Pyschological Contract in the Workplace Are the Set of Expectations Held by Employees Concerning...

8/13/2019 Pyschological Contract in the Workplace Are the Set of Expectations Held by Employees Concerning What They W

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1) Psychological contract in the workplace are the set of expectations held by employees

concerning what they will contribute to an organization what the organization will in return

provide to them. Employers offer less security but more benefit while employees offer less

loyalty often willing to work longer hours and assume more responsibility

Psychological contract is individual beliefs, shaped by the organization, regarding terms of

an exchange between individuals and their organization .The state of the psychological contract

is concerned with whether the promises and obligations have been met, whether they are fair

and their implications for trust. Psychological contract is developed by organization scholar

Denise Rosseau where it's represents the mutual belief, perception and the informal

obligation between employer and employee.

The six most important elements for physiological contract are

Voluntary choice

The linkage between evaluated performance and and rewards

Multiple contracts

Belief in mutual agreement

Managing losses when contracts fail

The contract model of employment relationship

Psychological contract is important as it;

Is a framework that will examine expectation and factors that affect between employers

and employees

is a framework for understanding how organizational change may affect employee

behavior

individualistic view of the employment relationship

is also important as it will find new ways of managing employment relations to meet

interest and concerns of both employers and the organization


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2) Identify and summarize the most important theories of employee motivation.

Motivation is forces within the individual, forces that account for the direction,

level, and persistence of a persons effort expended at work. (Hitt, 2012). Motivation represents

an unsatisfied need which creates a state of tension or uncertainty causing the individual tomake a goal oriented pattern towards restoring a state of uncertainty by satisfying the need.

Motivation refers to forces that make people to behave in certain ways. It is also an inner feeling

which energizes a person to work more.

Simple Model Of Motivation

Types of motivation

a) Monetary Motivation

b) Non-Monetary Motivation

Theories that address employee motivation are divided into three categories:

Classical theory

Behavior theory

Contemporary motivational theories.


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Classical Theory

Classical theory is the oldest formal school of thought which began around 1990 and

continued into 1920. This theory is mainly concerned in increasing the efficiency of workers and

organization based on management practices, which were an outcome of careful observation.

This theory approach mainly looks for the universal principle of operation in striving economic

efficiency.

This approached includes;

Scientific managementFocuses on the best way to do the job

administrative managementFocuses on the manager and basic managerial functions

bureaucratic management - focused on the guidelines for structuring with formalization

of rules and procedures

The major contributors for school of classical theory are;

1. Frederick Winslow Taylor (Father Of Scientific Management)

He put forward the idea that workers are motivated by pay. His theory argued the

following;

a) Workers do not naturally enjoy work and need close supervision and control

b) Managers should break down production into a series of small task

c) Workers should be given appropriate training and tools so they can work efficiently

as possible on the task given

d) Workers are then paid according to the items they produce in a set period of tim-

piece- rate-pay

It analyzed management scientifically to find out the most effective way to do a job-

One best way to do the job. Taylorsapproach has close links with the concept of an

autocratic management style

Objective of Scientific Management

o Scientific utilization of various resources like human power, material etc.

o To provide trained and efficient work force.

o To provide standardize methods of work.

o To provide a scientific base for selecting material, and equipment.

o To provide extra wages to the worker for higher production.

o Replace old rule of thumbs to new scientific methods.

o To develop a good rapport between management and workers.


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2. Henri Fayol (Father Of Modern Management)

To manage is to forecast and to plan, to organize, to command, to coordinate

and to controlHenri Fayol

Henri Fayol was concerned with the principle of organization and the function of

management. Fayol placed the foundation of management as a distinct body of

knowledge. He always insisted that it is scientific forecasting and the proper methods

used in management which contribute towards a companyssatisfactory result.

