MANAGING HUMAN RESOURCES

Managing Human Resources

Managing Human Resources

Part 1

Psychological Contract

The psychological contract is the basis of a partnership approach. It is the link between employers and employees. It establishes the expectations, aspirations and understandings which they have of each other (Ulrich 1996 pp.23-34).

The author has noticed that the psychological contract has changed since the last few years because of the changes of the work environment (change in workforce structure, re-engineering, downsizing).

The old psychological contract was based on security and predictability, now it is 'more situational and short term and assumes that each party is much less dependent on the other for survival and growth'. (Legge 2004 pp.112)

According to Jean-Marie Hiltrop, the new contract can be defined as follows:

'There is no job security, the employee will be employed as long as he/she adds value to the organisation, and is personally responsible for finding new ways to add value. In return, the employee has the right to demand interesting and important work, has the freedom and resources to perform it well, receives, pay that reflects his or her contributions and get experience and training needed to be employable here or elsewhere'. The psychological contract has to be strong and truthful to allow a partnership relation. (Ulrich 1996 pp.23-34)

New Labour insist on the voluntary aspect of the new work relation. The partnership should be introduced through cultural changes which will lead to 'more positive relationships between employers and employees than the letter of the law can ever achieve'. That is to say that the law itself can not resolve the problem of employee relations, some cultural changes have to emerge first. Employers and employees have to make some effort to improve the work relationship.

In my personal workplace experiences the drive theory is a part of everyday life. Everyday my drive is what motivates me to succeed, act or relate to any situation that is presented. It does not always motivate positive actions; however it does motivate a reaction. The drive that we posses push us to show up for work everyday, because the result of working is money, and money has become a necessity to life (in America). A person's drive for money does not necessarily mean happiness. Happiness is driven by self fulfillment and satisfaction in one's occupation. So how do we find the drive to fulfill all of the desires and needs of everyday life? SALLY don't know that there is a simple answer. SALLY have the drive to succeed and accomplish the goals that SALLY set for myself. But why am SALLY like so many others never fully satisfied? SALLY assume it is because my drive forces me to continually develop new goals, so once a goal is conquered, the drive pushes me toward the next goal. (Armstrong 2006 pp.89-109)

Not everyone possesses the drive to succeed, in my workplace SALLY see individuals working just to survive, not to succeed. They work strictly for money, not for the fulfillment of accomplishment. SALLY can't say that SALLY understand, but SALLY have an ...