Fundamentals of Management, 8th ed

Contributions from

the Individual

• Effort

• Ability

• Loyalty

• Skills

• Time

• Competencies

Inducements from

the Organization

• Pay

• Job security

• Benefits

• Career opportunities

• Status

• Promotion opportunities

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F I G U R E 9 . 1

The Psychological Contract

Psychological contracts are the basic assumptions that individuals have about their

relationships with their organization. Such contracts are defined in terms of

contributions by the individual relative to inducements from the organization.

person–job fit

The extent to which

the contributions

made by the

individual match the

inducements offered

by the organization

Chapter 9: Basic Elements of Individual Behavior in Organizations

2 6 3

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