Discussion Question

Transactional Contract

 

A type of psychological contract that identifies relational characteristics specifically focused on economics and short duration of employment. For example, seasonal employees in retail stores are hired during the Christmas holidays to assist with the overwhelming demand of customer shopping. After the holidays, temporary employment ends for those employees hired for that time. Transactional contracts are also characterized by revenue-based trust where monetary services are provided upon completion of services. Expectation levels are high between the parties, and reputation to build a foundation of success is apparent.