The Psychological Contract One concept that has been useful in discussing employees’ relationships with organizations is that of a psychological contract, which refers to the unwritten expectations employees and employers have about the nature of their work relationships. Because the ocuses on expectations about “fairness” that may not be defi ned very clearly by either party.Expectations about both tangible items (such as wages, benefi ts, employee productivity, and attendance) and intangible items (such as loyalty, fair treatment, and job security) are encompassed by unwritten psychological contracts between employers and employees. Many employers attempt to detail their expectations through employee handbooks and policy manuals, but those materials are only part of the total “contractual” relationship.psychological contract is individual and subjective, it