Moderating effect of psychological contract on job performance

Abstract

The objective of this study is to address the questions related to the determinants of job performance and to test the moderating role of psychological contract between employee engagement and job satisfaction. The study followed a quantitative cross-sectional design to examine the relationship between the variables. A sample size of 1000 members from 20 automobile companies from Uttarakhand state was used. Substantiating the role of social exchange theory, the study results indicate that employee engagement and job satisfaction significantly contribute to job performance in the automobile sector. The moderating effect of psychological contract also reports partial mediation among employee engagement and job satisfaction on job performance. The research delivers valuable insight to managers and leaders about the significance of employee-engagement, job-satisfaction, and psychological contracts to ensure better job performance in the automobile manufacturing sectors.