Psychological Contract, Employee Engagement and Employee Performance

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