ICANBusiness, Management and FinanceHuman Resource Management2023

Which of the following BEST describes the concept of 'psychological contract' in Human Resource Management?

AA legally enforceable agreement between employer and employee supplementing the written contract of employment
BThe unwritten set of mutual expectations and obligations perceived to exist between an employer and an employeeCORRECT
CA confidentiality agreement signed by employees handling sensitive organisational information
DThe formal job description and performance targets agreed during the annual appraisal process
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
The psychological contract, a concept developed by Denise Rousseau, refers to the unwritten, informal set of mutual expectations and obligations that employees and employers believe exist between them. Unlike a formal employment contract, it is not legally enforceable but significantly influences employee motivation, commitment, and behaviour. Breach of the psychological contract often leads to reduced job satisfaction and increased turnover.
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