Casestudy Essay Example | Topics and Well Written Essays - 1750 words

Casestudy - Essay Example This aspect is very subjective and the expectations and objectives along with their ever changing nature make them very ambiguous and prone to conflicts and misinterpretations (Petersitzke, 2009, p.26). This has made the concept of psychological contract the root cause of mistrust between employers and the employees. Psychological contract is a phenomenon that induces at the very onset of a relationship between an employer and an employee. Psychological contract often forms the basis of employee associations and emergence of faiths and beliefs of an individual (Wilton, 2010, p.37). Figure 1: Psychological Contract and the effect on Organization (Source: Wilton, 2010, p.37) The figure above clearly shows the components as well as the influence on the areas of organization with regards to the aspect of psychological contracts. ... The aspect of psychological contract and its linkage with economic and monetary aspects including rewards and compensation has been a matter of debate for academic and other circles. Authors like Schein state that psychological contracts and its effects are only prominent in case of non tangible aspects and hence rewards and monetary compensation do not influence the aspect of psychological contract in an organization and vice versa. However certain authors often refute this claim and state a direct linkage with aspect like compensation and psychological contracts (Makin, Cooper & Cox, 1996, p.5). The case study in the present analysis reveals a case of psychological contracts and its influence. On one hand it is seen that the initial reception to the trainees was good and it induced a lot of motivation on the part of the employees. This include the corporate sponsored lunch and dining at various plush hotels, blackberry set for office work etc. Moreover the rigorous and tough recrui tment process was also motivating to the extent that employees started to believe of a path breaking successful stint at the organization and were hopeful of getting a profile that would add value to their careers. They also hoped that the rigorous process and the following events would essentially mean a tenure that would provide them with considerable responsibility that would add to their learning curve and would enrich the value addition process. In this case the process of psychological contract can be seen to have evolved much before the actual stint at the organization. It also reveals that these aspects were essentially not a part of the formal contract between the employee and the employer. However these aspects had a crucial linkage with the morale and