INTRODUCTION The psychological contract is an expectation of an employee or workforce towards the employer that loosely relates to reality. It represents the fundamental senses which are obligations, rights and also rewards (www.wikipedia.com.my). An obligation is an employee's duty of his or her task. The employee must know his job and perform it effectively. Everyone has their right, even employees have it. So employees and employers need to know their rights. While reward is one of the factors that most influence individual performance, so is an organization's reward system (Miguel 2011:18). Thanks to the rewards, the employee will feel motivated to do the job. With this psychological contract we will specify what we can offer the employer and what we can expect in return. Sometimes, employers will discuss with the interviewee during recruitment what they can offer in future relationships. If both have reached an agreement, most employers will draw up a standard form of contract and make clear all the duties of the employee or interviewee "in the workplace", but some employers limit themselves to doing only an informal statement and could be remembered as promises and give rise to expectations. Whether both cooperate in the parallel psychological contract will depend on their belief that this should be treated as part of the relationship. It is better if the psychological contract is organized because to make them be careful to reduce the risk of arousing false expectations and also avoid being disappointed. The psychological contract also makes both employers and employees better understand personalization. Based on the writer's understanding of the psychological contract, the writer has been... half of the paper... g or can have a good relationship without any problem. They can also have good communication and the top management does not create a gap between them and their colleagues. They can also believe each other to communicate the company's problem and find the solution and also have good decision making to make profit from the company or save it from other problems which may cause loss to the company.REFERENCESBook• John M. Ivancevich, Robert Konopaske, Michael T. Matteson, [2011] “Organizational Behavior and Management”, USA: McGraw-Hill Irwin Website • Alexander, “Contract Formation”, http://www.laboursolutions.com, [ April 2, 2014].• Glick, “Employees Want in Return,” www.forbes.com, [April 2, 2014].• John, “10 Tips for Keeping Employees Motivated and Bringing Passion Back to the Workplace” , http://www.cpsa .com/knowledgecentre, [4 April 2014].