...his essay will outline and critically evaluate the theory of the “psychological contract” and its role between the employee and employer. Through looking at the positive and negative aspects of this contract by using relevant information, figures and evaluating case studies, it shall explain why the understanding of this “psychological contract” is considered to be so vital to the management the contemporary employment relationship. The “psychological contract” of employment can briefly be defined as ‘a set of unwritten reciprocal expectations between an individual employee and the organisation’ (Schein, 1976). Such as the employee being promised certain policies or benefits and the employer expecting the employee to perform at a certain level or be of a specific age etc. Guest and Conway (2002) defined it as “the perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other”. Therefore, an agreement that is beyond what is written or implied in the contract or other explicit manifestations of the employment relationship. The concept of the psychological contract is commonly traced back to the early work of Argyris (1960) and to social exchange theory (Blau, 1964). However, the crucial developments leading to its current use as an analytic framework were provided mainly by Rousseau (1995). The psychological contract therefore provides an opportunity to explore the processes and content of the employment relationship through a...
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...DIRECTED STUDY 1-2 1. What is the purpose of a postaward orientation? 42.501 -- General. (a) A postaward orientation aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems. However, it is not a substitute for the contractor’s fully understanding the work requirements at the time offers are submitted, nor is it to be used to alter the final agreement arrived at in any negotiations leading to contract award. 2. What must the contracting officer consider when deciding whether postaward orientation is necessary and, if so, what form it should take? 42.501 -- General. (a) A postaward orientation aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems. However, it is not a substitute for the contractor’s fully understanding the work requirements at the time offers are submitted, nor is it to be used to alter the final agreement arrived at in any negotiations leading to contract award. 3. What are the two methods for conducting postaward orientation? 42.500 -- Scope of Subpart. This subpart prescribes policies and procedures for the postaward orientation of contractors and subcontractors through -- (a) A conference; or (b) A letter or other form of written communication. 4. Who is responsible for arranging a postaward conference...
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...elements of a contract. Should a contract have all those elements to be legally enforceable ? What will happen if one of the elements was missing in an otherwise valid contract? Legal Elements of a Contract The essential elements necessary to form a binding contract are usually described as: • An Offer • An Acceptance in strict compliance with the terms of the offer • Legal Purpose/Objective • Mutuality of Obligation – also known as the “meeting of the minds” • Consideration • Competent Parties Offer An offer is defined as the manifestation of the willingness to enter into a bargain so made as to justify another person in understanding that his assent to the bargain is invited and will conclude it. Acceptance Acceptance of an offer can occur in several ways: Acceptance of an offer is a manifestation of assent to the terms There of made by the offer in a manner invited or required by the offer. An acceptance must not change the terms of an offer. If it does, the offer is rejected. A material change in a proposed contract constitutes a counteroffer, which must be accepted by the other party. Legal Purpose The objective of the contract must be for a legal purpose. For example, a contract for illegal distribution of drugs is not a binding contract because the purpose for which it exists is not legal. Mutuality of Obligation This element is also known as the meeting of the minds. Mutuality of obligation refers to the parties mutual understanding and assent...
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...List and explain the main sources of risk. • Lack of buyer understanding of its requirements – if the buyer does not have a clear understanding of its requirements or cannot express that understanding effectively in terms of specific deliverables or level of effort, an agreement cannot be reached with another party to fulfill those requirements. Broad, ambiguous expressions that obligate a seller to do something “as required” or “as necessary” (Garrett, 2015, p. 44). The buyer does not understand the requirements or needs but wants to put the seller in the position of having to do whatever it is whenever the buyer finds it out. (Garrett, 2015, p. 44). • Shortcomings of human language and differing interpretation – Language in a contract may mean one thing to a buyer and one thing to a seller. Often contracts are not stated in clearly specified terms. • Behavior of the parties – The actions of one or both of the parties after the contract is signed. Sometimes the buyer or seller will display actions that do not fit into the terms of the original agreement. An example would be not enforcing a late penalty clause when a buyer consistently pays late. (Garrett, 2015, p. 44). • Haste – Happens when project managers become impatient and rush the contract without understanding all that goes into it. Ideas are not fully developed, and unrealistic expectations can occur (Garrett, 2015, p. 44). • Deception – Deception is a deliberate defect in the communication process (Garrett...
