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Psychological contract formation is a process whereby the employer and the employee or prospective employee develop and refine their mental maps of one another. According to the outline of phases of psychological contract formation, the contracting process begins before the employment itself and develops throughout the course of employment.
Perceived psychological contract violation (PPCV) is a construct that regards employees’ feelings of disappointment (ranging from minor frustration to betrayal) arising from their belief that their organization has broken its psychological contract of work-related promises, [1] and is generally thought to be the organization's contribution to a negative reciprocity dynamic, as employees tend ...
The second is Psychological Empowerment which comes from Social Psychological models and is described as psychological perceptions/attitudes of employees about their work and their organizational roles. A study done by Ahmad et al. found support for the relationship between empowerment and job satisfaction and job commitment.
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[9] [10] Under the formalist theory of contract, every contract must have six elements: offer, acceptance, consideration, meeting of the minds, capacity and legality. Many other contracts, but not all types of contracts, also must be in writing and be signed by the responsible party, in an element called form. [citation needed]