What HRM concept refers to the psychological agreement consisting of unwritten expectations and obligations existing between an employee and their employer?

Explanation

• Psychological Contract refers to unwritten, implicit expectations, promises, and mutual obligations between workers and employers (e.g., loyalty in exchange for job security).
• Unlike a formal employment contract, it is legal-free and exists purely in employees’ perceptions.
• Violations lead to reduced engagement, lowered commitment, and turnover.