Employees' work outcomes associated with the psychological contract within a service company / by Colette du Plooy

• Main Author: Du Plooy, Colette
• Published: North-West University 2009
• Subjects: Employer obligations; Psychological contract; Employee obligations; Job insecurity; Organisational commitment; Intention to quit
• Online Access: http://hdl.handle.net/10394/2524

During the last decade, dramatic changes have been experienced in workplaces because of technological growth, globalisation, ever increasing competitive markets, changing industrial relation laws and better management skills (Cappelli, 1999). Amidst this change, the biggest issue is for organisations to gain dedication from their employees. Maslach et al (2001) explains that the impact of the changing world of work is perhaps most evident in changes in the psychological contract. Employees are expected to give more in terms of time, effort, skills and flexibility, whereas they receive less in terms of lifetime employment and job security. In security companies, the employer obligations and employee obligations also went through a process of change. Crime has become a very serious concern in South Africa. In Gauteng, crime has increased with 69,2% (SAP Statistics, 2005) from 1994 to 2004. Because of crime, many independent security companies were formed to help prevent crime, working together with the South African Police Force. A lack of research exists regarding employees' work outcomes like job insecurity, organisational commitment and intention to quit associated with the psychological contract within a service company. The objectives of this study are to investigate the relationship between employer obligations, employee obligations, job insecurity, organisational commitment and intention to quit of employees (N=217) in a service (security) company. A cross - sectional design was used. Constructs were measured by means of an employer obligations questionnaire, employee obligations questionnaire, job insecurity questionnaire, organisational commitment questionnaire and intention to quit questionnaire. The research method for each of the two articles consists of a brief literature review and an empirical study. Exploratory factor analysis, as well as Cronbach alpha coefficients are computed to access the reliability and validity of the different measurement instruments. Descriptive statistics are used to analyse data and Pearson product moment correlation coefficients, as well as regression analysis were used to examine the relationship between the constructs employed in this research. Significant differences are found between various biographical groups and the scores of the psychological contract (employer obligations scale and employee obligations scale), the job insecurity scale, the organisational commitment scale and the intention to quit scale. Conclusions are made, limitations of the current research are discussed and recommendations for future research are put forward. === Thesis (M.Com. (Industrial Sociology))--North-West University, Vaal Triangle Campus, 2009.