State if you agree or disagree with the statements made to these answers of what a PSYCHOLOGICAL CONTRACT IS MEANS and the reason behind your rational?

1. What do you think this means for the employer?

Employers are going to expect work production and to motivate and retain employees they will provide wages and benefits. During the recession, employers are going to have a tough time motivating and retaining employees when they are forced to let others go. This causes panic and the employee may feel that there is nothing they can do in their power to increase job security.

2. How does job insecurity affect the relationship between the employee and the employer?

Job insecurity strains the relationship between the employee and employer. It has been linked to job performance, job satisfaction, trust, job involvement, organizational commitment and turnover intentions.