SHR012-6: Flexible Working and Psychological Contract Report

This report examines the concepts of flexible working and psychological contracts within the context of modern organizational operations. It begins with a critical examination of these concepts, defining flexible working arrangements and psychological contracts and exploring their perceived benefits. The report then analyzes the impact of these concepts on a retail organization (Zara), focusing on how flexible timing can affect employee task completion and overall workforce engagement, along with the importance of fostering positive psychological contracts between employees and the organization. A change management analysis, based on Lewin’s model, is then applied to demonstrate how these concepts can be implemented. The report concludes with recommendations for organizations, emphasizing the importance of flexible working arrangements and the cultivation of positive employee-management relationships to improve productivity and loyalty.

Running head: LEADING AND MANAGING PEOPLE
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Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Task 1.............................................................................................................................2
Critical examination and explanation of perceptions based on flexible working and
psychological contract............................................................................................................2
Task 2.............................................................................................................................4
Analysis of the impact of these concepts on the organizational operations...............4
Task 3.............................................................................................................................6
Change management analysis based on the business case.........................................6
Conclusion..................................................................................................................6
Recommendations......................................................................................................7
References......................................................................................................................8

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Introduction
The report will be based on the analysis of the two major aspects or concepts that are
related to the operations of modern organizations, namely, flexible working and
psychological contracts. A detailed literature review will be provided with respect to the
different views that are related to psychological contracts and flexible working as well. The
effects of implementation of flexible working and psychological contracts on my
organization is also an important part of the analysis that will be made in the report (Bessa
and Tomlinson 2017).
Task 1
Critical examination and explanation of perceptions based on flexible working and
psychological contract
As discussed by Bird (2015), flexible working is defined as the working based
arrangements that allow the employees to implement changes in the timing, amount and
location of their work process. The work process of the employees is based on the individuals
and the organizations as well. Levels of flexibility within the work process is considered to be
helpful for the ways by which organizational objectives can be achieved effectively.
According to Bohle (2016), other major advantages that are provided by flexible work
based environment mainly include, improvement of engagement, loyalty and job satisfaction.
The reduction of levels of absenteeism is affected in a positive manner by development of
flexible environment within the modern organizations. Flexible environment within an
organization is also helpful in increasing the productivity levels of the employees which is
further able to affect the organizational effectiveness as well (Brady and Briody 2016).

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Flexible work environment can also be defined as the ways by which a work process
is developed which is able to suit the needs and demands of the employees in an effective
manner. The flexible timing of starting or finishing the work or work from home based
options are considered to be a major part of the flexibility of work environment. The
flexibility is provided based on the levels up to which an organization is able to provide work
options to the employees in order to increase their productivity levels (Lemmon et al. 2016).
The different types of flexible working arrangements that can be considered by the
organizations include, part time working, term time working, job sharing, flexitime,
compressed hours and annual hours. The organizations can thereby aim at implementing any
of these processes in order to ensure effective levels of productivity and increase the
profitability as well (Moen et al. 2017).
A survey that was conducted by CIPD of the HR managers in the year 2014 had
depicted that the employees who work in different modern organizations are provided with
some options that are related to flexible working. The employees have however not been able
to use the opportunities that are provided by flexible timings and work environments as well
(Pohl, Bertrand and Ergen 2016) The international surveys have showed that flexible timing
or part time work based activities are performed by the organizations in the United Kingdom
much more than OECD countries (Brady and Briody 2016).
As discussed by Guo, Gruen and Tang (2017), psychological contracts are mainly
based on the unwritten expectations related to employment relationships that are different
from the formal or codified employment related contracts. The employment contract or
psychological contract are able to define the relationships that are developed between the
employers and the employees (Huang and Lin 2016).

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Task 2
Analysis of the impact of these concepts on the organizational operations
I am a part of a retail based organization named Zara. As discussed by Townsend,
McDonald and Cathcart (2017), flexible timing is considered to be an important factor that is
able to affect the ways by which the employees in my organization will be able to complete
the tasks that are provided to them. The tasks or responsibilities can be performed by the
employees based on the timings that are suitable for them and are able to provide them with
options to complete the work process.
According to Wood (2018), the process of flexible hiring is considered to be an
effective method that is helpful for the organization to hire employees in suitable positions.
The company can provide fast response to the changes that have taken place in the external
environment with the proper development of a flexible work environment. Women in my
organization will also be provided with major opportunities to complete their work process in
order to improve the levels of productivity with the help of services that are provided based
on their own timings.
According to Wood and Ogbonnaya (2018), the amounts of work and levels of
responsibilities that need to be fulfilled by the employees are highly important factors that are
based on the positive effects of flexible working. My organization will create a workforce
that is highly engaged in nature and is committed towards the services that need to be
provided as well. The interest of employees towards work will be increased effectively in the
process and my organization will be able to provide them chances in order to improve the
productivity levels in an effective manner (Yakubovich, Galperin and El Mansouri 2018).
As discussed by Rousseau, Hansen and Tomprou (2018), the psychological contracts
that are developed by my organization with the employees will play a major role in the

