Psychological Contract and Job Performance: A Study of University Faculty in Hazara Division Pakistan

Abstract

As academic environments evolve, understanding what motivates university faculty is crucial not only for institutional performance but for educator well-being. This study explores the psychological contract (PC) the unwritten expectations between faculty and institutions in contrast to formal agreements. These include intellectual autonomy, professional development, and fair evaluation processes. Grounded in social exchange and psychological contract theories, the research examines faculty perceptions in four universities in Pakistan’s Hazara Division, a region where universities are vital yet under-resourced. Data from 300 faculty members were analyzed using structural equation modeling (SEM). Findings show a strong positive link between psychological contract fulfillment and job performance. Faculty who felt supported, respected, and professionally valued demonstrated higher motivation, effectiveness, and engagement. In resource-limited settings like Pakistan, non-financial incentives such as trust, respect, and psychological safety play a key role in faculty performance. The study highlights that academic leadership must focus not only on budgets and infrastructure but also on nurturing respectful, trust-based relationships. This research adds to the literature on faculty motivation, particularly in South Asia, offering practical insights for academic leadership and HR. Prioritizing the human aspect of academic work can lead to more committed, productive, and resilient faculty.