Does Trust Matter? An Empirical Analysis of Organizational Justice and Psychological Contract

Abstract

The present research aimed to study the combined predictive effect of Organizational Justice and Organizational Trust on Psychological contract, to study the relationship among Organizational Justice, Psychological Contract and Organizational Trust. A total of 150 questionnaires were distributed out of which only 143 were included and rest were excluded due to incompleteness of the questionnaires. Three companies were targeted for the data collection. Only those employees who have served at least for one year and are still continuing their career with the same organization were considered. Once the data was collected, raw scores were calculated and scores were analyzed using correlation and multiple Regression through Statistical Package of Social Science. It was found out that the combined predictive effect of Organizational Justice and Organizational trust could not be studied on Psychological Contract. Since, Organizational Trust did not correlate significantly with Employee Obligation. Whereas, the relationship between Organizational Justice and Employee obligation, Organizational Justice and Employer Obligation, Organizational Trust and Employer Obligation was highly positively correlated respectively.