Relationship Between Perceptions of Psychological Contract Violation and Employees’ Commitment to Implementation of Strategic Change at the Barclays Bank of Kenya, Nairobi
Abstract
Change is a constant in today’s organizations. The exchange relationship between
organization and employee ranges the entire contract spectrum from strictly legal to
purely psychological. Violation of the psychological contract occurs when one party
perceives that the other has failed to fulfill its obligations or promises. The experience of
psychological contract violation, involving a breach of promise and trust, goes beyond
disappointment and produces feelings of betrayal. The objective of this study was to
determine the relationship between perceptions of psychological contract violation and
employees’ commitment to implementation of strategic change at the Barclays Bank of
Kenya. The study applied case study design where only one organization was involved in
the study. The study also applied descriptive research design since the respondents were
required to describe the phenomenon. A structured questionnaire was used to collect
primary data which informed the analysis. Collected data was analyzed using descriptive
statistics including mean, frequency distribution and standard deviations. The study
established that there was need to strategize on factors such as delayed job promotions,
low and inconsistent payment of bonuses, fair performance ratings, communication
within the bank, adequate training on how to handle change, adequate preparation for the
change programme and good leadership of the change process as they influenced the
employees commitment to implementation of strategic change. The study further
established that from the above analysis it can be concluded that casual discussions with
line managers, informal promises by line managers, delay in their annual pay rise and
payment of overtime or flex time for worked hours neutrally affected employees’
commitment to implementation of strategic change. The study recommends that
employers have to know what their employees expect from their work. The psychological
contract is valuable because it recognizes the individualization of the employment
relationship. Both parties in the employment relationship that is the employer and
employee have their own views on the mutual obligations.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of Nairobi.Publisher
University of Nairobi School of Business