a. Differences in status and power mean the psychological contract is always balanced in favour of the organisation. Managers will expect individuals to display loyalty and commitment, put in extra hours and effort. Individuals can only hope for some commensurate fair reward now or later.

b. To what extent do you believe:

(i) The majority of people come to work with the original attitude of being eager to do a good job and desirous of performing well to the best of their abilities; and

(ii) The suggestion of human capital theory that investment in education and training of individuals increases skill level and productivity so justifying higher earnings.

c. Performance of people at work is determined predominantly by the work ethic and idiosyncratic behaviour of individuals, and a complex combination of social factors and unofficial working methods. In reality, management has only limited influence.