The most familiar aspect of the employment compact, the formal dimension includes documents such as job descriptions and performance agreements that capture the basic job requirements. Companies that overlook them may well find their change efforts stonewalled.Īn employment relationship has three dimensions: formal, psychological, and social.ġ. These unspoken understandings are powerful indeed. Much of it is implicit-especially the parts having to do with the psychological and social dimensions of the work relationship. But only part of this “employment compact” is ever written down.

Employees and organizations have reciprocal obligations and mutual commitments.