Is Psychological Contract Relevant in the Healthcare Sector?

Abstract

Psychological contract describes the non-verbal understandings existing between employee and employer through an unwritten, implied agreement determining future obligations and commitments. This chapter throws light on the concept of psychological contract and facilitate the determination of the significant influence of socio-demographic factors on the psychological contract of doctors and nurses and its impact on their behavioral outcomes. There is a need to assess the mental pressures of professionals at the workplace due to poor working conditions, lack of safety and security, lack of trust and authority to take decisions regarding crucial surgeries, and doctors not being treated with dignity and respect. The data is collected from Senior HR managers and doctors from four major hospitals in the Indian IT hub, Bangalore. Data is analysed adopting qualitative research. The study emphasizes the importance of psychological contract in healthcare sector and significance of HR practices is building commitment and positive behavioral outcomes leading to quality healthcare services.