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Evaluation Of A Psychological Contract

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ASSIGNMENT 1 NAME: KABILEN CHANDRASEGARAN STUDENT ID: 123981 SUBJECT: PERFORMANCE MANAGEMENT SUBJECT CODE: HRM 202 DUE DATE: WEEK 5 In this modern era, the changing environment has tremendously shaped the relationship between the employee and employer, especially the psychological contract. This leads to the situation wherein unrealistic self-assessment of performance by an employee can often lead to violation of the Psychological contract, thus I strongly agree that an unrealistic self assessment by an employee is capable of breaking a psychological contract. This essay predominantly aims at reviewing the essentials of a psychological contract such as the definition, the difference between ‘relational’ and ‘transactional’ psychological contracts, violation and the effects of a violated psychological contract on individuals’ behaviour. The review is as following. Psychological contract plays a vital role in an organisations working culture, and it is an applicable aspect of people 's behaviour and attitude. In other words, a psychological contract is defined as the expectation that employers and employees have about each other (De Cieri et al. 2009). It is an intangible, informal contract that the employee perceives about their employment relationship. This includes factors such as, workplace condition, work place environment and what is expected to be completed on a daily basis. In essence, this contract differs from any other formal contracts, as this

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