Psychological Contract: It’s Influence on Attrition in Manufacturing Sector

Abstract

Human resources in organisations are the only resources capable of exercising their intelligence and intellect. Naturally greater the distance and difference from their pre-entry expectations and post-entry experiences, more is the possibility of attrition. Organisations thus lose experienced employees. The researchers here have identified the factors behind the break of psychological contract by the employees. Predicting attrition is a challenging task for the Human Resource (HR) managers and employers. So, after analysing the loopholes in the earlier literatures, the researchers have attempted to discover the common components of psychological contract breach and violation causing attrition. Method of factor reduction has been used here. Finally, the authors have introduced two factors: (i) Effect of post-separation betrayal on psychological contract(PC) and attrition, (ii) Impact of global trade-war on the same , i.e., PC and attrition. The present article is instrumental for employers in identifying as well as controlling break of psychological contract and arresting attrition in manufacturing sectors. New factors, identified by the present authors, open up a new scope for future research in the manufacturing sectors.