The exchange relationship employees have with their organizations is embodied in their psychological contracts. Performance appraisal, pay, and careers are important aspects of the exchange relationship between an employee and an organization and also have important implications for motivation. Now that you have a good understanding of these important elements of psychological contracts, debate the following issues.
Team A. Given that psychological contracts are perceptual, they are highly idiosyncratic and there is not much that organizations can do to influence them.
Team B. Organizations play an active and important role in shaping their members’ psychological contracts.