ROLE OF PSYCHOLOGICAL CONTRACT AND AFFECTIVE COMMITMENT IN LOWERING DOWN JOB STRESS: A COMPARATIVE STUDY IN MALAYSIAN AND PAKISTANI BANKING SECTOR

Abstract

The current comparative study is an attempt to explore the impact of psychological contract in creating affective commitment of the banking employees in Malaysian and Pakistani banking sector. Both country’s banking sectors are facing the problem of employee commitment. This study will help the banking sector to increase the affective commitment of their employees and also banks can grab the full potential from their employees to achieve their targets and competitive edge. This study will provide the comparison of the results between Malaysian and Pakistani banking sectors. Top five banks have been picked for this comparative study. The selection of top five banks was based on the number of employees. This cross-sectional study is based on two developing countries and their banking sectors which are going through the developmental stage. The main focus of this research is to find out that how baking sector can create or enhance the affective commitment of their employees by fulfillment of the psychological contract in the context of Pakistan and Malaysia. Sample size for this study was 200 employees from the top 5 banks of the Malaysia and Pakistan, 20 employees from each bank. So 100 employees were taken from Malaysia and 100 employees were taken from Pakistani banking sector due to limitation of time frame. Simple random sampling was used to distribute the questionnaire. The research was quantitative in nature and questionnaire were used to gather the data for analysis. Smart PLS was used for data analysis as this is a most advanced technique used by most of the social sciences researchers. Overall results show the positive linkage of psychological contract on the affective commitment of banking employees. This study was an attempt to provide the useful insight into the concept of psychological contract and affective commitment.