Abstract

The study examined the influence that the psychological contract has on the job satisfaction and dissatisfaction of employees in the South African workplace. It also studied in detail, the effect that psychological contract breach and fulfilment have on the satisfaction of employees with regard to their work, fellow-employee, supervisor, and the as a whole organisation. The data for this study therefore, was collected through perusal of existing scientific articles/papers, published/unpublished dissertations and theses, text books and other relevant informative documents. This makes the study to be premised on theoretical and analytical methodology. This article therefore, reveals the destructive effects that psychological contract breach has on the operation of organisations in South Africa, which are also presented and discussed in detail. The article also reveals the costly effect that employees’ job dissatisfaction has on organisations in terms of unplanned employee turnover. For the enhancement of psychological contract fulfilment, this article proposes strategies for organisations to adopt and implement, with an aim of improving employees’ job satisfaction in the workplace and ultimately discouraging turover intentions among employees. This study therefore, plays a very important and significant role in terms of contributing to literature and better understanding of psychological contract in general, and the effects that psychological contract has on employees’ job satisfaction and dissatisfaction in particular.