If an organization honors only the economic contract and not the psychological contract,employees tend to have lower satisfaction.

Question

Quizplus · Accepted Answer

This statement is true. When an organization only focuses on the economic contract, which is the exchange of pay and benefits in return for work, and disregards the psychological contract, which involves the mutual obligations and expectations between the employer and employee such as trust, recognition, and opportunities for growth, employees tend to have lower job satisfaction. This can lead to decreased motivation, lower productivity, and higher turnover rates.

If an Organization Honors Only the Economic Contract and Not