Impact of Psychological Contract on Organizational Commitment- With reference to Government School Teachers in Batticaloa District, Sri Lanka

The relationship between employees and employers is increasingly being studied in research on psychological contracts. The purpose of this study is to investigate the impact to psychological contract on the organizational commitment of government school teachers in Sri Lanka. The research has drawn a sample of 191 teachers from Batticaloa Central Zone, using simple random sampling technique. As independent variables, the questionnaire distributed includes two major constructs of psychological contracts, namely transactional psychological contracts and relational psychological contracts, and organizational commitment (affective commitment) as a dependent variable. The data collected has been processed via structural equation modelling using the Smart-PLS version 4.0. The tests on the hypotheses reveal that both categories of psychological contract significantly contribute towards enhancing employee commitment of school teachers. The study also reveals that the impact of relational psychological contract on affective commitment of employees is higher than the transactional psychological contract of the teachers. This study offers some recommendations that the school management should seek to fulfill psychological contracts with the employees that will guarantee employee commitment.