Your assignment is to prepare and submit a paper on human rescource management. Rousseau (1989) defines the psychological contract as an individuals beliefs regarding the terms and conditions of a reciprocal exchange agreement between that focal person and another party (p. 123).There are various aspects of the work force like variations in the job, nature of job, challenges of the work and other areas that have been considered as growing areas of interests (Hughes and Palmer, 2007). There has been various human resource management issues related to the contingent work force that provided one of the most appropriate areas of studies for the professionals and researchers. According to Feldman (2006 as cited by Hughes and Palmer, 2007) the Bureau of Labour Statistics (2005) revealed that the contingent workers formed nearly 10% of the workforce in early 2005.George and Kelly-Patternson (2007) covered different importance of psychological contract within various professional groups. The present economy has transformed from the manufacturing to service and service to knowledge based economy. The experience and skills of individuals have become base for economy. The psychological contract is high in the knowledge based industry. Success of the projects depends on the psychological contract.Psychological contract is explained with respect to emotional aspects of loyalty of employees and support from the organisation (Grimmer and Oddy, 2006). There are individual perspectives of employees, perception of the employees and mutual promise among the employer and employees (Rousseau, 1995). Working relationship of the individuals and organisation is covered in psychological contract (Sparrow and Cooper, 1998). Psychological contract is explained with the use of the term unwritten expectations (Wellin, 2007). These expectations are ever-changing and continuously operating between the all the members of the organisation. There are transactional psychological contract and relational psychological contract.
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