Page 184 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Imagine a contract that blends the practicality of a business deal with the trust and investment of a lasting
partnership. That's the essence of a "balanced contract," as defined by Rousseau (2000, 2004). It's an open-

ended agreement fuelled by the mutual success of both the firm and the worker.

Here's the key: both parties actively contribute to each other's growth. Workers dedicate their skills and

adaptability to the ever-changing market demands, earning rewards based on their performance and impact on

the company's edge. Simultaneously, the firm commits to the worker's development, be it within the
organization or externally. This fosters a shared risk where both parties thrive together.

However, it's not a static arrangement. Balanced contracts anticipate renegotiation as circumstances evolve,
whether it's economic shifts or changing individual needs. In essence, it's a dynamic dance between flexibility

and commitment, ensuring a win-win situation throughout the journey.

Bhagwani, R. (2024). Psychological Contracts- Types.

Intersection of EI & Psychological Contracts

Both Emotional Intelligence (EI) and Psychological Contracts play crucial roles in shaping an individual's
experience within an organization. Understanding their interplay provides valuable insights for individuals

seeking fulfilling careers and organizations aiming to retain and engage their employees.

176