Psychological Contract Fulfilment- A key to better employment relationship

In the current global environment, a psychological contract entail a set of expectations by a new employee concerning the promises made as an element of the new job but not officially mentioned in the official contract. The concept has been considered to be important, as these contracts direct the perceptions of employees as how to perform and how they perceive organisation and for the better understanding of employment relationship. When psychological contracts are not fulfilled it leads to adverse effects on employees and leads to psychological contract breach. The present study examined the effects of psychological contract breach on commitment of employees resulting into strained employment relationship in the organisations. A total of 200 full-time employees took part in this study. The study found that psychological contract fulfilment has a significant positive relationship with the commitment of employees; furthermore, study found that likewise commitment, psychological contract fulfilment leads to better employment relationship.

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