EFFECTS AND CORRELATION BETWEEN PSYCHOLOGICAL AND EMPLOYEMENT CONTRACT: THE RELATIONSHIP BETWEEN THE ORGANIZATION AND EMPLOYEES

The paper aims to research data on the psychological contract which in our country are almost unknown; provide suggestions emphasizing the importance of psychological contracts and fill the managerial and legal gaps faced by Kosovar organizations due to lack of information on psychological contracts. The paper is focused on determining the importance and role of psychological contracts in the formation of positive organizational relationships and maintaining the desired level of work, positive attitudes towards the work of employees in the business sector, etc. The paper provides knowledge and guidance to organizations on how to manage psychological contracts and pave the way for practical research of these contracts to local businesses. The paper presents a contribution to answering a number of questions on the economic value of the psychological contract between employees and management in Kosovo organizations based on the literature reviewed.Also, based on the studies conducted, our conceptual research emphasizes the importance of psychological contract in organizational behavior and the benefits that psychological contract brings to organizations. The paper itself represents originality and value for researchers, organizations in Kosovo and for later studies of the field.