1. Chapter 8
Psychological
Contracts
Group 3 :
1. Nguyễn Vân Anh
2. Cao Thị Hà Duyên
3. Hoàng Vũ Dương
4. Nguyễn Thị Hiên
5. Nguyễn Văn Linh
6. Lại Thanh Trang

2. Outline

3. Definition
• Psychological contract: An employee’s perception of
his or her exchange relationship with an
organization: outcomes the organization has
promised to provide and contributions the employee
is obligated to make.
• Perceptual in nature:
– Subject to errors and biases
– Idiosyncratic
• Perceived relationship:
– Employees & organization
– Reciprocal promises & obligations

4. • Psychological
Contracts 'iceberg'
diagram below is a
helpful way to
illustrate some of the
crucial aspects and
influences within
Psychological
Contracts theory.

5. Determinants

6. Type of psychological contract
Transactional
Contracts:
 Short term
 Narrow and specific
 Limited promises
and obligations
Relational
Contracts:
Long term
General and evolving
Extensive and
broad promises
and obligations

7. Advantages and Disadvantages
1.The advantages:
• Loyalty
- When both parties honor the psychological contract, a bond of
loyalty is formed between the two.
• Empathy
- In this kind of working relationship, the ability to understand one
another as human beings can make a big difference.
• Open communication
- When trust has been established through the psychological
contract, it makes easier for both parties to exhibit openness
and honesty.
• Satisfaction
- When the terms of the psychological contract are honored, all
aspects of the working relationship should run more smoothy.

8. 2. Disadvantages
• There is no agreement, written of psychological
contract; hence it is doubtful whether it can be
considered a contract at all.
• Organisations consist of many different individuals have
specific expectations about their rights and obligations
those individuals and groups.
• Violation of the psychological contract carries a clear
view of a broken promise..
• It may be redundant and complicated concept. It goes
beyond with other psychological constructs such as job
satisfaction and organisational commitment.

9. Conclusion
• http://www.youtube.com/watch?v=iD9jLS
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