Hunan Tongli Psychological Contract Of The Company's Plight And Its Path To Resolve The Research,

Hunan Tongli Machinery Devices Co., Ltd is a medium-sized, non-governmentally operated enterprise, specializing in the agency of engineering machinery, which is experiencing a process from starting the business to its development. Recently some problems have appeared, such as: high-level employees left their positions, employees' negligence resulted in great losses of the Corporation, market secrets were leaked out, etc. The reasons of all these phenomena lie in the unfulfillment of the commitments to the employees which results in dissatisfactions and loyalty decline to the Corporation among them. Now, the Corporation is in the dilemmas of psychological contract.Psychological contract refers to an invisible contract between employees and enterprise. It consists of two aspects: the relation of employees' personal objective, organizational objective and the commitments; the relation of emotion formed after experiencing a series of devotion, reward, which embodies the dependency and loyalty with the core of employees' satisfaction.The reasons of the dilemmas of psychological contract Hunan Tongli Machinery Devices Co., Ltd can be shown clearly by constructing the circle model of psychological contract. In order to stimulate employees' subjective initiative, the enterprise reaches a psychological contract with employees, which bestow them some expectations. Due to mutual misunderstandings, the enterprise is unable to fulfill the psychological contract and fail to keep the promises when employees make their efforts, which result in low satisfaction, working negatively, leaving positions etc, and then a decline of employees' subjective initiative and the enterprise's profits to form a vicious circle of psychological contract.The solutions to Hunan Tongli Machinery Devices Co., Ltd lie in finding out the key factors of the dilemmas of psychological contract. By a series of effective measures of managing employees' psychological contract to form a good circle of psychological contract in the Corporation.