Importance of Proactive Management in Organizations

This article discusses the importance of proactive management in organizations. It highlights how proactive management helps in reducing absenteeism and promoting employee satisfaction. It also explores how proactive management ensures clear roles and responsibilities, promotes a safe and supportive working environment, and encourages employee growth and development.

UGB162 Introduction to Human Resource
Management & Learning and Talent
Development Assessment 2020

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1) Some of organisations are facing extreme high level of absence so states about importance
of proactive manage.....................................................................................................................3
2) Differences between contract of employment and psychological contract.............................5
3) Three different types of motivation process theories and their role in workplace..................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is strategic method to effective administration of individual
in a organization or company such that they aid their business gain a competitive benefit. It is
term utilized to describe formal systems devised for management of workers within an
organization. Purpose of HR is to assure that a firm is able to achieve greater success through
worker. The current assignment is based on three specific questions that will discuss below.
MAIN BODY
1) Some of organisations are facing extreme high level of absence so states about importance of
proactive manage
There are several firms which are facing situation of high employment turnover or
chance of absentee that may be due to several reason such as might employees have not being
provided better working environment to perform their respective task. Or there may be lack of
coordination and cooperation among employees which cause dissatisfaction and forced
individual to leave the firm (Smithikrai and Suwannadet, 2018). Due to unclear definition of
roles and responsibilities needs to be performed by individuals chance of conflict and wastage of
time, efforts increased thus most of the people tries to avoid to come to enterprise for
performance of their task. They are many other reason that forced employees to leave firm or
being absent at several interval that may be they are not provide equal opportunities and chance
to share their feeling and ideas to others
(Lundgren and Zhou, 2017). Thus, it leads to hinder their creative and innovation and effective
growth and expansion of enterprise in competitive market. So, it is necessary for manager to
proactively ensure that employees are happy and satisfied with firm operation.
It needs to identify keys areas where individual are facing difficulties or issue so that
proper plan or strategies can be formulated by its to resolved their dissatisfaction. Proactive
manage is also necessary as it helps in finding new and innovative ideas that can be used to
motivates and manage diverse individual within organisation to work hard for growth of firm. It
ensures that all laws and ethical practice being promoted and followed in enterprise so that no
harm can cause to other person and each individual is motivated to give its best so that company
can get competitive advantages (Ahmed and Khalid, 2019). Effective management clearly stated
or defined roles, task or responsibilities which needed to be performed by individual thus
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contributed in better coordination of diverse individual to work as team rather for achievement of
common objective. Management helps in finding new method or organised training and
development that can be used to develop skills and knowledge of people so that they are ready
to accept several changes of external environment so that firm can earn more profitability. It also
provides better that is safe, secure and supportive working environment to employees so that
they are motivated to give their best for success of organisation (King and et.al., 2020).
Manager is able to build strong relationship with employees through proactive manage
as it is able to understand their relative preference, choice and taste. It also encourages
employees or individual of firm to share their respective feeling, ideas in order to enhanced
learning of other people and better growth of enterprise. Proactive manage helps to understand
and resolve problem and grievance of employees within limited time thus they are high
motivated to put their best so that organisation can attained its respective objectives. It is also
responsible for finding new method to motivate employees to adapt several changes or increase
their productivity level so that they can grow and develop in enterprise (Wongsuwatt and
Suntrayuth, 2019). It by planning for their growth and development is able to create feeling of
belongingness and motivate them to be crucial part of firm. So it can be stated that proactive
management helps in reducing chance of absentees within firm as better environment is provided
to employees to perform their respective task.
Key element that need to be included in procedural document-
Procedure is a document that is made by manager of company to make aware employees
about key policies and procedure that they need to be performed in organisation so that
qualitative services can be rendering to end customers. Manager invest lot of its time to prepare
procedure and policies of firm so that there is no confusion and conflict between individual
regarding task that needs to be performed. It includes key set of standard rules and regulation
which need to be abided by each employees in order to get best or optimum result as desired by
organisation. Procedural document also included scope of project and various processes which
need to be undertaken by individual to complete task thus it helps in reducing amount of wastage
of time and money (Witt, Granitzer and Seifert, 2018). It also includes a map about various
alternative options that can be used by enterprise to achieve its specific goals. It also defined
ethical, values and belief that needs to be followed by each individual so that no harm can be
caused to other person. Procedure document made by manager also included information related
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to interrelationship among each employee so that no confusion can be created in future
circumstance.
