Relationship between Psychological Contract & Organizational Commitment in Indian IT Industry

The present study empirically links the relationship between Psychological Contract and Organization Commitment (value commitment and employee's intent to stay) in the Indian IT industry. The paper argues that formation of a healthy psychological contract can ensure a stable employment relationship and enhance value commitment among employees. The correlation design is used here to understand the relationship between psychological contract and employee's intent to stay with the organization. The results showed that 'intent to stay' and value commitment are significantly and positively correlated with psychological contract. The study highlights the importance of psychological contract and its detrimental effects on human capital, if ignored.