Employee Relations: Perspectives, Psychological Contract, and Employee Voice

This document discusses different perspectives to manage employee relationships and the balance of power between individuals and management. It also explores the concept of the psychological contract and its effects on employee performance. Additionally, it highlights the importance of employee voice in both unionized and non-unionized contexts and how it contributes to improving organizational performance.

EMPLOYEE RELATIONS

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................1
TASK 1.................................................................................................................................................1
1.1 Different perspectives to manage employees relationship and the balance of power
between the individual and management....................................................................................1
1.2 Psychological contract and its effects on employee performance........................................2
1.3 Employee voice in both unionized and non-unionized contexts and how these contexts
improve the organization performance.......................................................................................3
REFERENCES.....................................................................................................................................5

INTRODUCTION
Human resource is the biggest asset to every organisation. Employee performance plays
major contribution in the development of the firm. The success and failure of the firm depend on
the employee's working attitude and relationship which further contribute in earning profits. For
maintain good environment in the firm, it is required to create a healthy environment at the
workplace. The present report is based on different perspectives of workers toward their work
and individual management. It also includes the psychological contract between the manager and
employees. This will further discuss about the employee relation and organizational performance
in the competitive business world.
TASK 1
1.1 Different perspectives to manage employees relationship and the balance of power between
the individual and management
For the better development of employees, company uses different types of perspectives
which are explained as follows:
Unitary perspective- In this, organization treats its staff members as their family and tries
to create a happy and comfortable environment into the company. The main objective behind this
approach is that all the workers work together and create a mutual understanding among all
(Leroyer, Edmé and Frimat, 2011). In this approach, workers participate in decision making, give
their ideas and views related to the topic and also emphasize on the team work. This perspective
also includes the staffing policies which are favourable for the employees. They provide
incentives and rewards to them for their better work. Thus, unitary perceptive is basically for the
worker’s development and to improve the quality of team work.
With the help of unitary perspective, company increases the employer and employees
interest towards work in order to increase the loyalty and trust among them (Detert and Treviño,
2010). It also emphasizes on decision making power of the team leader. With the applicability of
this perspective, company develops the relationship between all the workers and create a healthy
environment at the workplace.
Pluralistic perspective- In this perspective, company divides employees work into the
groups and every group have team leader who guides all the other team members (Bennett and
Kaufman, 2011). The main reason to apply this approach is to create a better relationship
1 | P a g e

between the employee and the leader. The main strength of this perspective is it is the best way
to know about the positive and negative points of individual. In this, leader allots the work as per
worker’s interest and guides them accordingly. By doing this, they can easily manage their work
and improve their working quality. In order to foster better relationship, employees give their
idea and suggestion and thereby provide their valuable and creative suggestions to the
management in the absence of their team leader.
It is very important for the organisation to create a good relationship between the worker
and boss. This helps in improving the quality and brings effective coordination. For the better
balance, it is very important to improve the communication process in the organisation because
with the bad interaction, lots of misunderstanding developed which puts adverse impact on the
work (Pyman, 2010). Moreover, it is important to encourage the team members with motivation
speech. The manager of the company can also take a feedback from their workers so as to know
about the problems of their employees. By this, they can work efficiently to solve their problems.
For the better relationship between manager and workers, it is crucial to take a concern nature for
each other. In this, managers have to try to understand the employee’s problem related to
workplace violence, security etc and then give a positive feedback to them. It helps to provide a
clear vision and mission to employees so that they can know about what they have to do for
achieving them and guide them in their work by taking motivational classes time to time. By
applying all these things, organisation can create a good relationship between the workers and
the management person.
1.2 Psychological contract and its effects on employee performance
It is a relationship between the employer and employee in which, employer put some
expectation from their mentor or leader (Danish and Usman, 2010). In this contract, organisation
shapes the need and desire of their employees and guides them in their work. Here, contract
worker has to give some answer to their leader, which are based on, how the worker should be
treated by their owner and employees like their job or not. For the better performance of
employees, this contract is very important as it follows some criteria which are explained as
below:
Firstly, in this contract, employer discusses about their likes and dislike with their
employee and accordingly they are provided with their interest of work. The manger divides
their work into the group and provides them one mentor which guides them into their work and
2 | P a g e