Procedural document is real physical document that clearly outlines process for
something. There are a lot of things or policies included in this document that are quite beneficial
for employer and employees. When workers follow these policies they can work even better and
it develop a positive working environment around workplace. It consists of ethical business
practices that are quite beneficial for business in term of increasing their marketing reputation
and building brand image in ethical manner. Policies included in this document can clearly states
what administration of company expects from their workers, while a process is detailed defined
of how instructions in policy must be carried out. A recopied is usually a procedural document
for workers. It should be write in systematic manner and explain assumptions clearly within it &
make assure employer’s assumptions are valid.
2) Differences between contract of employment and psychological contract
Psychological contract is set of expectations and commitments that are exchanged
between units in employment relations. These parties include managers, leaders, individual
workers, employers and work colleagues, who are working at same place (Ahmad and Zafar,
2018). Unlike other formal contracts of employment, it is often implicit or tacit. This kind of
contract tend to be assumed, invisible, informal, unspoken or at better only partly vocalised. It
can be defined as deal between applicant and employer concerning perception of two different
parties, workers and employer, of what their common obligations are towards each other.
Furthermore, it consists of unofficial perceptions and assumptions, often instead of effective
workplace relations that present between above two parties in a company. Psychological contrast
is distinguished into two categories such as relations contact and transactional as well. It is based
upon promises implied or shows regarding an exchange agreement. It shows that a candidate is
respected and values for specific role in an business.
Employment contract is a document between staff and employers of an organization. It
is based on condition of employment made between both parties. It can be made writing or orally
and it includes both implied & express terms (Sora and et.al., 2019). Both workers and
employers are free to negotiate and agree on conditions & terms of employment catered that they
do not violate provision of employment ordinance. When it is writing, employer within a firm
should give one copy of written agreement to staff for reference and retention. It can consist of
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all important information in writing when applicant before such employment is entered into,
make a written requirement. Contract of employment or agreement is a type of contract utilized
especially for labour law to attributed accountabilities and rights between parties to good deal.
This agreement play vital role for workers, who work within particular firm to earn money and
make their career more successful.
Differences between both employment contract & psychological-
There are huge differences between above two contracts. For example, contract of
employment is created by mutual understanding and agreement between workers and employers
of a business company. It created when an applicant is hired within an organization for specific
position or job requirement and has agreed to policies of given job role (Faruk, 2019). The main
difference between these two important agreements clearly relates to how they are designed
within a firm. This contract is documented by management and lists accountabilities, roles,
duties and other things that workers are expected to fulfil while working within a business
company. Despite psychological contract of employment needs worker and employers parities of
agreement to perceive their obligations to one another psychologically or inherently instead of
having it documented on part of paper or as document in form of written. Written contract of
employment requires for above two parties to agree on specific worded responsibilities,
obligations and roles for employers & employees included in procedure. On the other hand,
psychological contract requires appropriate judgment on section of both units about their solo
role and other things towards one another.
It can be said that psychological contracts tend to be mainly subjective as they relies on
what either party to agreement believes in contained in commitment, in which case workers and
employer may have contradicting interpretation. While contract of employment is effectively
stated in document kind such that both unit expect similar outcome from agreement. Due to
uncertainty nature of this contract, it is always complex to resolve disputes, more so because
evidence of document cannot be positively substantiated unlike in employment contract where
formalized & signed documentation may not be avoid (Pearce, 2017).
Another main difference between contract of employment and psychological agreement
relate to psychological agreements usually being highly subjective (Salin and Notelaers, 2017).
In addition, another difference between both contracts relates to determining level to which
agreement may be breached by either worker or the employer. In cases where psychological
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agreement of employment is developed between applicant and employer, it becomes immensely
difficult & complex to examine extent to which it create by both stakeholders has been breached
by with candidates or employer.
