Academic journal article Indian Journal of Positive Psychology

Optimism and Psychological Contract on Life Effectiveness and Work Effort in IT Employees

Academic journal article Indian Journal of Positive Psychology

Optimism and Psychological Contract on Life Effectiveness and Work Effort in IT Employees

Article excerpt

The success or failure of an organization is based on its human resource. Every organization attempts to meet the expectations of their employees, in order to create a conducive workplace atmosphere for its growth. Organizations invest in human resource practices, like remuneration, training and development, to improve their relations (Martin, Staines & Pate, 1998; Sims, 1994). While human resources are the most important asset of an organization, huge cost is needed for their training, developing and retaining activity. However, the expectations of an organization and the employee may he left unmet. The increase in global competition intensifies economic fluctuations creating an aura of uncertainty for employers and their employees (Rousseau, 2011). With the consequent high costs spend by the organizations, an increase in the turnover is also expected. It has become more important than ever to ensure healthy and progressive relationships between employers and their employees. The changing dynamic of organizations makes it more difficult to motivate and retain a profitable workforce. In order to combat these difficult times, positive relationships between employers and employees are paramount. A solid working relationship can stamp out detrimental turnover costs, retain vibrant talent, and encourage efficient and productive employees to commit to the welfare of the organization.

Creating a positive work environment and retaining valuable employees is of utmost importance for organizations to thrive. This involves an effort to understand, appreciate and build a relationship between the employee and employer. One framework that has been used to examine perceptions of the relationship between the employee and employer is psychological contracts. Psychological contracts are the beliefs an individual holds concerning the implicit terms of an agreement between the individual and the organization (Rousseau, 2000). In organizations, these contracts include employers' and employees' expectations of each another (Rousseau, 2004; Rousseau & Wade-Benzoni, 1994). They give an insight into difficulties about employment relationships and the implications of these difficulties on individual and organizational behavior (Aggarwal & Bhargava, 2008).

Psychological contracts consist of individuals' beliefs regarding the terms and conditions of an exchange agreement between themselves and their organizations (Rousseau, 1989). Psychological contracts originate when individuals infer promises that give rise to beliefs in the existence of reciprocal obligations, typically between employee and employer (Rousseau, 1989). In academic literature, psychological contract is generally defined as the implicit and explicit promises between the employee and employer to one another (Rousseau & Tijoriwala, 1998). These promises are termed as psychological contracts as they are the perceptions of both the parties and are implicit (Conway & Briner, 2009). That is, these promises are unwritten and unspoken and are being inferred from actions and behaviors of others in the organization. For example, an employer may make a promise to its employee to provide job security and training, and an employee may promise to work hard and to be loyal. Psychological contracts emerge when individuals perceive that their organization has agreed to provide them with certain rewards in return for the contributions they make to the organization. Psychological contracts are the pathways to gain an insight to understand the nature and dynamics of the relationship between employee and employer and thus employee behavior and attitudes. Fulfillment of psychological contract is linked to organizational commitment and is associated with behaviors at work, including absenteeism, turnover and independent ratings of job performance. Results from a research study indicate a strong positive relationship between psychological contract fulfilled and citizenship behavior directed towards the organization and also other employee behaviors like in-role performance, organizational citizenship behavior directed at individuals within the organization (Tumley et al. …

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