Psychological contract in the contemporary organisation essay

The Psychological Contract represents, in a basic sense, the obligations, rights, rewards, etc. This notion applies to a group of employees or a workforce, just as it may be seen applying to a single employee.

Psychological contract in the contemporary organisation essay

The organisation has introduced a high commitment model which offers training and development to all employees. They have developed their culture through extending their logo every little helps to prove their commitment to employees as well as to customers.

This has proved a world class model and very successful for the organisation. Organisations are implementing strategic HR as a change agent, not to replace an out dated personnel department. Although there is still evidence within the UK that once these interventions are implemented, they just replace the role of the personnel department.

To be effective HR belongs on the board of an organisation. The role of HR within the organisation has increased in importance. Their practice of training and the importance of HR will be reviewed with the current theory. This organisation was chosen, through their introduction of strategic HR policies, which has led to an increase in business.

This has demonstrated they are a first class provider of training to their employees, and has given scope for the organisation to expand into new markets. Recently they have expanded into the financial services offering customers products from Credit cards to insurance.

All their products are available on the internet 24 hours a day. Their slogan every little helps is used to show their commitment to customers, this has been used to reduce prices and to increase the level of customer service.

This slogan is now used in their staff training, that any intervention will increase the knowledge of the work force. The organisation is widely reported in news papers, this is due to the success of the business.

They are rapidly expanding in the UK with the opening of their Metro stores and into new and foreign markets. This has taken a great deal of their resources in the planning and implementing stage of expansion.

The core units need to remain focused, to retain the reputation they have built. Reinforcing the culture and values through training will focus employees on their roles.

Psychological Contract | Factsheets | CIPD

Tescos HR policy This section will report on the organisations HR policies, the information is taken from current articles and their web site which is outlined in the appendices. The company takes almost one of every three pounds spent in a supermarket, and more than one of every eight pounds spent on the High Street.

Tesco ensures that each and every employee has the opportunity to understand his or her individual role in contributing to the Tesco core purpose and values. This requires an innovative induction programme that caters for different cultures, styles of learning and varying commitments to the job.

The frontline employees are considered the ultimate reflection of Tesco to its customers, but all employees have a very important role to play in turning core values and customer commitment into reality on a daily basis Whitelock, N.

The training creates a graphical journey through the history of Tesco, its core purpose, values, business goals, financial aims, operations and marketing strategy and its commitment to customers. All employees are receiving more training than before Whitelock, N. A human-resource-led business strategy has helped Tesco to take the lead over its rivals in the fiercely-competitive UK supermarket sector.

Future concentrates on providing a clear way of defining roles, responsibilities and activities. The system guarantees that all employees are responsible, accountable, consulted and informed.

A group of 13 key management techniques is used to improve the core skills of the workforce. The techniques include root cause analysis, problem solving, plan-do-review, situational leadership and coaching for high performance Anonymous For the first time, people have been made a core element of strategy.


The importance of this strand of the project has been recognised by putting a senior director in charge. Quarterly board meetings always review human resource issues.

Tesco now tracks human-resource information as closely as financial results Anonymous Looking ahead, Tesco intends to continue its emphasis on increasing the skills of its workforce. The firm aims to make learning into a truly integrated part of its culture, as an important way of developing organisational flexibility and remaining one step ahead of its rivals Anonymous Recognition of the importance of HR in the UK has increased in recent years; this is a result of competition from overseas economies.

In countries for example Japan, Germany and Sweden investment in employee development is higher that the UK.This essay will critically discuss the importance of ‘managing’ the psychological contract and the challenges associated with doing so in context of the contemporary employment relationship.

It will analyze the literature produced over the years in this topic area, finally coming to a conclusion. International Journal of Business and Social Science Vol. 3 No. 19; October Effect of Human Resource Management Practices on Psychological Contract in.

A failure to manage the psychological contract can result in perceptions by employees that the organisation and its managers have broken the contract, which can increase levels of stress and the negative impacts of stress on organisational outcome (Houston et al, ).

Psychological Contract is an abstract contract that affects both employers and employees, a subtle contract without speaking or writing, contains assumptions and expectations from each party towards the other (Rousseau ).

Psychological contract in the contemporary organisation essay

It identifies ways that managers can bolster the psychological contract and its impact on broader organisation strategy. The factsheet also considers the role of HR in . Subsequently, this essay will not only clarify how the psychological contract is defined and how it is evaluated and applied in organisations in reality but also answer the question why a psychological contract is considered as so important in the management of the contemporary .

Tesco Human Resources Management - Free Business Essay - Essay UK