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

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

3. 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

4. The changing nature of employment relationship since 1980’s (Pg
The changing nature of employment relationship since 1980’s (Pg 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

5. 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

6. 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

7. 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

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

9. 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

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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

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

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

21. 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

22. 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

23. 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