PSYCHOLOGICAL CONTRACT AND EMPLOYEE COMMITMENT IN THE NIGERIAN BANKING SECTOR

Abstract

The purpose of this study was to find out the relationship between psychological contract and employee affective commitment in the Nigerian banking sector. Three hypotheses guided the study.
Correlational survey design was adopted. The population of the study comprises of all operation staff in a branch of each commercial bank in Rivers State. A total of eighteen banks were used, and the total number of operation staff in these banks is 172. A total of 118 operation staff were selected as sample for the study using the Krejcie and Morgan table. Based on a total sample size of 118.
Cronbach Alpha was used to establish the reliability of the instrument and an overall coefficient of 0.76 was obtained. Data collected were all imputed into SPSS version 21, Pearson’s product moment correlation was used to test the hypotheses at 0.05 level of significance. All hypotheses were rejected and alternative hypotheses stated as P-values were less than 0.05 level of significance.
Findings revealed that psychological contract, have strong positive impact on the affective commitment of employees in commercial banks in Nigeria. It was recommended that management of Banks should put in place policies that provides for leaves, flexible work arrangements and basic facilities that would make employees happy doing their work as other aspects of their personal lives are attended to. Management of Banks should allow employees to telework as much as possible, using the provisions of their mobile phones and the internet. This would make workers happy and give their unalloyed commitment to the organization.