UGB162 - Human Resource Management: Psychological Contracts Analysis

This essay delves into the core concepts of human resource management, focusing on the distinction between psychological contracts and contracts of employment. It examines the significance of psychological contracts in fostering employee motivation and engagement, particularly within the context of the Bentley organization. The essay further explores the impact of effective communication, employee development, and management styles on the psychological contract. Additionally, it analyzes three key motivation content theories, including Maslow's need theory, and McClelland's theory, illustrating how these theories influence employee behavior and organizational outcomes. The document emphasizes the importance of understanding and managing employee expectations to enhance organizational performance and employee satisfaction. The essay also discusses the role of human resource departments in shaping the psychological contract and aligning employee needs with organizational goals, offering valuable insights into the practical application of HRM principles.

Introduction to human
resources

Table of Contents
INTRODUCTION...........................................................................................................................1
Differentiate between psychological contract and the contract of employment.......................1
The three motivation Content theories.......................................................................................5
REFRENCES.................................................................................................................................10

INTRODUCTION
Human resource means, it is a set of people who build the excellent workforce of an
organisation, enterprise sector, industry or economy. Which is responsible for is division of
enterprise that is done with the screening, recruiting and training job applicants along with
administering employee advantage program. It plays very important role in organisation it is the
backbone of the company, which play a key role in helping the industries with wide changing or
modified in business atmosphere and greater demand for the quality individuals (BLŠTÁKOVÁ
and et. al., 2019). HR is responsible for include compensation and advantage, recruitment,
firing and keeping actual with any laws and norms or terms and condition that may impact the
organisation and its employees. Many organisations have changed into old house in human
resource to new house human resource management duties and responsibilities outsourced
projects like payroll and advantage to outside marketer. The formation of Human resources along
with the presence it is necessary element of any enterprise irrespective of the company size. An
human resource department is undertaking with enhancing employee productivity and protecting
the organisation from any issue which may originate with in the manpower. It manages and using
people effectively. developing the competencies that increase employees and organisational
outcome . The report include the Bentley organisation which is very superior luxury brand of
UK, in the relation of motivation content theories along their act in workplace and what is the
importance of psychological contract
Differentiate between psychological contract and the contract of employment.
This process occur to individual expectations, beliefs, aspirant and oblige as perceived
through the employee and the employer. The structure and the concept come out in early 1960s
and is seek to understanding and analysing manpower relations. The psychological contracts
defined as it is a legal contract of employment which gives limited offers reality of the
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employment relationship. The contracts include the agreement which is signed and in written
form about the common facultative of the worker and the employer (Liu, Qingqing and Liu,
2021). On the other side, the psychological contract defines and include how the parties
themselves to understand their relationship. If organisation want to make good relationship
between employee, they have to analyse the need of the employee after than understand the
ideas, views, thoughts , a proper understanding make the excellent ideas. Employees perception
is about to expected in return. This contract is not enforceable, which may be convince through a
view of the actual relationship among employer and the employee. The psychological contracts
describing the list of expectation and terms and condition. It also focus on particular aspects,
which finding the duration or firmness of the exchange such as :
 Higher authority help
 Employer's image and affect on society.
 Perceived fairness pay and advantage
 Training and development
 Job security
 career potential
“Human resources act in directing the psychological contract in Bentley”
The psychological contract is cardinal performance of employees where they busy at their
workplace. Successful administration of workforce anticipate need the people professional to
have input to the board company plan of action (Werdhiastutie, Suhariadi and Partiwi, 2020). It
also looking forward to create or better designing and applicable in people administration and
building to provide guidance importance. There are particular areas which include the focus on
certain terms which are:
 Employer's brand: It forms a set of corporate rules and regulation or a exceptional
vision and this thing is known as employee value proportion or brand of employer. In
this employee is looking forward to recognise. It is attempt through the employer to
define the psychological contract with manpower to keep support recruit and retain
talent.
 Communication: communication play very important role in the organisation, and it is
mandatory effective communication shows the intelligence of the company. The
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effective conversation between employer and employee which is requires means of
giving expression to employee voice.
 Learning and career development: Employee keep the exception from the
organisation in the relation of new opportunities for skills and development which is
very important and prove themselves.
 Style of management: In many companies, managers are unable longer control the
business in top down way but they grab high bottom of style. Line authorities are also
seek to understand and leading the employee.
 Handling Expectation: Employer should to build clear vision about new recruiters
what they can expect from the professional life. Managing the expectation, it will
enhance the chances of building a realistic approach in the term of psychological
contract.
 Measuring employee attitude: employer focus on employee behaviour and attitude on
a daily basis which means to justify where actions required in order to improve
outcomes of the employee.
