The psychological contract can create either a positive or a negative relationship between an organization and an individual.

Question

Quizplus · Accepted Answer

The psychological contract is a mutual agreement between an organization and an individual employee that outlines expectations, obligations, and promises. When the psychological contract is fulfilled, it can create a positive relationship between the organization and the employee. Conversely, if the psychological contract is not fulfilled, it can lead to a negative relationship. Therefore, the statement is true.

The Psychological Contract Can Create Either a Positive or a Negative