On the Role of Psychological Contract in Building up Harmonious Labor Relations

When an employee joins an enterprise,he/she will conclude two contracts with the enterprise.One is labor contract,an economic contract on paper,the another is a psychological contract in mind.Although psychological contract is immaterial,it plays a role of material contract.In order to promote labor relations developing harmoniously and stably,enterprises should pay attention not only to economic contract but also to psychological contract of trusting each other with employee and,to prevent broken psychological contract.