The PM model assumed that the basis of the psychological contract was
compliance – the employee would do as he or she was told and the employer
in turn expected this. Management should be able to determine exactly what is
required of the employee and enforce at least minimal compliance. The HRM
model, on the other hand, assumes that the employee shows positive, willing
commitment. Because more is expected from employees, management cannot
always specify exactly what is required, and so employees must use their own
judgement and initiative to a much greater extent than in the past.