Relationship Between Perceptions of Psychological Contract Violation and Employees’ Commitment to Implementation of Strategic Change at the Barclays Bank of Kenya, Nairobi

Abstract

Change is a constant in today’s organizations. The exchange relationship between organization and employee ranges the entire contract spectrum from strictly legal to purely psychological. Violation of the psychological contract occurs when one party perceives that the other has failed to fulfill its obligations or promises. The experience of psychological contract violation, involving a breach of promise and trust, goes beyond disappointment and produces feelings of betrayal. The objective of this study was to determine the relationship between perceptions of psychological contract violation and employees’ commitment to implementation of strategic change at the Barclays Bank of Kenya. The study applied case study design where only one organization was involved in the study. The study also applied descriptive research design since the respondents were required to describe the phenomenon. A structured questionnaire was used to collect primary data which informed the analysis. Collected data was analyzed using descriptive statistics including mean, frequency distribution and standard deviations. The study established that there was need to strategize on factors such as delayed job promotions, low and inconsistent payment of bonuses, fair performance ratings, communication within the bank, adequate training on how to handle change, adequate preparation for the change programme and good leadership of the change process as they influenced the employees commitment to implementation of strategic change. The study further established that from the above analysis it can be concluded that casual discussions with line managers, informal promises by line managers, delay in their annual pay rise and payment of overtime or flex time for worked hours neutrally affected employees’ commitment to implementation of strategic change. The study recommends that employers have to know what their employees expect from their work. The psychological contract is valuable because it recognizes the individualization of the employment relationship. Both parties in the employment relationship that is the employer and employee have their own views on the mutual obligations.