Question

how can one's psychological contract impair them from successfully engaging with another individual in the workplace?

Answer 1

Psychological contract at the workplace refer to the set of expectations and promises that the employees relate to and share among them. This contract exhibits and implements the unwritten rules of conduct at the workplace.

The relationship between an employer and employee is also safeguarded by employing this contract. Both the employer as well as the employee is required to honor and manage each other’s expectations.

If there is a breach in the psychological contract, it may lead to damaging the relationship among employees or between the employer and the employees. A breach may happen due to the following reasons:

• Shortfall in managing expectations
• Violations
• Broken promises
• Ill defined expectations
• Negative assumptions

The breach in psychological contract can have the following implications:

• Decline in productivity
• High Attrition
• Loss of trust
• Workplace conflicts
• Disengagement