Pyschological Contract

The expectations and obligations are known as promises of the parties who involved  in Psychological Contract. The expectations of the parties are forming a belief which has been made in exchange of contributions by making promises of the parties (e.g. promotion opportunity, pay high for good performance; Rousseau, 1989).  Obligations could be seen as a currency of exchange for psychological contract (Robinson and Rousseau, 1994).

Rousseau, (2001) emphasizes the psychological contract is “an important framework for understanding the employment relationship”. Psychological contract can be known as the relationship between employee and employer which is considered to be “foundation of employee relation” (Robinson and Rousseau, 1994; Morrison and Robinson, 1997). Psychological contract likes a heart of relationship of the parties which is about the mutual expectations and fulfillments of the parties (Michael, 2012).