PSYCHOLOGICAL CONTRACT AND EMPLOYEE PERFORMANCE OF PUBLIC OWNED UNIVERSITIES IN RIVERS STATE.

Abstract

This study examined the relationship between psychological contract and employee performance in public-owned universities in Rivers State, Nigeria. The study focused on two dimensions of psychological contract—relational and transactional contracts—and their influence on two key measures of employee performance—task performance and contextual performance. A correlational research design was adopted. The population of the study consists of 8,063 teaching and non-teaching staff of public universities in Rivers. The Taro Yamane formula was used to determine the sample size for the study, yielding a sample size of 380 respondents. The study employed a simple random sampling technique. Data were collected using a structured questionnaire. The reliability of the questionnaire was tested using Cronbach’s Alpha. The reliability coefficient obtained was 0.78. 324 valid responses were retrieved and analyzed using Spearman Rank Order Correlation at a 0.05 level of significance. The findings revealed significant and positive relationships between relational contract and task performance, relational contract and contextual performance, transactional contract and task performance, and transactional contract and contextual performance. These results suggest that when employees perceive that their psychological contracts—both relational and transactional—are being fulfilled by the university management, they are more likely to perform effectively in their assigned duties and exhibit positive discretionary behaviors that contribute to institutional success. The study concluded that a well-managed psychological contract enhances both the formal and informal aspects of employee performance. It recommends that university management should strengthen relational and transactional employment practices to foster improved staff engagement and productivity. These findings underscore the critical role of mutual expectations and trust in driving organizational performance in the education sector.