This has led to the quest for measures to ensure efficient communication and motivation of staff in order to ensure understanding and coordination within the company. Pioneer Technologies Limited could benefit more from the application of psychological contract in the company.
A Psychological Contract is a construct that describes the mutual respect and understanding between an employer and the employees. Most times, the employees support their employer’s casual culture norms which they were accustomed to before they were hired by the employer to be their employees. In Psychological Contract relationship, the employees perceive overt and covert expectations from their employer. Although both parties may not be aware or confess their relationship to each other, they continue to govern their relationship to each other (Hughes, L. W., &amp. Palmer, D. K., 2007).
Due to the negative response faced from the staff of Pioneer Technologies Limited, the psychological contract can be integrated by establishing a system of mutual understanding and respect such that both employee and employer perceive each other as important for the survival of the business. The Iceberg model can be employed in Pioneer Technologies Limited to ensure a state of balance where Murthy. founder and the employees are confortable and have a healthy working environment (Janssens, M., &amp. Sels, L., 2003).
The iceberg model represents the relationship between the expectations of both the employer and the employees and thus it helps us understand several aspects and influences of their behaviors within the Psychological Contracts theory.
The model represents an iceberg with almost 90% of submerged into water. This feature is consistent with the fact that most of the perceptions of the Psychological Contract are not written and neither are they open. They are hidden in our subconscious and neither the employer nor the employee has claim to it. The contract is thus established through a good