Importance of psychological contract in company’s today-
Psychological contract is immensely essential in organizations in recent time, because is
consistently and effectively being updates and created on basis of communication procedure that
occurs between workers & employers within firm. It increased importance that psychological
agreement place on open and effective communication between both parties can be immensely
productive for growth of overall ventures and their operations. Well structured and balanced
contract between both stakeholders requires open fair communication from all included
members. It reflects that business companies and their employers values as well as respects
applicants and finds them a suitable position & role within workplace that is respective to talent,
abilities, skills and experience of workers, while also supporting management completing their
organizational aims and set objectives that can help a firm operate with increased efficiency,
productivity, performance and operate successfully within functional and customers markets.
It can be said that psychological agreements of employment are also significant in
companies in today’s time because they are diversify varied of contracts that businesses can
make utilize of. Firms while writing employment contract must consider requirement related to
extensive period and workers. Then it can select to make use of another contact that is
psychological in order to develop effective use of their limited business assets. Moreover, this
agreement are important for companies in term of helping better comprehending, evaluating and
predicting how existing and new applicants manage at their specific role, which may be aligned
to business goals and objectives (Pant and Venkateswaran, 2019).
3) Three different types of motivation process theories and their role in workplace
In recent time, organizations or industries are facing varied challenges because of
globalization that drive them towards business expansion activity. Due to this action, workers
feel high pressure to be work better and achieve competitive advantages for business firms. It is
one of the main reasons which increase high employee turnover. To overcome this factor,
management can use varied types of motivational concepts or theories, which are quite beneficial
for them. The main motivation process theories are Adam’s equity theory, Victor Vroom
expectancy concept and Skinner’s reinforcement theory.
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Skinner’s reinforcement theory-
This concept is based on Skinner’s operant conditioning theory; shows that attribute can
be created by their consequences. It included in varied other motivation concepts. Reward or
incentives must meet workers needs, demand, and expectation, should be applied fairly and must
be consistent. The overall work of this theory is based on assumption that behaviours is
influenced by consequences (Critchfield and Miller, 2017). It is procedure of shaping behaviour
by managing consequences of attribute. This concept is based on following three factors that are;
Positive reinforcement-
It may occur when consequences out coming in nature workers are attempting to develop
increase probability that desired things can continue. For example, when employees perform
well, they may obtain extra bonus or incentive which reinforce or motivate them and develop
desire to make profit because of positive things of doing so.
Figure 1Skinner's motivation theory
(Source: Reinforcement Theory of Motivation, 2020)
Negative reinforcement-
It occurs when opposite consequence is with help when behaviour applicant desire is
demonstrated which can enhance probability that behaviour individual is seek will continue. For
instance, when companies is establishing their new outlet in outer hometown, no one want to
move there, at that time management decide to let top marketing specialist in workplace pick
when they do go to outer location or stay at old work areas. Existing workers work very hard to
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be in list of top ten so they can neglect negative consequence. This factor however, is not related
to punishment. It helps to motivate people to perform better than before.
Extinction-
It means to stop individual learned behaviour. Worker attempt to extinguish a nature by
withholding positive element that motivate behaviour.
This theory play vital role in workplace as it help to motivate staff in effective manner
and develop positive environment around place where people work together by providing
rewards and others elements as positive reinforcement form.
Adam’s equity theory-
This theory is an idea that what an applicant receives for their hard work has a direct
influence on motivation. When applied to work area, it means an person can normally goal to
create a balance between what they provide to a company compared to what they obtain in
return. According to this concept, workers while working in company compare their hard work
to work, benefits and cost of their actions that can outcome to benefit and contribute of reference
individual. For example, when manager provide incentives and compensation to staff for their
effective performance in return, they will drive them toward promoting brand outside work areas
and encourage other to do join same place where they already work. These things are quite
beneficial for employers and workers in term of retaining skilled applicants and gain attention of
other who is also capable to perform efficiently without making any mistakes. At workplace all
employees put inputs into role such as effort, experiences and energy to get some better or
desired results such as reward, verbal appraisal or recognition and promotion each in fair
amounts.
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Figure 2Adam's motivation theory
(Source: Adams’ Equity Theory, 2020 )
This theory call for less unfair balance to be struck between an candidates inputs such as
skill level, enthusiasm, and hard work and its outputs like intangibles such as salary increment
that motivates individual in effective manner. It can be said that, like above concept this theory
also play crucial role in workplace as it helps to explain why conditions and pay alone do not
identify motivation, by treating workers equally it help to motivate staff.
