Concepts of a psychological contract.

Concepts of a psychological contract.

A Psychological contract is termed as a set of unwritten anticipations based on the employment relationship that is in contrast with a formal and written employment contract. In addition, the company and workers’ affiliation is defined by both the unwritten agreement and employment contract. The contract can be attributed to personal aspects, experiences in past jobs and also employees’ personalities.

The norm of reciprocation based on the concept of the psychological contract, implies that a person who offers benefits to another, requires one to discharge these responsibilities by out rightly offering the benefits in return. This refers to expectations of the staff in regards to the job. Based on the psychological contract writing, members of staff there is exchange of treatment they get from their manager by altering their apparent commitments and satisfaction to the employer. Consequently, perceptions of the employer towards the employee in fulfilling the psychological contract are seen to greatly have an influence employers’ responsibilities and increasing the possibility of accomplishing the responsibilities.

A psychological contract differs from the company’s responsibility or the sentiment of want, need or commitment to stay in an association. It likewise contrasts from profession association. The sentiment of satisfaction of desires separates the agreement from affirmative or adverse decisions, which is a consequence of satisfaction of the psychological contract.. A psychological contract constantly evolves and develops on the basis of communication between the employer and employee. Contents of psychological contract may include promises of job promotion or salary increase.

The psychological contract concept offers a structure that enables the understanding of staff attitudes and behavior owing to the discussed alterations in employee relationship. Engagements by employees is interconnected to the agreement and therefore are actively involved on their roles in each of the respective working environments, having the tools for work as well as having opportunities so as to experience the effects and work fulfillment. In the event of employees are emotionally engaged and feel they are part of something important with the co-workers, feeling of reliance and significant association is developed and as result there are numerous possibilities for improvement and development.

The managers’ agreement with the company and vice versa, each side may experience major effects on the benefits attributed to the reciprocated affiliation.  In addition, the capability of the association to be able to fascinate as well as retaining qualified administrators may be influenced by either side. Psychological contract management is essential because the employees’ contribution towards the success of the organization is important. In order to achieve this, employers and members of staff have to make agreement on the contributions to be made to the firm (Wellin, 2016). The effective management of a psychological contract assists the firms to thrive.

Another vital component in the psychological contract is the aspect of breaching termed as failure of the organization in meeting responsibilities that are within the contract in manner proportionate to one’s contribution. Breaching of the psychological contract may result to certain consequences dependent on the employees’ category. Apart from the company-employee contract, a psychological contract between the company and the managers also exists. According to Bratton and Gold (2017), a breach is related to an increase in intentions of exiting the company whereby leaving one’s job in an organization is termed as one the actions taken in the event that employees violate the deal.



Principles of scientific management and workplace relevance.

The principles of scientific management include:

Science, not rule of thumb.

The above rule aims at selecting the best methods to perform a task through the scientific analysis application and not by the use of intuition or trial methodology. Observation and analyzing of jobs assigned to employees should be carried out in regards to each element and duration involved so as to decide the best method to perform that certain task. Decision making process should be based on scientific enquiry.

Harmony, Not discord:

Aitken (2014) highlighted that harmony between the staff and management is essential in a workplace. In the event that conflict occurs between the staff and management, then there is no beneficiary amongst the two parties. Sequentially, there should be mental revolution on both the management and the staff. This mean that change of attitude and positive view of the workers and the management. The administration should always be in a position to share the gains with the staff and in return the staff should cooperate and be committed to achieving the organization’s goals.

Mental Revolution.

This encompasses that both the workers and management change their attitude regarding each other in realizing the importance of each other. The aim of both the management and the staff should be attaining higher profit margin in the company. There should exist the spirit of togetherness amongst the members of staff and the administration.



Cooperation, Not individualism.

This emphasizes on teamwork of both the staff and the administration. It is an elaboration of the principle of harmony. Prevalence of cooperation, goodwill and confidence among the management and staff in order to prevent the aspect of competing internally and promoting cooperation. Incorporation of staff the in the making decisions concerning the management of an entity.

Development of every person to their greatest efficiency and prosperity.

Skills and capabilities of the workers within an organization assist in determining the efficiency of any particular organization. Therefore, provision of training to the workers was regarded as important so as to learn best ways on the use of scientific approach and enhance efficiency. To achieve efficiency, the right steps should be undertaken in the process of selecting employees. This eventually helps in attainment of efficiency and prosperity.


The importance of scientific management in modern work places entail the improvement of staff efficiency. This involves the incorporation of technology and people in the labor process. Therefore, scientific management in corporations assists in solving the problems of wastage of human effort and upholds effectiveness the place of work. Scientific management assists in time management and also increase in the productivity levels for the available work force. It promotes the use of material elements in production. Other important attributes include division of labor and cooperation. This ensures that there is cohesion amongst the actions of individual employees or groups of employees performing various tasks. Scientific management is also attributed to increasing the employment period, enhancing growth as well as technical and cultural aspect of the workers. It also attributed to increasing the level of workers’ innovativeness, strengthening the discipline the labor force and lastly it provides a prospect of saving the labor force by considering the various requirements needed in scientific management in the case of process designs and equipment. Formal groups facilitate the implementation of decisions that are complex. Coordination of activities of the interrelated groups is done by a group of representatives whose work is mostly independent.

