are more common in organizations with authoritative management styles and hierarchal control. Transactional contracts are found to be "related to careerism, lack of trust in employer, and greater resistance to change." They tend to be shorter term in nature. Some scholars consider McGregor's Theory X to be closely related to transactional employer-employee relationships or authoritarian management, which are bound by transactional psychological contracts that aim to keep people working for extrinsic reasons and maintain the status quo. Relational psychological contract: stresses interdependence of the organization and level of social exchange. These psychological contracts tend to be longer term in nature. McGregor's Theory Y is seen in participative management that emphasizes the role of leadership. This has similarities with relational psychological contracts in terms of common emphasis on commitment and belief in the intrinsic motivations of people who may want to work for something beyond merely monetary reasons. Relational contracts are found to be associated with trust and increased acceptance of change. The content of psychological contracts varies widely depending on several factors including management style, as discussed earlier. It also depends on the type of profession and differs widely based on stage in career; for example, between graduates and managers. Denise Rousseau is credited with outlining these 5 phases of contract formation: Pre-employment- The initial expectations of the employee form through professional norms and societal beliefs that may be influenced by information gathered about the organization and how certain occupations are portrayed by the media. Recruitment- The first instance of two-way communication involving promise exchanges between employer and prospective employee during the recruiting process. Early socialization- Promise exchanges continue with both parties actively continuing their search for information about one another through multiple sources. Later experiences- The promise exchange and search for information processes slow down as the employee is no longer considered new. There may be changes to the psychological contract introduced at this stage. Evaluation- The existing psychological contract is evaluated and possibly revised and it is determined whether revision is needed. Incentives and costs of change impact revision. The psychological contract model is applicable not only to supervisor-subordinate relationships, but also to business relationships. In 2015, a study was conducted on hotel franchising. Franchising is an agreement between a brand owner and franchisee that grants the franchisee rights to use the brand in exchange for a fee. According to the study, apart from this, the franchisee agreement