Psychological Contract, Performance, Management, Organization, Expectation, Relational Contract

Expectation is the pedestal for every aspiration. From having a luxurious life to be the best employee and working with the best organization is the spirit of every professional. Human mind thinks it all and plans it all and wants it all. The tacit expectation at the time of making an application for a role profile elevates hopes on getting selected & binds every individual with his expectation. On the other hand organizations standing as forte of well defined rules & culture norms ready to pay the labor cost but expecting every penny back with good interest from its own resources. Where organizations focus on employee’s effective performance, employees intend to nurture their aspirations under the aegis of their organization. Hence a tussle between employee expectation and organizational expectations is best solved by the concept of psychological contract, where the exchange partners (employer & employees) have a scope to cast a best deal. This research article endeavors to explore the relevance of psychological contract especially in terms of human emotions, social exchange theory, with special usage of relational contract and contriving it for effective performance management.