Employee Psychological Contract In China Life Insurance Company

In company, there exits two kinds of contracts between employer and employee. One type of formal contract is economic contract kept by written. The other is informal contract, which is implied in the heart of employee and termed a "psychological contract". Psychological contracts were initially considered in the 1960s, with more recent authors defining them as employee beliefs regarding the reciprocal obligations between themselves and their employers. Compared to economic contract, psychological contract is ambiguous and implicit but it is also a dominant factor in determining the attitude and obligation of employees towards organization. Psychological contract, therefore, is one of the important research topics in the field of human resource management and organizational behavior.This study aims at exploring the structure and the characters of Chinese employees' psychological contract, and examining subordinate perceptions of psychological contract breach and its influence to subordinate attitude to the work. From this studies, we try to summarize the principles and rules of psychological contract and establish some measures in order to construct positive psychological contract.This study is carried out in China Life Insurance Company Jinan Branch. In the study to 65 insurance agents, based on existing studies, the author constructed a questionnaire of the relationship between company and staff. Data were collected from 450 insurance agents. Using exploring factor analysis, regression analysis, the author explored the structure and the difference in personal characters of psychological contract, and also studied the perception of staff psychological contract breach and its influence to staff attitude to work.The result indicated that.l) the two facets of "employee obligation" and "organization obligation" in Chinese insurance agents psychological contract are both included four dimensions: economic obligation, interpersonal obligation, ruleobligation, and developmental obligation. 2) people in different sex, age, position* work performance and work time have different psychological contract. 3) majority of the staffs have perceived that their psychological contracts are breached. Moreover this perception is negatively related to staffs job satisfaction, organization satisfaction and affective commitment, and positively related to staff intention to resign.Author advised that administrator should pay more attention to staffs psychological contract. Besides offering staff salary, bonus and welfare, the management should promote fairness in all decisions and instill a sense of justice among employees. Also the management should give help to their subordinate and make them find their career developing chance. Finally, and also the most important, the breach of psychological contract must be concerned. Management should communicate with staff in all human resource management, and definite employer and employee obligations to avoid the things that didn't reach employee's expectation.