Contracts in employment are of two kinds: the formal, written contract and the equally important, informal and unwritten psychological contract--how people think they should be treated. Both involve rights, obligations and expectations on the part of the employer and the employee, and a breach in one can have important effects on the other. For example, how people feel they are being treated by the organization can affect their perception of their levels of pay. Organizations and the Psychological Contract has two main aims in exploring these issues: to act as a handbook for practicing managers, and as a basic text in management courses.
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