...joined the enterprise, there are two copies of contracts that the staff should sighed with the enterprise, one is written on the paper which is the employment contract, and the other one is psychological contract which is written in the mind between employer and employee. In relation to the psychological contract, there are several concepts to explain it, and the earliest concepts of psychological contract can be traced back to the early work of Argyris (1960). However, the key concept of psychological contract that in common used, which was established by Rousseau (1995). According to Rousseau and Tijoriwala (1998, p. 679), the psychological contract was defined as: “An individual’s belief in mutual obligations between that person and another party such as employer” Therefore, the psychological contract is the metaphor contract between the individual employee and the organization to maintain and develop the inner power of the enterprise. This essay will first clarify what is psychological contract and why it is essential for firms to establish a psychological contract with their employee. Secondly, it will explain the process theories of motivation and what theories are include in the process theories of motivation. Finally, assess which process theories of motivation can help manager to establish appropriate psychological contract with the employee. With the help of Rousseau’s argument, it is obviously that the psychological contract is an exchange relationship between the individual...
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...In a organization psychological contract is a essential part of positive employee relationship. It requires interaction & communication between employer & employee. Basically psychological contract is the`mutual beliefs, perceptions and informal obligations between an employer and employee (D.Rousseau,1989). It can be distinguished from the legal employment contract. It is the perception of both employee and employer, of what are their mutual obligations towards each others. It can be more influential than the formal written contract in affecting how employees behave from day to day, their motivations and their commitment to the organization. Levinson (1962), the father of the concept of psychological contract defined it as an unwritten contract. According to his concept psychological contract is the sum of the mutual expectations between the organization and employees. Psychological contracts are mental models or schemas that develop through an individual’s interactions and experiences (Levinson, 1962) The psychological contract is playing an increasingly important role in helping to define and understand contemporary employment relationship (Millward & Brewerton, 1999). The psychological contract tells employees what they are required to do in order to meet their side of the bargain and what they can expect from their job. It offers a valid and helpful framework of thinking about the employment relationship, especially against a background of a changing labour market and...
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...Department , once the Psychological contract been violated, breeched and fulfilled . Psychological Contract can be defined as a “individuals beliefs shaped by the organisation , regarding the terms of an exchange relationship between the individual employee and the organization”(Beardwell, Claydon , 2004 ; pg 520) Psychological Contract is an agreement between an employer and employee, although it is not written , it plays an important role in relationship between an employer and co -worker. Psychological contract is a mutual agreement , which include all promises , obligations towards organisation and employee. (Beardwell et al , 2007) The main 3 patterns of this relationship can be summarized in the following order : -What an employee contribute to the organization , which includes effort, any valuable skills , commitments towards company and fulfilment of the obligations. -What an organisation has to offer to the employer. This can include any benefits like finical rewards , and all their approach to the Psychological contract fulifillment -What organisation is expecting from the employee , this include fitting into organisation culture , all beliefs in the company , such as honesty and loyalty. According to Sparrow and Marchingan (1998) there is an interaction between Psychological contract and employment , as it effect both parties perceptions. Rosseau (1995) distinguished Psychological contract as a transactional , where contract is structured , and the...
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...challenges related to reward and performance of business that is examined in case study organisation, which is “Construct It.” Moreover, the paper will explain the impact on employee psychological contract in engaging workforce effectively in order to achieve changes in working conditions or practices. Furthermore, the paper will also explore critically the influence of line manager in helping shape, which drives the changes needed. In this way, specific attention must be paid to the issues around professional and ethical practices. Discussion Challenges from case study in developing effective link between reward and performance “Construct It” has the biggest issue of recruiting effective project and site managers. Since there is general shortage of good managers within industry therefore, they demand high salaries in behalf of their services. Thus, the organisation is planning to consider the aspect of performance, which is related to reward to packages for the level of staff that try to assist recruitment along with retention. According to Michigan model by Fombrun, Tricky and Devanna in 1984, holds hard HRM, which states that people must be managed with other resources that must be obtained cheaply, developed, and economically. However, this model is based on selection, development, appraisal, and reward that is attained by considering the organisational performance. The hard HRM model (Fombrun, Tichy and Devanna, 1984) is conceived management as a key strategic element...
