The paper 'Chris Motors Limited - Psychological Contract " is a great example of a management case study. Shore & Tetrick (1994) Organisations can be defined as collections of interrelated and interactions of both non-human resources and human resources working together to achieve a specific common goal or goals. Organisational behaviour (OB) on the other hand it is a form of an interdisciplinary field build by a number of sciences that are behavioural driven. Such behavioural sciences include sociology, psychology and anthropology it is also said to be study and knowledge application pertaining groups act, individuals, peoples organisations.
To achieve this, OB uses the system approach. The OB main mission is practice and administrative theory application to the management’ s pressing difficulties. The OB’ s purpose is explained by building an unquestionable relationship. The purpose is arrived at if it achieves the social, organisational and human objectives. In summative form, OB includes teams, leadership, change as well as human behaviour. Sparrow & Hiltrop (1997). As a business grows larger, wider and in complexity, it works towards keeping pace with the business environment.
New strategic initiatives have shown to bring in challenges to a business. Due to this fact, employees and organisations do face several challenges. Employees, on the other hand, need to acquire a new set of behaviour if the upcoming challenges will be incorporated successfully. The human resource, therefore, is endorsed with the responsibility of initiating the definitions of the. The initiative for an employee to change or not comes from his/her interpretation of the employer’ s HR practices interpretations. Such interpretation, in turn, affects behaviour of the employee in alterations of perceptions of individually held psychological contract see figure1 Figure1: how the employee’ s psychological contract and strategy are related Psychological contract Shore, & Tetrick, (1994) is not specifically defined and was analysed to carry several defining terminologies.
These include dynamic, psychological distance, interdependent, expectations drawn from the past and unspoken expectations. Psychological contracts are usually involved with problems underlying among human beings. This definition applies to all persons regardless of whether is a group of persons or individuals. PC is quite different from the legal contract in that during contract breaching there are different procedures followed.
The grieved party for example, in this case, the employee and especially the old ones may seek enforcement in the court in the legal contract. However, it is not the same case using the psychological contract. To this regard, the party aggrieved may only choose to withdraw its relationship or withhold its contributions. Drawn from the past seasons the PC has shown to be quite complex. This has led to the questioning of its validity. However, its validity can only be achieved by first understanding the function the PC participates in either a mean or lean organisation. Psychological contract function The behaviour regulations and bonding of the organisations and the individuals involved, the life of the organisation is explained by the psychological contract.
(Robinson, Kraatz & Rousseau, 1994). The sustenance of the employer and employee relationship as time goes by Shore, & Tetrick, (1994) PC plays a greater role during the restructuring of the organisation especially in events of risk and uncertainty. It also enables the smooth functioning of human life Sparrow & Hiltrop, 1997). Just as hygiene factors act so is the psychological contract.
The poor contract is usually quite demotivating while good contract, however, not always are they motivators, they are more likely to bring out great performance rather than the demotivators. In addition, demotivators result in high levels of absenteeism, and reduced job commitment. This is shown by the way the old employee feels from Chris motors limited as it is indicated by the reduced concern of Steve on the older employees and his need to have them replaced by the young pool. Their difference in opinions as to the directors’ i.e.
Steve and Paul of the company still posses fear to the employee, in general, pertaining to the future’ s job survival. Two tasks are accomplishable using the psychological contract. They include helping in the prediction of the returns the workers possibly will acquire from their effort and time investment in a given organisation. On the other hand, employers use the PC to forecast the expected returns they will obtain from the employee effort Sparrow & Hiltrop, 1997).
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