An Analysis of Factors Influencing the Psychological Contract and Employee Performance in the Public Service.

Abstract

The purpose of the study was to get the effects of psychological contract on employee performance in the public service. The psychological contract is developed between the employee and the organization over an extended period of time. It starts with the experiences the candidate has when applying for the job, develops during the recruitment and selection process, and continues to be formed during induction and settling-in period. The psychological contract is constantly being revised and adjusted throughout the period of employment. The research adopted a descriptive research design and the target population size was 366 it included senior level, middle, level management, finance officer and other level. A sample size of 30% was drawn from the population; a systematic sampling technique was used to select the respondents. This study was a descriptive survey aimed at establishing the effect of psychological contract on the performance of employees in the Ministries of Finance Kenya. The study used both secondary data from other sources and primary data collected using questionnaires to carry out the study. Data collected was purely quantitative in nature. Descriptive statistical tools helped the researcher to describe the data and determine the extent used. Data analysis used SPSS and Microsoft Excel, percentages, tabulations, means and other central tendencies. Tables were used to summarize responses for further analysis and facilitated comparison. The study found out that psychological contract affects employee performance in their institution to a great extent. The factors of psychological contract that affect employee performance include; communication, Job security, Attitude and Rewards. It was revealed that job security and rewards affect employee performance to a very great extent. The study also revealed that attitude least affected employee performance. This study therefore recommends institutions management should that psychological contract is embraced by both employee and employer.