IntroductionThe psychological contract is an increasingly relevant aspect of employment relationships and human behavior. This essay will provide a basic definition of psychological policy, explain and analyze the role of psychological control in human resource management from different perspectives of the people involved. Additionally, it will highlight the issues surrounding the Raffles merger, address them and detail how it strengthens the contract in the Raffles merger through three interrelated human resource policies. It will also provide the reason why these three interrelated policies were chosen. Defining the Psychological Contract In 2005, Gilbreth declared the defection of the psychological contract “Management psychology means the effect of the mind that directs the work on that work. which is directed, and the effect of this undirected and directed work on the mind of the worker. The emphasis in successful management is on the man and not on the work.” In this contract, it refers to the mutual expectations of employers and employees. It includes rights, privileges and obligations, particularly regarding mutual expectations regarding contributions and results within the employment relationship. It includes concepts such as employee engagement, fairness beliefs, emotional intelligence, fairness and trust. Although the psychological contract is not a tangible contract, it plays the role of a tangible contract in businesses. Companies must clearly understand the developmental needs and desires of each employee and try to satisfy them. Meanwhile, employees devote their time and efforts to business development. Although the development of the company and employees is not specified by contract, both work hard to...... middle of paper programs ......ion, Tufts College administrators, Tufts.Reys , D. 2010, Columbus Custom Carpentry: A Compensation Case Study, Society for Human Resource Management, Alexandria. Rousseau, MD 2004, 'RESEARCH BRIEFS', Academy of Management Executive, vol.18, no.1, pp. 10-16. Policy Examples on Common HR Topics Compensation 2013, Community Foundations of Canada, Canada, accessed May 1, 2014, Policy Examples on Common HR Topics, Establishing a Job Evaluation Policy and Procedures 2013, Community Foundations of Canada , Canada, accessed May 3, 2014, University of Alberta 2011, A Report of the Job Evaluation Review Committee, University of Alberta, Alberta. Weline, M. 2007, Managing the Psychological Contract: Using the Personal Deal to Increase Performance, Gower Publishing Ltd, United Kingdom.