Psychological Contract and It’s Impact on Employee Attitudes

Abstract

Objective: The purpose of the current study is to scrutinize the impact of psychological contract and psychological contract fulfillment on organizational commitment and turnover Intentions of employees.

Study Design: Cross sectional study.

Place and Duration of Study: This study was conducted at the Hospitals, Banks and Universities of Hyderabad, Jamshoro and Tando Jam from 1^st August 2014 to 1^st October 2015

Materials and Methods: Responses were gathered using a survey. Responses were collected from 600 individuals. SPSS 23 was used for analysis. Responses were analyzed through hierarchical multiple regression.

Results: Influence of relational psychological contract on organizational commitment was positively realized (β = 0.163, p<0.05). Transactional psychological contract was destructively impacting organizational commitment (β = -0.089, p<0.05). However, psychological contract fulfillment had a positive impact on organizational commitment (β = 0.179, p<0.05).  Turnover intentions were negatively influenced by relational psychological contract (β = -0.194, p<0.05), transactional psychological contract (β = -0.139, p<0.05) and psychological contract fulfillment (β = -0.135, p<0.05).

Conclusion: Relational psychological contract and psychological contract fulfillment positively predicted the organizational commitment whereas transactional psychological contract was a negative predictor. Relational psychological contract negatively predicted turnover intentions.  Transactional psychological contract increases turnover intentions. Psychological contract fulfillment deteriorated the turnover intentions.