Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Psychological Contract, Employee Engagement and Employee Performance

Julius Samuel Oplot, Lydia Maket

http://dx.doi.org/10.6007/IJARBSS/v10-i11/7998

Open access

Employees’ performance is a critical element of the overall organizational performance in high performing companies, so its management is vital. Globalised economies have increased competition for organizations, so managers are under enormous pressure to improve performance and remain ahead of competitors. This paper looks at factors that improve the likelihood of organizations attaining peak performance. The paper examines the mediation effect of employee engagement on the relationship between employer obligations, employee obligations and state of the psychological contract and; employee performance. Due to different conceptualization of the psychological contract concept, this paper examines the concept from employer obligations, employee obligations and state of the psychological contract. The paper concludes that employee engagement assumes a critical precursor role to employee performance at the workplace.

Aguinis, H. (2009). Performance Management (2nd ed.). Upper Saddle River: Pearson Prentice Hall.
Agyemang, C. B., & Ofei, S. B. (2013). Employee work engagement and organizational commitment: A comparative study of private and public sector organizations in Ghana. European Journal of Business and Innovation Research, 1(4), 20 –33.
Albrecht, S. L. (2010). Employee engagement: 10 key questions for research and practice. In S.
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: A moderated mediation model. The International Journal of Human Resource Management 24(2):330-351, DOI: 10.1080/09585192.2012.679950
Alias, N. E., Noor, N. M., & Hassan, R. (2014). Examining the Mediating Effect of Employee Engagement on the Relationship between Talent Management Practices and Employee Retention in the Information and Technology Organizations in Malaysia. Journal of Human Resources Management and Labor Studies, 2(2), 227-242.
Al-Tit, A. A., & Hunitie, M. (2015). The Mediating Effect of Employee Engagement between Its Antecedents and Consequences. Journal of Management Research 7(5) 51 .
Anitha, J. (2014). "Determinants of employee engagement and their impact on employee performance", International Journal of Productivity and Performance Management,63(3): 308 – 323. http://dx.doi.org/10.1108/IJPPM-01-2013-0008
Bakker, A. B., Demerouti, E., & Ten Brummelhuis, L. L. (2012) Work engagement, performance, and active learning: The role of conscientiousness. Journal of Vocational Behavior. 80:555–64.
Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O. K., & Espevik, R. (2014).Daily transactional and transformational leadership and daily employee engagement. Journal of Occupational and Organizational Psychology, 87(1), 138–157.
Borman, W. C., & Motowidlo, S. M. (1993). Expanding the Criterion Domain to Include Elements of Contextual Performance. Personnel Selection in Organizations. Jossey-Bass, San Francisco, 71- 98.
Conway, N., & Briner, R. B. (2009). Fifty Years of Psychological Contract Research: What do we Know and What are the Main challenges? International Review of Industrial and Organizational Psychology, 24, 71-130.
Conway, N., & Briner, R. B. (2005). Understanding Psychological Contracts at Work. A Critical Evaluation of Theory and Research, Oxford University Press, Oxford
Coyle-Shapiro, J., & Kessler, I. (2002). A Psychological Contract Perspective on Organizational Citizenship Behavior. Journal of Organizational Behavior, 23, 927-946.
Demerouti, E., & Cropanzano, R. (2010). From thought to action: employee work engagement and job performance. In: Bakker, A.B. & Leiter, M.P (Eds) Work Engagement: A Handbook of Essential Theory and Research. New York. Psychology Press, pp. 147-163.
Fredrickson, B. (2001) The role of positive emotions in positive psychology: the broaden-and-build theory of positive emotions. Am. Psychol. 56:218–26.
Gracia, F. J., Silla, I., Peiro, J. M., & Fortes-Ferreria, L. (2007). The state of the psychological contract and its relation to employees’ psychological health. Psychology in Spain, 2(1), 33-41.
Halbesleben, J. R. B., & Wheeler, A. R. (2008). The relative role of engagement and embeddedness in predicting job performance and intention to leave. An International Journal of Work, Health & Organisations. 22(3), 242–56. https://doi.org/10.1080/02678370802383962
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology. 87(2):268–79