Henri Fayols Administrative management is based on six main activities, they are

o TechnicalProduction and manufacture

o ManagerialPlanning, controlling, co-ordination

o Commercial- Purchasing and selling

o Financial: Use of Capital

o Accounting : Asset, Liabilities, cost and profit

o Security :Protection of good and person

Fayols fourteen Principle of management is:

o Division of Workis defined as specialization as each job and work should

be divided into small task and should be assigned to specialist of it

o Authority and responsibility- Authority is defined as tight to give order and

command while responsibility means to complete the objective

o DisciplineIs required at every level in every organization. He stated

discipline in terms of obedience, application and respect to superior

o Unity of command-A subordinate should receive order from one boss only

o Unity of direction- All must work together to accomplish a common objective

in under one plan

o Subordination of individual interest to common interest:Worker follows

the common interest of organization rather than individual.

o Remuneration: It should be fair and acceptable. It includes both types of

incentives financial as well as non-financial.

o Centralization:There should be one central point in organization which

exercises overall direction and control of all the parts.

o Scalar Chain: Line of command from superior to subordinates.

o Order: Proper order can give an efficient management.

o Equity: It creates loyalty and devotion among the employees.


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o Stability of tenure personnel:Security of job for an employee in an

organization is very important and pre-requisite condition. Retaining

productive employee should always a higher priority of management.

o Esprit de corps: Management should encourage harmony and proper

understandings between workers.

o Initiative: Manager should encourage the employees Initiative for creative

working.

3) Frank and Lillian Gilberth

a) Both of them are believers of Scientific Management and a pioneer of Motion Study

and work simplification.

b) Motion study is a method establishing employee productivity standards where

complex tasks are broken into small, simple steps.

c) Motion studies analyze work motions by filming workers and emphasize. areas for

efficiency improvement by reducing motion.


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4. Max Weber Bureaucratic Theory

Max Weber was the first management theorist who is concerned about the

management structure with the sets of rule and regulations. Bureaucracy

management depends on administration as a tool.

There are four major characteristic of organizational behavior;

o Hierarchical positions

o Rules of system

o Division of labor for specialization

o Impersonal relationship

Principles of bureaucratic theory

1) Job specialization: - Jobs are divided into simple, routine and fixed category based on

competence and functional specialization.

2) Authority hierarchy: - Officers are organized in a hierarchy in which higher officer controls

lower position holders

3) Formal selection: - All organizational members are to be selected on the basis of technical

qualifications and competence demonstrated by training, education or formal examination.

4) Formal rules and regulations: - To ensure uniformity and to regulate actions of employees,

managers must depend heavily upon formal organizational rules and regulations. Thus, rules of

law lead to impersonality in interpersonal relations.

5) Impersonality: - Rules and controls are applied uniformly, avoiding involvement with

personalities and preferences of employees. Nepotism and favoritism are not preferred.

6) Career orientation: - Career building opportunity is offered highly.


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4) Maslows hierarchy of needs

Maslows theory of motivation is where human beings are motivated by unsatisfied need

and that certain lower needs to be satisfied before the higher needs. There are general needs

which need to be fulfilled before a person is able to act unselfishly. Maslow separated the five

needs into higher and lower orders. Physiological and safety needs were described as lower-

order and social, esteem and self-actualization as higher order needs.

Maslow's theory consisted of two parts:

o The classification of human needs,

o Consideration of how the classes are related to each other (Robins, 2003)

A business should therefor offer different incentives to works in order to help to them to

fulfill each need to progress up the hierarchy. Manager should also recognize workers are not

all motivated in the same way and not all will move up the hierarchy at the same time

The classes of needs were summarized by Maslow as follows;


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Physiological need

Physiological need are the biological needs that is required to preserve human life, these

includes need of food, clothing and shelter

This need has the highest potency for motivation.

Man lives by bread alone, when there is no bread by Maslow

Safety Needs

Once Physiological need has been fulfilled, the safety needs comes. These include

a) Protection form physiological danger example fire, accident and many more

b) Economic safety

c) Desire for orderly

d) Desire to know

Social Need

When the lower need has been satisfied, the social need and love becomes important

motivator of behavior

Most people want to belong into a group. These would include the need for love and

belonging (for example working with college who support you at work, teamwork and

communication)

Esteem Needs

Includes internal esteem factors such as self-respect, autonomy and achievement and

external esteem focuses such as status, recognition and attention.

The person must feel important and must also receive recognition from others, as that

recognition supports the feelings of personal growth.

