Partial profile · Book Profile — full narrative profile planned
The effect of human resource practices on psychological contracts at an iron ore mining company in South Africa
An empirical study of knowledge workers in a South African mining company reveals that human resource practices, particularly training and development, are critical determinants for fostering the highly desirable relational and balanced psychological contracts that drive employee commitment and organizational performance.
A profile of this book is on the way.
What it’s about
In a world where retaining top talent is paramount, how can organizations most effectively invest their human resources budget? This study moves beyond conceptual models to provide concrete, empirical evidence on the link between specific HR practices and the psychological contracts employees form with their employers. Surveying over 300 knowledge workers at a major iron ore mining company, the research identifies which contracts—relational, balanced, transitional, or transactional—are most prevalent and, crucially, which HR levers have the greatest impact. The findings are clear: training and development, followed by communication, are the most powerful tools for building the trust and loyalty inherent in relational contracts, while an overemphasis on remuneration may cater only to less committed employees. This research offers a practical, evidence-based model for HR leaders to strategically allocate resources, enhance employee relations, and ultimately boost organizational performance, making it essential reading for any manager looking to justify and optimize their people-focused investments.
The through-line
- Who it’s for
- An HR manager or business leader responsible for maximizing employee performance and retention.
- The problem
- Struggling to justify HR budgets and effectively allocate resources to initiatives that genuinely improve employee commitment and reduce costly turnover. Feeling uncertain and frustrated about which HR practices will yield the best return on investment, and worried about losing key talent, especially when facing pressure to cut costs.
- The plan
- Understand the four types of psychological contracts and identify which are most prevalent and desirable for your organization.
- Use the study's findings to prioritize HR investments, focusing first on training and development.
- Strengthen communication and performance appraisal systems to reinforce a commitment to employee growth and partnership.
- Implement the proposed model to systematically shift employees towards more stable and productive relational contracts.
- The payoff
- More effective and targeted HR spending with a clear return on investment. · Increased employee loyalty, commitment, and retention of key knowledge workers. · A stronger organizational culture built on trust and mutual development.
See our guide
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