Rousseau and Parks believe that psychological contract is made up of three concepts:
Concepts
1. An employee perceives the promise of an obligation by his or her organisation.
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2. The psychological contract has to do with acceptance, which says that when the psychological contract is developed, both parties are responsible for holding up their own part of the contract.
3. The organisation’s fulfilment of that promise.
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When a person is hired for a particular job or position, whether there is a formal legally binding contract or not, the individual unknowingly tends to create a perceived contract with the organisation that he will be working for which is the person’s beliefs about what he or she “owes” the company and what the company owes in return.
While this contract is typically not something that is discussed between the new employee and the organisation (for example the employee completes the job with minimal errors and if he/she does so, the company will recognise and acknowledge the job as well done) unconsciously, each party ends up with its own ideas of what is included and or addressed in it.
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Like legal contracts, psychological contracts are important because there is an underlying sense of satisfaction and responsibility on the part of the employees and they seek to give back to the organisation what they receive from it psychologically. It is analogous to the tenet “give and take respect”.
McFarlane asserts that if non-fulfillment of the promise occurs, this will cause the employee to perceive a breach in the contract to which he or she may react negatively, in a way that may or may not be obvious to al I.
For example, the interaction of psychological contract with the supervisor may be carried out so that it dictates an employee’s behaviour and attitudes towards the position. It somewhat assures the employee that if he or she does the job hired for, job security and future reward will come. This means that, in addition to not requiring constant supervision to ensure that the job is completed, the employee will be aware of the fact that he or she has a direct effect on the future.
