Psychological Contract: Investigating Employees Expectations and Obligations of Public Sector Enterprises in Sindh

Abstract

Psychological contract (PC) is viewed as an individual-level phenomenon that is influenced by individual difference variables (Ho, 2000). The subjective nature of PC has received a major attention in management literature (Robinson, 1995; Robinson and Morrison, 2000; Turnley and Feldman, 2000). However, a careful review of the literature suggests major focus of the research remained in developed countries thereby ignoring the implications for developing nations including Pakistan. In order to fill this research gap, this study seeks to examine psychological contract in public sector enterprises in Pakistan. Moreover, cultural, ethnic, religious diversity in Pakistani society are central to inform managerial practices, interrelationship between employee and employer and also trade union activism. As a result this study might contribute significant findings for fine-tuning the previous understanding on PC. This study employed focus group discussion to collect empirical evidence from ‘key informants’ from top-level management to union activists to address the research questions. Findings of this study reveal cultural diversity and sociopolitical instability impact individual differences at work which also resonate in managerial practices, interpersonal relations virtually informing the expectations and obligations e.g. PC of employees at work. In last section, implications for future research, managers, government, employees, trade union activists and other stakeholders are discussed.