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Bill Walters was hired by Amazon.com five years ago. He has received three promotions and five consecutive pay raises. He expects another promotion and raise this year due to his continued effort and performance. Of what is this an example? a. Knowledge worker contract b. Psychological contract c. Tiered workforce d. Contingent worker contract

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Answer:

b. Psychological contract

Explanation:

Psychological contract is the unwritten agreement between an employee and an employer. Based on the employees befforts and skills he will receive incentives from the employer. Incentives can be intangible like job security, or tangible like promotions and pay raises.

Bill Walters has an intangible contract with Amazon.com where he will receive promotions and pay raises based on his efforts and performance.

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