How far psychological contracts benefit to the companies?
What is psychological contracts? According to Rosseau & Tijoriwala (1998), explained that psychological contracts is dealing with two parties significantly of implicit obligations; others stress a need to understand peoples’ expectations and others recommend that reciprocal mutuality as a core cause of psychological contracts (Cullinane & Dundon, 2006) . Also psychological contracts deals with implicit reciprocal promises and obligations where can describe as a dualistic approach between two parties such as employee and manager. The following figure 1.1 illustrates that how psychological contracts work. Figure 1.1 psychological contracts work Source: (Cullinane & Dundon, 2006) Model Generally there are two types of psychological contracts such as transactional & relational. Transactional psychological stands for economic returns, closed ended & static. Also in this type both parties try to maximize their goals. Relational psychological contracts de...