Looking for information and studies.
Are there any studies on Psychological Contract Theory (PCT) in the context of the leader, the shareholder and stakeholders and how this could influence 'leader performance' within the organization?
As the Psychological Contract is not a written down contract between an employee and the organization rather its an imaginative perception of the individual about the possible benefits that he or she may avail while serving the organization. Now as they say first thing first i.e how to put that perception right in the first place should be the main concern of a leader.
In this back drop, I like to invite your attention towards the study of following two important factors, as if these two factors are taken care by any leader, the subordinate employees shall cultivate correct and reasonable expectations or call it technically," Good Psychological contract":
1. Procedural Justice in an organization.
2. Distributive justice in an organization.
The first one implies that all the employees in an organization should have an equal excess to all information related to the organizational policies, rules and regulations e.g The rules for induction, promotions and how to avail various benefits offered by an organization, whereas, distributive Justice employees that awards both Monitory and Recognitions should be based on the equity and fair play.
In an event of perceived injustice in terms of Procedural Justice or Distributive Justice; leads to perception of loss by the individual and at the same moment his/her Psychological Contract gets violated leading to lowering the standings of any leader in the eyes of employees. You may further like to dig out on both the above factors.
wishing you luck.
Thank you Mohammed Ali Bait Ali Sulaiman for your response.
Do you think there could be a consideration under both internal and external organizational scrutiny where the leader could via PC be motivated to do more, make better decisions, and or even act more responsibly? Your views please.
Thank you Chilumba Kamfwa Bwalya for raising this question, and thanks to Muhammad Arif for sharing your illuminating views.
Regards
Mhd. Syahnan
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