Ho, L. A. (2008). What affects organizational performance? The linking of learning and knowledge management. Industrial Management & Data Systems, 108(9), 1234-1254.
Jaupi, F., & Llaci, S. (2014). Employee engagement and its relation with key economic indicators. Journal of IT and Economic Development, 5(2): 112-122.
Karatepe, O. M. (2013). High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management 32: 132–140. Doi: 10.1 016/j. ijh m. 2012.05.003
Kahn, W. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33, pp. 692-724.
Kim, W., Kolb, J. A., & Kim, T. (2013). The relationship between work engagement and Performance: A review of empirical literature and a proposed research agenda. Human Resource Development Review. 12(3), 248-276. Doi: 10.1177/1534484312461635
Kruse, K. (2012). Why Employee Engagement. Retrieved Febuary 5, 2015, from http://www.kevinkruse.com/employee-engagement-research-master-list-of-29-studies
Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., Schaufeli, W. B., De Vet Henrica, C., & Van Der Beek, A. J. (2011). Conceptual frameworks of individual work performance: A systematic review. Journal of Occupational and Environmental Medicine, 53 (8), 856-866.
Mone, E. M., and London, M. (2010). Employee Engagement: Through Effective Performance Management – A Practical Guide for Managers. Taylor & Francis Group NY.
Murphy, M. (2013). New analysis linking engagement scores with appraisal scores. Retrieved March 3, 2015, from https://www.leadershipiq.com/white-papers/job-performance-not-a predictor-of-employee-engagement/
Nasiruzzaman, H. A., Qudaih, R., & Ahmad, D. (2013). Project success and knowledge management (KM) practices in Malaysian institution of higher learning (IHL). Journal of Education and Vocational Research, 4(5): 159-164.
Nazem, F., Mozaiini, M., & Seifi, A. (2014). A structural equation model of knowledge management based on organizational climate in universities world academy of science, engineering and technology. International Journal of Social Management, Economics and Business Engineering, 8(2): 462-466.
Obuobisa-Darko, T. (2019). Leaders’ Behaviour as a Determinant of Employee Performance in Ghana: the Mediating Role of Employee Engagement. Public Organization Review https://doi.org/10.1007/s11115-019-00460-6
Quinones, M., Van den Broeck, A., & De Witte, H. (2013). Do job resources affect work engagement via psychological empowerment? A mediation analysis. Journal of Work and Organizational Psychology 29(3), 127-134.
Rana, S., Ardichvili, A., & Tkachenko, O. (2013). Theoretical model of the antecedents and outcomes of employee engagement: Dubin’s method. Refereed proceedings of the 14th International Conference on Human Resource Development Research and Practice across Europe. University Forum for Human Resource Development (UFHRD), Brighton, UK: Academy of Human Resource Development.
Rao, M. S. (2017). Innovative tools and techniques to ensure effective employee engagement. Industrial and Commercial Training, 49 (3), 127–131.
Rothmann, S., & Cilliers, F. V. N. (2007). Present challenges and some critical issues for research in industrial/organisational psychology in South Africa. South African Journal of Industrial Psychology, 33(1), 8–17.
Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: a two sample confirmatory factor analytical approach. Journal of Happiness Studies 3 (1):71-92.
Schreuder, A. M. G., & Coetzee, M. (2010). An overview of industrial and organisational psychology research in South Africa: A preliminary study. South African Journal of Industrial Psychology, 36(1), 11. Doi:10.4102/sajip.v36i1.903
Shuck, B., & Reio, T. G. (2011). The employee engagement landscape and HRD: How do we link theory and scholarship to current practice? Advances in Developing Human Resources, 13 (4), 419-428.
Shuck, B., Twyford, D., Reio, T. G., & Shuck, A. (2014). Human resource development practices and employee engagement: Examining the connection with employee turnover intentions. Human Resource Development Quarterly, 25(2), 239-270.
Shuck, M. B., Rocco, T. S., & Albornoz, C. A. (2011). Exploring employee engagement from the employee perspective: Implications for HRD. Journal of European Industrial Training, 35(4), 300-325. Doi: 10.1108/03090591111128306
Tseng, S. M., & Lee, P. S. (2014). The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2): 158-179.

In-Text Citation: (Opolot, & Maket, 2020)
To Cite this Article: Opolot, J. S., & Maket, L. (2020). Psychological Contract, Employee Engagement and Employee Performance. International Journal of Academic Research in Business and Social Sciences. 10(11), 886-903.