Breaking or Reinforcing Psychological Contract

Breaking or Reinforcing Psychological Contract  Order Instructions: How Managers May Reinforce or Break the Psychological Contract in their Interactions with their Subordinates I am studying Management Fundamentals as part of the MBA programme at Melbourne.

Breaking or Reinforcing Psychological Contract
Breaking or Reinforcing Psychological Contract

This assignment is a group assignment. I am tasked with the following specific named above as the topic within the broader group task relating to the psychological contract. It is essential that the writer is aware of the core textbooks for the subject and relates the assignment to the work of Robert Owen at New Lanark together with several of the other theorists studied. The Subject learning guide and the group task is attached. Any queries please ask as soon as possible

Breaking or Reinforcing Psychological Contract  Sample Answer

 

How Managers May Reinforce or Break the Psychological Contract in their Interactions with their Subordinates

Introduction

In the workplace, psychological contracts refer to a set or series of expectations that are held by workers concerning what they will contribute to organizations, and what these organizations will provide to them in return. Psychological contract happens to be an increasingly relevant element of wider human behavior and workplace relationships. In the last decade, psychological contracts have undergone significant changes. Employers provide limited security but more benefits, while workers provide less loyalty but are always willing to perform their tasks for longer hours alongside assuming more responsibilities (Dejours, 2014). Methods that managers employ in their interactions with their subordinates play a vital role in determining whether the psychological contract in the workplace can be reinforced or broken. When psychological contracts are broken employees’ motivation is often lowered leading to high cases of grievances, turnover, and absenteeism. On the other hand, the reinforcement of a psychological contract often leads to low levels of absenteeism, grievances, and turnover in workplaces. In relation to this, managers can employ several mechanisms in reinforcing or breaking the psychological contract as they interact with their subordinates as seen in cases of theorists such as Owen, Taylor, Weber, and Kautilya. These methods include focusing on the welfare of workers, leading by example, improving incentives and breaking down tasks.

Breaking or Reinforcing Psychological Contract Focusing on the Well-being of Employees

As managers interact with their employees, they should ensure that they focus on the well-being of workers who report to them, and draft action plans for improving such needs. This approach is significant in ensuring that managers are placed in a suitable position in relation to determining variables that affect the social, economic, and political lives of their employees. Different employees often have different expectations, interests, and needs. Karutilya managed to demonstrate this aspect by focusing on the wellbeing of people as his view was based on the industrialization origins of psychological contract and trust (Wren & Bedeian, 2011). Trust acts a suitable mechanism of reinforcing the psychological contract between managers and subordinates. When leaders focus on the well-being of their juniors they can manage to establish high levels of trust between them and their juniors. As such, addressing the issues affecting employees’ lives is significant in granting leaders a competitive advantage in terms of reinforcing psychological contracts. Moreover, this strategy is vital in the identification of the goals that each subordinate has. On the other hand, managers who do not pay attention to the welfare of their subordinates can contribute significantly to the breaking of psychological contract in their workplaces. Such managers often face problems identifying suitable methods of responding effectively to various needs and expectations of employees, thereby eroding the trust that workers have in them. As a result, the psychological contract between such leaders and their juniors is always broken.

Outstanding leaders are often associated with a high potential to establish effective interpersonal communication techniques, which adapt to the diverse working style, needs, and culture of subordinates. Leadership and management happen to be two distinct functions. However, for one to become a good manager, his or her leadership technique needs to take into consideration the strengths involved in various skills and personalities within the workforce.  This leadership style helps in ensuring that managers reinforce psychological contracts in a successful way during their interaction with their subordinates. Effective managers always work towards the adoption of leadership techniques that prioritize the needs and expectations of all employees. Attending to the needs and interests of subordinates acts a significant step towards the realization of the psychological contract between managers and employees (Sayer et al, 2011). According to the Maslow’s Hierarchy of needs framework, individuals have various needs that they often try to satisfy or address in their work. Lower needs should be addressed prior to satisfying higher level needs. As such, managers should focus on satisfying the lower needs of their subordinates before they embark on addressing higher level needs of these workers, which is significant in demonstrating their concern for workers. Moreover, the argument of the two-factor theory is that when basic hygiene needs or wants are not satisfied, employees usually become dissatisfied (Sayer et al, 2011). As such, managers should aim at satisfying such needs as ignoring them always lead to the breaking of psychological contracts in the workplace.

