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Management & Leadership vocabulary · Motivation and Feedback

Psychological contract

Meaning in management & leadership, with examples

nounAdvanced term

In management & leadership, psychological contract means: The unwritten expectations and perceived promises between an employee and their organisation.

In Turkish: psikolojik sözleşme

How it is used

Use for beliefs about the employment relationship; it is distinct from the written employment contract.

Example sentences

  1. The sudden cancellation of training damaged the psychological contract for several employees.

    Employees may feel a promise was broken even if it was not a written contract term.

  2. Clear discussions about flexibility helped rebuild the psychological contract after the merger.

    Mutual expectations are clarified through communication about working arrangements.

Common collocations

  • breach the psychological contract
  • maintain the psychological contract
  • employee engagementHow committed, involved and enthusiastic employees feel about their work and their organisation, which affects how much effort they put in and whether they stay.
  • transparencyThe practice of sharing information openly and honestly, so that employees, shareholders or the public can see how decisions are made and how the organisation is doing.

More terms: Motivation and Feedback

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