Question1: Precarious Work Environment and the State of Psychological Contract
Psychological contract refers to the beliefs held by individuals regarding promises made and accepted between themselves for their common interests. In a work environment, psychological contract of workers varies considerably. In many cases, there remains a big spasm between actual physical contract and psychological contract (expectation from the other party). The ultimately goal of any organization is to bridge the gap between actual expectation and perceived expectation (Sharkie). However, in dangerous or precarious work environments such as Steel foundries, Ice manufacturing, police job, fire-fighting, meat packaging and other heavy manufacturing, the state of psychological contract is often different from that of the service industry.
Most of the precarious work environments employ less educated and cheap labor. In a physical contract, the only details clearly stated are hours of work, type of work and wage (Karagonlar Eisenberger and Aselage). However, for other areas, the physical contract varies considerably from psychological contract. For example, a study conducted on steel industry found out that most of the employees working in this industry believed that they were working in a safe workplace and if something happened, then they and their families would be duly compensated by the company with the required free medical service (Mazur). However, they were ignorant of the fact that at the time of joining the respective company, they signed an agreement that the company is liable to pay only up to a ceiling of $200,000 in case of an accident (Karagonlar Eisenberger and Aselage). Additionally, workers were not allowed to see any other doctor apart from the one employed by the company.
Safety and trust is an area where the psychological contract varies considerably from physical contract. Employees working in precarious conditions for large organizations often think that they are provided with all the safety equipment and they are protected against any possible harm coming from the manufacturing process. However, on the other hand, some workers working in the same environment may consider their work environment unsafe (Mazur). A study conducted on the meatpacking workers in Nebraska revealed that most of the employees were happy with the safety and care standards maintained by the company. However, employees involved with the union were not specifically satisfied with the safety condition of the work environment (Mazur). This difference in psychological contract among employees working in the same condition is not uncommon and depends on the amount of knowledge they have. In this case, since the unionized workers had better knowledge about the workplace condition than others, their expectation as regards the safety standards were high.
Work life balance and overall well-being of the workers is another big issue in the precarious work environment. Employers think additional benefits (wages) and other perks are enough for workers to be willing to work in a risky work environment. Employers feel that they are doing their best to take care of their employees (Karagonlar Eisenberger and Aselage). Employees, on the other hand, hold a completely different take on the situation. Their psychological contract may demand more from their employees. Apart from compensation, workers working in precarious work environment often require more number of paid leaves and better medical care than that of normal workers (Karagonlar Eisenberger and Aselage). Workers often feel unappreciated by the line managers and supervisors despite all the hard work they put in while working under such poor work condition. They feel that monetary compensation alone is not sufficient for staying motivated. This creates a huge gap in psychological contract between employers and employees. Overall, owing to miscommunication and gap in social and psychological contract, the trust level between employers and employees diminishes drastically (Sharkie).
The gap in physical and psychological contract is an issue for employees working under hazardous conditions. Some of the industries are trying to change the environment through better communication, visibility, work-life balance initiatives and work environment.
Question 2: HR Role in managing individual, group and organization
Human resource in many organizations is still considered to be an overhead. However, with more focus on resources to create competitive advantage, the role of HR has expanded significantly. HR no longer pays the traditional role of hiring, promoting and firing employees.
HR plays a dynamic role to develop individual employees within an organization. The role of human resource begins with talent recognition and identification. It is the duty of the HR to create a process of recruitment to match the demand with proper resources from the market. A world class recruitment process not only focuses on interview and salary to match demand and supply, but also tries creating a brand promotion around the role so that best talents available in the market feel encouraged to apply (Melo). HR is responsible for conducting regular performance review and deciding on short term salary increases and long term promotion planning and career path. As per the career path and dynamic changes in technology, HR is also responsible for creating training curriculum for individuals. HR can create effective training and knowledge sharing plans by involving line managers of the employees. The main aim for HR is to create a pool of resources that are well trained and motivated (Melo). HR also needs to align individual expectations with organizational expectations for effective results.
Famous Hawthorne study suggests that group behavior and group dynamics play a big role in employee satisfaction and employee productivity (Melo). Therefore, it is important for the HR to create a group based strategy. Group behavior needs to be inculcated in the organization for consistency and uniformity across the organization in terms of rules and regulations. Enhancing a group culture will improve employee’s sense of belonging to the organization and the attrition rate will decrease (Melo). The HR’s task is not to create formal groups only but also to create informal groups. A group culture within the organization will invite the flow of ideas and capabilities essential to solve a complex task. The HR needs to determine optimal group size for effective group behavior without the “loafing” effect (Melo). The main aim for the HR is to ensure that the group’s culture is nurtured whenever necessary based on common or complementary skillset and innovative and open organizational culture.
