Role of psychological contract between organisational commitment and employee retention: findings from Indian manufacturing industries
by Rabindra Kumar Pradhan; Lalatendu Kesari Jena; Sajeet Pradhan
World Review of Science, Technology and Sustainable Development (WRSTSD), Vol. 13, No. 1, 2017

Abstract: Understanding people's psychological contract and commitment levels in manufacturing industries may benefit the organisations to retain their valuable talent. The present study was designed to explore the influence of organisational commitment on employee retention in manufacturing organisations of Eastern India. The study also tried to investigate the mediating role of psychological capital between organisational commitment and employee retention. A questionnaire survey was conducted on 208 executives randomly selected from Indian manufacturing organisations. Data were analysed by using structural equation modelling. Results revealed that organisational commitment positively influence retention. Further, psychological capital was found to be significantly mediating the relationship between organisational commitment and employee retention. Results were discussed in light of empirical findings and the existing literature. The study suggested that employer and employee should take cognisance of their obligations to each other for enhancing the commitment, retention and satisfaction.

Online publication date: Wed, 19-Apr-2017

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