Impact of Psychological Contract on Organizational Commitment

Abstract

The paper examined the impact of psychological contract on the organizational commitment by studying the impact of independent variables of organizational policies, work environment and organizational compensation structure. The respondents chosen for this study include software developers and associated functional representatives. The sample size was 56 while purposive sampling technique was used for data collection. The findings indicate that there is a definite positive impact of psychological contract on the organizational commitment with the variables organizational work environment and organizational compensation structure dominating over organizational policies. The limitation that surfaced from the study is the small sample size and the application of descriptive statistical technique. The future scope of study is the inclusion of breakdown of the variable organizational work environment and organizational compensation structure which would provide detailed findings into these main variables.