Psychological Contract Pursued By Organizational Management

Psychological contract between organizational management and the employees has been detailed by Barnard.

The management wing and its authority formulates policies keeping in mind the zone of indifference of lower level employees and communicates it to them and ensures that the given responsibilities are completed by the staff.

Barnard while giving his views on organization presumed that the employees for various reasons will accept authority. He gave the acceptance theory of authority also known as bottom up authority according to which employee will accept the communication when four basic conditions are met – 

(a) He understands communication 

(b) He believes that the communication is not inconsistent and is compatible with the organizational purpose 

(c) Believes it is compatible with personal interest. 

(d) He believes that organizational man is physically and mentally able to complete them.

So all these factors maintain a psychological contract between organization management and employees that how they are to act so that confrontation does not happens.

So we see that absolution authority is non existent but fictitious superior authority is there and is necessary to enable individuals to delegate responsibility and Barnard also says that any intentional disobedience of order is equivalent to an act of hostility and should be met with punitive action against offenders.