Psychological contract

A psychological contract, also known as a employment agreement, is a legal document drawn up by an employment attorney that describes terms of employment between an employee and an employer. It is often used in labor disputes between employees and employers, and is frequently referred to as an ergonomics agreement or an ergotiation agreement. In recent years, however, the term has been applied to descriptions relating to the formation of a more formalized version of an employment contract. Such agreements have become more common in the work force in recent decades, and are beginning to shape the contours of many modern workplace relationships.

The psychology of a workplace contract generally focuses on two main elements: what the employee expects from his or her employer, and what the employer expects of the employee in return. Both of these elements are psychological in nature, meaning that what the individual believes about himself or herself and what the individual expects of others will have an influence on the behavior patterns and assumptions which they form in the workplace. The terms of the contract therefore have a profound impact on the employee’s experiences both within and outside of work. The psychological nature of these contracts may account for why organisations usually require an employees’ representative to negotiate and sign them.

Most of the time, these contracts are drawn up between an office-based representative of the employees and their employer – not between the HR departments of the two bodies. This has led to the assumption that all workplaces require similar types of psychological contracts. However, this is certainly not the case. In fact, the nature of human relationships in the workplace means that the psychological contract that arises between two people in any given workplace will be quite different from the one that arises between two people in a completely different workplace. There are several key differences between these types of contracts, and this has implications for the way that these contracts are drawn up.

The first difference is in the nature of the relationship between the employees and the employer. A common feature of most workplace psychological contracts is that there is a clear and significant relationship between the promises that are contained in the employment contract and the promises that are made by the employees under that contract. For example, it is common to include a promise to maintain a professional relationship with the client, which should include regular feedback and contact between the parties. Similarly, it is quite common to include a promise to undertake professional counseling as part of the agreement.

Another important factor that can significantly affect the relationship between the employer and the employee under a psychological contract is the nature of the agreement itself. One of the key features of these contracts is that they are usually very short. While this might mean that employees are kept in the dark as to what their employer is going to do with them, it can also mean that employees feel less than enthused about the agreement. When an employee signs a contract that is just over a few pages long, there is little room for expending any energy at all on maintaining the interest and enthusiasm of the employee. As a result, many employees simply ignore the clauses and terms of the agreement when signing it – even if, in reality, they could benefit from it.

A key feature of these contracts is that the term of the contract generally does not exceed one year. In many cases, this is also the case for two year periods. Of course, this aspect can be increased or decreased as per the needs of both the employer and the employees. However, many management practitioners believe that shorter contracts are preferable because it helps to ensure that the interests of the employees and the employer dovetail well.

There are also a number of factors that can have the effect of reducing the term of a psychological contract. One such factor is the nature of the business that employs the employees. While a small business may find that it is more amenable to longer contracts (in which the employees would have their job security for longer), larger businesses are generally better suited to shorter duration arrangements (where the employees have their job security for shorter periods). This is because large companies are often exposed to a number of potential risks – and thus require more regular reassurance about the mental health of their employees (or the lack of it). A large company, moreover, has more financial resources that can be used to look after a large number of its employees should they fall sick or engage in other unhealthy behaviors.

Apart from these specific factors, there are a number of other things that can have the effect of reducing the term of a psychological contract. For instance, some organisations allow their employees to draw up the contract themselves, arguing that they have expertise in the field and therefore understand better than outsiders what to expect from it. The employment lawyer can play a part here by pointing out the inherent absurdity of such a move, especially where the interests of the employer are at stake. On the other hand, where the interests of the employees are compromised, the employment solicitor can help to ensure that the interests of the employer are protected against these dangers.