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Psychological contract and culture
The link between psychological contract and culture is significant, as culture can profoundly influence the nature, expectations, and fulfillment of psychological contracts within organizations. Here are the key aspects of this relationship:
1. Definition of Terms:
Psychological Contract: This refers to the unwritten set of expectations between employees and employers. It encompasses mutual beliefs, perceptions, and informal obligations regarding the relationship.
Culture: This can be broadly categorized into national culture (the values, beliefs, and norms shared by people in a country) and organizational culture (the values, beliefs, and norms shared by members of an organization).
2. Influence of National Culture:
National culture shapes the expectations and perceptions that individuals bring to the workplace. For example:
Individualism vs. Collectivism: In individualistic cultures (e.g., the US), psychological contracts may emphasize personal achievement and autonomy. In collectivist cultures (e.g., Japan), they may focus more on group harmony, loyalty, and collective goals.
Power Distance: In cultures with high power distance (e.g., India), there might be a greater acceptance of hierarchical relationships and expectations of paternalistic management. In low power distance cultures (e.g., Denmark), employees may expect egalitarian treatment and participative decision-making.
Uncertainty Avoidance: Cultures with high uncertainty avoidance (e.g., Greece) may value job security and clear, structured work environments. Conversely, cultures with low uncertainty avoidance (e.g., Singapore) might be more open to change and innovation.
3. Influence of Organizational Culture:
Organizational culture defines how psychological contracts are formed and maintained within a specific company. This can be seen in:
Communication Styles: Open and transparent communication in an organization can lead to clear and consistent psychological contracts. In contrast, a lack of communication can lead to misunderstandings and breaches.
Leadership Styles: The leadership approach (e.g., transformational, transactional, or laissez-faire) affects how expectations are set and met, influencing the psychological contract’s perceived fairness and fulfillment.
Values and Norms: Organizations that value innovation, teamwork, and employee well-being may foster positive psychological contracts where employees feel supported and valued.
4. Implications for Psychological Contract Fulfillment:
The alignment (or misalignment) between individual cultural expectations and organizational culture can impact the fulfillment of psychological contracts:
Expectations Matching: When employees’ cultural expectations align with the organizational culture, psychological contracts are more likely to be fulfilled, leading to higher job satisfaction, commitment, and retention.
Conflict and Breach: Misalignment can result in perceived breaches of the psychological contract, leading to dissatisfaction, disengagement, and turnover. For instance, an employee from a high power distance culture may feel let down in a low power distance organization if they expect more directive leadership and receive none.
5. Practical Considerations for Management:
Cultural Awareness: Managers should be culturally aware and sensitive to the diverse expectations of their workforce.
Customized Approaches: Tailoring management practices to align with the cultural backgrounds of employees can help in forming realistic and fulfilling psychological contracts.
Clear Communication: Ensuring clear and consistent communication about mutual expectations can prevent misunderstandings and breaches.
In summary, the interplay between psychological contract and culture is complex, with national and organizational culture playing critical roles in shaping, maintaining, and fulfilling the psychological contracts within the workplace. Understanding these dynamics can help organizations foster better employee relationships and enhance overall organizational effectiveness.
