Psychological contracts
A more recent development is related to motivation, but more specifically
to the expectations of both the organisation and the employee. The
concept of the psychological contract is used to describe the unwritten
agreement of what the organisation and the employee will both give and
receive. This approach of psychology is able to add an appreciation of the
need to consider commitment, goodwill, understanding, respect, trust and
loyalty. Therefore the complexity of employee relations can be understood
and this approach can also provide a means of trying to identify threats to
the contract and understanding the consequences if the contract is broken.