RELATIONAL / TRANSACTIONAL FACTORS, EMPLOYER COMMITMENT, AND EMPLOYEE – EMPLOYER RELATIONSHIP AS DETERMINANTS OF PSYCHOLOGICAL CONTRACT

Employee is considered to be the backbone and they are valued priceless for any enterprise and/or organisations. The contribution of employees towards service sector, particularly with IT industry, is much higher when compared to manufacturing. In the present scenario, it is mandatory for the employees to work at home due to spread of Covid-19 and there is a chance of change in the behaviour of employees during this pandemic time. Given an importance towards employee behaviour and habits that affects the psychological contract, the main objective of the study is to analyse the Relational/Transactional factors related with Psychological contract of employees working in IT companies. Additionally, find the impact of Relational/Transactional factors, Employer Commitment/Obligation and employee/employer relationship on increasing the psychological contract within IT industry. For this purpose, a sample of 150 was collected from the respondents who are working in IT industry. The authors have developed a framework consisting of Relational/Transactional factors, Employer Commitment/Obligation and employee/employer relationship and psychological contract. Multiple regression was used to study the framework. The conclusion is that while taking decision on psychological contract of the employees the factor Relational/Transactional factors has to be taken in to consideration for decision making process