Contract of employment: Employment contract defined as, it is kind of contract
which is utilize in labour law to dimension the terms and condition between parties to acquire. It
also considered as a legally binding agreement between employer and employee. In the United
Kingdom the term employee is known by the employment act which is done in 1996 as an
individual who has entered into works under a contract of service or position (Wan, 2019). It
covers the working relationship of an organisation or an employee. It allows both of them to
clearly understand their rules and regulation and terms and condition which including the salary,
wages, role, specification, responsibility, duration of employment, advantages, upcoming
compensation, appraisals which is depend upon employee capability and in last communication
which is discussed below:
 Payment or wages: Contracts will enumerate the salary, wage or commission that has
been united upon.
 Duration of employment: This contract shows the time duration of the employee
agrees to work for the organisation. In some cases, may be duration of time and in
remaining cases might be agreement set for particular duration of time.
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 Scheduled: Employment contract involves the working hours, days which is expected
to do work.
 General responsibilities: In this contract mentioned about roles and duties of the task
in which worker will be expected to full fill at the time of employed.
 Upcoming compensation: Contracts include the non complete contract or clause,
which stating that upon leaving the organisation.
 Advantages: A contract lay out all the promises which involves the health insurance,
paid leaves, which is part of the employment.
 Communication: Employee role involves handling the social media, websites or mail,
which state the organisation retain ownership and control of all communications.
Inferred contracts can be deduce from statement, actions, or previous aspects of the
employment previous aspects of the employer. In which employee have seen recorded a history
of promotion, raises, annuals overview for themselves and their co workers. At the time of
interview prospective employee may be told that employee profession is a long term or
permanent position unless the employee is discharged for a good reason.
Importance of psychological in an organisation
Organisational psychological direct a fulfilling career which create a difference on
humans lives. Industrial and organisational psychologists study companies and their employees
to change the productivity, satisfaction, safety, health of those with in the workplace atmosphere.
It is simply to assume that determination of soul of a successful enterprise is profitability.
Profitability keeps a business competitive which is depend on various factors which is a excellent
product, team members coordination to each other and communicate well with employees those
who motivated well trained and committed to the organisational aims. Occurrence is also bound
to a enterprise quality to justify and resolve organization issue at the organisational level which
includes the scientific discipline.
Organisational psychology is the scientific study of human behaviour in the
organization. It focus on admittance of individual, group organisational dynamics which using
the research to identify the solutions to problem that modify well being and give their outcome in
ethical manner in the relation of organisational and their employees (Tordera, and et. al., 2020).
Organisational psychologists include the decision making program, team member interact
and collaborate which helps the business owner access where to change the systems to make
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their company function and strategies better. It findings the varieties of ways or method to help
and solve the human organisation difficulties and face the challenges of the organisation in
workplace. It identifying the training and needs, optimize the quality of work, it keep preparation
and implementation in training programs. It also evaluating their effectiveness, Give the training
to the employees and the organisation leader. Building the criteria to evaluate performance of
individuals and companies. It assessing customer preferences , consumer satisfaction along the
market plan of actions. This training provides the deep knowledge of issue that are critical to
enterprise success.
In the relation of Bentley which is the concern brand of the UK, if company adopt the
contract and elaborate to their employees so, business can run effectively and efficiently
(Arredondo-Soto and et. al., 2019). They must give the training and development program to
their employees in which organisation able to generate the revenue along with the profitability.
Human Resource department focus on the employee to fulfil the need demand which employee
willing to passionate about their job roles.
The three motivation Content theories.
This theories is a substitute of motivational theories which defines the people. Content
theories include the needs that motivate the people actions. At the time of processing, studies of
motivation try to elaborate how and why our motivations impact the behaviour. This theory
includes the motivation theories which involve the work of David McClelland, Abraham Maslow
Need theory: This theory refers the concept of moving forward and following need for
association is for inclination to be around being member in a group and conformism. The need
theory include the power is desire for control over others and themselves. It able to Include the
exercise direction in the world and cause things to happen. In which individuals have neds for
achievement will tend to busy in competitive act in relation to fulfil the need (Khandelwal and
Upadhyay, 2019). Personnels are feel to need affiliated will looking forward to join the clubs,
groups and team to sated that want. Those who are looking forward for need of power will seek
the activities or functions, in which it satisfy the needs such as run for high desirable designation
in the organisation seek out the chances to exercise that ascendancy. This theory includes the
need of the employee which is very important to fulfil by the organisation. If the concern brand
looking forward for the employee, customer will satisfy automatically. Because if employee
happy with the organisation, so they are able to do work in ethical manner or significant way.
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The main aim of the organisation to full fill need of the customer, expansion of business and to
generate the revenue and make the profitability ratio. This theory includes the motivational
models that shows how needs for achievement, power and affiliation impact on business and
their actions of the people which is from context from managerial level.
NEED FOR ACCOMPLISHMENT: It prefers the task of moderate the difficulty,
which gives the preference to the work and result are depend upon their efforts and give the
overview to their work.
NEED FOR AFILIATION: It prefer the spend time creating and building the social
relationships which is part of the gathering, which have desire to feel loved and accepted
themselves.. Which they have a need for affiliation work. This term is given by David
McClelland and define the need of person include sense of involvement and belonging in social
gathering. It identify psychological human needs and motivational process.
