Psychological Contracts

Psychological contracts refer to the unspoken expectations and beliefs between an employer and an employee regarding their mutual obligations. Unlike formal contracts, they involve perceptions of responsibility, trust, and support. For example, an employee may believe that if they work hard and show dedication, they will receive job security and career growth in return. When either party feels these expectations are not met, it can lead to dissatisfaction and disengagement. Understanding psychological contracts is important for fostering positive workplace relationships and ensuring a motivated and committed workforce.