There isn’t a definitive list of expectations and obligations describing the content of the psychological contract. What is covered by the psychological contract? Examples of this might be seen in the recruitment process, in performance reviews, or publicly (such as in the statement of organisation’s values). Another source of expectation is statements made by the employer to the individual. For example, an employee who observes a manager granting a flexible working request may expect similar treatment from their own manager. They may be inferred from actions (even towards other employees), or from what has happened in the past. People’s perceptions of employers’ obligations are often informal and imprecise. However, courts may be influenced by a view of the underlying relationship between employer and employee, for example in interpreting the common-law duty to show mutual trust and confidence. The psychological contract isn’t generally enforceable. The psychological contract, on the other hand, describes how the parties themselves understand their relationship, their own views of commitment and what they can expect to receive in return. The legal contract refers to an agreement, usually written and signed, about the mutual formal obligations of the employer and the worker. The psychological contract differs from a legal contract of employment which offers a limited reality of the employment relationship. Although the notion of psychological contract describes the expectations and assumptions of employers of their workers and vice versa, the concept has been mainly studied from the perspective of the employee. Drawing on insights from psychology and organisational behaviour, it provides a powerful rationale for employers to pay attention to the ’human’ side of the employment relationship. The concept emerged in the early 1960s and is core to understanding the employment relationship. The term 'psychological contract' refers to individuals’ expectations, beliefs, ambitions and obligations, as perceived by the employer and the worker.
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