Read the following problem, then carefully answer the questions that follow.        

You are an HR manager at Pup Snacks, a long-time business leader in the dog food industry. The performance management system currently consists of one performance appraisal meeting per year in which employees are given an overall performance score from 1 to 5, as rated by their direct supervisor. You have not been given any information about the meaning of these numbers. Nevertheless, you know that you are about to spend several hours in these meetings today with employees from the Pup Snacks quality control department. (Quality control employees taste snacks, ensure the proper nutrient makeup of snacks, and occasionally create new recipes.) Some conversations will be with employees whose performance has been falling below company standards. Although most are upstanding employees who expect the company to take care of them for years to come, some of the employees may need to be let go to cut costs, some may be expecting to receive raises and not receive them, and some may be upset when they hear the unexpected news of their poor performance.

Question 1. How might the psychological contract be relevant in this case?