Block 2 Section 3 The organization’s ongoing relationship with its employees Prepared By Hanady Ali Osman

Agenda Changes in HR since 1980’s Employment flexibility The psychological contract Employee involvement Hanady A. Osman

A model of HRM - Guest, 1992 (Pg. 34 Binder) Hanady A. Osman Human resource management policies Human resource management outcomes Organizational outcomes Organizational/job design Management of Change Recruitment Selection Socialization Appraisal Training Development Reward system Communication Strategic Integration Commitment Flexibility/ Adaptability Quality High Job performance Problem solving Change Innovation Cost-effectiveness Low Turnover Absence Grievances Leadership/Culture/Strategy Hanady A. Osman

The changing nature of employment relationship since 1980’s (Pg The changing nature of employment relationship since 1980’s (Pg. 33-34 Binder) The main changes in HR have occurred over the past 20 years as a result of the increased competition due to globalization and technological advances which have obliged many organizations to Restructured hierarchies (e.g. flatter) Leaner structures (i.e. teams and network) for organizations to function more efficiently Hanady A. Osman

Some implications of the above Employees have more responsibility than in past Decreased job security Increase in temporary and fixed-term employment contracts Individualization Hanady A. Osman

Pluralist Perspective (Pg. 34-35 Binder) “Supposes that management and employees may have different, and legitimate, views and objectives, which could give rise to conflict between them. Trade unions presence.” Hanady A. Osman

Unitarist Perspective (Pg. 34-35 Binder) … “an organization is rather like a team or a family. There is (or ought to be) one single, shared, set of objectives for management and employees and thus no place for conflict between them.” Hanady A. Osman

Implications of Unitarist Perspective (Pg. 37 Binder) 3 aspects of employee/employer relationships are common in unitarist environment; Individualism Flexibility Communication Hanady A. Osman

Individualism (Pg. 37 Binder) This is the relationship existing between the employer and the individual, rather than between the employer and groups of individuals who work in the same job or in the same organization. Hanady A. Osman

Individualism (Individual Performance) (Pg. 37 Binder) Appraisal System Pay System Training & Development Career Development Hanady A. Osman

Flexibility (Pg. 37 & 38 Binder) This is in order to improve companies’ ability to respond more effectively to increased competition and rapid changes in the biz environment. Flexibility in the workplace via: Non-traditional, non-permanent types of employment, e.g. Short-term contracts Growing numbers of workers being offered non-permanent employment. Hanady A. Osman

Example on Orgal Flexibility DaimlerChrysler Aerospace (Dasa) Plant (Pg 38 Binder) Hanady A. Osman

Communication (Pg. 38 Binder) Communication is very essential in developing the employment relationship and building commitment in an environment. Two way communication is very important i.e. Upwards communication as well as downwards communication is important. Hanady A. Osman

The psychological contract (Pg. 40 Binder) The psychological contract has been defined as: The perception of both parties to the employment relationship, organization and individual, of the obligations implied in the relationship. Hanady A. Osman

Transactional Psychological Negative Psychological Contracts (Pg. 40 Binder) Violation of the PC may lead to a shift from: Relational Psychological Contract Transactional Psychological Hanady A. Osman

Positive Psychological Contracts (Pg. 41 Binder) Fair and effective HRM practices in the organization lead to positive psychological contracts with the following outcomes; Positive employment relationships. Employee commitment Motivation Job satisfaction Hanady A. Osman

Employee involvement (Pg. 42 Binder) Employee involvement is participative activities which are intended to make employees feel more involved with the org which they work, thereby building their commitment. Hanady A. Osman

Employee involvement (Pg. 42 & 43 Binder) Employee involvement can be divided into four different kinds of activities: Downward communications Upward problem solving Task-based participation and team work Financial involvement Hanady A. Osman

Downward Communication (Pg. 42 Binder) Team Briefing Staff newspaper E-mail communications In house videos Management Informing Employees Hanady A. Osman

Upward Problem Solving (Pg. 42 Binder) Quality Circles TQM Suggestion Schemes Management Feedback Employees Hanady A. Osman

Task-Based Participation & Team Work (Pg. 43 Binder) This involves using teams to improve working practices by extending the range of tasks that individuals undertake and by allowing them to take greater supervisory role of their work tasks. Job Redesign Job Enrichment Self-directed teams Hanady A. Osman

Financial Involvement (Pg. 43 Binder) This involves securing employees’ involvement by offering Rewards based on their financial success. Profit-sharing Schemes Employee Share Ownership Schemes Hanady A. Osman

Announcement – TMA 01 TMA 01 is due in two weeks time i.e. 26th April 2008. Soft copies of TMA 01 must be posted on LMS latest 11:55 pm on the 26th Arpil. Hard copies of TMA 01 must be submitted to your tutors in class in your tutorial for the week starting 26th April. Hanady A. Osman