Self-Actualization Need

Self Actualization is desire to become what one is capable of becoming

Realizing personal potential, self-fulfillment, seeking growth and peak experience.

These are those needs for realizing ones own potentialities for continued self-

development for being creative.

The person becomes interested in self-fulfillment, self-development and creativity.


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Douglas McGregorTheory x and y

This theory is created by Douglas McGregor. Is used by human resource, organization

behavior analysis and organizational behavior. It describe two different attitudes towards

workforce motivation, His theory refers to two sets of employees based on the perception of

human nature. Theory X and theory Y are two sets of assumptions about the nature of

employees and his theory is based on human behavior.

Theory X

McGregor's Theory X expresses the notion that "the average man is by nature

indolent"

Theory X is based on traditional norms about employee. It suggests the following features of

an average human being or employee. He recognized that X-type workers are in bottoms in an

organization. (Kaylan-City)

Average human being or employee is lazy and he dislikes work.

He avoids accepting responsibility and prefer to be led by somebody else

He is self-centered and indifferent to organizational needs

He has little ambition, dislike responsibility ,prefer to be led by somebody but wants

security

He resists to change of any type

Theory x organization work on a carrot and stick basic.

For this case for such employees, self-motivation is not possible. They will work when there is

constant supervision on them. The manager has to persuade, punish or reward works in order

to achieve the company goal.

Theory Y

Theory Y is based on modern or progressive approach. He

More positive view of workers and it can create enthusiasms

Employees are ambitious, self-motivated and can accept more responsibilities

They exercise self-control, Self-direction and empowerment

Motivation occurs at the social, esteem and self-actualization levels and also at

physiological and security level


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MC Gregor recommends that they be motivated by encouraging participation to get team

work. Theory Y assumes participation that people are not lazy but they are not motivated. They

can be self-directed and creative at work, if they are given proper motivation to their job.

This theory emphasizes on creating opportunities, removing obstacles and encouraging growth.


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Discuss the importance of job satisfaction and employee morale and summarize their roles

in human relation in workplace

Job satisfaction is defined as collection of positive or negative feelings that an individual

hold toward his or her job (Hall). There are four main primary factors that determine job

satisfaction. The four factors are;

Rewards- refer to pay and promotion which is considered the most important job

satisfaction

Supportive teamwork

Mentally challenging work

Supportive colleagues

Different employees have different level of expectation with respect to pay and reward to work

situation. Many companies have different approach to find out what is the employee

expectations and perception about their job.

Morale is defined as emotions, attitude, satisfaction, and overall outlook

ofemployees during their time in aworkplaceenvironment.Morale is made up two sets of

elements;

One set containing those which help to make a person satisfied with his or her

job

Containing elements where it will make the person dissatisfied with their job

Importance of job satisfaction and employee morale as per below;

a) It helps to retain the appropriate employees within the organization. Is about fitting the

right person to the job and also the right culture.

b) People who experience high level of job satisfaction tend to have higher level of task

performance, higher levels of citizenship behavior

c) It will also improve problem solving and decision making.

d) Satisfied employees will go extra mile to help their coworkers in their organization. The

positive feeling will increase their desire to interact with

e) It will help to increase levels of innovation and creativity.

f) It will help to increase productivity in an organization
http://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/workplace.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/workplace.htmlhttp://www.businessdictionary.com/definition/employee.html


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Roles in human resource in the workplace

1. Company polices

With policies that are clear, fair and applied equally to all employees will decrease

dissatisfaction.

2. Salary and benefits

Employee salaries and benefits are comparable to other organization as it will help to

increase satisfaction and will reduce turnover

3. Interpersonal

Employees develop a social aspect to their job that will increase job stasfication and will

help create team work within colleagues

4. Recognition

When a staff does a good job, acknowledge the staff as this will increase the employee

satisfaction

5. Autonomy

Company can ensure that the staff can make choices over their objectives and the hours

they work

6. Work life balance

7. Job security

8. Felling safe in the work environment


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Job enrichment and Job Redesign

Job enrichment concept was developed by Fredrick Herzberg in 1950. Job enrichment

provides an employee with more responsibility for a job and also challengers the individuals

skill at work. Enrichment involves increasing the decision-making authority and encouraging

employee with their task. For job enrichment attempt to add motivation factors job activities

1. This will increase the decision making authority.

2. The worker gets achievements, recognition

3. The worker gets a sense of belonging

4. The worker finds jobs meaningful

I. Having staff to present report to the senior staff directly, this will increase the

accountability of individuals for their own work.

