Abstract:

This study was conducted with the aim of showing the effect of transitional contract on employee productivity. The main objective was to determine the extent to which organisational changes can affect the productivity of employees (positive and negative) in the organization. To achieve this objective, 290 copies of questionnaire were distributed out of which 264 copies were returned and fully completed. The data collected were inputted into SPSS and the hypotheses tested using regression. The hypotheses of the study revealed that there was no significant effect of transitional contract on employee productivity. This led to the major contribution of this study that the adoption of an effective organisational change model would improve employee productivity. This could be achieved through an inclusive system and proper transparency and accountability between the parties of employment. The study recommended a sensitization program for managers on psychological contract to stress that fulfilment of psychological contract would improve employee productivity, performance and overall satisfaction. The study concluded that a flow in communication and synergy between the employer and employee would go a long way in reducing psychological contract violations. This study serves as a bed rock for a better understanding of psychological contract which will enable managers to consider how organisational policies could violate employees’ psychological contract.