Strength of Psychological Contract : A Predictor of Organizational Effectiveness

Abstract

Psychological contract is something which is not written anywhere and not even enforceable by law but which plays such a role between employer and employee which is more important than written and legal contract. It is an unwritten social contract which is based on mutual trust, expectation and obligation which the employer and employee share. Organizational effectiveness is defined in number of ways; it is not only productivity of organization but also adaptation to the changing environment, achieving the mission and surviving successfully. The present study deals with exploring how this unwritten psychological contract affects the capability and effectiveness of organization. For the purpose of study, data was collected from 243 respondents from service (10) and manufacturing (10) organizations of Gwalior region the analysis of the collected data was done with the help of various statistical tools like item to total correlation, factor analysis, regression analysis.

Keywords: Psychological Contract, Organisational Effectiveness, Regression, Factor Analysis

View PDF