RELATIONSHIP BETWEEN PSYCHOLOGICAL CONTRACT, EMPLOYEE PERSONALITY AND EMPLOYEE ENGAGEMENT: A LITERATURE REVIEW

In today's skill and expertise intensive organizations, which are characterized by rapid growth and unimpeded access to information and resources, organizational subsistence demands augmented employee performance. Engaged and loyal employees are considered vital elements for organizational existence and accomplishments. Research suggests that the quality of employment relationship is significantly affected by employees' psychological contract. The study augments to the theory of the PC by investigating one of the important factors underlying the distinctive nature of the Psychological Contract. A psychological contract encloses personal beliefs and expectations considering the terms and conditions of the employer-employee exchange relationship. The existing literatures tends to develop a strong linkage between five factors of personality and psychological contract in different population. Broadly speaking, personality characteristics ie. extraversion, conscientiousness, neuroticism, agreeableness, openness also known as Goldberg's Big Five Personality factors, appears to have a strong role in formation of Psychological contract, these characteristics also helps in predicting the breach of Psychological Contract. Therefore, this study throws light on the effect of personality dimensions on the formation of Psychological Contract.Previous research also shows that Psychological Contract is a useful framework for examining the quality of employee-organization relationship. It also reveals a connection between Psychological contract & employee engagement. The study confers that Psychological state of an employee is a strong predictor of his engagement with the organization therefore the role of Psychological Contract cannot be overlooked in such a scenario. The study contributes towards the better understanding of the more relevant measures of Personality as a precursor and Employee Engagement as outcome of Psychological Contract. Implications, limitations, and future research are also discussed in the paper.