Breaking or Reinforcing Psychological Contract Leading by Example

According to the behavior theory, individuals should play a role in the realization of motivation. Subordinates always perform their tasks better when they have the feeling that their management is concerned with them. As such, the reinforcement of psychological contracts in workplaces can be enhanced when leaders demonstrate appropriate behaviors that indicate their concern for their juniors. Managers are often expected to act as role models to their juniors. Therefore, managers should ensure that the portray actions and behaviors as subordinate often tend to emulate their leaders’ actions. In relation to this, managers should ensure that they demonstrate positive attitudes towards work, honesty, and empathy among other traits (Wren & Bedeian, 2011). Employees’ expectations, trust, and loyalty are realized in working environments in which leaders empathize with their workers’ feelings and situations, express concern and love for their work and act in an honest manner. Such actions help in building the confidence of subordinates in their leaders, which in turn encourage such employees to work hard towards the realization of a firm’s overall goal. In this manner, the psychological contract between leaders and subordinates is often established in a successful manner (Sayer et al, 2011). On the contrary, who do not lead their juniors by example often lead to the breakdown of psychological contract as was in the case of Owen.  Despite Owen caring for the concern of his workers he failed to lead by example, which led to him breaking down the psychological contract. Leaders who express little concern for their subordinates alongside lacking the aspect of transparency usually leads to the breaking of the aspect of psychological contract in their workplaces. Lack of transparency and concern for the needs and interests of workers usually lead to the erosion of the confidence that employees have in their leaders. Employees in such working environments always develop the tendency to mistrust their leaders or management in relation to the ability of such management to fulfill their needs or meet their expectations. As a result, the motivation of employee is often lowered, thereby leading to issues such as absenteeism, lack of commitment to work and low productivity on the part of workers.

When workplace professionalism transforms into a standard procedure, the performance of employees often improves as the workforce is proud of the way which they execute their duties and interact with external and internal consumers. Subordinates are usually placed at a suitable position of exceeding their job expectations when they have a high sense of pride and satisfaction in their work. This aspect can be accomplished when managers demonstrate the behaviors and actions that instill confidence, trust, and pride in their employees (Sayer et al, 2011). Managers should also ensure that they praise their juniors for the jobs well done and efforts such employees put in accomplishing their tasks. In addition, managers should ensure that they are involved in the provision of constant feedback to their subordinates as such an undertaking it significant in the realization of effective leadership, which is essential for the establishment of psychological contract in workplaces.

Breaking or Reinforcing Psychological Contract Rewards or Improved Incentives

Managers need to ensure that they reward subordinates whose performances exceed expectations. Besides, leaders should establish performance improvement programs or plans for subordinates whose performances are below expectations. Integration of efficient reward systems in the workplaces acts an appropriate mechanism of reinforcing psychological contract. Taylor played a vital role in revealing the significance of improved incentives in enhancing the motivation of workers and reinforcing the psychological contract between managers and employees. When workers are rewarded for their efforts in work, such workers often strive to increase their productivity as they feel appreciated. According to the expectancy theory, individuals often work hard when they expect to the rewarded for their efforts in an effective manner (Jaclyn et al, 2010). In contrast, employees who do not expect to be rewarded adequately for their efforts in work cannot demonstrate hard work, which contributes t the disintegration of psychological contract in workplaces. Managers can reinforce psychological contracts by engaging their subordinates in the establishment of plans or programs that will enhance their worker’s skill sets. Investing the energy and time in establishing the workforce is associated with significant returns. This leadership activity also demonstrates to subordinates that the manager has a vested interest in them, which translates into the robust psychological contract. As a result, the employees can experience high levels of job satisfaction, thereby raising the standards of job satisfaction among workers (Ng & Fieldman, 2009). On the contrary, job satisfaction, which is a suitable indicator of a robust psychological contract, cannot be accomplished when managers do not express or demonstrate to subordinates that they have vested interests in such employees by employing mechanisms such as rewards. This aspect was evident in the case of Max Weber whose theory of hunter and gather disabled him from reinforcing the psychological contract as it was not founded on merit. As such, workers had no source of motivation despite their efforts in work, thereby making most of these employees to lack commitment to work.

