The Impact of Psychological Contract and Job Satisfaction on Organizational Commitment and Intention to Leave

Abstract

The research study is mainly concerned with the reasons behind the violation of psychological contract and its effect on employee attitudes in the hospitality industry of Pakistan. It identifies the attitude of employees in relative to organizational commitment and intention to leave. Psychological contract and its violation are still fairly under-developed in the area of research and have not been explored in the Pakistani context. This study is important because it identifies the gap between employer– employee relationships that causes the violation of psychological contract. The research context chosen for this study is the hospitality industry in the twin cities of Pakistan: Islamabad & Rawalpindi. The research study includes the employees of all management levels belonging to the top three hotels in Islamabad and Rawalpindi namely: Serena Hotel, Marriott Hotel and PC (Pearl Continental) Hotel. The research methodology designed for this research is based on the quantitative study. The results of the survey discovered a positive relationship between psychological contract violation and intention to leave while on the other side having negative relationship with organizational commitment. The recommendations are given on how an organization can minimize insights of violation through human resource policies, strategies and procedures that raise open and honest communication with the employees for the purpose to reduce misunderstandings that may result in perceived violation of psychological contract.