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...Contract Creation and Management The Contract Creation and Management simulation is about a contract agreement dispute between Span Systems, an e-banking software developer and their client Citizen-Schwarz AG (C-S), a German bank, financial institution whose main purpose of procuring the software is to enter the United States retail financial services market (UOPX Website). The simulation presented both side of the dispute between these two companies. The most important issue is to settle the dispute amicably without terminating the contract. As observed on the simulation, eight months into the project, the client C-S was ready to end their agreement. Breach of contract under internal escalation procedure for dispute implemented as an amendment clause. The amended clause specified that both parties should establish a specialized committee to monitor the progress of the project. Citizen-Schwarz claims that Span Systems performance as below satisfactory and behind schedule. For lack of legal understanding, C-S believes that they have the right to have Span Systems unfinished work transferred over and terminate their contract. Span Systems claimed that the performance issues and project delays are as a result of constant changes requested by Citizen-Schwarz in regard to creation of the transaction system. Span Systems also believes that C-S has violated the contract because of the project has deviated greatly from the original. C-S was possibly trying to distribute Span...
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...November 10, 2015 Contracts: A contract is an agreement that creates obligations that are enforceable by the law. A contract can either be written or spoken. There are elements to a contract that make it valid and binding. This is defined as a clear manifestation of willingness to enter an agreement made by another person with full understanding that their assent to the bargain is an invitation and is concluded. As to whether there was an offer in this case, yes there is an offer. When the salesman offered the buyers time for a test drive and they finally chose and agreed to buy the blue car it was a clear offer. Acceptance. This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed. When the buyers agreed to the terms of sales and even agreed to pay a deposit, it clearly shows that they have accepted the seller’s offer. Legal purpose. It means that the reason for the contract must be legal. In this case, the sale and purchase of a car from a licensed dealer is legal and done under the regulations specified by law. Mutuality of obligation. This refers to the parties’ mutual understanding and also assents in expressing their agreement. They must both agree to the same sense, same thing ant also the same time. When the two buyers approached a dealer seeking to purchase a car, there was both an offer and acceptance. There was clear communication between the terms of the buyer...
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...Week 5 Final Paper Betty Poppins Bus 311 Instructor Brandy Krectzburg 7/01/13 Business Contracts: Protocol, Laws & Ethicality There are various kinds of contracts which arise within our business world today; contracts are an essential component to business livelihood. Although a contract is an agreement, not all agreements are valid contractual obligations. In order for any contract to be an official and legally binding agreement, there are essential requirements which must first be fulfilled. Because contracts are vital to the organization and its success, it is important that the organization has an inclusive understanding of the inner workings of business contract and law and sustaining ethicality within these agreements; this will help ensure that each and every business transaction is a smooth and successful endeavor from beginning to end. What is a contract, and what makes it valid? According to Essentials of Business Law, by Susan Rogers (2012), a contract is described as being “a legally enforceable agreement between two or more people.” Therefore, a contract emerges from the voluntary consent of two or more people with mutual accordance to enter into this agreement. Contracts are helpful to business, as these agreements are binding to both parties involved. In order for a contract to be a valid and binding agreement there are five fundamental yet essential elements that must be present, and these are: 1. The Offer, 2. The Acceptance, 3. Consideration...
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...598 Professor Samuels Answers to Questions in the ZAP Scenario 1. Understanding and Assumptions: Since John is not in the position anymore to explain what happened during the negotiation and contract signing, the following scenarios are assumed: a) The memo signed by John that Bear Construction Company indicating that ZAP is responsible for all permits and inspections had transpired during the negotiation portion, and prior to the finalizing and signing of the contract for this project. b) The fact that it happened prior to signing the contract is deduced from what the building manager, Iris said during the project team meeting. c) It is implied that during the finalization stage of the contract, the agreements probably changed thus the condition in the memo no longer holds as it did prior to this. Thus, as it was approved in the contract, it is Bear Construction’s responsibility to get all of the inspections and permits necessary to complete the job/project. Analysis Based on the assumptions stated above, it could be noted to be correct that ZAP Pharmaceutical Company to point out that it is Bear Construction’s role to speak with local township, and obtain all of the required inspections and secure all of the needed permits, as documented, agreed to, and signed for in the contract between the two parties. If the memo was to be considered as an amendment to the final contract, then that should have been noted in the memo originally as such, and have...
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...psychological contract depends on two things: how similar is the proposed change to the current contract? And how good is the relationship between employee and employer? When good-faith relationship exists, changes are more likely to be accepted as part of the existing contract because parties are not looking for contract violations and trust creates willingness to be flexible. Improving the employment relationship is a necessary first step in contract change. Changing the Contract There are two ways to change the psychological contract, accommodation and transformation. Accommodations modify, clarify, substitute, or expand terms within the context of the existing contract so that people feel the old deal continues despite changes. However, to be effective, there must be a good relationship between the company and its members. Transformations are radical surgery. It means that new mindsets replace old ones. The purpose of contract transformation is the creation of a new contract that it is hoped engenders commitment. Two circumstances in which people become open to new information are when they are newcomers to the organization or when a disruption occurs which they cannot ignore. It is quite common to find newcomers and veterans working side by side holding different psychological contracts. Transformation Stages Stage 1: Challenging the old contract. It takes a good reason to change a contract and keep people. A core issue in the management of contract change involves...
