Organizations and the psychological contract managing people at work professor of english peter makin charles cox sir cary l cooper 9781567200911 books amazonca. For example how people feel they are being treated by the organization can affect their perception of their levels of pay organizations and the psychological contract has two main aims in exploring these issues to act as a handbook for practicing managers and as a basic text in management courses organizations and the psychological contract has two main aims in exploring these issues in . Unlike a formal codified employee contract a psychological contract is an unwritten set of expectations between the employee and the employer it includes informal arrangements mutual beliefs common ground and perceptions between the two parties communication is a key element