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The PM model assumed that the basis of the psychological contract wascompliance – the employee would do as he or she was told and the employerin turn expected this. Management should be able to determine exactly what isrequired of the employee and enforce at least minimal compliance. The HRMmodel, on the other hand, assumes that the employee shows positive, willing commitment. Because more is expected from employees, management cannotalways specify exactly what is required, and so employees must use their ownjudgement and initiative to a much greater extent than in the past.
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