The employment relationship has a substantial effect on the job performance of employees and the overall success of the organization (Randmann, 2013). However, the attitudes and behaviors of individuals within the organization do not fully correspond to the employer's formal written contract, but are to a large extent influenced by the individual's perception of his or her obligations, promises made by the employer and the manner in which the employer fulfilled its obligations (Rivage, 2006). A fulfilled obligation in an employment relationship results in more desirable benefits for organizations. Throughout the employment relationship, employees and employers will try to make sense of the social context in which they work, and this understanding affects their perceptions, attitudes, and subsequent actions. Consequently, the psychological contract deals with the set of unwritten beliefs of the employee and the organization concerning the exchange relationship that occurs between them (Rousseau, 1995). Accordingly, a psychological contract is essential to the employee relationship and is a useful concept. to understand the challenges associated with managing employment relationships (Guest, 2004). It is an effective way to understand what an employee is willing to contribute and what he or she expects to receive in return from the employer. It provides a framework for studying how employees and employers have different perceptions of neutral obligations and how these obligations have been fulfilled. Due to globalization, economic instability and labor market trends, organizations such as Toyota are expected to adapt to the changing external environment by changing. its organizational strategy, structure, processes and people. This essay describes this strategic shift...... middle of paper ...... several ways. For example, using employee attitude surveys, which indicate employees' attitudes and perceptions regarding change. Supervisors play a key role in the company's change plans, they are the primary leaders who communicate the need and nature of change. Supervisors at Toyota would hold briefings before the major change, which would include layoffs, they would also ask questions about concerns about the change. These are then presented to management to develop as many recommendations as possible to reduce the negative outcomes of psychological contracts. The supervisors' final plan should articulate and explain why the change is necessary. Management should also develop change playbooks to guide face-to-face discussions between employee and employer and between supervisors and employees..