Evaluating the management of the psychological contract between the employer and employees at Umgeni Water.

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.