Theories Of Psychological Contract

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A psychological contract is an unsaid, unwritten contract that refers to the mutual expectations that exist between the employer and employee (Rousseau, 1989). The Psychological Contracts play an essential role in understating employee behavior as well as the employee-employer relationship. According to Rousseau (1989), there are essentially two types of psychological contracts. A transactional psychological contract is based on the exchange of extrinsic factors and its short-termed (De Cuyper & De Witte, 2006). Employees who base their contract on transactional terms may expect monetary rewards and financial gains in exchange for their services and efforts (Bellou, 2009). However, on the other hand, employees whose psychological contract…show more content…
According to Bernstein and Nash (2008), job satisfaction consists of cognitive, emotional and behavior components. The cognitive component of job satisfaction refers to thoughts and beliefs regarding the extent to which the job is considered to be challenging or rewarding. The emotional component pertains to feelings of excitement, happiness, sadness, anger or boredom that are affiliated to the job. The behavioral component consists of actions performed by individuals related to their work such as working overtime, being absent, coming late, etc. (Bernstein & Nash,…show more content…
According to Jahanzeb (2010), due to increasing technological changes, mass retrenchment, information overload, and demand for greater productivity, fierce competition and uncertain future, the workplace has become a source of extreme stress. To remain in stride with the dynamic and ever-changing nature of today’s organizations, employees in the work place spend most of their time striving to meet their job obligations hence ignoring the “stressors” that have adverse effects on their domestic, social and personal life. As a result, the demands of the work place may prove to be harmful to the employee’s both mental and physical health (Long,

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