Psychological contracts in the workplace refer to the unspoken, informal agreements and mutual expectations between employees and employers. These contracts encompass beliefs about the reciprocal obligations between both parties, such as job security, advancement opportunities, and support from the employer, while employees are expected to demonstrate loyalty, productivity, and commitment. Psychological contracts are critical because they influence employee behavior, satisfaction, and engagement. Violations of these unwritten expectations can lead to decreased trust, job dissatisfaction, and increased turnover.References:
* Rousseau, D. M. (1995). Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements. Sage Publications.
* Armstrong, M., & Taylor, S. (2020). Armstrong's Handbook of Human Resource Management Practice.
Kogan Page.