Abstract:
This paper identifies the connection between ‘breaches’ of the psychological contract and employment relations as reflected in
three dependent variables: organizational commitment, work satisfaction and the propensity of the employee to leave. For this
purpose a study was conducted of 145 employees in the Albanian banking sector, with particular emphasis given to banks in Tirana.
The distributed questionnaire considers two types of the psychological contract – transactional and relational. The study attempted
to identify breaches in the psychological contracts that affecting employees’ attitude and behavior.
Demographic indicators such as age, educational level, study background and work position are key factors influencing perception
of breaches of psychological contracts. Age and study background are positively related to organization commitment and work
satisfaction, while educational level indicates a negative relation.
Organizational commitment has a positive relation to work satisfaction and negative relation toward “intention to leave”. Increases
in satisfaction are associated with a lower aim of leaving. Breach of the transactional contract reflects a very high level propensity
(0.722) to resign. Finally, results showed that the relational contract provides an organizational commitment around 4 times higher
than transactional contract