Victor Vroom’s expectancy theory of motivation-
Another theory that can use to motivate candidates at workplace, which is important for
manager and that it Vroom expectancy. It is one of the best and simplest theories, which makes
everything easy for management when they implement or consider its factors. It places an
emphasis on procedure or act of motivation as well and it integrates reinforcement, needs and
equity theories. It aims is to explain how worker choose from accessible actions, it defines
inspiration as process that governs selection among alternative types of voluntary behaviour.
This theory is based on three factors-
Expectancy-
According to this factor when manager provide rewards to staff after considering and
recognizing their work it help to increase motivational as well as performance level even better.
While working in workplace every work desire or expect to get positive result after doing a lot of
hard work, they belief that more attempt can result in greater success.
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Instrumentality-
Accordant to this element, every work belief that there is link between aim and activity,
they think that after performing better each of them will obtain reward or other thing that help in
motivation. It is one of the best motivation source employees can get after doing hard attempts
which is very beneficial for business as well.
Valence-
Level of which a candidate value reward outcome of success. When worker obtain things
according to expectations it help to inspire them in systematic manner that is really very
important to obtain further opportunities.
It highlights individual differences in inspiration and contains three effective elements for
comprehending and increasing motivation.
CONCLUSION
From above analysis, it has been concluded that psychological contact play vital role in
organizations because it help to prevent workers while working from illegal issues. It has been
analysed that by using all three process theories of motivation management retaining staff and
gain attention of new workers in effective manner.
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REFERENCES
Books and Journals
Ahmad, I. and Zafar, M.A., 2018. Impact of psychological contract fulfillment on organizational
citizenship behavior. International Journal of Contemporary Hospitality Management.
Ahmed, M. A. and Khalid, S., 2019. Empowering Leadership and Proactive Behavior: Mediating
Role of Psychological Empowerment and Moderating Role of Leader-Follower
Distance. Abasyn University Journal of Social Sciences, 12(1).
Critchfield, T.S. and Miller, J.R., 2017. Are Theories of Reinforcement Necessary?.
Faruk, S., 2019. The Mediating Effect of Trust on the Relationship between Psychological
Contract and Psychological Employment Contract Breach. A Pilot Test. Journal of
Research in Psychology. 1(3). pp.26-29.
King, D. R and et.al., 2020. What, when, and who: Manager involvement in predicting
employee resistance to acquisition integration. Human Resource Management, 59(1).
pp.63-81.
Lundgren, T. and Zhou, W., 2017. Firm performance and the role of environmental
management. Journal of environmental management, 203. pp.330-341.
Pant, J.J. and Venkateswaran, V., 2019. Exploring millennial psychological contract expectations
across talent segments. Employee Relations: The International Journal.
Pearce, J.L., 2017. Toward an organizational behavior of contract laborers: Their psychological
involvement and effects on employee co-workers. Academy of Management journal.
Salin, D. and Notelaers, G., 2017. The effect of exposure to bullying on turnover intentions: the
role of perceived psychological contract violation and benevolent behaviour. Work &
Stress. 31(4). pp.355-374.
Smithikrai, C. and Suwannadet, J., 2018. Authentic leadership and proactive work behavior:
Moderated mediation effects of conscientiousness and organizational commitment. The
Journal of Behavioral Science, 13(2). pp.94-106.
Sora, B and et.al., 2019. Employment contract, job insecurity and employees’ affective well-
being: The role of self-and collective efficacy. Economic and Industrial
Democracy. 40(2). pp.193-214.
Witt, N., Granitzer, M. and Seifert, C., 2018, March. Collection-document summaries.
In European Conference on Information Retrieval (pp. 638-643). Springer, Cham.
Wongsuwatt, S. and Suntrayuth, S., 2019. The Influence of Risk Perception and Proactive
Behavior on Performance of Firms: The Moderating Roles of Organizational Units and
Types of Firms. The Journal of Risk Management and Insurance, 23(2). pp.1-14.
Online
Reinforcement Theory of Motivation. 2020. [Online]. Available Through: <
https://www.managementstudyguide.com/reinforcement-theory-motivation.htm>
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