowski, 2015).
The concept named psychological contract states about the mutual feelings, perceptual experiences, together with the duties and accountabilities at an informal level in between an employer and an employee. It also determines the moral force with respect to the relationship and specifies the elaborated pragmatism linked with the work assigned and to be performed. It is apparent from the written contract designed at the formal level and that clearly keys out the mutual level of duties and obligations and that too in a very comprehensive pattern. The Psychological contract is recognized to be the undetectable adhesive that is formed in between the employees or the agents with the organizations. Moreover, it integrates the beliefs, value systems, aspirations, and expectations. It is totally different from the written type of format just the understanding levels amidst employees and employers lead to this specific contract (Wellin, 2012).
Psychological contract breach is such a condition that takes place when the employee does not get positive reciprocation from the part of the employers. In other words, when the implied, as well as overt benefits for the employees, are not detailed in the most thorough manner, it results in the breach of the contract. Along with this, when the mutual promises made does not get fulfilled, it leads to psychological contract breach. These contracts are developed in different manners such as the formation of transactional, relational contracts that come up on the grounds of the performance demanded, and the way trust and mutual understanding is carried upon. This contract comes into existence by means of an employee getting to know about the job opportunity, applying for the same, being selected, and then moving towards the induction process. In this induction process, the psychological contract is discussed with the prospective candidates. Breach of psychological contract is as a result of non-fulfillment of the promises that are made at the time of the recruitment (Linde, 2015).
Its effect on employees is also to be taken into account. Owing to this particular situation, the workers feel low level of job satisfaction, they come forth with an intention to quit, not experiencing organizational support, motivation seems to be zero, organizational citizenship behavior, known to be the voluntary behavior that is not part of the formal contract and also lowers down (Ryde, 2012).
It can also be understood as the role that the employees wish to play from their own side just to be more of social and other than the work listed in the organizational tasks, but leading to raising the output, and contributing more towards psychological satisfaction. The performance of the employees also tends to be low and declining, as the trust and conviction level comes to be ineffective (Furnham, 2008).
Psychological contract breach gives birth to serious aftermaths and can be detrimental to the workers at the company. Its effect on employees could empathize in a way that the behaviors differ and it can reveal by means of low level of turnover, performance, and citizenship behavior. The employees are also unable to concentrate on their roles assigned and thus change in behavior could be received with the superiors, customers, and other key people (Kiazad, 2010).
Goals and objectives accomplishment is no more given importance and even the efforts are not put in for the realization of the same. Employees are also found deviated from the actual purpose of the job and it results into an immense level of job complexities. The working culture and the environment get negatively impacted. The level of performance become diminishing and active contribution towards company’s better growth also cannot be seen in any manner (George, 2009).
Employee attitudes and job outcomes are complementary to each other. It can also be understood in a way that the negative attitude from the part of the employees leads to inefficiencies and thus affecting the job outcomes. Lack of involvement and participation is surely going to make job outcomes depressing and discouraging. Low level of zeal could also be experienced due to negative employee attitudes and that greatly impact upon the job outcomes. Commitment and dedication from the part of the workers get badly affected (Petersitzke, 2009).
Moving on to the next part, it becomes equally important considering the perspectives of both employees and their employing organizations. It is very much sure that the psychological contract breach is not a good thing from the point of employees as well as for the organizations. The rationale behind the same is that these two comes under the relationship resulting from working together and for the betterment of the company. If breach takes place, it is inauspicious from the point of these two parties involved under the contract (Outlay, 2008).
It leads to the most downbeat and hopeless resultants and appears to be bad enough on the part of the company. Both of these two would no more be in a relationship by the end of the contract. Employing organizations would face significant losses along with the low level of credibility at the organizational level. This takes place due to non-efficiency from the part of the employers and not focusing more on the well-being of the workers.
It fails to meet up to the expectations of the workers. The significant level of promises put forth by the organizations is an application of constructive psychology in the workplace that stands for producing an environment that is pretty pleasurable and fertile. Along with this, when the employing organizations also prove to be deficient in making such a work schedule that does lead to physical and mental suffering (Gilley & Gilley, 2007).
The findings state about the lives and choices of employees and for their employing organizations. Actually, the lack of reciprocation from the part of the employing organizations badly hit the inner self of the workers and this result into anger and resentment. At this point, it would be very much necessary becoming acknowledged with the way contract formed in between employees and their employing organizations and that should not be overlooked at any cost. This is so because it gives birth to the immense level of issues and complexities (Banfield & Kay, 2012).
At the end, it can be summed up that the psychological contract breach is said to be the most unwanted situation on the part of the employees and the employing organizations. In this way, it could be made out effectively stated that the results drawn could be of immense importance and allow the company to have the better rapport with the workers and to get the best out of this connection. The duo of employer and employee would be to attain goals and objectives and both should work in each other’s best interests. Pact in between employee and employer go long to obtain optimistic benefits.
Banfield, P. & Kay, R. (2012). Introduction to Human Resource Management. OUP Oxford.
Borkowski, N. (2015). Organizational Behavior, Theory, and Design in Health Care. Jones & Bartlett Publishers.
Chance, P. (2013). Introduction to Educational Leadership & Organizational Behavior. Routledge.
Fuchs, S. (2012). Understanding Psychological Bonds between Individuals and Organizations: The Coalescence Model of Organizational Identification. Springer.
Furnham, A. (2008). Management Intelligence: Sense and Nonsense for the Successful Manager. Springer.
George, C. (2009). The Psychological Contract: Managing and Developing Professional Groups. McGraw-Hill Education (UK).
Gilley, J.W. & Gilley, A.M. (2007). The Manager as Coach. Greenwood Publishing Group.
Kiazad, K. (2010). Responses to Psychological Contract Breach: Moderating Effects of Organisational-embeddedness. UoM Custom Book Centre.
Linde, B. (2015). The Value of Wellness in the Workplace: A Perspective of the Employee-Organization Relationship in the South African Labor Market. Springer.
Miner, J.B. (2005). Organizational Behavior 2: Essential Theories of Process and Structure, Volume 2. M.E. Sharpe.
Outlay, C.N. (2008). Resizing the IS Function After Outsourcing: Examining Psychological Contracts, Violations and Outcomes. ProQuest.
Petersitzke, M. (2009). Supervisor Psychological Contract Management: Developing an Integrated Perspective on Managing Employee Perceptions of Obligations. Springer Science & Business Media.
Ryde, R. (2012). Never Mind the Bosses: Hastening the Death of Deference for Business Success. John Wiley & Sons.
Wellin, M. (2012). Managing the Psychological Contract: Using the Personal Deal to Increase Business Performance. Gower Publishing, Ltd.
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