The Impact of Psychological Contract on Employee Motivation: with Reference to People’s Bank Head Office

Abstract

This research examined the impact of the psychological contract on employee motivation. In particular, the research identified the core elements of psychological contract, which impact for the motivation of employees. Limited research have been conduct to identify the impact of psychological contract on employee motivation in Sri Lanka. The objective of this study was to identify the relationship between psychological contracts on employee motivation with special reference to People’s Bank Head office in Sri Lanka. To achieve this objective, hypothesis was developed and tested. There are 680 employees in people’s bank head office and Simple random sampling was applied to select a representative sample. A questionnaire which included 30 questions was used to gather information. The statistical Package for social science (SPSS) version 20.0 was used to analyze the data. Descriptive statistics, Cronbach’s coefficient alpha, mean value, simple regression analysis aided in the analysis. To test the stated hypotheses correlation analysis and simple regression analysis were performed. Researcher found, the employees of people’s bank have a significant impact of psychological contracts on employee motivation. For the future success of the People’s bank, managing the human resources in an effective manner is very important to identify whether they are motivated or not.