Can Psychological Contract Create Workplace Happiness?

The psychological contract is a newly crafted organizational term that construes the fulfilment and nonfulfilment of organizational relationships in terms of mutual obligations, expectations and promises. A revolutionizes in demand for human resource and increase in the flexibility of the workforce have changed which impacting the employer-employee relationship and transformed the strength of the contract. Technological shifts, economic transforms and globalization have made organizational environments ever more cut-throat and have often caused employeeemployer correlations to be converted into progressively transactional and jittery. In penetrating for equilibrium in contemporary employment relationships, one of the utmost challenges is to match the needs of organizations and employees. It is easy to break the psychological contract and to mess up the relationship between employee and employer. This breach can happen at any time with any employee and empirical research demonstrates a psychological contract has a significant impact on workplace happiness. For example, when employee expectations are met then they become happy and committed to their organizations. Researchers have posited that the psychological contract generates workplace happiness. Therefore, we conclude that the substantiation continues to persuasively suggest that psychological contract is correlated with and often pave the ways workplace happiness and that experimentally enhancing optimistic emotions leads to improved outcomes in the workplace.