Employee Relations Lecture Slides 01.pptx

The context of Employee Relations

1. Unit One: The context of Employee Relations EMPLOYEE RELATIONS DR EBENEZER ODURO ANTIRI

2. 01 EMPLOYEE RELATIONS DEFINED 02 EMPLOYEE RELATIONSHIP DEFINED 03 PSYCHOLOGICAL CONTRACT DEFINED 04 WHAT IS COVERED BY PSYCHOLOGICAL CONTRACT? 05 JOB SECURITY 06 CAREER PROSCPECTS 07 TRAINING AND DEVELOPMENT 08 PERCEIVED FAIRNESS OF PAY AND BENEFITS. OUTLINE 09 MANAGER SUPPORT. 10 CONTEXT OF THE PSYCHOLOGICAL CONTRACT

3. - Employee Relations is the comprehensive study and practice that revolves around managing the dynamic interactions between employers and employees within an organization. It encompasses a wide range of activities, policies, and strategies aimed at establishing and maintaining a positive and productive work environment. The goal of employee relations is to foster strong relationships between employers and employees, facilitate open communication, and address any issues or concerns that may arise in the workplace. Definition of Employee Relations DEFINITION

4. - The employment relationship is the legal link between employers and employees. - It exists when a person performs work or services under certain conditions in return for remuneration. It is through the employment relationship, however defined, that reciprocal rights and obligations are created between the employee and the employer. Employee Relationship Defined T HE EMPLOYEE RELATIONSHIP

5. - It has been, and continues to be, the main vehicle through which workers gain access to the rights and benefits associated with employment in the areas of labour law and social security. The existence of an employment relationship is the condition that determines the application of the labour and social security law provisions addressed to employees. It is the key point of reference for determining the nature and extent of employers' rights and obligations towards their workers. Employee Relationship Defined T HE EMPLOYEE RELATIONSHIP

6. The term 'psychological contract' refers to individuals’ expectations, beliefs, ambitions and obligations, as perceived by the employer and the worker. The concept emerged in the early 1960s and is core to understanding the employment relationship. Drawing on insights from psychology and organisational behaviour , it provides a powerful rationale for employers to pay attention to the ’human’ side of the employment relationship. P sychological Contract Defined THE PSYCHOLOGICAL CONTRACT

7. Although the notion of psychological contract describes the expectations and assumptions of employers of their workers and vice versa, the concept has been mainly studied from the perspective of the employee. The psychological contract differs from a legal contract of employment which offers a limited reality of the employment relationship. The legal contract refers to an agreement, usually written and signed, about the mutual formal obligations of the employer and the worker. P sychological Contract Defined THE PSYCHOLOGICAL CONTRACT

8. The psychological contract, on the other hand, describes how the parties themselves understand their relationship, their own views of commitment and what they can expect to receive in return. The psychological contract isn’t generally enforceable. However, courts may be influenced by a view of the underlying relationship between employer and employee, for example in interpreting the common-law duty to show mutual trust and confidence. P sychological Contract Defined THE PSYCHOLOGICAL CONTRACT

9. There isn’t a definitive list of expectations and obligations describing the content of the psychological contract. Instead, many scholars have chosen to focus on certain aspects, such as exploring the duration or stability of the exchange. The psychological contract covers the unwritten and implicit expectations between employees and their employers. It usually includes factors such as job satisfaction, work-life balance, career development, and mutual trust. What is covered by the psychological contract? THE PSYCHOLOGICAL CONTRACT

10. Broadly, the psychological contract may cover the following aspects of the employment relationship and how they interact: Job security. Career prospects. Training and development. Perceived fairness of pay and benefits. Manager support. What is covered by the psychological contract? THE PSYCHOLOGICAL CONTRACT

11. When employees perceive that their employer fulfills the implicit promises and obligations of the psychological contract, they tend to feel more secure in their positions. If an organization provides opportunities for career growth and professional development, employees are more likely to believe that their job security is stable. On the other hand, if an employer reneges on promises or fails to meet employees' expectations, it can lead to feelings of uncertainty and reduced job security. Job security THE PSYCHOLOGICAL CONTRACT

12. If the psychological contract includes opportunities for skill enhancement, mentoring, and career advancement, employees are more likely to be motivated and committed to the organization, leading to increased chances of promotion and career progression. On the other hand, a broken or unfulfilled psychological contract, where promised opportunities for development and advancement are not delivered, can have a detrimental effect on an employee's career prospects. Career prospects. THE PSYCHOLOGICAL CONTRACT

13. When employees believe that their employer values their growth and invests in their professional development, they are more likely to engage actively in training programs. A positive psychological contract creates a sense of trust and commitment, making employees more receptive to learning and willing to participate in various training opportunities. On the other hand, if the psychological contract is not nurtured, and employees perceive a lack of investment in their development, they may be less motivated to participate in training activities. Training and development. THE PSYCHOLOGICAL CONTRACT

14. When employees believe that their employer values their contributions and compensates them fairly, it strengthens their perception of the fairness of pay and benefits. This perception of fairness enhances job satisfaction, motivation, and commitment to the organization. Lack of Perceived fairness of pay and benefits can negatively impact their motivation, morale, and overall engagement, potentially resulting in decreased productivity and increased turnover. Perceived fairness of pay and benefits. THE PSYCHOLOGICAL CONTRACT

15. A strong psychological contract enhances communication and collaboration between managers and employees, allowing managers to provide the necessary support to help employees reach their full potential. On the other hand, a negative psychological contract, characterized by broken promises or unfulfilled expectations, can result in strained manager-employee relationships. Therefore, nurturing a positive psychological contract between employees and their managers is crucial in fostering a supportive and empowering work environment. Manager Support. THE PSYCHOLOGICAL CONTRACT

16. Employees in large organisations do not identify any single person as their 'employer’. Employees may be unaware of who is personally responsible for decisions affecting their welfare or the future of the business. Unsurprisingly, attitude surveys confirm that employees’ experiences at work are strongly affected by the quality of line managers who they see on a regular basis. Context of the Psychological Contract THE PSYCHOLOGICAL CONTRACT

17. A line manager, also known as a direct manager or front-line manager, is an individual within an organization who holds the immediate responsibility for overseeing and managing a group of employees or a specific team. Line managers are important in making day-to-day decisions, but employees are also affected by decisions made by senior management and HR. It’s fair to say that for many employees the psychological contract is largely the deal they have with their direct line manager. Context of the Psychological Contract: The Line Manager THE PSYCHOLOGICAL CONTRACT

18. Any questions ? Thanks! 18