The employment relationship. Within this essay the Psychological contract will be looked at closely to discuss why an understanding of this particular contract is important when managing people at work.

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The Employment Relationship is a forever changing element within the workplace, there are three main factors affecting this relationship which are the legal aspects, psychological perspective and power.  It is said that to have a better understanding of the relationship that legal, economic, psychological and social factors are important.  To help govern this relationship there are two contracts that should be looked at, the contract of employment and the psychological contract.  Within this essay the Psychological contract will be looked at closely to discuss why an understanding of this particular contract is important when managing people at work.  

Firstly the contract of employment is produced the minute an applicant accepts a job offer, in other words the moment that the employment relationship begins.  This contract can be oral, written, implied or a mixture of all three, it outlines the tangible aspects of the job, things such as, hours that will be worked, salary, benefits and working conditions.  It is stated on the business link website that;

 “… this statement is not itself the contract but it can provide evidence of the terms and conditions of employment between you and the employee.”

Although the contract of employment is not itself the actual contract, once agreed it takes the contribution of both parties to change any aspects of it, this could be seen as an obstacle for the employer as economic situations change.  However it is stated within the lecture notes that;

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“Increasingly contracts include clauses which allow employer to make adjustments to terms and conditions without the need to seek agreement from the employees or the representatives.”

It is stated on blackboard learning suite that Torrington, Hall and Taylor set out the rights and obligations that come with the contract of employment.  They did this by distinguishing between those who were the employees and those who were the non-employees.  Within the lecture notes on the ‘written and psychological contracts’ it is said;

“Employees have access to a wider range of legal rights than non-employees.”

There are statutory ...

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