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...CHAPTER-1 THE CONTEXT OF HRM 1: APPROACH, ORGANISATION AND LEGAL FRAMEWORK Definition of Human Resource Management “Human Resource Management is a central philosophy that people in the organization are managed and transition of this into policies and practice. To be effective the policies and procedures must be aligned with business or organizational strategy.” (Torrington and Hall) Nature of the human resource in organizations Human Resource Management brings organizations and people together so that the goals of each are met. The nature of HRM includes: 1. Broader function: HRM is a comprehensive function because it is about managing people in the organisation. It covers all types of people in the organisation from workers till the top level management. 2. People Oriented: Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved. 3. Action Oriented: Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures. 4. Development Oriented: Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization. 5. Continuous function: As human resource is a living factor among all factors of production therefore it requires...
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...individual contract of employment and how it works? 5 Duties of employer and employees 6 What is psychological contract? 6 Socio-political dimension of the employment relationship 8 Conclusions 9 References 10 Introduction What will be covered in this essay? This essay will reflect on what is employment relationship in HRM. What is the purpose in applying of HRM practices, why it is so important to manage people, their performance and expectations. How we can “ensure that individual have the ability, motivation and opportunity to perform effectively” (Wilton, 2013). This course-work will look closer what is an employment relationship, how it affects individuals in the workplace and company in total. It will also cover the elements of employment relationship, terms and conditions that affect both employer and employee, what are duties both parties need to comply. It will be explained what is contract of employment and psychological contract and why it affect individual attitude. After that, the three key perspectives are outlined on employment that are unitarism, pluralism and radical(Marxist). Each approach to employment relationships is different in the ideology, who holds real power, how conflicts are resolved, decisions are made and how trade unions can influence the organisation. How can HRM be understood? HRM plays significant role in the way how people relationships should be managed in the workplace. We can see HRM purpose as a “management of individual...
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...Resource Management (HRM) | Question No. & Title: | Critically examine the strengths and limitations of the ‘universalist’ and the ‘contingency’ approaches to HR Strategy. In doing so, explain under what conditions HR strategy may help a firm secure competitive advantage. | Explain analytically what is meant by ‘psychological contract’. Critically assess which process theories of motivation could help employers establish a ‘psychological contract’ with their employees? In today’s world, contracts play an ever increasing importance due to our technological growth and the complexity and modern society. Many of us have contracts with our banks and mortgage companies, universities and many others. These contracts are written, precise and formal and penalties exists for breaking these contracts. These are economic contracts. However, if two people agree to meet for lunch you are engaging into an informal contract and the expectancy is that both of you will meet as agreed. If either of the parties are late, the other will be wary of meeting again, one will feel guilt and the other annoyed that the contract has been broken. In both the formal and informal contracts an exchange has taken place which is the essential feature of any contract and are theoretically entered into willingly and are negotiable. Exchanges of intangible assets can take place too but are as “important in influencing how people feel and behave” (Makin et al; 1996). The psychological contract has...
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...economies have been the fundamental drivers modelling the human resource management field to become what it is today. Motivation has always been an issue for many businesses, and the ‘traditional’ methods of attempting to solve this problem have been to slightly increase the employee’s wages, in the hope that they would respond by increasing their effort. However in the UK, nearing the end of the nineteenth century, firms such as Cadburys and Quakers began providing accommodation and education for their workers (Wilton, 2011). This marked the initial shift in the nature of the employment relationship, and drawing on Maslow’s hierarchy of needs it can be seen that this would help satisfy the two basic tiers of ‘psychological’ and ‘safety’ (Maslow, 1954). This essay aims to critically evaluate the concept of the psychological contract, then analyse why in managing the modern day employment relationship and understanding of the psychological contract is important, relevant theories and academic models will be used where appropriate. The question will be addressed in three sections; firstly the concept and history of the psychological contract will be briefly covered, secondly and critical focus will be shown towards the concept of the contract, and finally we will examine the practicality of utilising the contract to manage the contemporary employment relationship. The concept of the psychological contract was initially termed and documented by Chris Argyris in 1960 (Argyris...