also raises their knowledge. After all this activity takes a time to time feedback from them which
are based on their working environment, work related problem and the salary (Shekar and
Reddy, 2011). With the help of feedback, manager evaluates the problem and solves them with
appropriate solutions pertaining to the problem. Psychological contract is the best way to analyse
the worker’s performance and it also provides a solution which is related to problem. It also
increases the analysis power of the manager and also decreases the misunderstanding which is
related to the communication. This contract also increases the loyalty power of both the parties
and also provides an open communication which can easily helps in clearing their doubts and
maintain their relationship.
Formation of psychological contract
This contract is based on the expectation, trust and promises. This enable employee and
manger understand each other needs and desires to give their effective suggestion on it (Skakon,
Nielsen and Guzman, 2010). Contract is formed in two ways which are explained as follows:
Transaction- It is based on monetary and economy terms and conditions. In this,
employee expects financial help from the organisation.
Relation- As per the contract, ideas and views are shared with each other in order to
support and maintain the interpersonal relationships.
Maintaining the physiological contract is based on the positive employee relationship.
For the better contract, it is necessary for both the parties to share their views, ideas and maintain
the communication. Without good communication skill, lots of misunderstanding generates
which creates unnecessary issues (Guangling, 2011). For the management department, it is
important to judge all the employees equally and do not compare them with each other because;
every person has his/her different working skills. In an attempt to maintain better contacts with
each other, it is necessary to divide work as per worker’s capacity and take feedback from them
on regular basis. By applying all these things, organisation maintain the balance into its all the
departments.
1.3 Employee voice in both unionized and non-unionized contexts and how these contexts
improve the organization performance
Employee’s voice can change the system of an organisation. It is planned with the
appropriate voice system implemented by company to raise their system and make employees
3 | P a g e

comfortable. For the better organisation performance, voice system is divided into two parts
which are explained as follows:
Unionized Employee Voice- The voice of employees is used for consultation and
collective bargaining. In this, all the employees make a union and protect against the negative
things. For example; if company does not provide them good and healthy means to work, them
the union raises their voice and fight against the problem (Gumpil, 2012). With the help of his
system, Company creates a helpful environment and also raises the unity power among them.
One of the best benefits of union employee voice is that they work together and raise the profit to
enjoy better wages. This support system creates a team spirit and supports each other in their
down falls. It also raises their work experience in different fields and also provides them job
security because; they all do their work in team and by this; they always stay ready to support
each other in their difficult time.
Non-unionized employee voice- In this, all the workers do their work by their own and
their decision and the perceptive do not depend on each other. Manager allot them work on the
basis of their working capacity. By this, they evaluate their performance level effectively (Bal
and Rousseau, 2015). The main point in the voice system is that all the workers fight for their
right by their own while nobody supports each other on their fights. But on the other side, this
system is good because by this; they know their weak and strong points and then work on it.
After all these, employees raise the business standard individually and provide their thoughts and
idea to the employer.
With the help of this voice system, company can easily know their worker’s capacity and
their behaviour toward the company. By applying these activities, organisation can easily
achieve their goal and also raise the standard of their employees (Leroyer,Edmé and Frimat,
2011). By doing work together, they increase their working capacity and knowledge which is
very beneficial for the company. With the help of this, employees can give their suggestion by
the feedback so organisation changes their working environment and easily achieve their
business objectives.
4 | P a g e

REFERENCES
Bal, M. and Rousseau, D. M., 2015. Idiosyncratic Deals Between Employees and Organizations:
Conceptual Issues, Applications and the Role of Co-workers. Routledge.
Bennett, J. T. and Kaufman, B. E. 2011. What do unions do?: a twenty-year perspective.
Transaction Publishers.
Budd, J. W., Gollan, P. J. and Wilkinson, A., 2010. New approaches to employee voice and
participation in organizations. Human Relations. 63(3). pp.303-310.
Danish, R. Q. and Usman, A., 2010. Impact of reward and recognition on job satisfaction and
motivation: An empirical study from Pakistan. International journal of business and
management. 5(2). p.159.
Detert, J. R. and Treviño, L. K., 2010. Speaking up to higher-ups: How supervisors and skip-
level leaders influence employee voice. Organization Science. 21(1). pp.249-270.
Guangling, W., 2011. The study on relationship between employees’ sense of organizational
justice and organizational citizenship behavior in private enterprises. Energy Procedia. 5.
pp.2030-2034.
Gumpil, J., 2012. A study on the relationship between employees' perception on training benefits,
affective commitment and work performance. (Doctoral dissertation, University Malaysia
Sabah).
Leroyer, A., Edmé, J. L. and Frimat, P., 2011. Neck, shoulder, and hand and wrist pain among
administrative employees: relation to work-time organization and psychosocial factors at
work. Journal of occupational and environmental medicine. 48(3). pp.326-333.
Pyman, A. and et.al., 2010. Industrial relations climate, employee voice and managerial attitudes
to unions: An Australian study. British Journal of Industrial Relations. 48(2). pp.460-480.
Shekar, B. C. and Reddy, C. V. K., 2011. Oral health status in relation to socioeconomic factors
among the municipal employees of Mysore city. Indian Journal of Dental Research. 22(3).
p.410.
Skakon, J., Nielsen, K. and Guzman, J., 2010. Are leaders' well-being, behaviours and style
associated with the affective well-being of their employees? A systematic review of three
decades of research. Work & Stress. 24(2). pp.107-139.
5 | P a g e