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The changing nature of the Psychological contract and Employment relationship

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The changing nature of the Psychological contract and Employment relationship. Course: Human Resources Management Module Subject: Managing Work Behaviour Assignment Tutor: Hazel Shanahan Student Name: Irina Antonyuk Submit Date: 7th of May 2008 Introduction In this assignment I will discuss the changing nature of Psychological Contract and Employment relationship. The study also will outline future trends of psychological contract relationship what employer's can in order to maintain both for the good of the company and employee contribution to the employer. Fundamentally, the psychological contract expresses the combination of beliefs held by an individual and his or her employer about what they expect of one another. Also it can be described as the set of reciprocal but unarticulated expectation that exist between individual employees and their employers. Schein (1965) defined psychological contract as "The notion of psychological contract implies that there is unwritten set of expectations operating at all times between every member of an organisation and the various managers and others in that organisation." Employees develop a set of informal unwritten assumptions about and expectations from their employing organisation. ...read more.


It is very important that these aspects a being told, discussing and agreeing with their employees. In another hand, as we said before that in psychological contract are two parties,-employees have to help to create positive psychological contract by asking question themselves:-"What can I reasonably be expected from organisation?", " What should I reasonably be expected to contribute in return?" However it is unlikely that the psychological contract and the employment relationship will ever be fully understood by either party. Old elements of expectations from the Psychological Contract for the employee were as follows: 1. Treatment in terms of fairness, equity and consistency. For example promoting, somebody promoted in two weeks but you in one year. 2. Security of employment, is it job for life? 3. Scope to demonstrate competence. Are the company let people to be creative? 4. Career expectations and the opportunity to develop skills. Does the company provide training or courses for advancement my skills and career progress? ...read more.


The employment relationship will become more explicitly transactional and contractual in order to buy-in commitment and the organisation experiences a higher proportion of dysfunctional behaviour. * Employees will be required to bear risks that were previously carried by the organisation. * The nature of jobs changing now, nowdays more employees are on part time and temporary contracts, so, functional flexibility will be came especially popular and very important to provide and expect especially for women with children. * Employees will be required to learn more skills. Conclusion: The effect of these changes is that - the ability of the business to add value, rests on employees, where they are seen as the key business drivers. Organisations that wish to succeed have to get the most out of their resources. In order to do this, employers have to know what employees expect from their work. This is where the psychological contract is used - as a framework for monitoring employee attitudes. The HR manager must be confident in manging Psyhological Contract. The organisation must ensure that it is getting value from its employees and at the same time, it must be sure it is providing employees with apropriate motivation. ...read more.

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