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Management Of People Is Based On Scientific Research

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Management of people is based on scientific research and countless theories that focus on individual motivation and behaviour, culminating into a relationship between the manager and the employee. Part of the relationship is a direct outcome of the written contract between the organisation and the individual. However, a significant part of it is an understanding or an unwritten promise by the organisation to fulfil its obligations to the individual. The promise could range from dignity, fairness and respect in interaction to career advancement and confidentiality. This promise, across academic literature, has been termed as the ‘psychological contract’.
The case ‘When salaries aren’t secret’ details a crisis facing a young clothing retailer ‘Right Now’. The case in question is an example of a violation of the psychological contract. While the details of the case allude to a disgruntled departing employee publicising the salaries and bonuses of all the employees in the organisation, the fact is that the organisation did not have adequate safeguards in place to prevent the hacking of their system, thus impacting trust and confidentiality. Furthermore, as the organisation did not follow a scientific compensation differentiation model, the perception of fairness and equity has been called into question in the aftermath of the incident. Overall, the magnitude of the situation has left employees feeling distrustful and resentful. The management team, therefore, needs to formulate

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