Human Resource

the employment relationship between employer and employee. The nature of this

relationship may be viewed as a continuum. At one end is the relational contract,

characterized by broad, open-ended and long-term obligations based not only

on exchanges around monetizable elements (pay for service, etc.), but also on

socio-emotional elements (such as loyalty and support). At the other end is the

transactional contract, comprising specific short-term monetized obligations.37

The condition or state of the psychological contract, shown as the horizontal axis

in Figure 4-3, is regarded as a regulator of the employment relationship over time.37,38

The psychological contract refers to an employee's belief regarding reciprocal obligations

between the person and the employing organization. Intactness may be

regarded as the positive side of the psychological contract. The employee considers

that there has been fair treatment, reciprocal trust and both parties have 'delivered on

the deal', thus creating a perception of balance between what the employee has

contributed and the inducements proffered by the employer. Violation is the

emotional and affective state brought about by a belief that the organization has not

fulfilled its obligations.39,40 Unspoken expectations about behaviors and attitudes that

may predate the current work situation, along with feelings about trust and loyalty,

are