What is a psychological contract?

A psychological contract refers to the unwritten, implicit agreement that exists between management and employees regarding their expectations of each other. This is based on mutual beliefs, perceptions, and informal obligations that do not typically appear in formal documents. This concept emphasizes the expectations around job security, career development, workload, and interpersonal relationships within the workplace.

In contrast, a formal document outlining employee roles would be more concrete and specific, typically detailing job descriptions and responsibilities rather than the relational expectations that define a psychological contract. Training sessions focus on skill development, which is an aspect of employee growth but does not encapsulate the broader mutual understandings of expectations. An evaluation tool designed for performance assessment evaluates the effectiveness of employees based on measurable criteria, rather than the implicit understandings and commitments that characterize psychological contracts. Therefore, the correct answer highlights the informal and nuanced nature of the relationships and expectations between employees and management.