A psychological contract is an unwritten agreement. It should benefit an organization and its employees. It is not an idea that allows one party to manipulate the other.

A psychological contract isn’t something concrete you can hold like a job contract. It’s abstract, an idea. As well as being abstract, it constantly changes. Its rules and rewards are different in every workplace.

Denise Rousseau developed the concept of the psychological contract. A professor at Carnegie Mellon University, Rousseau outlined the idea in 1989.

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