Impact Of Psychological Contract On Employees Performance In Selected Entrepreneurial Firms In Oyo State, Nigeria

1.3 PURPOSE OF THE STUDY

The purpose of the study is to investigate impact of psychological contract on employees’ performance in selected entrepreneurial firms in Oyo state, Nigeria

1.4 RESEARCH QUESTIONS 

Based on the above statement of the problem, the study attempts to address the following questions 

-To what extent does transactional psychological contract have influence on employee’s performance in entrepreneurial firms? 

- To what extent does relational psychological contract have influence on employees? performance in entrepreneurial firms?? 

- To what extent does balanced psychological contract have influence on employees? performance in entrepreneurial firms?

1.5. RESEARCH OBJECTIVE OF THE STUDY 

1.5.1 GENERAL OBJECTIVE 

The main objective of the study was to investigate the impact of psychological contract on employees’ performance in selected entrepreneurial firms in Oyo state, Nigeria

1.5.2 SPECIFIC OBJECTIVES 

In order to achieve the general objective, this research attempt to address the following specific objectives by examining the extent to which: 

- To assess the influence of transactional psychological contract on employee’s performance in entrepreneurial firms?

- To examine the influence of relational psychological contract on employee’s performance in entrepreneurial firms?

- To determine the influence of balanced psychological contract on employee’s performance in entrepreneurial firms? 

1.6 RESEARCH HYPOTHESIS 

- H0: - Transactional psychological contract has no significant influence on employee’s performance in FIRMS. 

H1: - Transactional psychological contract has significant influence on employee’s performance in entrepreneurial firms?. 

- H0: - Relational psychological contract has no significant influence on employee’s performance in entrepreneurial firms?. 

H1: - Relational psychological contract has significant influence on employee’s performance in entrepreneurial firms?. 

- H0: - Balanced psychological contract has no significant influence on employee’s performance in entrepreneurial firms?

H1: - Balanced psychological contract has significant influence on employee’s performance in entrepreneurial firms?. 

1.7 SIGNIFICANCE OF THE STUDY 

The findings of the study would be significant, beyond serving the academic purpose; it is expected to enhance the awareness level of mangers and leaders to have the information necessary to increase organizational commitment and retain its best employee’s by understanding influence of psychological contract on performance in firms. Furthermore, this study will have the following significance: 

The study could benefit the case organization by determining which type of psychological contract has highest effect on employee’s intention to leave. This could also lead to improvements in workplaces to help employees become more fulfilled and committed to their jobs. 

Effect of psychological contract on Entrepreneurial firms employee’s performance is not evidently known. Therefore, this study could help Entrepreneurial firms to enrich its psychological contract practice and adjust its focus on most important type of contracts that can bring employee commitment and fulfilment. 

1.8 DELIMITATION OF THE STUDY

The research is delimited to the data obtained from permanent employees and had been considered part of the study. Methodology wise the study used cross- sectional study and quantitative research design. The study based on key factors of Psychological Contract (relational, transactional and balanced) and employees’ performance. 

1.9 ORGANIZATION OF THE STUDY 

This study organized in to five chapters. The first chapter is an introductory part which includes background of the study, statement of the problem, research questions and objectives, significance and scope of the study. Literature review and research methodology addresses the review of related literature and the research design of the study, sampling techniques and data collection instruments. The fourth chapter describes the interpretations and discussion of the findings. Finally, in the last chapter, summary, conclusion and recommendation are included. 

1.10 OPERATIONAL DEFINITION 

Transactional psychological contracts: transactional contracts as a reference to employment arrangement with a limited duration primarily focused on economic exchange, specific narrow duties and limited worker involvement in the organization, according to Rousseau (2000).

 Relational psychological contracts: explain the nature of relational psychological contracts; have stated that it can be characterized by long term employment relationship in which the mutual obligations cannot be unambiguously specified. 

Balanced psychological contract: combines the open-ended time frame and mutual concern of relational agreement with the performance, demand and renegotiation of transactional contracts (Wangithi & Muceke, 2012).