The Impact of Psychological Contract on Organisational Commitment: A Study on Public Sector of Maldives

Abstract

The purpose of this study is to investigate the impact to psychological contract on the organisational commitment of public sector employees in Maldives. The research draws a sample of 100 respondents from ministry of Youth and Sports, Maldives, using simple random probability sampling technique. A Likert-Scale with 1-5 rating was used to obtain. The Questionnaire distributed included five variables to measure the Psychological Contract construct. These are ‘trust, ‘mutual obligation’, ‘perceived fairness’, and ‘length of contract’. The dependent variable was organizational commitment (affective commitment), which is measured using ‘sense of belonging to the organization’, pride in organization membership’, and meaning associated with the work’. The data collected was processed using the Statistical Package for Social Science (SPSS) version 22.0 for windows. The correlation analysis shows that the dimensions of psychological contract have positive correlation with affective commitment. The main results indicate that psychological contract dimension such as fulfillment of mutual obligations, perceived fairness and length of contract has a positive and significant impact on affective commitment. However this study found that psychological contract dimension, trust in employer has a positive correlation although it does not have a significant impact on affective commitment. implications and suggestion for future researches are discussed.