PSYCHOLOGICAL CONTRACT AND EMPLOYEE ENGAGEMENT IN STARTUP COMPANIES IN JAVA: A COMPARATIVE STUDY OF GENERATIONS X, Y, AND Z

• Main Author: Sugiri, Ugi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/55027
• Institution: Institut Teknologi Bandung

psychological contract is not something that is formally written in an employment contract. Psychological contract is something that is not said or mutually realized by employees and employers about the relationship between them. This belief becomes contractual when an employee believes that if he works hard, is loyal and is willing to give a job for the company he will get a high salary and job security. When employee expectations are not met, then his performance will be affected. contract violation leads to low employee performance and low attendance. Psychological contract breach is negatively related to performance of the employee. Perceived breach of contract is also linked to low productivity. Enhancing the company's market competitiveness is a serious challenge faced by the startup companies. Based on Bekraf's data, startups have two major issues such as capital and HR. the HR problems faced by the startup company mainly in terms of retaining and increasing the productivity of the employees. This study uses quantitative methods to explore the relationship between Psychological Contracts and Employee Engagement from the generation that has been active as a labor force and the generation that has just entered the labor market. From the regression analysis, it was concluded that there is significant influence of psychological contract on Employee Engagement. Based on the analysis it was found that Generation Z became the generation whose Employee Engagement was most affected by Psychological Contracts (45.1%) then Generation Y (11.5%) and finally Generation X (5%).