Psychological Contracts in the Changing World: Significant Actors and Factors from the Perspective of Employees and Organizations

Abstract

In this age of globalization, retention of skilled and productive employees has become an issue of serious concern of human resource managers of modern organization in response to the change in demands of employees. There the issue of psychological contract emerges which is different from legal contract as it is unwritten and undocumented. So, this type of contract can be said as a contract of an organization with an employee which ensures the recognition of employees' performance with better rewarding approach. This study focuses on contemporary thinking on psychological contracts, employees' expectations and managements' efforts to meet those unvoiced expectations.