A Critical Analysis of Psychological Contracts and Employee Engagement: A Case Study of Nestlé Nigeria in Bauchi State
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Background of the Study
Psychological contracts, the unwritten expectations between employees and employers, play a pivotal role in shaping workplace relationships. When aligned with organizational goals, these contracts foster higher employee engagement, commitment, and productivity (Armstrong, 2023). Nestlé Nigeria, a leader in the FMCG industry, relies on its workforce's motivation and engagement to maintain competitive advantage.
In Bauchi State, Nestlé’s operations face challenges such as cultural diversity, unmet employee expectations, and work-life balance issues, all of which affect psychological contracts and engagement levels. Addressing these challenges is crucial for achieving sustainable employee performance (Yusuf & Adeyemi, 2024).
Statement of the Problem
Despite its prominence in the FMCG sector, Nestlé Nigeria in Bauchi State struggles with managing psychological contracts effectively. Employees often experience unmet expectations, lack of recognition, and insufficient support, leading to disengagement and higher turnover rates (Okeke & Ibrahim, 2025).
This study critically analyzes how psychological contracts influence employee engagement and identifies strategies for enhancing this relationship.
Objectives of the Study
- To examine the psychological contracts between employees and Nestlé Nigeria in Bauchi State.
- To analyze the impact of psychological contracts on employee engagement.
- To propose strategies for improving psychological contracts to enhance engagement.
Research Questions
- What are the psychological contract dynamics at Nestlé Nigeria in Bauchi State?
- How do psychological contracts affect employee engagement?
- What strategies can improve psychological contracts for better engagement?
Research Hypotheses
- Psychological contracts do not significantly influence employee engagement.
- Employee satisfaction is not significantly affected by the fulfillment of psychological contracts.
- Proposed strategies do not significantly improve employee engagement.
Scope and Limitations of the Study
The study focuses on psychological contracts and employee engagement at Nestlé Nigeria in Bauchi State, excluding other FMCG firms and unrelated HR factors. Limited access to internal employee satisfaction surveys may pose challenges.
Definitions of Terms
- Psychological Contracts: Unwritten expectations between employers and employees.
- Employee Engagement: The emotional and professional commitment of employees to their work.
- Nestlé Nigeria: A major FMCG company operating across Nigeria.
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