Managing psychological contract

The employer implies that he will provide the necessary tools, environment and remuneration to attract and retain the employee.
The employee implies that he has the prerequisite expertise to excel at the job. Problems arise when either of the parties is unable to deliver on the conditions implied.
The psychological contract is formed during the recruitment process, where individuals frequently exaggerate information about themselves leading the employer to expect high performance on the job.
The employer likewise frequently makes reference to potential earnings which are not stated in the written contract. Often the applicant bases their decision to accept or reject the job offer based on potential future earnings.
The psychological contract may be breached in many ways resulting in dissatisfaction in the employment relationship. Frequently companies imply rather than clearly state the scope of work to be performed by the employee. As a result when an employee joins a company he/she is reluctant to assume additional responsibilities without extra pay.
The employer is frustrated by this situation having assessed the employee’s willingness during the interview to assume extra responsibilities.
Perceived organisational support is another source of frustration in the management of the psychological contract. Organisations always imply that the individual will be given a conducive environment and the necessary tools to ensure effective performance. Unfortunately, many organisations fail to deliver on this point but still expect the employee to perform to standard.
Employers and employees are both guilty of resorting to frustration tactics as a means of expressing their dissatisfaction at either party’s failure to deliver on the psychological contract. This resolves nothing but instead leads to an escalation of hostilities. In managing the psychological contract employers need to recognise employees’ need for improving personal skills to ensure future employability. They need to handle promotions fairly and empower employees to make decisions.
They need to ensure that pay issues are handled in an equitable and transparent manner. Line managers play a key role in employee commitment. They should manage employee expectations throu-gh regular performance feedback.
To benefit from the psychological contract, organisations need to integrate people related programmes into their business strategy. This is particularly important considering the role employees play in driving the strategy of the organisation. Organisations must pay attention to the administration of company policies and procedures. These need to be administered in an equitable and transparent way. Employees need to know that their interests will be taken into consideration when important decisions are taken. They are likely to have more commitment to their jobs if they are consulted when important decisions are being made.
Managers need to know that employees want to be treated as part of the family in the organisation. This can only happen in organisations that have common values that form the basis of decision making.
Where unfairness is detected employees will renege on their commitment to the psychological contract. In fulfilling the conditions of this psychological contract, managers need to ensure that all promises made to employees are fulfilled.
In situations where promises made to employees cannot be fulfilled it is important to let the concerned employees know. It is also helpful for the employer not to over- promise on things they cannot deliver.  In many organisations, emp-loyees complain of unfulfilled promises by management. This has affected the employees’ commitment to their jobs. 
Productivity suffers where employees are not committed to their jobs. The psychological contract offers a valid and helpful framework for thinking about the employment relationship considering the many changes that are taking place in the economy.
– Memory Nguwi can be contacted on Phone 48194648/ 481950/2900276/290096 or cell number 0772 356 361 or email: mnguwi@ipcco nsultant-s.com or visit our website at www.ipcconsultants.com