Psychological and Implied Contracts in Organizations
--> Unwritten contracts derive from relations between organizations and their members

Implied contracts

Origins of subjectivity in contracts

  • Parties to a contract can have very different perceptions regarding its items
  • cognitive limits and different frames of reference make it impossible to focus on every element in such a complex social interaction
  • cognitive limits affect the matters addressed in overt promises, and frames of reference affect their interpretation

Belief
--> being enhanced wwhen a promise precedes rather than follows an employee's contribution

individual's commitment to the organization
--> overt (công khai) and public commitments exert more influence on cognition and behavior that suble or private ones

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Acceptance of the organization's values

willingness to exert effort on behalf of the organization

desire to remain an employee

Psychological contract

  • individual beliefs in a reciprocal obligation between the individual and the organization

where one party has paid for or offered a consideration in exchange for a promise that the other party will reciprocate

where both the promise and the consideration are highly subjective

where the individual holding a belief in a psychological contract attaches to this belief assumptions regarding good faith, fair dealing, and trust, treating this contract as part of the larger farbric of the relationship between the parties

  • the typical parties: are viewed to be the individual employee and the organization
  • objective perceptions: held by individual parties to a relationship
  • conceptualization: focus on the employee's experience
  • belief: a promise has been made and a consideration offered in exchange for it, binding the parties to some set of reciprocal (tương hỗ qua lại) obligation = unilateral (đơn phương)
  • mutual obligations characterizing interactions existing at the level of the relationship
  • objective parties: patterns of obligations arising from interactions between parties that become part of the social structure of which the relationship is a part --> constitutional obligations
  • inferred by courts and by the general public to have arisen in the context of long term employment