Motivation Theories & Psychological Contracts in Human Resource Mgt

This report delves into the strategic importance of human resource management, emphasizing the effective management of human resources through various strategies, theories, and methods. It highlights the role of motivation process theories, including expectancy theory, goal-setting theory, and reinforcement theory, in enhancing employee performance and organizational success. Furthermore, the report discusses the significance of psychological and employee contracts in establishing clear expectations and fostering positive relationships between employers and employees. The psychological contract, encompassing transactional and relational aspects, is contrasted with formal employee contracts, underscoring the importance of mutual understanding and communication in creating a productive work environment. Ultimately, the report concludes that a comprehensive understanding of these theories and contracts is essential for achieving organizational goals and maintaining a harmonious workplace.

Introduction to human
resource mgt & learning
& talent development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................4
Three motivation process theories and their role in the organization..........................................4
Psychological and employee contract and the psychological contract is important in
organization..................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management process is strategic approach which is prepared for the
management of human resource in the company with effective manner. Recruitment and
selection of employee is essential things but the proper talented people and effective employee
hiring wants impressive and methods and relationship between employee and employer makes
more effective organization. (Song, Y. and Wu, R., 2021). This report will show that how
organization can properly manage their HR management with the application of strategies,
theories and methods. Also, this study gives idea about the development of talented individual in
company.

MAIN BODY
Three motivation process theories and their role in the organization
Motivation is essential for better and effective employee management for long term,
every organization believes in creative human resource management. Motivation process
theories develops the quality of employee because it's generate the individual motivation with
effectiveness. Human resource management overall activities not only depends on the company
HR manager, it also depends on individual department leader who guide the employee (Hribar,
Visković and Bole, 2021). So basically management of proper human resource is long-term
activity for the organization Motivation process theories gives clarity that how industry can
manage human capital for improve or increase the profit. So, the motivation process theories and
their role in business are as follows,
Expectancy theory:
This theory is clearly shows the individual behaviour in the workplace, almost every
individual thought that effective and hard work provide rewards, increments. On the basis of this
theory people develop and increase their work efficiency for their satisfaction. This theory is
basically defined that individual more powerful perform when they have this type of motivation
that when they do their work effectively they achieve prices, gifts, rewards. Successful
management of human resource is also depends on this type of motivation theory according to
this theory people behaviour will directly shows their work power and their quality of
performance in organization so that is the reason company has to timely prepares new policies
for the individual success. The best pat of this motivation process theory is that it develop the
knowledge of employee wants and needs satisfaction with active performance. Higher
motivation is directly increase the organization profit, and it develops the overall business
performance (Wuryani and et.al., 2021).
Goal setting theory:
According to the Edwin Locke, they believe in this motivation process, when the
organization wants to increase their business they should have to prepare proper and effective
goal plan. Proper plan is provide more efficiency in individual work culture. They believe that
when organization set any goals it should be realistic, reliable, specific and achievable by their
employee. Employee knows about the changes and new method expansion. This theory is gains
confidence in individual employee performance for the goal achievement. It motivates for new

aim setting and completion it with effective manner. Perfect knowledge of this motivation
process theory gives five stages that employee follows there stages, and they can impressively
achieve the goal for the organization with given time frame. The organizations, industries wants
positive result from their employee, this is the best key for motivation to the employee. And the
most important aspect is that the organization can increase the quality of individual human
resource with this motivation tool.
Reinforcement theory:
This theory was prepared by Skinner, they give knowledge and clear image about that
how external factors are affects the employee motivation. Company has to makes framework and
design structure according to the proper knowledge of macro environment factors which are
directly affects the individual performance. Because changes in environment directly impact the
origination overall performance and activities, so people motivation get affects from the
diversification in environment. The owner, manager and leader consider some aspects to
motivate their employee, first is that the positive reinforcement which means immediately
motivates the employee when they perform their job well. Second is negative reinforcement
distracts the employee work behaviour. Implication of this theory business owner believes that
after completion of the goals then gives rewards, before completion of aim is not gives effective
result. Reward provides to individual with simultaneously. So this type of motivation is gives
surprises to the employee, and almost every individual wants surprises from the organization
when they perform well (Rodrigo and Palacios, 2021).
The organization wants to know about these theories because of their efficient success
and their goal. Motivation removes the break and disappointment from the employee, also it
develops the efficiency in individual work culture. Because the reward, increments, gifts, prices
individual influence their activities with proper manner. And it definitely improves the overall
company performance.
Psychological and employee contract and the psychological contract is important in organization
Psychological contract which could set out the high expectation and promises from the
employee. Along with this also exchange their parties between the employee relationship. While
these parties can include such as individuals, employee and other working staff. Unlike, formally
this could create better system for working with high expectation and make sure for knowing
about their process for which the employee can work (Zhao and et.al., 2020). Moreover, this can

