The Relationship between Reward Policies and Psychological Contract Maintenance: The Case of African Union Commission (AUC)
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Date
2016-03
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Addis Ababa University
Abstract
In the current competitive business environment, not for profit (NFP) organizations are facing a lot of challenges particularly in updating their reward policies in order to enhance the psychological contract maintenance of their employees. Rewards always play an important role in organization’s level of psychological contract as well as growth and performance. This study examines the relationship between reward policies and the corresponding psychological contract level of employees at African Union Commission. A Descriptive research design with survey method is applied in this study. Using stratified random sampling technique 111 participants (employees) of the target institution i.e. African Union Commission (AUC) were selected from the total population of 1743. The expected outcome is aimed at unearthing the need to motivate employees of the AUC, so as to improve their level of psychological contract maintenance. The findings of the research generally reveal that reward has a great deal of impact on psychological contract maintenance of employees and the current trend of reward management is not that of satisfying the expectations of employees. The management of the AUC should have clearly stated and well-articulated reward policy that can be competitive as compared to other best practices in organizations like United Nations and other international organizations.
Key Words: Level of Rewards, Job Evaluation, Equal Pay, Transparency, Line Managers, Psychological Contract Maintenance.
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Keywords
Level of Rewards, Job Evaluation, Equal Pay, Transparency, Line Managers, Psychological Contract Maintenance