PERSENTIS is all about the psychological contract - an inspiring concept that relates to the human aspect of working relationships and has proven to be extremely useful in building strong, collaborative teams. It describes the unspoken mutual expectations and demands between employees and employers.
The psychological contract
- supplements the formal employment contract with implicit agreements
- is based on subjective perceptions and interpretations
- is dynamic and can change over time
- includes emotional, calculative and growth-oriented factors
Origin in the 1960s
The concept of the psychological contract dates back to the 1960s. Chris Argyris, Professor of Administrative Sciences, developed the basic idea of an implicit agreement within the employment relationship and coined the term as an agreement between workers and foremen. He spoke of a "tacit agreement", whereby this is either based on verbal agreements or can be derived from the behavior of the contractual partners.
In this early phase, the psychological contract was still understood in relatively simple terms: Employees fulfill their duties and are loyal. In return, employers offer job security, career prospects, training and development. (Chris Argyris, "Understanding Organizational Behavior", 1960)
Further development in the 1990s
The concept gained greater prominence and scientific attention in the 1990s, primarily through the work of the American psychologist Denise M. Rousseau. In particular, she investigated the effects of work change on the attitudes and expectations of employees. In 1989, Rousseau emphasized that the psychological contract reflects the perception of mutual expectations, obligations and promises. She emphasized the subjective interpretation by employees. (Rousseau, D.M. (1989). Psychological and implied contracts in organizations. Employee Responsibility and Rights Journal, 2, 121-139).
Over time, the understanding of the psychological contract has changed:
- 1960s: Focus on job security, career prospects, training
- The modern world of work: more diverse and complex expectations
In today's world of work, the psychological contract is considered to play an important role in employee retention and engagement. It is seen as a dynamic concept that can change and evolve over the course of an employment relationship. Overall, the psychological contract has evolved from a simple concept of job security to a construct that reflects the diverse expectations in modern working relationships. Instead of pure transactional agreements, the focus today is on the human aspect of the workplace with all its depth and complexity.
Read the next blog article to find out how you can use the power of the psychological contract to create the basis for successful working relationships:
