Human resource management plays an important role in the organization. This not only helps the employer to accurately evaluate its employees, but also contributes to the development of the company. Thus, the appearance of a psychological contract is one of the most effective tools to help the organization improve its HR issues. However, it also comes with certain challenges that the manager must overcome. Therefore, the main purpose of this essay is to analyze the importance of psychological contract from many aspects and support more evidence and experience to support employers' point of view in people management. The psychological contract is the unwritten contract that illustrates a set of expectations existing between the individual and the organization (Sonnenberg et al, 2011). Svensson & Wolven (2010) point out that it can be a relationship between members of a group, people who work in the same company, department or organization, multiple groups or parties in an organization, etc. This includes the requirement for job performance. , job security, training, potential development, remuneration and subsidies. Psychological contracts are a mental representation based on a belief or perception. So they can help employees and employers get rid of a complicated employment relationship. For example, employees and employers can understand very clearly the terms and conditions and what they have been agreed upon. The perception of each individual is very important and essential (Ekelund et al, 2010, 1438). So, when they work in a highly competitive group, it could motivate them to implement their work consciously. Combined with a few exceptions, some research cites that the psychological contract only concerns the employee-manager relationship and the term which mainly...... middle of article......Review, 37(5), 473-489Smissen, S.; Schalk, R.; Freese, C. (2013) Organizational change and the psychological contract – How change influences the perception of obligations, Journal of Organizational Change Management, 26(6), 1071-1090Sonnenberg, M.; Koène, B.; Paauwe, J. (2011) Balancing HRM: the psychological contract of employees - A multi-level study, Personnel Review, 40(6), 664-683Svensson, S. & Wolven, LE. (2010) Temporary workers and their psychological contracts, Employee Relations, 32(2), 184-199Vantilborgh, T.; Bidee, J.; Pepermans, R.; Willems, J.; Huybrechts, G.; Jegers, M. (2012) Psychological contracts of volunteers: extending traditional views, Nonprofit and Voluntary Sector Quarterly, 41(6), 1072-1091Other: Reber, AS; Allen, R.; Reber, ES (2009) Psychological Contract, The Penguin Dictionary of Psychology, Penguin, London