Abstract:
mployees’ performance is a critical element of the overall organizational performance
in high performing companies, so its management is vital. Globalised economies have
increased competition for organizations, so managers are under enormous pressure to
improve performance and remain ahead of competitors. This paper looks at factors that
improve the likelihood of organizations attaining peak performance. The paper examines the
mediation effect of employee engagement on the relationship between employer
obligations, employee obligations and state of the psychological contract and; employee
performance. Due to different conceptualization of the psychological contract concept, this
paper examines the concept from employer obligations, employee obligations and state of
the psychological contract. The paper concludes that employee engagement assumes a
critical precursor role to employee performance at the workplace