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...While the origins of the thought of ‘the psychological contract’ are typically traced to the 1960s, the idea gained widespread exchange among the academic and analysis fields of organizational psychology, organizational behavior and HRM among the 1990s following the publication of a key article, then a book, by Rousseau (1989, 1995) that excited renewed interest among the set up. The idea is presently also popular in professional circles. Its contemporary quality with human resource professionals is sometimes suggested by a 2002 United Kingdom survey that found that 365 days of HUMAN RESOURCE Managers used the thought ‘to manage the use relationship’ that 90th agreed that it had been ‘a useful concept’ (D. Guest & N. Conway, 2002)Despite its quality in every academic and idea circles, the construct stays controversial for several reasons: questions stay on the precise which implies of the idea, its theoretical and sensible utility and its philosophic and political usage in organizations. This summary seeks to introduce the thought by: defining psychological contract, distinctive what's unremarkably thought to be contained in one, explaining the various kinds of psychological contract, explaining why the idea is thus popular and highlight some potential problems with the concept. While there is no one universally accepted definition of the psychological contract, most definitions tend to determine it as a result of the implicit understanding of the mutual obligations owed...
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...BA (HONS) BUSINESS & MANAGEMENT ACADEMIC ASSESSMENT SUBMISSION FORM STUDENT REGISTRATION NUMBER GRADE | 13011410 | MODULE REFERENCE NUMBER | UN609770 | MODULE TITLE | Strategic Human Resource Management | LECTURER NAME | Louise Cameron-Mowat | SUBMISSION DATE | 12th December 2013 | ASSESSMENT TASK | Essay – 2750 words | In submitting this work, I confirm that I have understood UHI regulations relating to plagiarism, and that: * I have completed this assigned work by myself, in my own words and using my own notes, figures or rough workings (except where group work specifically forms part of the assignment) * I have acknowledged fully any sources used by means of in-text citations, and the creation of a List of References in the UHI approved system of Harvard referencing system * I have endeavoured to ensure that my work has not been made available for copying by other students (with or without my permission) * I am aware that student assessments can be scrutinised through the JISC plagiarism software.In submitting this work for assessment, I agree to be bound by the conditions laid out above, and by the latest version of the UHI academic regulations. UHI REGULATIONSPlagiarism: unacknowledged incorporation in a student’s work either in an examination or assessment of material derived from the work (published or unpublished) of another. Plagiarism may therefore include: * the use of another...
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...Human Resource Management and employee engagement: A Literature Review Managing Human Resources: BHRM702 Introduction The term employee engagement is somewhat a new construct, in the late 1950s it was work motivation which was the main topic of discussion however over the past decade this notion has expanded to many new constructs ‘work engagement’ being one of them, Albrecht (2010). Moreover in recent years there has been growing interest in employee engagement within organisations, Saks (2006).This is due to the fact that many researchers have concluded that employee engagement is a key factor for an organisational success, Macey et al (2009). Despite the significance of employee engagement being linked to organisational success, it is clear that little empirical research has been undertaken, and little academic literature has been published. As Saks (2006) put it, “there is a surprising dearth of research on employee engagement in the academic literature” (p. 600). This literature review will focus on ‘work engagement’ and employee engagement as two main constructs. As it will become prevalent, the central issue of employee engagement is the fact that there has yet to be a clear definition of “employee engagement” and how it should be measured, Saks and Gruman (2014). It is also evident that there are unanswered questions about the antecedents and consequences of engagement, Menguc et al (2013). The first section of the literature review will look at antecedents and consequences...