II. Employer also can reward the staff when the have performed their job well.

III. Employer also provides job variety to the staff where they can be done by job sharing or

job rotation. For example: The department has four staff and three staff is doing e-mail

and another more staff is handling customer complaint. Employer can rotate the job

every month among the four staff.

IV. Grouping employees into teams and allowing the team the freedom to plan, make

decision and accomplish their goals gives the employees a feeling of importance and

responsibility

Job redesign is programs attempt to create a better fit between employees and their jobs by

restructuring work. Job redesign can usually be carried out through combining tasks, forming

natural work groups or establishing client relationships.

Combining Tasks. Enlarging jobs and increasing their variety can make employees

Feel that their work is more meaningful.

Forming Natural Work Groups. People who perform different jobs on the same

projects are candidates for natural work groups that help employees see the place and

importance of their jobs in the total structure of the firm.

Establishing Client Relationships. Allowing employees to interact with customers canincrease job variety.


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Both of these programs will increase worker satisfaction in the jobs that are lack in

motivating factors.

Modified Work Schedules

Work-Share Programs.

a) These programs allow employees to share a single, full-time job. Employees

appreciate the schedule flexibility to accommodate their personal needs and

company also can reduce turnover and this will save on the cost of benefits.

b) Happy workers who fell theyre able to meet their job and home life demand more

productive and they will provide more value for each hour they work. (Truex)

c) It also help to reduce tardiness, absenteeism and turnover , which help the company

to save money (Truex)

Flextime Programs and Alternative Workplace Strategies.

a) These programs allow workers to choose their working hours by adjusting a standard

work schedule.

b) This will also help company to decreased absenteeism and turnover and this will

save the company money (JAVITCH, 2006)

c) It also will create happier and more satisfying workplace because they are allow for a

work- life time adjustment and tend to work harder. (JAVITCH, 2006)

Participative Management and Empowerment (Lorne C. Plunkett)

a) Employees are given chance to participate in decision making process in the

company and this will empower the employee

b) Employers are allowed to express their view and given consideration

c) It also bring employees and management closer

Advantages of modified Schedules

(a) more freedom in employees personal lives;

(b) Increasedemployee morale,engagement, and commitment to the organization.

(c) an increased sense of freedom for employees;(d) Higher commitment and satisfaction for employees.

(e) Reduced absenteeism and tardiness.
http://humanresources.about.com/od/glossarye/g/employee-morale.htmhttp://humanresources.about.com/od/glossarye/g/employee-morale.htm


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1. Discuss different managerial styles of leadershipand their impact on human relations inthe workplace.

Leadership is a function of knowing yourself, having a vision that is well

communicated, building trust among colleagues and taking effective action to realize

your own leadership potential. (Bennis).

Managerial Styles of leadership are characteristic ways of making decisions and

relating to employees.a) Autocratic Leadership

Autocratic Leadership is where the employer makes decision individually and without

much regard for subordinate. The result will reflect the opinions and personality of the

manager.

Autocratic Leadership where the managers expect orders to be obeyed without any

question and this will dimish the employee motivation

There are two type of autocratic leadership ;

A directive autocrat means decision alone and closely supervises subordinates

A permissive autocrat makes decision alone but gives subordinates freedom in carrying

out their work

b) Democratic Style

Democratic style is the manager welcome input from the subordinates while

making the

final decisionmaking

it keep staff informed about everything that affects their work and share decision

making and problem solving responsibilities

c) A Free-rein style


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Isa leadershipstyle wheresubordinates are not directly supervised and instead

mustfunction on own and prove theirworth through accomplishments. (Business

Dictionary )

Employers make decision and set up policies without the manager input ,
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