Monday, 19 May 2014

The Psychological Contract

Authored by Abdul Aziz Mujeb

We all wonder whether at times the only thing that binds an employee to its organization is the legal contract signed between the two parties, but in reality there is more to the partnership than we think - often forgotten is the Psychological Contract that is indirectly in place. Without any prior discussion, there is a psychological agreement referring to the relationship between both parties, highlighting certain inputs required from both ends to achieve the respective outcome – regardless of what may or may not be written in the legal contract.


As professionals we are expected to maintain a sense of decorum and loyalty when associating ourselves with an organization, so why is this? We do this because as an individual or as part of a group, our behavior can have a visible effect on an organization. If the right mentality is adopted, behavior can influence and improve the performance and effectiveness of the organization - key objectives for any business or partnership one embarks on.

So next time you are presented with a contract or are managing an existing one, keep in mind the psychological agreement as it may very well determine future success of the partnership.

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