The management of Holmes Inc.expects its employees to be enthusiastic about their work by seeking training,putting in long hours of work,initiating better work procedures,and maintaining a sound balance between professional life and personal life.In return,the firm's employees expect management to arrange for better incentives,flexible work schedules,and increased authority to execute their tasks.This scenario is an example of a(n)
A) employee contract.
B) offer letter.
C) legal agreement.
D) legal bond.
E) psychological contract.

Question

Quizplus · Accepted Answer

This scenario demonstrates a psychological contract, which is an unwritten agreement between the employer and employee regarding mutual expectations and obligations. It goes beyond the formal employment contract and covers areas such as work attitudes, loyalty, and commitment. The employees expect certain incentives and flexibility from management, while management expects the employees to put in effort and strive to improve their work procedures.

The Management of Holmes Inc