Organisational relationship
HR practices of an organization plays a key role in the relationship between individuals and their employers (Boon et al, 2011). As shown in figure 1. Psychological Contract, Job Satisfaction, Commitment, engagement, and loyalty are the Important elements of the organizational relationship (Mathis et al, 2017) . Figure 1.0 The Individual–Organisational Relationship (Source: Mathis et al, 2017) Psychological Contract Psychological contract is the unwritten agreement that exists between employers and employees which identifies each party’s mutual expectations (Cullinane and Dundon, 2006). As an example, the management of an organisation will treat employees fairly and provide satisfactory work conditions expecting the employees to respond by demonstrating good attitude, showing loyalty to the company and by following the instructions given by the upper management (Dessler, 2017). Equity Theory of motivation explains how tangible and intangible items affects the employee motivation an
