Employment Relationship Between Company, Employees And Legal Requirements

The psychological contract can help both employee and employer to gain awareness on contemporary employment relationships; indeed, it has been debated that perceived obligations within the psychological contract are usually more vital to work related attitudes and behaviour than are the official and explicit elements of contractual acknowledgement (Grant, Branka and David 2010, 6-7).

The psychological contract is the unofficial agreement between employee and employer which “defines the conditions of each employee’s psychological involvement- both contributions and expectations.”. (Newstrom 2015). The

A negative psychological contract can lead to feelings of negativity and disengagement. If employee expectations are managed and their views and contributions actively encouraged and acted upon, engagement levels should improve.

1.1 When an employee starts a new company, there are many external and internal factors that impact on the employment relationship. One external factor is the state of the economy, in recent years the economy has experienced a recession. This

A personally identified violation of a psychological contract is one of a negatively emotional occurrence. The contract breach has caused me feelings of anger and stress and I feel very deceived. I have experienced displeasure and disillusionment with the overall relationship. (Morrison and Robinson, 1997)

From the 1950’s to the 1970’s, the workforce had more of a “traditional” approach. The focus was more on the relationship between the employee and the organization. According to Personal and Career Development The Best and Worst of Times, by Gerard A. Callanan and Jeffrey H. Greenhaus, the relationship is based off of a psychological contract between the employee and the organization. The "…psychological contract is one that promises security and the possibility of advancement

When an employee starts a new company, there are several external and internal factors that impact on the employment relationship. Relationships affect both management and worker’s performance. The quality of these relationships have an effect on the organisation.

Another external factor that might impact on the employment relationship is the social impact. Organisations must be able to meet the demands of the business whilst managing the needs of

Meyer and Allen (1997) propound normative commitment as “a feeling of obligation to continue employment”. Many organisations build a work culture with internalised norms, values, beliefs and obligations. To a certain extent these internalised norms makes employees normatively committed so that they become obliged to stay in the organisation rather than leaving. Naturally these internalised norms and values creates a feeling of obligation in employees and they think that they are ought to stay in organisation. Wiener and Vardi (1980) have described normative commitment as “the work behaviour of individuals, guided by a sense of duty, obligation and loyalty towards the organisation”. The institutions working in mental healthcare services can impart certain genuine internalised norms and obligations to their work culture. Once the employees get moulded with these norms and values they become normally committed to the organisation and feel obliged to remain in the organisation whereby mentally ill persons can utilise their treatment

When looking at the laws that relate to the relationship between an employer and employee its clear to see that they have changed dramatically over the past few years, and there is now a difficult framework provided by UK law and

An employment relationship describes the dynamic, interlocking economic, legal, social and psychological relations that exist between individuals and their work organizations. Palgrave Macmillan (2013), Glossary [online] Available at: < http://www.palgrave.com/business/brattonandgold/glossary/glossary.htm> [Accessed 17th September 2013]. Factors that impact on this relationship both have a detrimental effect to the running of a business. I will focus on two internal and two external. These being:

Limitations that could be identified in the study were the small sample size that included only managers, was conducted only in New Zealand and therefore may not be able to be generalized to other countries (Cable, 2010). Results and discussion suggests that future research could expand the understanding on how the fulfillment of the psychological contract could impact an individual employee’s attitudes and behaviors (Cable, 2010).

Employment relation is one of the vital and critical parts of HRM. For making an effective and healthy relationship between employers and employees, it is important to understand the perception of employment relations along with its importance in an organisation (Wang & Chen, 2005). Thus, if an organisation fails to understand its significance of employment relations and unable to manager employer and employee relationship efficiently, this might lead to impact on the organisation power and will deter its strength and profitability. According to Singh (2011), employee relations is basically a study of regulations, agreements and rules through which employees are accomplished with collective and individual group, importance imposed to individual

A breach in psychological contract is essentially the organization’s inabilities and its setback in accomplishing its obligations towards the employees of the organization (Matthijs Bal, W. Jansen, S. Chiaburu, 2010). Due to the fact that a psychological contract breach is considered a set of unforeseen obligations and occasions that is likely to pose as a barrier between the employee and employer relationship, thereby producing contrary results in the workplace than that which is expected.

Critically evaluate the utility of the psychological contract for understanding the contemporary employment relationship. (2500 Words)