Maintaining Psychological Contract is Crucial During Downturns Essay

Maintaining Psychological Contract is Crucial During Downturns - Essay Example How employee perceive obligation and to what magnitude it is fulfilled constitute the main ingredient of this psychological contract. It can be divided into subdivisions within the literature that further enumerate its framework. The two types includes transactional and relational contract. Relational psychological contract is mainly driven by socio-emotional exchanges between the employee and the organization. It involves long term undefined performance terms and promotes a mutual sense of understanding. It bonds the two parties with the commitment of promoting collective interest over personal gains. (ODonohue et al 2007). On the other hand transactional psychological contract is comprised of monetizable exchanges and are driven by short term personal interest. Both these type of contract terms blend together to provide with the important adhesive that binds the two parties with a concealed force. According to Burr and Thomas there is another form of contract which is emerging unde r the label of â€Å"ideology-infused† contract. It has a more transpersonal perspective not only transactional and relational but also for something for the society. So it demonstrates what is in it for me, us and the society. So far we were explaining psychological contract from one dimension only involving the employee and the organization. But since recent changes in the trend of hiring workers from different agencies has given rise to another form of psychological contract. This contract has two dimensions. In this setup, workers are employee of the agency hence all the essence of psychological contract perfectly applies among the two parties. The other contract is established between the employee and the client organization where he or she works. (Chambel et al 2009). This dual psychological contract is not discussed much in the literature and it is important to highlights its implication in today’s changing trend of contingent employment. Now technically there