NEED FOR AUTHORITY: This factor represents people enjoy there organization
work and culture, with discipline that can be positively applied to support the accomplishment of
goals of their organisation and help in other way in the group feel competent in relation of work.
This need enjoy the status recognition, and convincing others. This is a motivational type comes
a need for personal prestigiousness and looking forward need for betterment need for personal
statement or status.
Maslow's hierarchy of needs: people psychological feature includes motivation theory.
This theory is very important theory in content need, which is most extensively generated
theories of motivation. This theory believed that man is constitutional good and argued in which
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individuals posses regularly increasing in internal thrust which have excellent prospective (Diaz‐
Carrion, López‐Fernández and M.Bogataj Bogataj, 2019). This theory includes needs of
psychology which explaining the human are motivated to full fill their needs and demands in a
ethical manner. This order starts with the most nominal needs before moving to one more
advance needs. It is very important because it is better for development in both aspects personnel
or organisation and it enhances the growth. Through identifying the human needs which drives
and motivate the people. In this employer and employee can build commonly beneficial
relationships and positive environment to conducive their work. It is a motivational theory in
psychology which open up a five tier model of needs of human which is given below is in
hierarchical levels.
It is a displayed pyramid of Maslow hierarchy, the basic level of pyramid are made up of
require things which is the most complex needs are the top of the pyramid. This pyramid shows
the basic types of physical requirements which includes the need for food, water, sleep and
warmth. These lower level of need met with people which are looking forward to move they can
on the next level which is safety and security. It includes the love belongings, esteem and self
actualization. These all thing consider the better study about the organisation. If Bentley
implement this this on organisation it will create a new innovation and make better working
culture and climate which gives the benefits to the organisation in overall perception. There are
some needs which is require the basic needs is psychological needs which probably fairly
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apparent, which includes the food, water, breathing, homoeostasis. In relation of basic
requirement of nutrition, air, temperature and regulation. The needs also includes such things as
a shelter and clothing water food. This is basic requirement. It includes the safety and security of
People who wants control their lives, for safety and contributes largely behaviour at this level
which is basic need to become primary which is financial security, health and wellness, safety
against accident and injury. It also includes the social needs which is love, acceptance and
belongings at the level of need for emotional relationship drives of human behaviour and attitude
which under comes the friendships, community groups, social groups, family, romantic
attachments and friendships. Let move forward to esteem needs, in this need it become
enhancing important to gain the respect and appreciation of others. In which people have a need
to acquire the things have their efforts established. In last it considered the self actualization
needs, it describes the full use and exploitation of talents, qualities, potentialities etc. in which
people look forward to full fill themselves and they are able to do that (Zaychenko, Smirnova
and Kriukova, 2018).
Natural theory: The theory shows people who have higher need that contracts in relation
to the theory has suggested persons that are making responses over rewards and punishment. It is
requires to main acceptance affiliation reciprocal friendship and love to be develop as social
system. This administrator productive and innovative practices with in the team. In this
psychological and basic needs is been deal with in order to avoid disobedience with in the team.
Such need include food, rest, shelter and exercise. Management uses this theory in order to
understand basic needs possess by employees in order to promote safety and security with in
organisation. It enhances employment decision making. This theory involves recognition of
ones full potential or self improvement chances for the creativity. Which differs from rational
system, it assumes people give their preference to security and routine among the creativity.
There are few types of egotistic needs, the first one is self esteem, which embrace the self
confidence, independence, achievement, competence and knowledge.
This is different from rational system, in this people make security and development to be
maintained through creative sense. In rational system needs of humans is not to be taken into
account. Such needs includes types of egotistic needs, the first one is self esteem. It embraces
self confidence (Margherita, A., 2021). The second need is which deals in reputation, status,
recognition and respect from the colleagues and team mates. Egoistic need is very difficult need
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to satisfaction. Natural theory includes the natural tendency which is very important in each and
every life , without implementation of this theory, it is very tough to survive in the corporates
life.
CONCLUSION
This reports include the motivational theories, different types of contracts, what is the
importance of particular contract In the organisation. In the relation of Bentley. This report gives
the overall aspects from these theories which discussed above, in this if organisation adopt the
motivational theories and implement on it, so organisation are able to generate the revenue along
with the profitability. Bentley has to manage their employee in every aspects, organisation have
to fulfil the needs because Bentley has own brand value along with the image. Simple is that
organisation has lot of competitors which they have manage and lead the direction of business
along with the employee. If company focus on needs of the employee in which organisation have
to full fill. This thing gives the benefit to the organisation, if the employee are satisfy with there
jobs, customer will automatically happy. If organisations wants to grow in more hype they have
to give training and development and give the session on communication skills. This
organisation require the effective communication to deal with the customers and it will give the
positive impact towards the organisation which create a unique image in the market place and
gives the various opportunities.
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REFRENCES
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