Psychological contracts

Early 1960s psychological contract concept originated  & later developed by American academic Denise Rousseau. It describes & includes the understandings ,informal arrangement , mutual beliefs , commitments & perception that exist between an employee & employer. May 19 , 2017

What is Psychological Contract….

An unwritten set of expectations or promises that are exchanged between the parties in an employment relationship. These parties can be employers, directors or higher grade authorities, individual employees or their colleagues.

Or else

Completeness or incompleteness of organizational relationships in term of mutual understanding obligation, expectation & promises.

As a example employer promises over salary increment or promotion

What are the contents of Psychological Contract….

Employee promised	Employer promised
Working as a hard worker	Pay attractive salary with his/her performance
When required should work extra hours	Job security
Should have to work with new ideas	Promotional opportunities
Protect & enhance company reputation	Attractive package of benefits
Should be loyalty to the organization	Training & development opportunities
Giving good service/ courteous to customers & colleagues.	Recognition for innovation & new ideas

Different between employment & psychological contract

Employment contract	Psychological contract
Written	Unwritten
Legal status are there	No legal status
Explicit	Implicit
Don’t tell more things about what people actually do at work	Tell most things about what people actually do at work

Types of Psychological Contract

·         Transactional :  Economic base clear expectations that the organization  will compensate the performance delivered & punish inappropriate acts.

·         Relational : Emotional base that underlies expectations of shared values & respect & support in the interpersonal relationships.

·         Balanced : Informal expectations between people that result in each side receiving some benefits from others

Advantages & disadvantages of psychological contract

Advantages	Disadvantages
It gives an understanding of situation in the organization to employee.	No agreement or written contract & there is a doubtful that can be considered a contract all.
It helps to identify the reasons of the staff turn over.	It can be a complicated concept & it goes beyond with other contracts  such as job satisfaction & organizational commitment.
It can evaluate employee response changing context of careers.	Violation of the contracts clearly mentioned that broken promises.
Helps to make sense of current employment relationship.

References:

www.alchemyformanagers.co.uk

www.slidesshare.net

www.ukessaays.com

www.hrzone.com

EMPLOYEE ENGAGEMENT

Definition

Employee engagement is the commitment which the employees feel enthusiasm about their jobs, committed to their organization’s goals & values, motivated to achieve the organizational success.

However Kevin Kruse from Forbs.com says “Employee engagement is the emotional commitment the employee has to the organizational & its goals.

However the employee engagement activities are important because it gives support not only to the organization but also very important to the overall growth of the employees.

Importance of the employee engagement

Employee engagement strategies are prove the followings as the importance;

•          Reduction of staff turn over
•          Improvement of efficiency & productivity
•          Good customer service & retain customer at a higher rate
•          Happiness of the employees both personal & work lives

Employee engagement have both advantages & disadvantages & depend on the implementation of employee participation in different processes of policy & decision making.

Advantages & disadvantages of employee engagement

Advantages	Disadvantages
Employee motivation	Regular updates are to be given
Greater employee commitment	Need proper training
Working capacity will be increased	Difficult to keep every one happy
Increased the productivity	Communication complexity
Decision making process will be very effective	Boundary between manager & employee
More & better ideas

However actively disengaged employees cause disruption & dissatisfaction within the organization. Even actively engaged employees also can experience decreased motivation if the overall team level of engagement failures. However few actively disengaged employees can have a net negative effect on the organization.

Employment engagement strategies

•          Provide guide lines for success
•          Recognize good work
•          Maintain two way communication
•          Provide a sense of purpose
•          Should be fair & realistic

According to Gallup(2013) there are three (03) strategies to accelerate employee engagement are;

•          Select the right people & managers
•          Develop employees’ strength
•          Enhance employees’ well being

How to improve employee engagement

•          Provide nice environment to work well
•          Asking for feed back
•          Hold regular social gathering
•          Encourage the flexibility
•          Promote to taking breaks

There are several engagement activities are available for motivate the employees

·         Involve employees in to the business planning process

·         Create knowledge sharing culture at the organization

·         Encourage & provide learning opportunities

·         Create the picture about future opportunities

 Finally that the employees play a crucial & important role in the  long term success of the organization as overall performance is a result of employees’ enhanced productivity, which is an outcome of motivation , satisfaction & engagement.

Reference:

www.engagement.multiplier.com Dec 5,2018

www.onpointcounsaltingllc.com Aug 12,2019

www.tolmanandwiker.com

www.researchgate.net