Role of formal and informal groups in workplaces

Formal groups are designed to achieve a specific function in an organization. It may be comprised of managers and their subordinates who regularly meet in order to discuss various ideas that are aimed at improving service delivery and delivery of products. Forms of formal groups include committees and task forces. They are temporarily setup to discuss special undertakings. Formal groups assist in the systematic and effective operations of a certain organization whereby tasks are divided amongst various departments and employees. This prevents duplicating of tasks in addition to overlying of tasks. Assists in accomplishing the organizations’ goals and objectives. Coordinating of various activities in various departments is enhanced.

Formal groups clearly outlines the relationship between the superior and subordinate staff referring who reports to who and emphasizing more on the tasks rather than interpersonal relations. Formal groups enhance cohesiveness thus reducing absenteeism and turnover by employees and also enhancing research and innovativeness. It incorporates the decision making process whereby there is discussion and adoption of different ideas. They instill a sense of accountability and responsibilities thus all members of the particular group on what task needs to executed and who is to do the particular task. Each member decides on what is required to be done and takes the obligation to complete the task in addition to being held liable for their tasks.

Informal groups consist of members that are majorly employees of a certain organization and are brought together as a result of common interests such as social interaction and assisting each other in tasks. Roles played by informal groups include fast communication which as a result of not following any kind hierarchical chain therefore spreading of information is quicker as they fill up the communication gaps of its members. This is achieved through development of systems and communication channels.  They also enhance fulfillment of social needs that motivates the members of staff by considering the importance of the psychological and social needs of the employees. Informal groups create a strong bond amongst the employees and instills a sense of belonging and togetherness that lead to increased productivity and job satisfaction since there’s motivation among the employees and looking up to others for guidance and assistance. Through informal groups, the employees are able to give real and correct feedback on the various policies and plans to the managers of the organization.

Informal groups assist in establishing conduct procedures between the sub-ordinates and super-subordinates and also maintenance of high levels of integrity, self-respect as well as being independent. Informal groups shield their members from external pressure. This proves to be the most important aspect of informal groups. This is due to the fact that most dynamic organizations tend to introduce changes in the methods used in executing tasks including routines at a rate in which individuals are not able to easily adjust. A determined work force is able to accept or reject the proposed changes. Lastly, informal groups enhance power to members. There is greater satisfaction in workers as they enjoy power collectively as compared to doing so individually. Informal group enables a certain individual to exercise power over other members of staff.


Importance of employee flexibility.

The important elements include saving on costs. Employee flexibility allows the staff of an organization to save money therefore spending less because of the availability of the option of working from home that will not have them spending much money by commuting to work. This will increase productivity. Independence and autonomy that entails instilling control and a sense of responsibility on the employees’ hands. Therefore means that an employee is able to determine his or her schedule including other elements. This comes as a morale booster for any employee which result to them focusing more along with dedicating more time and resources on their work enabling them become more productive.

Negative pressure is eliminated which may result to burnout. This entails the ability of the employees to determine when to work. It therefore means that the moment they feel fatigued or the risk of burning out, they are able to rest and resume their normal operations at their own time and schedule (Noe et al., 2017). Allowing employees to perform their functions when they feel productive. This refers to the fact that some employees are effective at night while others are productive during the day. Employee flexibility offers members of staff a chance to choose the duration they feel is best to work and as result increase efficiency and effectiveness as compared to when they are forced. Helps in the increase in employee attendance. This enhances the rate of staff attendance to work and reducing lateness. An increase in staff attendance results to increased productivity.

Employee flexibility may be achieved in contemporary organizations through allowing employees to customize their own working space in addition to having adequate work space which is proven to be relatively efficient in morale boosting of the employees. Provision of communal spaces that are within the working area that will be able to provide a conducive environment that will enhance interaction amongst employees as well as exchange of ideas. Availability of adjustable furniture which entails that employees are provided with adjustable furniture such as standing desks. Since sitting down for long hours has been proven to be a health hazard, standing for long hours could turn out to be devastating for some employees. Implementing formal and informal workplace flexibility policies. The flexibility policies that are considered to be formal are those that are officially authorized by the management such as the human resource policies. The policies provide guidance and assistance on how workplace flexibility is carried out in a particular place. On the other hand, the informal policies are considered as those that are authorized on optional basis either by the supervisor or senior sub-ordinate in the hierarchy.


Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase business performance. Routledge.

Aitken, H.G., 2014. Scientific management in action: Taylorism at Watertown Arsenal, 1908-1915 (Vol. 434). Princeton University Press.

Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.



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