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...|. | | | |[pic] | | | | | |Module | | | |Managing your People | | | | | | | | ...
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...The Changing Nature of the Psychological Contract and its Impact on Modern Organizations by Kheeran Dharmawardena kheeran.d@its.monash.edu.au Executive Summary Drawing on recently published work by experts in the field of organizational behavior, this paper aims to outline the aspects of the psychological contract that need to be considered in todays demanding work place. It shows how the contract affects the individual, the managers and the organization. The paper further discusses the advantages of recognizing the changing psychological contract and how an organization could form contracts that are beneficial to both the employee and the employer. Introduction Psychological contract, the unwritten agreement between an employer and employee, is changing in the post job security economic environment. With the popularity of contractual, short term employment within organizations, employees are now seeking to create a psychological contact which is more about self-actualization. This change in the psychological contract has implications on organizations that seek to have a work force that is motivated and committed towards the organizations goals. What is The Psychological Contract? The psychological contract according to recent definitions is an individual's beliefs concerning the obligations that exists between the employee and the organization (Lester, Turnley et. al., 2002) . The contract is composed of an individual's perceptions...
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...The Psychological Contract' is an increasingly relevant aspect of workplace relationships and wider human behaviour. Descriptions and definitions of the Psychological Contract first emerged in the 1960s, notably in the work of organizational and behavioural theorists Chris Argyris and Edgar Schein. Many other experts have contributed ideas to the subject since then, and continue to do so, either specifically focusing on the the Psychological Contract, or approaching it from a particular perspective, of which there are many. The Psychological Contract is a deep and varied concept and is open to a wide range of interpretations and theoretical studies. Primarily, the Psychological Contract refers to the relationship between an employer and its employees, and specifically concerns mutual expectations of inputs and outcomes. The Psychological Contract is usually seen from the standpoint or feelings of employees, although a full appreciation requires it to be understood from both sides. Simply, in an employment context, the Psychological Contract is the fairness or balance (typically as perceived by the employee) between: how the employee is treated by the employer, and what the employee puts into the job. The words 'employees' or 'staff' or 'workforce' are equally appropriate in the above description. At a deeper level the concept becomes increasingly complex and significant in work and management - especially in change management and in large organizations...
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...HUMAN RESOURCE MANAGEMENT PRACTICES AND ORGANIZATIONAL COMMITMENT AND INTENTION TO LEAVE: THE MEDIATING ROLE OF PERCEIVED ORGANIZATIONAL SUPPORT AND PSYCHOLOGICAL CONTRACTS A Thesis presented to The Faculty of the Graduate School At the University of Missouri-Columbia In Partial Fulfillment of the Requirements for the Degree Master of Science by PRIYANKO GUCHAIT Dr. Seonghee Cho, Thesis Advisor AUGUST 2007 The undersigned, appointed by the dean of the Graduate School, have examined the thesis entitled HUMAN RESOURCE MANAGEMENT PRACTICES, ORGANIZATIONAL COMMITMENT AND INTENTION TO LEAVE: THE MEDIATING ROLE OF PERCEIVED ORGANIZATIONAL SUPPORT AND PSYCHOLOGICAL CONTRACTS presented by Priyanko Guchait a candidate for the degree of master of science, and hereby certify that, in their opinion, it is worthy of acceptance. Dr. Seonghee Cho, Food Science (HRM) Dr. Dae-Young Kim, Food Science (HRM) Dr. Robert Torres, Agricultural Education ACKNOWLEDGEMENTS The thesis could not have been completed without the support of many people who are gratefully acknowledged herein. First of all, I would like to express my sincere gratitude and appreciation to my Committee Chair and Advisor, Dr. Seonghee Cho, for her guidance and support throughout the completion of this thesis and my study at University of MissouriColumbia. Without her mentorship I would not have been able to undertake this thesis and my education at University of Missouri-Columbia. I would also like to...
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