Employee Psychological Contracts as a Strategic Tool in Promoting Job Satisfaction in Kenya: Case of Lvct Health

Abstract

Today organisations are called to manage their greatest assets, people, through managing job satisfaction levels if their vision and mission are to be realized. Whereas LVCT Health designed job satisfaction strategies by addressing the legal contract, it did not automatically result into job satisfaction. This research sought to assess how employee psychological contracts can be used as a strategic tool in promoting job satisfaction: Case of LVCT Health. The objectives of the study were: to analyze employee’s job satisfaction levels, to determine the perceived contents of psychological contents, to establish factors that shaped psychological contracts, the extent to which LVCT Health met its employees’ psychological contracts and to establish the link between psychological contracts and job satisfaction at LVCT Health. A descriptive approach was used utilizing a census with a population of 132 staff. Questionnaires and interviews were used to collect data which was analyzed and presented in form of graphs, tables, correlations and percentages and interpretation provided. The findings presented a mix or relational and transactional contents of employee’s psychological contracts, an overall job satisfaction level of 60%, and indicated a correlation between psychological contracts and job satisfaction. The study recommended that employers should strategically understand the contents of employees’ psychological contracts, conduct regular staff climate surveys and conduct benchmarking exercises to manage satisfaction. Further study was recommended on HR practices that promote positive psychological contracts.