The association of psychological contract alignment to workplace outcomes

Abstract

The association the alignment of the psychological contract has to workplace outcomes in the South African emerging market context was investigated at a total psychological contract level but also on a psychological contract construct level. The results of 106 manager and employee dyads supported that there are correlations between psychological contract alignment and the performance of employees as rated by their manager, the commitment of the employee to the organisation and the propensity of the employee to leave the organisation. Models were developed that indicated alignment on loyalty aspects explaining the performance outcome and that a combination of alignment on fulfilment and performance support explained the commitment and propensity to leave outcome. Differences in responses between same gender dyads and different gender dyads were explored, as well as between same population group and different population group dyads with no statistically significant differences observed. The results of the study are discussed in terms of its practical use for general and human resource management. Further related research areas are suggested: the association of psychological contract alignment to propensity to leave in a positive economic climate, the degree of bias in performance ratings by managers when highly committed to the employee.