IMPACT OF PSYCHOLOGICAL CONTRACT ON EMPLOYEE WORK ENGAGEMENT AT SUGAR INDUSTRY, DERA ISMAIL KHAN (KPK)

Abstract

The previous studies whether empirical or theoretical in this area showed that highly all those employees who are highly engaged at work place are more productive and organizations having such employees are comparatively more successful. In this study we empirically analysed psychological contracts with employees work engagement and its three dimensions WEI, WES and WEA. This study takes primary data from the sugar industry D.I.Khan unit-1 where employees filled the questionnaire by rating themselves on different items of Psychological contract and employee work engagement. Four hypotheses were developed and tested, the correlation and regression analysis were conducted. The results showed a positive and significant relationship of the psychological contract with employee work engagement and its dimensions where P.C can predict 94% positive variation in dependent variable EWE. The study concluded that employees with higher psychological contract fulfilment are more engaged and positively increase organizational performance and results also suggest that supervisor support can play a remedial role to increase employee work engagement. The study recommends that a platform by management’s end where employees can express their concerns and discuss the issues that are there at a workplace instead of keeping all such feelings inside of them for a longer period of time.