managing in individual context

7/29/2019 managing in individual context

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MANAGING IN

INDIVIDUAL-ORGANIZATIONALCONTEXT

(Chapter

3)


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It is the unwritten understanding between employer and theemployees, based on expectations from either side that

each shall have its needs met.

It is the perception of two parties, employee and the

employer, of what their mutual obligations are to each other.

A psychological contract sets the dynamics for the

relationship and defines the detailed practicality of the work

to be done.

It is distinguishable from the formal written contract of

employment which only identifies mutual duties and

responsibilities in a generalized form.

Psychological Contract


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A psychological contract can be breached/violated if an

employee feels that the significant terms have been broken

or perceived obligations are unmet.

Violation is considered more serious than the breach.

Range of employee response to psychological contract is

expressed below:

Breach & Violation ofPsychological Contract

Loyalty or silence Exit strategy

Exercise voice Neglect

Passive

Active

NegativePositive


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Exercise voice: Speaking up to power by takingactions or expressing comments, threats etc. or attempts to

build/rebuild trust relationship.

Loyalty or silence: Non response or willingness toendure unfavorable circumstances, perhaps because there

are no better alternatives.

Exit strategy: Voluntary termination of the relationshipby leaving for another job.

Neglect: May reflect passive negligence or active

destruction through political behavior or sabotage.

Breach & Violation ofPsychological Contract


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Principal Agent Issue

Owners Vs Managers

Managers Vs Employees

Agency Theory


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Principal Agent Issue

The owner has consideration that he/she isresponsible for the whole business, not just thefinishing department. He takes on all the risk of doingbusiness.

Managers/employee thinks that he works for theorganization with full effort, achieves all targets butmost of the benefits are reaped by the owner.

The fact of the matter is that owner cannot do all the

work himself and the worker cannot do the jobwithout a company and business owner to providethe necessary work and place of employment. Eachshould be compensated fairly for his investment of

skill, time, risk, and involvement.


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Achieving a Match/Fit

An employee has to be compatible in theorganization in following three aspects:

Employee Job fit

Employee Organization personality fit

Employee Organization culture fit

How to achieve above match/fit is the main concernof managers and they keep working to acquire thesame.


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Managing Psychological Contract

Managing individual-organizational relationship, byshaping psychological contract, comprises followingelements:

Managing talent

Managing careers

Managing organizational commitment andemployee s identification with the organization

Managing work-life balance


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Talent Management

Talent management refers to the skills of attractinghighly skilled workers, of integrating new workers, anddeveloping and retaining current workers to meetcurrent and future business objectives.

Making effective use of existing skills and addingmore skills in employees profile.

Companies engaging in a talent management shiftthe responsibility of employees from the human

resources department to all managers throughout theorganization.

Talent management is also known as HCM (HumanCapital Management).


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Talent Management

Organizations which focus on developing their talentintegrate plans and processes to track and managetheir employees talent, including:

Attracting, recruiting and taking onboard the best

qualified candidates with competitive background.

Managing and defining competitive salaries

Training and development opportunities

Performance management processes

Retention programs

Promotion and transitioning


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Managing Careers

Identification of a career as per employees aptitudeand then planning career progression is theresponsibility of both employee and the organization.

It is the combination of structured planning and the

active management choice of one's own professionalcareer. Outcome of successful career managementshould include personal fulfillment, work/life balance,goal achievement and financial assurity.

Career planning is a subset of career management &applies the concepts of strategic planning and takingcharge of one's professional future.


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Managing Careers

Career management is the process for enablingemployees to better understand and develop theircareer skills and interests, and to use these skills andinterests more effectively.

Careers today. Careers are no simple progressionsof employment in one or two firms with a singleprofession. Employees now want to exchangeperformance for training, learning, and development

that keep them marketable.Career equity. Employees want equity in promotionsystem with respect to opportunities for careeradvancements.


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Career Planning and Employee Needs

Supervisory Concern. Employees want theirsupervisors to play an active role in careerdevelopment and provide them timely feedback on theirperformance.

Awareness of Opportunities. Employees wantknowledge of opportunities for career advancement.

Employment Interest. Employees need differentamount of information and have different degrees of

interest in career advancement, depending on a varietyof factors.

Career Satisfaction. Employees, depending upon theirage and occupation, have different levels of career

satisfaction.


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HR Supported Career Development. Effective HRplans translate corporate strategy into employmentneeds.

HR department uses placement decisions, training &

development and career planning assistance to fulfill

organizations employment needs domestically and

globally.

HR department should help employees in creatingcareer expectations that can be met/materialized.

In the absence of opportunities for careerdevelopment, employees tend to get disappointed,

dissatisfied leading to resignations.

Role of HR Department in Career

Development


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Management Support. Without active support by thetop management, any policy formulated by HR will goineffective.

Feedback. Without feedback about careerdevelopment efforts, it is difficult for employees tosustain the years long preparation needed to reachcareer goals. Feedback has three objectives:

To show bypassed employees that they are still

valued and will be considered for promotion infuture.

To explain why they could not be selected.

To indicate what specific career development

actions they should undertake.

Role of HR Department in CareerDevelopment


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Career Planning Benefits. Involvement of HRdepartment in career planning has grown in recentyears due to following benefits:

Aligns strategy and Internal staffing requirements.

Develops promotable employees. Facilitates international placements.

Assists with workforce diversity.

Lowers turnover.

Taps employees potential. Furthers personal growth.

Reduces hoarding.

Satisfies employees needs.

Assists AffirmativeAction plans

Role of HR Department in CareerDevelopment


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Managing Organizational Commitmentand Employee s Identification

A committed employee is the one who is fullyinvolved in, and enthusiastic about the work, and thuswill act in a way that furthers his/her organizations

interests. Organizational commitment is the employees strongdesire to be related to the organization/department/group and it emanates from the satisfaction, through

fulfillment of individual needs.

Employees feel pride in identifying them with theorganization they work in and the work they perform.


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Managing Organizational Commitmentand Employee s Identification

Employee commitment is an extension to thecitizenship behavior and leads to employee loyalty andlong term retention.

Employees with the highest level of commitmentperform far better and are less likely to leave theorganization, even in difficult times.

Organizational identification (OI) is a form oforganizational control and happens when an employeeidentifies with an organization and best promotes theperceived interests of that organization.


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Managing Work-Life Balance

According to a recent research in America, 90percent of working mothers and 95 percent of workingfathers report work-family conflict, attributed to moretime spent at work and less with family.

Organizations play a large part in how theiremployees deal with work-life balance. Somecompanies have taken proactive measures inproviding programs and initiatives to help theiremployees cope with work-life balance.

Many organizations view the ideal worker as one whois committed to their work above all else but this thisis not a lasting solution.


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Managing Work-Life Balance

Many employees today, both male and female, feelthat their lives are becoming more consumed with ahost of family and other personal responsibilities andinterests. Therefore, it is increasingly important fororganizations to recognize this required balance.

Work-life balance reduces conflicts, improvesemployee satisfaction and increases overallcommitment & performance.


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Thank You

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managing in individual context