Effectiveness of Psychological Contract A Study with reference to Public Sector Bank Employees in Chennai

Abstract

Psychological contract is an unwritten contract between employer and employee in order to fulfill their employment obligations. This research paper focuses on the Psychological Contract of employees working in the public sector banks. The aim of this study is to find out the employee’s and managers’ perception towards psychological contract (with special reference to employee and managers working in Chennai city branches). Here the Psychological contract is measured by taking into account Relational, Transactional, and Balanced and Transitional relationship as its four dimensions. The influence of Psychological contract Dimensions on job satisfaction is considered as an important factor in this research Convenient sampling methods was adopted to collect data from Branch managers/and employees in public sector banks. Cronbach’s alpha shows the reliability as .907 in case of employees and .846 in case of Manager psychological contract. Frequency analysis, ANOVA and Neural Network are performed to analysis the data. The result revealed that a cordial relationship between employee and manager leads to better employee satisfaction in public sector banks.