Title: Role of psychological contract between organisational commitment and employee retention: findings from Indian manufacturing industries

Authors: Rabindra Kumar Pradhan; Lalatendu Kesari Jena; Sajeet Pradhan

Addresses: Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, India ' Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, India ' International Management Institute, Qutab Institutional Area, New Delhi – 110016, India

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.

Keywords: loyalty; employee retention; organisational policies; psychological contract; PC; India; organisational commitment; OC.

DOI: 10.1504/WRSTSD.2017.083698

World Review of Science, Technology and Sustainable Development, 2017 Vol.13 No.1, pp.18 - 36

Received: 03 Feb 2016
Accepted: 25 Jul 2016
Published online: 19 Apr 2017 *

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