IOP3706 Assignment 3 2025 – Due 19 May 2025

QUESTION 1

a) Briefly explain psychological contract and critically discuss the forms of
turnover as well as the various factors that influence job, and occupational
embeddedness.

 Psychological Contract

The psychological contract refers to the unwritten, implicit expectations between
employees and their employer regarding mutual obligations. In the case of Nkomo
Holdings, the climate survey results reflect a broken psychological contract
employees expected fair pay, career development, and voice in decision-making,
which were not delivered, leading to dissatisfaction and turnover.

 2. Forms of Turnover
Turnover at Nkomo Holdings can be classified as:
Involuntary Turnover – Employees laid off due to restructuring or poor performance.
Although sometimes necessary, it can disrupt morale.
Functional Turnover- When underperforming employees resign, this may benefit the
organisation but still incurs recruitment and training costs.
Voluntary Turnover- The most damaging form for Nkomo, where skilled employees
leave, often due to unmet expectations, poor leadership, or lack of development
opportunities. This reflects issues highlighted in the internal survey.