The Impact of Psychological Contract on Organisational Commitment: A Study on Public Sector of Maldives

11 Pages Posted: 9 Aug 2018

See all articles by Zubair Hassan

Zubair Hassan

International American University

Arshida Abdul-rahman

Financial Training & Management Services (FTMS) College - School of Accounting & Business Management

Abdul Basit

International University of Malaya-Wales

Date Written: October 20, 2017

Abstract

The purpose of this study is to investigate the impact to psychological contract on the organisational commitment of public sector employees in Maldives. The research draws a sample of 100 respondents from ministry of Youth and Sports, Maldives, using simple random probability sampling technique. A Likert-Scale with 1-5 rating was used to obtain. The Questionnaire distributed included five variables to measure the Psychological Contract construct. These are ‘trust, ‘mutual obligation’, ‘perceived fairness’, and ‘length of contract’. The dependent variable was organizational commitment (affective commitment), which is measured using ‘sense of belonging to the organization’, pride in organization membership’, and meaning associated with the work’. The data collected was processed using the Statistical Package for Social Science (SPSS) version 22.0 for windows. The correlation analysis shows that the dimensions of psychological contract have positive correlation with affective commitment. The main results indicate that psychological contract dimension such as fulfillment of mutual obligations, perceived fairness and length of contract has a positive and significant impact on affective commitment. However this study found that psychological contract dimension, trust in employer has a positive correlation although it does not have a significant impact on affective commitment. implications and suggestion for future researches are discussed.

Keywords: Psychological contract, organisational commitment, public sector, Maldives

JEL Classification: O15

Suggested Citation

Hassan, Zubair and Abdul-rahman, Arshida and Basit, Abdul, The Impact of Psychological Contract on Organisational Commitment: A Study on Public Sector of Maldives (October 20, 2017). Available at SSRN: https://ssrn.com/abstract=3056216 or http://dx.doi.org/10.2139/ssrn.3056216

Zubair Hassan (Contact Author)

International American University ( email )

3440 Wilshire Blvd STE 1000, Los Angeles, CA 90010
Faculty of Business Administration
Los Angels
United States

Arshida Abdul-rahman

Financial Training & Management Services (FTMS) College - School of Accounting & Business Management ( email )

Cyberjaya, Selangor
Malaysia

Abdul Basit

International University of Malaya-Wales ( email )

Ground Floor, Block A, City Campus
Jalan Tun Ismail, KS Kuala Lumpur 50408
Malaysia
011-36848347 (Phone)

HOME PAGE: http://https://iumw.edu.my/

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