Also, the field of Human Resource Management is also largely impacted by such external and internal environment changes. Psychological Contract Theory has now become a regular debate because in involves both employers and employees, who operate in an unstructured, uncertain, unclear, and unpredictable business environment where small changes may lead to adverse or sometimes uncontrollable consequences. The researcher will discuss the Psychological Contract in contemporary organizations in this paper. Indeed, the various types of Psychological Contracts will also be presented and critically evaluated in the light of currently available pertinent literature to reach appropriate conclusions. The paper will be self – reflective as it will not only include a discussion of ideas, opinions, and arguments of theorists but also will reveal the evaluation and analysis of such arguments by the researcher. Finally, the paper will end on a conclusion that will summarise the discussed thoughts and analysis as well as provide a specific recommendation to employers to enhance relationships with employees for financial, economic, and monetary benefits.As far as the definition of Psychological Contract is concerned, it should be pointed out that it is a set of ‘beliefs’ that personnel have about their organization, based on which, they decide to get indulged in an exchange agreement with their recruiters. According to Psychological Contract Theory, such type of contract is actually an exchange agreement in which employees pledge to showcase loyalty, optimal performance and results to accomplish defined goals and objectives of strategic planners. while they employers promise to offer job security, timely disbursements, extrinsic and intrinsic rewards such as skills development, promotions, bonuses, commissions, vacations, motivation and encouragement for excellent conduct, behavior, and performance.