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INFLUENCE OF PSYCHOLOGICAL CONTRACT AND ORGANIZATIONAL JUSTICE ON EMPLOYEE TURNOVER INTENTION IN THE NIGERIAN DEPOSIT MONEY BANKS
ABSTRACT
Psychological contract and organizational justice are important areas of study to human resource researchers and practitioners. Increasing recognition of the importance of human resources in enhancing organizational performance, coupled with wider concerns about reputation and competitions have made the issues of psychological contract and organizational justice of relevance to researchers and those managing organizations. This study is a response to the call for more research in the developing countries and non-western culturally based societies. Employees‟ turnover is now a cardinal issue in Nigerian banking industry. Employee turnover intention is greater than normal in banks and therefore serves as a key threat to the existence of most banks. It is posited that psychological contract and organizational justice influence employee intention to leave an organization. The main objective of the study is to investigate the direct influence of psychological contract and organizational justice on turnover intention in the Nigerian deposit money banks. Cross sectional survey method was used in collecting data from 530 respondents. Regression and correlation analysis were conducted to test the hypotheses (based on confirmatory factor analysis). The findings revealed that balanced psychological contract and procedural justice have more negative significant influence on employee turnover intention in the Nigerian deposit money banks than other (transactional and relational) dimensions of psychological contract and (distributive, interpersonal and informational) organizational justice that have no significant influence on turnover intention. Therefore, it is recommended that managers should align the perceptions of employees toward making them to perceive the banking environment as a good platform for career progression and also to improve employee involvement in decision process through empowerment and good communication in order to enhance their perception of fair process of arriving at outcomes.
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