Effect of Perceived Psychological Contract Violation on Employee Commitment at Kenya Airways Corporation Limited

Abstract

Kenya Airways has been fighting with high cases of psychological contract violations that emanates from its new business strategic options aimed at reorganizing its competitive advantage in the corporation. The study’s objective was to establish the effect of perceived psychological contract violation on employee commitment at Kenya Airways Corporation. This study was guided by equity theory and Vroom’s Original (1964) Expectancy Theory. Descriptive survey design was adopted throughout the study. The target population was the 3586 employees as the number legible for this study. The study adopted stratified random sampling method to identify the study’s respondents. The sample size of 360 was calculated as a proportion of the total target population. Questionnaire was the main instrument of collecting data. The questionnaires were then distributed by hand to the selected sample by the research assistant. Descriptive studies in form of mean, frequency percentage and standard deviation was used. Inferential statistics in form of linear regression analysis was used to test for the influence of perceived psychological contract violation on employee commitment. Data analysis was presented using tables. The study found that there are dedicated officers responsible for career planning for staff, that mentorship and career guidance exist in Kenya Airways Corporation and that the organization requires each employee to prepare programs intended to realize their set career objectives. The study established that the organization allows staff time off for family engagements that the employees receive pay and bonus tied to performance and that there is continuous payment of employee benefits. The study also found that the organization gives incentives to staff for career achievement, that organization allocates resources to cater for career need of staff and that health care benefits are not always given. The study concluded that perceived psychological contract violation affects employee commitment at Kenya Airways Corporation positively and significantly. Hence, recommended that organizations such as Kenya Airways should base their HR policies, procedures and strategies on procedural, interactional and distributive justice. The study recommends that all the obligations of the employer be known to each member of management. Further studies should be done on other airlines in the industry such as Air Rwanda to determine the effect of perceived psychological contract violation.