The Impact of Investment in Employee Development on the Fulfilment of the Psychological Contract and Organisational Outcomes
Thesis DisciplineBusiness Administration
Degree GrantorUniversity of Canterbury
Degree NameMaster of Commerce
Present economic conditions are causing businesses to experience unprecedented change in the current global market place. Competition for high-performing employees is ever increasing (Berger & Berger 2004) and the relationship between the individual and the organisation is a central factor in employee behaviour and performance (Allen, Shore, & Griffeth, 2003; R. Eisenberger, Stinglhamber, Vandenberghe, Sucharski, & Rhoades, 2002; Malik, Abbas, Kiyani, Malik, & Waheed, 2011) This study examined how employees perceive and react to the amount of training related support they receive. I investigated the role of psychological contract fulfilment as a mechanism through which perceptions of organisational support for development have on organisational attitudes, intentions and behaviours. Based on the findings, organisational support leads to the perceived fulfilment of the psychological contract and more positive organisational outcomes, while the total amount of the expenditure on training and development appears to not have an effect on meeting expectations or endearing employees to expend more effort for the organisations’ benefit. More importantly, the overall support and perceived opportunities for development appear to have more effect in convincing employees to reciprocate in positive ways. However the results suggests that Perceived Organisational Support appears to have more influence than Perceived Investment in Employee Development. Altogether, the present study contributes to a better understanding what drives psychological contract fulfilment and how employees react to the support they receive from their organisation.