The role of the HR at organizational level is often ignored. However, the HR needs to take an active part in devising organizational strategy as resource (employees) plays a big role in implementing the strategy in practice. Based on the organizational strategy, the HR should align its strategy for individuals and groups during recruitment, talent management, training plan and growth plan (Pollack & Pollack). At organizational level, the HR is responsible for succession planning and corporate communication. Proper succession planning can create a smooth transition from one leadership era to another, which is essential, because it has been observed than improper succession severely affects organizational performance. Corporate communication is another function of HR. This is done at organizational level to ensure a smooth flow of communication from leaders to the internal stakeholders such as employees and vendors and also to the external stakeholders such as customers, regulators and financiers. Proper corporate communication helps create a culture inside an organization and it creates and preserves a corporate brand image to the outside parties (Pollack & Pollack).
Question 3: Leadership Styles
Transactional leadership style is the most common form of leadership style in the present day corporate world. This style starts with the idea that when team members accept a job, they agree to obey their leader (Humphreys). This is called transaction style leadership because here leaders (representative of an organization) pay team members in return for their compliance or effort (transaction). Transactional leaders motivate their team members through rewards and punishment (Humphreys). Transactional leaders are extrinsic motivators that bring minimal compliance to the followers. Transactional leaders are action oriented and directive. Transactional leader works well within an organizational culture. Transactional leaders appeal to the followers through their own self-interest. Reward is the main weapon of transactional leaders. However, many successful transactional leaders have successfully used punishment and management-by-exception techniques for better organizational outcome. There are many examples of transactional leaders, such as Wisconsin Senator John McCarthy, Charles de Gaul, Norman Schwarzkopf, Vince Lombardi and Bill Gates (Humphreys). Most of the coaches and military leaders use the technique of transactional leadership while motivating their followers. General Norman Schwarzkopf is one of the good examples of transactional leader. General Norman Schwarzkopf was an advisor to the South Vietnamese Army during the 1960s and 1970s. During the war he was wounded twice and was awarded three Silver Star medals for bravery in the battle. In 1978, he became Brigadier General and then became the Commander in Chief in 1988. He was known for his superior discipline and conformance to order. He ensured that all officers are rewarded properly for following orders and achieving success. He also used punishment methods such as show-cause, temporary suspension and even expulsion from military for non-conformance to his orders (Humphreys). His style of transactional leadership was one of the main reasons for the American military’s success against all odds in operation desert storm.
Transformational leadership style is a style of leadership where the leader works with employees to identify the needed change and create a vision to guide the change through execution and inspiration (Pearson). Transformational leaders enhance motivation of the followers through mechanisms such as connecting to the follower’s sense of identity, being a role model for followers in order to inspire them and raise their interest in an endeavor. Transformational leaders challenge their followers to take greater responsibility and ownership. Transformational leaders use these techniques to influence and motivate followers. Some of the transformational leaders serve as an ideal role model for followers. Such leaders ’walks the talk’ (Pearson). These leaders are admired for this quality. Transformational leaders also have the charisma to inspire and motivate followers. John F. Kennedy is often cited as a charismatic leader (Pearson). Transformational leaders demonstrate genuine concern for their followers. Some transformational leaders give personal attention to the needs and feelings of each follower, because they believe that it is the key to bring out the very best in followers. Transformational leaders inspire their followers to be continuously innovative and creative (Pearson). Extraversion, neuroticism, openness to experience, agreeableness and conscientiousness are some of the characteristics of transformational leaders (Pearson). Nelson Mandela, Franklin Roosevelt and Steve Jobs are some of the best examples of transformational leaders. Nelson Mandela was a leader who ‘walked the talk’. He not only followed a great vision for his country but also continuously challenged his followers to live up to the expectation. He was forgiving in nature and understood the influencing power of symbolic gestures. Immediately after his release from jail after 27 years, he exhibited this quality through his statement, “I am working now with the same people who threw me into jail, persecuted my wife, hounded my children from one school to the other and I am one of those who are saying: Let us forget the past, and think of the present.” (Pearson). In this global and more complex environment, more transformational leadership is required to create a world full of peace and harmony. In the business environment, transformational leaders can create sustainable advantage through continuous motivation and challenging the limits.
Works Cited
Pearson, Carol. The Transforming Leader. San Francisco, CA: Berrett-Koehler Publishers, 2012. Print.
Humphreys, John H. Transformational, Transactional, And Laissez-Faire Leader Behavior And Constructive Thinking Ability. 2000. Print.
Karagonlar, Gökhan, Eisenberger, R and Aselage, J. "Reciprocation Wary Employees Discount Psychological Contract Fulfillment". Journal of Organizational Behavior 37.1 2015. 23-40. Print.
Mazur, Karolina. "The Dynamics Of Psychological Contract Between Employee And Organization. The Analysis Of Selected Factors". Management 16.1 2012: Print.
Mello, Jeffrey A. Strategic Human Resource Management. Australia: South-Western College Pub., 2002. Print.
Sharkie, Rob. "Precariousness Under The New Psychological Contract: The Effect On Trust And The Willingness To Converse And Share Knowledge". Knowl Manage Res Pract 3.1 2005: 37-44. Print.
Pollack, Julien, and Pollack, Rachel. "Using Kotter’S Eight Stage Process To Manage An Organisational Change Program: Presentation And Practice". Systemic Practice and Action Research 28.1 .2014: 51-66. Print.
