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Psychological Contracts in Local Government (Framework (Definition:…
Psychological Contracts in Local Government
Framework
Definition: agreement between managers and individual workers that aim to increase worker commitment and alignment with needs of organization
Mutual expectations are defined and agreed upon, microlevel phenomenon, very individualized, informal, still consequential
Always between 2 people - manager and employee, never for whole workforce
Psychological contracts becoming more important in public sector as civil service protections are taken away
Method
Examined US cities with population greater than 50,000
Talked to managers and not employees
Results
Use of Psychological Contracts
Psychological contracts used in about half of respondent cities
Only about 20% said managers try to balance employee expectations with willingness to contribute
Content and Process of Psychological Contracts
Important topics include work, relationships, and careeer
Presence of subordinate initiative improves communication, leads to more thorough psychological contracts
Consequences and Correlates of Psychological Contracts
Psychological contracts lead to improved employee performance
Conclusion
Most psychological contracts aren't addressing balance between expectations and obligations
Focus is currently more on transactional factors and less on socioemotional factors
Used more in supportive organizational cultures
Use of psychological contracts closely related to adoption of performance-enhancing strategies