Psychological Contract and Organizational Behaviour Essay Example
Part A
Critically evaluate what impact the events in this scenario are likely to have on the attitudes and perceptions of your staff and critically discuss what actions you would take to manage these negative attitudes and perceptions.
Introduction
‘Throughout the 1990s, the psychological contract has emerged as an important construct to explain the changing nature of the employment relationship. Initial interest was fuelled by consequences of a more cost focused and competitive business Environment’ (Judy Pate, ‘The changing contours of the psychological contract’, Journal of European Industrial Training, Vol. 30 No. 1, 2006, pp. 32-47). Over the years researchers have analyzed and presented various views based on cultural differences, employee-employer perception and various environmental and physical work place factors that affect the physiological contract.
The aim of the following discussion is to take the readers on a route to understand the basic aspects of physiological contract, analyze the reorganization of company and various events that will have lasting effect on the attitude and perception of the employees. (Reference Scenario stated in assignment)
Psychological Contract
‘Psychological contract is the informal contract that exists between the employee and the organization and which is based on the fundamental concepts of contributions by employees and inducement by the organization in the course of working relationship’ (Wood et al, 2006, Core Concepts and Applications, pp 11-12 ). The discussion of psychological contract revolves around two core aspects, employee’s commitment, productiveness, loyalty, effort, time etc and organization’s inputs such as pay, perks, retention plan, security, social status etc. Psychological contract forms the basic binding and the relationship between the employee and the employer.
Contract Breach
According to Judy Pate measurement and assessment of psychological contract is relative in nature. There is
Critically evaluate what impact the events in this scenario are likely to have on the attitudes and perceptions of your staff and critically discuss what actions you would take to manage these negative attitudes and perceptions.
Introduction
‘Throughout the 1990s, the psychological contract has emerged as an important construct to explain the changing nature of the employment relationship. Initial interest was fuelled by consequences of a more cost focused and competitive business Environment’ (Judy Pate, ‘The changing contours of the psychological contract’, Journal of European Industrial Training, Vol. 30 No. 1, 2006, pp. 32-47). Over the years researchers have analyzed and presented various views based on cultural differences, employee-employer perception and various environmental and physical work place factors that affect the physiological contract.
The aim of the following discussion is to take the readers on a route to understand the basic aspects of physiological contract, analyze the reorganization of company and various events that will have lasting effect on the attitude and perception of the employees. (Reference Scenario stated in assignment)
Psychological Contract
‘Psychological contract is the informal contract that exists between the employee and the organization and which is based on the fundamental concepts of contributions by employees and inducement by the organization in the course of working relationship’ (Wood et al, 2006, Core Concepts and Applications, pp 11-12 ). The discussion of psychological contract revolves around two core aspects, employee’s commitment, productiveness, loyalty, effort, time etc and organization’s inputs such as pay, perks, retention plan, security, social status etc. Psychological contract forms the basic binding and the relationship between the employee and the employer.
Contract Breach
According to Judy Pate measurement and assessment of psychological contract is relative in nature. There is