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development of an effective relationship. The relationships that are formed within the
organization will play a key role in the ways by which psychological contracts are
maintained. The management of an organization tries to remain fair to the employees and
provide them a positive work environment as well.
As discussed by Lemmon et al. (2016), the organization will be able to build strong
and effective workforce with the help of proper work environment and high levels of
motivation as well. The formal contracts that have been signed by the employees of my
organization can be maintained effectively only if the psychological contracts are fulfilled.
The proper relationships between the employees is considered to be an important factor that
affects the operations of the organization in a huge manner.
Task 3
Change management analysis based on the business case
The change management model that can be implemented in order to apply the
concepts of flexible timing and psychological contract in my organization is Lewin’s change
management model. The three major steps of the implementation of this model include,
unfreeze, change and refreeze. The development of flexible timing within the organization
will be based on three steps of this model. Formation of effective relationships as a part of
psychological contracts is important for the ways by which changes can be implemented
(Pohl, Bertrand and Ergen 2016).
Conclusion
The report can be concluded by stating that the concepts of flexible timing and
psychological contracts are considered to be important for the improvement of productivity
levels of the employees. The changes in an organization can also be implemented with the
help of proper implementation of the two concepts. The organization will be able to

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implement change management program that can play a major role in improving the
operations and increasing the loyalty levels as well.
Recommendations
The organizations can be recommended that the implementation of flexible timing
will be effective for the work process of female employees. The levels of productivity of the
employees will be increased with the help of flexible timing. The relationships that have been
developed by management of the organization with the employees will help in formation of
proper psychological contracts. The management needs to maintain a positive work
environment within the organization in order to increase the employee engagement and
loyalty as well.

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References
Bessa, I. and Tomlinson, J., 2017. Established, accelerated and emergent themes in flexible
work research. Journal of Industrial Relations, 59(2), pp.153-169.
Bird, R.C., 2015. Why Don't More Employers Adopt Flexible Working Time. W. Va. L.
Rev., 118, p.327.
Bohle, P., 2016. Work-life conflict in ‘flexible work’: Precariousness, variable hours and
related forms of work organization. In Social and family issues in shift work and Non
standard working hours (pp. 91-105). Springer, Cham.
Brady, M. and Briody, A., 2016. Strategic use of temporary employment contracts as real
options. Journal of General Management, 42(2), pp.31-56.
Guo, L., Gruen, T.W. and Tang, C., 2017. Seeing relationships through the lens of
psychological contracts: the structure of consumer service relationships. Journal of the
Academy of Marketing Science, 45(3), pp.357-376.
Huang, C.Y. and Lin, C.P., 2016. Enhancing performance of contract workers in the
technology industry: Mediation of proactive commitment and moderation of need for social
approval and work experience. Technological Forecasting and Social Change, 112, pp.320-
328.
Lemmon, G., Wilson, M.S., Posig, M. and Glibkowski, B.C., 2016. Psychological contract
development, distributive justice, and performance of independent contractors: The role of
negotiation behaviors and the fulfillment of resources. Journal of Leadership &
Organizational Studies, 23(4), pp.424-439.

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Moen, P., Kelly, E.L., Lee, S.R., Oakes, J.M., Fan, W., Bray, J., Almeida, D., Hammer, L.,
Hurtado, D. and Buxton, O., 2017. Can a flexibility/support initiative reduce turnover
intentions and exits? Results from the work, family, and health network. Social
Problems, 64(1), pp.53-85.
Pohl, S., Bertrand, F. and Ergen, C., 2016. Psychological contracts and their implications for
job outcomes: A social exchange view. Military Psychology, 28(6), pp.406-417.
Rousseau, D.M., Hansen, S.D. and Tomprou, M., 2018. A dynamic phase model of
psychological contract processes. Journal of Organizational Behavior, 39(9), pp.1081-1098.
Townsend, K., McDonald, P. and Cathcart, A., 2017. Managing flexible work arrangements
in small not-for-profit firms: the influence of organisational size, financial constraints and
workforce characteristics. The International Journal of Human Resource
Management, 28(14), pp.2085-2107.
Wood, A.J., 2018. Powerful times: Flexible discipline and schedule gifts at work. Work,
employment and society, 32(6), pp.1061-1077.
Wood, S. and Ogbonnaya, C., 2018. High-involvement management, economic recession,
well-being, and organizational performance. Journal of Management, 44(8), pp.3070-3095.
Yakubovich, V., Galperin, R.V. and El Mansouri, M., 2018. Timing Is Money: The
Flexibility and Precariousness of Login Employment. Available at SSRN 3247017.