The Relationship between Employment Relationship, Employment Relations Satisfaction and Psychological Contracts in the South African Public Sector Workplace

Abstract

The Global Competitiveness Report of 2014 rated the South African labour market as the lowest (137th position) out of the 137 countries measured with regard to employment relationship, which included cooperation in labour–employer relations. In the 2018 report, 148 countries were rated, and again South Africa was placed in the last position. The antagonism that continues to characterise employment relationship in the South African workplace in general and the public sector in particular has impacted equally negatively on employment relations satisfaction and the fulfilment of the psychological contract. This article explores the interrelationship between the three variables (employment relationship, employment relations satisfaction and psychological contract), and the effect that each has on workplace relations in general. The study adopted a quantitative research approach and used a survey design. A proportionate stratified random sampling method was used to determine the sample size, and the data were collected through a structured questionnaire. A scientific analysis of the data results revealed that psychological contract was a mediator and that employment relationship was a predictor that had a direct influence on both psychological contract and employment relations satisfaction. Based on the mediation results, the researchers reached the conclusion that employment relationship and employment relations satisfaction were both influenced by psychological contract. Therefore they recommend that, to improve relationships in the South African workplace, management and employees should invest more effort in encouraging a positive employment relationship and the fulfilment of psychological contract obligations.