be determined with having the efforts about what that could deal with and how they are usually
thinking about those concepts. Rather than employee contract, psychological contract that could
keep the employee relationship and easily make sure for having their effective possible things
and that could also essential for taking their high exists working relationship between employer
and employee.
As psychological contracts follows up the various types of contracts such as
transactional, relational. While in which they usually keep their proper communication and
working structure for which the high goals and objective. Moreover, this might be also important
for keeping their relationship and make sure for having their terms and condition in which they
are working for being more possible (Yeung and Shen, 2020). Formal contract that could
generally in form with written and official and dominated more about their employer
expectation. Furthermore, this could usually keep their employee for working with more process
and make sure for having their identification in working process. While this might be play the
important role for which the career and organization terms can be created.
Employee contract means this take place with having legal business relationship between
employer and employee. Therefore, this contract that could be based on the rules and
responsibilities for which both parties can work and easily make sure for having their high
effective logical terms and make their ore rule for working process (Arasli and Arici, 2020). For
example, set the function for the employee will perform and salary for the employer agree to pay
in return. However, there are many references for the employee contract such as job, work
contract, employment agreements, contract of services etc. While this could also involves some
of the elements : compensation, employee, employer, position, benefits, start date and so on.
Additionally, employee contract give their employee to give many certain values and make their
amount for certain quitting. So that could be easier in hiring the employee and providing them
with some proper training.
A written document for the employee agreement which might be important for taking
their proper termination and make sure for having usually implied. While this might be also
essential for taking their effective roles and quit any time, as employer is free to fire their
employee (Hosseini and et.al., 2021). Employee contract offers more legal protection for the
both employee and employer. This could help employee for working with their high termination
stop and make sure for securing about their jobs. In event disputes, both the parties are willing to

original terms agreed for the beginning of their working relationship. Along with this also led
them for working with more effective roles and regulation.
Organziation maintain the various aspect that they manage their employee work culture
and their behaviour with fine manner. The quality of this contract is that the employee behaviour
influence the organization day to day activities and productivity, which means the knowledge of
individual activities can improve the balance and relationship between employee and manager.
The psychological contact decrease the communication gap, because individual thought
according to their psychology that the other people what things about it. So the management of
human resorts management mainly applies that its essential that clarify the overall plans with
proper way so the individual don't have any doubt when they perform for particular task. It
represents the mutual beliefs between the employee and employer. Better understanding between
both gives efficient results and it also develops job work culture and environment where people
are happily perform the activities.

CONCLUSION
It has been summarized form the above study that development of effective management
wants the knowledge of theories, methodologies give more impressive result for new goal
achievement, and according to recent trends psychological contract in smooth run business
activities for the employee relationship is essential at workplace. This report has been given idea
that how individual performance generate the new opportunities for the organization, because of
the application of motivation process theories. Theories of employee motivation beneficial for
the achievement of aim with easier manner.

REFERENCES
Arasli, H. and Arici, N.C., 2020. The effect of nepotism on tolerance to workplace incivility:
mediating role of psychological contract violation and moderating role of authentic
leadership. Leadership & Organization Development Journal.
Hosseini, S.A. and et.al., 2021. The Effect of Perceived Corporate Social Responsibility and
Sustainable Human Resources on Employee Engagement with the Moderating Role of
the Employer Brand. Employee Responsibilities and Rights Journal. pp.1-21.
Hribar, M. Š., Visković, N. R. and Bole, D., 2021. Models of stakeholder collaboration in food
tourism experiences. Acta geographica Slovenica. 61(1). pp.127-140.
Rodrigo, L. and Palacios, M., 2021. What antecedent attitudes motivate actors to commit to the
ecosystem of digital social innovation?. Technological Forecasting and Social
Change.162. p.120394.
Song, Y. and Wu, R., 2021. Analysing human-computer interaction behaviour in human
resource management system based on artificial intelligence
technology. Knowledge Management Research & Practice. pp.1-10.
Wuryani, E., and et.al., 2021. Analysis of decision support system on situational leadership
styles on work motivation and employee performance. Management Science
Letters. 11(2). pp.365-372.
Yeung, E. and Shen, W., 2020. Diversity climate promises in ideological psychological
contracts: racial differences in responses to breach and fulfilment. European Journal of
Work and Organizational Psychology. 29(2). pp.262-278.
Zhao, X. and et.al., 2020. The dynamic process of customer psychological contracts in a service
context. International Journal of Market Research. 62(6). pp.707-724.
Online
Author surname, First letter of name., 2020 [Online]. Available through: <online-website-link>