Psychological Contract Factors in Labour Relations In Case of LM in Saint Petersburg

Abstract

This dissertation is aimed at critical evaluation of the key enabling factors and barriers that impact psychological contract fulfilment of LM employees in Saint Petersburg. Such purpose is reached due to comparison of our primary research findings with the secondary data results.

The primary research encompasses 13 semi-structured interviews, including 4 interviews with managers and 9 interviews with Gen Z employees.

We infer that classification of psychological contract types suggested in the literature (relational, transactional, balanced, ideologically charged contracts) is applicable for examination of the employee’s engagement, but insufficient to comprise special employee’s expectations toward the company. Therefore, within the primary research we found four special employees’ expectations, each of which form particular psychological contract type as the employee is ready to give something in return for meeting his/her expectation by the company: expectation regarding team composition; expectation regarding schedule flexibility; expectation regarding promotion opportunity inside of the company or support in such opportunity outside of the company; expectation regarding technical characteristics of the workplace. The research findings provide critical evaluation of appropriate leadership styles that impact psychological contract fulfilment. At the same time, the leadership style, as well as the types of leader’s behavior, which act as the key barriers for psychological contract fulfilment, are also evaluated.

Overall, we conclude that the key enabling factors that impact psychological contract fulfilment are the following: definite material and non-material factors, which impact Gen Z employees’ engagement; satisfied employees’ expectations, which form definite psychological contract type; appropriate leadership styles, which are able to align employees’ expectations with the company’s expectations, ensuing from the company culture and strategy. The key barriers that negatively impact the psychological contract fulfilment of LM employees in Saint Petersburg are the following: unmet or only somewhat met employees’ expectations; inappropriate leadership style, as well as the types of leader’s behavior that were revealed in details; some other conditions that would foster employee either to leave the job or to lower the effort, found within the primary research.