Breaking or Reinforcing Psychological Contract Communication and task management

Taylor embraced the aspect of effective communication, which advocates for leaders to be consultants as well. Effective communication has been noted to be a significant contributor to the realization of psychological contracts in workplaces. As such, managers should ensure that they are involved in constant communication with their subordinates. Leaders should always ensure that their juniors are aware of issues such as organizational change, job expectations, and work policies. When subordinates have the feeling of being valued by the management, they often tend to register high levels of performance (Wren & Bedeian, 2011). Besides, such workers always work well in a cohesive and collegial way. In the absence of leadership communication, workers can feel devalued and unimportant even when the absence of communication is unintentional. This aspect can lead to the disintegration of psychological contract in workplaces. As such, managers should ensure that they share all the relevant information about their organizations with their subordinates. This undertaking is also vital in enhancing workers’ understanding of their role or duty in the overall objectives of the business. Taylor demonstrated that the elements of effective communication can be employed in obtaining views of workers, which contributed significantly to his assigning of different tasks to various employees based on the workers’ levels of skills. When tasks are broken down into various portions, the efficiency of work is often improved. As a result, workers always feel empowered, thereby leading to increased productivity.  In addition, this approach is significant in ensuring that there is a fluid exchange of opinions between the manager and subordinates. Effective communication ensures that managers are involved in managing their subordinates by focusing on objectives, employee participation, and empowerment (Wren & Bedeian, 2011). These approaches are vital in ensuring that the manager reinforces psychological contract in their workplaces as they increase the level of employee involvement and commitment in the organizational workforce.

Breaking or Reinforcing Psychological Contract Conclusion

Psychological contract acts as a significant element in organizations as it has a direct effect on the performance of employees. Reinforcement of psychological contract in organizations leads to high motivation on the part of workers, which increases the productivity of the company. On the other side, breaking the psychological contract leads to low motivation on the part of workers, thereby decreasing a firm’s productivity. Managers can reinforce psychological contract during their interaction with their subordinates by leading by example, rewarding hardworking employees, focusing on the well-being of workers, breaking down tasks and communicating with their subordinates in an effective manner. When managers do not focus on the welfare of employees, reward hardworking ones, communicate with their juniors in an effective manner, and lead by example, they can lead to the breaking of psychological contracts in their workplaces.

Breaking or Reinforcing Psychological Contract References

Dejours, C. (2014). “Work and Self-Development,” Critical Horizons, 15(2), pp. 115-130.

Sayer, et al. (2011). “When Employees Engage in Workplace Incivility: The Interactive Effect of Psychological Contract Violation and Organizational Justice,” Employee Responsibilities & Rights Journal, 23(4), pp. 269-283.

Jaclyn, et al. (2010). “Psychological Contracts and Counterproductive Work Behaviors: Employee Responses to Transactional and Relational Breach,” Journal of Business & Psychology, 25(4), pp. 555-568.

Ng, H & Fieldman, C. (2009). “Age, Work, Experience, and the Psychological Contract,” Journal of Organizational Behavior, 30(8), pp. 1053-1075.

Wren, D & Bedeian, A. (2011). “The Evolution of Management Thought.” Hoboken, New Jersey: Wiley

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