Abstract:
Introduction
Psychological contract is an essential factor for employee retention. The aim of this
research is to investigate the relationship between the contents of the psychological
contract and employee intention to retain of or Lanka Manufacturing Colombo Ltd.
Objective
To examine the relationship between contents of Psychological Contract and
employee's intention to retain.
Methodology
The sample of this study consisted of 175 employees' works at Nor Lanka
Manufacturing Colombo Ltd. In order to gather information a structured
questionnaire is developed and distributed. The data were analyzed using SPSS 20
version and Descriptive Statistical technique, Correlation and Regression were used
to test the hypotheses.
Findings
The statistical results of the study reveals that Job Security and Flexible Time
Schedules are significant predictors of Employees Intention to Retain.
Conclusion
The review of literature suggests that the psychological contract is extremely
important for organizations to manage as it has an impact on employee Intention to
Retention. The study concludes that it is important to manage the psychological
contract and human resource employee retention significantly impacts employee
development as well as assessment of psychological contract fulfillment. The failure
of a company to comply with its obligations (as perceived by an employee) can erode
the employment relationship.
