The role of employees' psychological contract in the successful implementation of management tactics and achieving optimum performance at Engen Refinery, Durban, South Africa.
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Date
2005
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Abstract
The purpose of this research is to determine the role of employees' psychological contract in the successful implementation of management tactics and achieving optimum work performance. The concept of the psychological contract was first introduced by Argyris in 1960, in
reference to the employer and employee expectations of the employment relationship
(Smithson and Lewis, 2003). Recent research in the United Kingdom has revived the
concept, with particular focus on how the psychological contract affects employee
attitude or how it may be affected by employer actions. The perceived breach of
psychological contracts, for example, may be linked to job satisfaction or staff retention.
Research on the topic in a South African context is limited. The purpose of this research is to apply the concept to the South African context and to specifically determine how it impacts on strategy implementation through management tactics, as
well as work performance. Furthermore the influence of factors such as gender, ethnicity and relative age will be investigated.
Research will be conducted amongst employees of Engen Refinery, located in Durban, South Africa. It is expected that this study will add value to the body of knowledge in this field as well as benefit the company by identifying how an
understanding of employees' psychological contracts is relevant to the
implementation of tactics and achieving optimum work performance.
Questionnaires will be administered to employees. A focus group discussion will be
held with 5 employees. Two psychologists and one psychometrist will be
interviewed. Two employees, who are also middle managers will be interviewed.
Research findings indicate that the psychological contract of employees has a direct
influence on the successful implementation of management tactics and optimising
work performance at the Engen Refinery. Employees favour a relational
psychological contract. It follows that meeting the relational needs of employees
would result in an improvement in the successful implementation of tactics and work
performance. Positive interpersonal relationships based on trust, respect and open
communication minimise gaps in psychological contracts and reduce the degree of
assumption with regard to mutual expectations. This has the effect of reducing
feelings of inequity, which, based on equity theory, improves commitment and work
performance and reduces perceptions of psychological contract violation.
Recognition, and the application of behaviour modification theory, may be practically
applied where a relational psychological contract is favoured, in order to influence the
transactional aspects of the contract.
While gender and age do not appear to influence how the psychological contract
affects the implementation of tactics and work performance optimisation, ethnicity
does, in the particular context of Employment Equity which is peculiar to South Africa. Research findings indicate that the concept of the psychological contract is relevant to
improving the work environment, and can be used to effect change in order to
enhance the successful execution of strategy and optimise employee work
performance.
Description
Thesis (MBA)-University of KwaZulu-Natal, 2005.
Keywords
Personnel management--Employees--Rating of., Performance--Management., Compensation management., Theses--Business administration.