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...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 become an important aspect in human resource thinking and organisational behaviour. In the 1960’s the work of theorists, Schein (1980) and Argyris (1960) who first...
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...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 by an employee...
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...formation and discharge of commercial and consumer contracts * Identify the requirements for a valid contract * Explain the difference between an offer and an invitation to treat Outcome 2: Explain the significance of specialist terms contained in a specimen contract * Assess the validity of contractual clauses contained in a specimen contract * Identify the key Statutory provision for the use of exclusion clauses Outcome 3: * Identify the source and content of key Statutory provisions relating to consumer protection * Assess the effectiveness of specific provisions in relevant Acts * Apply relevant Legislation to the case study, and present findings 1. To: Devindra Subject: Contract Information CC: None Greetings, I’m writing to advise you regarding any legaly bindiing contract made from the advertisemnt of the caravan. A Contract is a transaction which two or more people voluntarily enter together for the transfer of wealth, assets or services. It can be written or it can be oral. Furthermore for a contract to be valid there must be an offer for the proposed item. There are two types of offers, a firm offer which is the indication that someone is seriously prepared to contract to someone such as the case of ‘CARLILL v CARBOLIC SMOKE BALL COMPANY [1893] – Bowen LJ’, where an ordinary person reading such document would construe it to be a blatent pledge to create a contract. The other type would be invitation to treat...
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...Contract Law – Question 3 Within law, a contract aims to provide a legally binding agreement between two or more parties, mutually agreeing to the formal requirements provided within the article. The theoretically underpinnings of the contract as stated in the question are regarded as ‘monumental in attaining the perspective that will allow for substantial understanding of the basis of contract law’. However, there may be at times situations where no agreement may be reached due to certain legal factors restricting a resolution, these barriers known as the vitiating elements of a contract. It has been often mistaken that even if the essentials of a contract are present, one or more vitiating elements can cause the agreement to become invalid, thus rendering it unenforceable. Andrew Phang (2005) argues that the need to achieve a balance between fairness and certainty in contract law means that contracts may over the course of time become better constructed due to these vitiating factors. These elements; inequality, misinterpretation, illegality and mistakes, have the power to affect law and in most instances lead to contract invalidation. An important piece of statute law relating to contracts is The Contracts Review Act (NSW) 1980 which defines the basic outlines of a contract whilst highlighting scenarios were a contract may become void. In common law, when the offer and acceptance of a contract is affected by mistake, the contact becomes void and the defence is open to...
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...TITLE AND CITATION: Darwin Kruse, Appellant, v. Coos Head Timber Company, Respondent 432 P.2d 1009 RESEARCH PROCESS: A coworker of mine who attends Duquesne Law School helped me locate this case. I went to the law school library with him to find and print the case from the database. I used Google Scholar and Lexis Nexis to find the article relating to the legal concept this case addresses. NATURE OF THE CONTROVERSY: Darwin Kruse, an employee of Coos Head Timber Company, was suing his employer because he claimed he lacked sufficient mental capacity to understand the compensation agreement he signed after suffering injuries from an accident at work. PROCEDURAL HISTORY: This case was brought before the court because Darwin Kruse, an employee of Coos Head Timber Company, is seeking to recover damages for injuries he suffered as a result of an accident he had at work. Darwin Kruse, the appellant, was removing rock from the inside of a base of an elevator mechanism. While doing so, the tower vibrated and a piece of wood from the top of the tower fell and struck him on the back of the head. After the accident, Mr. Kruse signed a compensation agreement with his employer, Coos Head Timber Company. In the agreement he received compensation for the accident and released his employer from any further claims for damages. Mr. Kruse claimed the agreement should not be enforced because he entered into it under circumstances of fraud and misrepresentation. Mr. Kruse also argued...
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...depth of contracts including formation, breach or discharge, and the UCC. The team gained a better understanding of the elements of a binding contract and how the UCC is involved with contracts. The class discussion was mainly regarding contracts, the UCC code, and the differences. The concept for Diana that sometimes is difficult is deciding if both parties in a contract gave consideration. If that element is missing this constitutes the lack of a contractual agreement. However, under the UCC code for merchants this is not a required element. The other piece that can be difficult to discern is deciding when the date of the contract begins, which must also meet certain elements to be a legal accord. The oral or written information must include the parties, price, object, and time that both parties mutually agree, and if not clear, one party may believe something different from the other party. Additionally, businesses need to pay close attention to the acceptance portion in contacts because of the “mailbox rule” because if specific date requirements are not in the arrangement this could be a reason for a dispute. The Statue of Frauds portion was another area of discussion to decide when written agreements are a requirement such as in UCC for amounts greater than 500.00 or 5,000 in certain areas. Additionally, land contracts, performances greater than one year, contracts in consideration of marriage, surety for another, and executing a will are elements under contracts to verify...
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