The paper "Wheeler Motor Services Limited Psychological Contract " is a good example of a business assignment. It is with a passion that Richard Wheeler started off an enterprise that has grown to be successful with time. It is not until he handed over the company to his close friend and son that the company started experiencing losses and the workforce never felt appreciated as they used to. This has brought about weakness on managerial control and the staff no longer feels motivated to work in Wheeler Motor Services limited.
All hope is not lost because the company can adopt a psychological contract that will help bridge the gap between the employer and employee. The psychological contract refers to what the employee expects from the employer after they have done what is expected of them in the company. As explained by the UK Chartered Institute of Personnel Development, the psychological contract is referred to as the obligations that both the employer and employee have towards each other. (Guest, Conway and Brinier, 1996). This can be illustrated using a Venn diagram as shown below: In the above diagram, VC represents the relationship between the employee and the employer where the staff is required to work in an inappropriate manner and In return is rewarded in the form of salary and other rights.
Pc in the diagram represents the psychological contract which this time encompasses the market, employer and employee. This shows that there exists a relationship that exists between the market and those involved in the organization. External factors directly affect what is expected of the employer and employee. A fair and balanced psychological contract is achieved when attributes such as enthusiasm, commitment and satisfaction are offered by the employee.
This is reflected in their attitudes where they are strongly influenced by how the employees treat them and in return their feelings influence how they will relate to their employer. It is, therefore, the work of the employer to strike a balance and offer the employee an atmosphere of working in a safe and happy environment where the employee rewards the employer with loyalty, efficient performance and positive results as explained by Patterson and West, (1997). Wheeler Motor Services Limited can achieve a psychological contract where several aspects need to be integrated.
Some of the factors mentioned in the case study that makes the employees feel that their needs are not met are that there was an inefficient distribution of information among the staff, there was no support being awarded when it came to the improvement of their knowledge and skill and there was no reward either compensation when it comes to working overtime In the above diagram, VC represents the relationship between the employee and the employer where the staff is required to work in an inappropriate manner and In return is rewarded in the form of salary and other rights.
Pc in the diagram represents the psychological contract which this time encompasses the market, employer and employee. This shows that there exists a relationship that exists between the market and those involved in the organization. External factors directly affect what is expected of the employer and employee.
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