Leading, managing and developing people - Outline Example

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Contemporary organizations today face the challenge of having flexible employment contracts as it impacts negatively on the attitudes of the…
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Leading, Managing and Developing People Leading, Managing and Developing People Psychological contract refers to the perceptions held by both the employer and the employee of what constitutes their mutual obligations. Contemporary organizations today face the challenge of having flexible employment contracts as it impacts negatively on the attitudes of the employees and their relationships with the employer (Sadiq, 2014 p. 49). The employment strategy at Tiger Cars LTD will jeopardize their relations with the management of the firm. The contracted employees will lose their original morale due to job insecurity (Tietze and Nadin, 2010 p. 318). Contracted workers will not access HR training and development. They also lose their benefits such as the medical insurance packages. Considering the negative change in treatment, contracted workers of Tiger Cars will cease from doing extra work that they could have done if they could be working on a permanent basis. Psychological contract provides an explanation for the eminent decrease in the output if the company implements its employment strategy.
In the long-term the expansion plan may not work well due to issues of HR that may arise. The HR is likely to experience inflated costs of remuneration, in the long run, when they lay-off workers (LIU, 2009 p. 30). The HR department will have to hire consultants at high rates to fill the gaps of knowledge left by staff reductions. The HR will ignore the cost of cutting staff. However, with the expansion of the company the HR will face the challenge of making replacement to the lost comprehension of the firm, its processes and customers (Mazur, 2012 p. 1). It will lead to revenue loss and reduced productivity. The contracted former employees will also undertake the contracted work only without offering extra skill (Pesqueux, 2012 p. 1).
Tiger Car LTD must consider implementing strategies that boost the commitment, attitudes, and their relationship with the contracted employers (Collins, Cartwright and Hislop, 2012 p. 211). Improving work conditions and implementing some exchange model between the contracted workers and the organization can boost the employee’s commitment. In addition, the provision of training, improved supervision, and the provision of co-worker support can ensure that the output of the contracted workers is boosted significantly (Jafri, 2014 p. 168).

Collins, A., Cartwright, S. and Hislop, D. (2012). Homeworking: negotiating the psychological contract. Human Resource Management Journal, 23(2), pp.211-225.
George, C. (2010). The psychological contract. Maidenhead, Berkshire: McGraw Hill Open University Press.
Jafri, H. (2014). Influence of Personality on Perception of Psychological Contract Breach.Psychological Thought, 7(2), pp.168-178.
Liu, X. (2009). Staff Psychological Contract Innovates Human Resource Management.iBusiness, 01(01), pp.28-33.
Managing the Psychological Contract During a Psychological Recession. (2014).Mediterranean Journal of Social Sciences.
Mazur, K. (2012). The dynamics of psychological contract between employee and organization. The analysis of selected factors. Management, 16(1), p.1.
Pesqueux, Y. (2012). Social contract and psychological contract. Society and Business Review, 7(1).
Sadiq, S. (2014). Relationship between Psychological Contract Violation, Supervisory Support, Psychological Contract Breach and Organizational Citizenship Behavior. IOSR Journal of Business and Management, 16(3), pp.48-53.
Sarantinos, V. (2009). Psychological Contract in Small Firms: A Managerial Insight. ASS, 4(6).
Tietze, S. and Nadin, S. (2010). The psychological contract and the transition from office-based to home-based work. Human Resource Management Journal, 21(3), pp.318-334. Read More
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