The Impact of Psychological Contract on Organizational Citizenship Behaviour: An Investigation on Banking Sector in Eastern Province, Sri Lanka

Abstract

The psychological contract gives the opportunity to manage day-to-day employee and employer relationships proactively and offers many reasons for difficulties in employment relationships are currently experienced by organizations. This study examined whether Psychological Contract has an impact on Organizational Citizenship Behaviour in Banking Sector in Eastern Province, Sri Lanka as a research problem. Transactional Contract and Relational Contract are considered as the measurement variables of Psychological Contract. Meanwhile, Altruism, Compliance, Sportsmanship, Courtesy, Civic virtue are regarded as the measurement variable of Organizational Citizenship Behaviour. Thus 280 employees have been selected from Banking Sector in Eastern Province as the sample for this study. Findings have shown the Psychological Contract, and Organizational Citizenship Behaviour is at a high level in the banking sector. Furthermore, Psychological Contract significantly influences the Organizational Citizenship Behaviour. Further, managers should provide the long-term benefit, opportunity to participate the decision making, ensure the secure and stable employment and training etc. Through that the banks can easily increase the psychological contract, then it will lead to creating the citizenship behavior in the organizations to achieve organizations goals and objectives efficiently.