Evaluating the management of the psychological contract between the employer and employees at Umgeni Water.
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Date
2017
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Abstract
ABSTRACT
The purpose of this study is to evaluate the management of the psychological contract
that exists between the employer and employees at Umgeni Water and the alignment of
the psychological contract. The study further aims at determining the significance of
properly managing psychological contract in ensuring that the workforce of Umgeni
Water has high level of organizational commitment, job satisfaction, motivation and
engagement. Furthermore this study will also determine and propose existing
contemporary management strategy to effectively manage the psychological contract at
Umgeni Water. This study will ensure highly motivated workforce hence increase
organizational performance, effectiveness and efficiency. This study was conducted at
Umgeni Water where a sample of population of employees was selected. The study used
a mixed method research approach where survey questionnaire was used to gather data
from the sample of employees. The study has also used group interview with Umgeni
Water Human Resource Managers. The psychological contract held by the majority of
employees at Umgeni Water is a relational contract which indicates that employees are
interested at long-term employment at Umgeni Water. The perception in the majority of
employees is that the employer has not breach their psychological contract obligations
hence there is an appreciable alignment in the psychological contract. The existing
Human Resource management policies and practices have sufficiently and adequately
managed the psychological contract between the employer and employee hence the
majority of the work force has high level of organizational commitment, job satisfaction,
motivation and engagement employees . There is a considerable minority fraction of
employees that perceive that their psychological contract obligations have been breached.
It therefore recommended that Umgeni Water device strategies to further reduce the
number of unsatisfied employees by fostering a covenant psychological contract where
employees are interested in increasing their employability, boundaryless, protean type
employment instead of a relational psychological contract. This could be achieved by
ensuring flexible policies to enable Skills and Knowledge Development Support in the
organization.
Description
Master’s Degree. University of KwaZulu-Natal, Durban.