Case Study: Employee Engagement in Public Service Transformation

This case study examines employee engagement and psychological contracts within the context of public sector transformation. It analyzes the concept of psychological contracts, emphasizing the relationship between employees and employers based on mutual expectations and obligations. The study presents a case scenario involving local authorities facing budget cuts and the need for innovation, highlighting barriers such as broken expectations and employee dissatisfaction. It also explores opportunities to establish new psychological contracts through initiatives like the Localism Act 2011, technological innovation, and a shift towards skills development rather than job security. The case study underscores the importance of employee engagement in achieving successful public service transformation and adapting to changing demands. The study focuses on the challenges faced by public sectors like Cornwall Council, Wychavon District Council and City of York Council, as they are ordered to cut down expenses and do more in relatively less budget. The study also discusses the impact of the transformational agenda on the psychological contract and employee engagement, and how local authorities are trying to articulate new psychological contracts where personnel have down expectations of lifetime employment.

Case Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Concept of psychological contract and employee engagement...................................................3
Overview of case scenario...........................................................................................................4
Barriers in psychological contract...............................................................................................5
Opportunities to establish a new psychological contract as part of work re-organization in
public sector.................................................................................................................................7
Employee engagement as part of work re-organization in public sector.....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Employee engagement is the most important aspect in any organization as it is the key to
determine success of corporation in the marketplace. A psychological contract here is the
collaboration between employees and employers who come into relationship on the basis of
perception, mutual beliefs and information obligations. Present study is based on leading cultural
change in context of employee engagement and public service transformation. Furthermore,
critical evaluation of barriers and opportunities have been done by focusing upon establishing
new psychological contract. In addition to this, employee engagement has also been analyzed as
part of work re-organization.
Concept of psychological contract and employee engagement
The psychological contract are different from physical one as it generally lays emphasis
on relationship between employees and employers. It is the formal codified employment contract
where unwritten set of expectations are communicated between both parties. This contract
applies on every individual working in organization at all the times and various managers who
are leading them (Parzefall and Hakanen, 2010). It is connected with promissory and bilateral
obligations through which organization can seek its long term growth by communicating each
and everything with personnel. It can be critically evaluated that in case obligations are broken
then it becomes inconvenient for employees to follow orders placed by management. This is
because broken obligations tends to production extreme reaction and more emotional attitude of
personnel (Behery and et. al., 2016). This particular situation affect overall working environment
because employees cannot cope with changes and they usually resists whatever is ordered by
organization.
Public sector gives importance to psychological contract because of several advantages
associated with the same. The first one is of reducing uncertainty by forming positive behavior of
personnel on the basis of clear communication. For instance, public sector organization maintain
transparency with personnel in order to ensure their support in every critical or favorable
situations (Dries and et. al., 2014). Similarly, contract of set of expectations is helpful in
assessing response of personnel to the changing context of careers. Therefore, this contract
assists in making sense of current employment relationship and highlight the major aspect that
who has power.
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It can be critically evaluated that psychological contract might affect performance of
public sector because of specific expectations of each individual working in organization. It is
impossible to unite the expectations of each employee. On the other hand, violation of
psychological contract give rise to formation of broken promise which then affect performance
of individual performance (Agarwal, 2014). The most negative aspect associated this contract is
its complicated concept where job satisfaction and organizational commitment serve as the basis.
Owing to this, it is very important to ascertain effective manner through which psychological
contract can be maintained between individuals.
Employee engagement
Employee engagement is the workplace approach applied by upper level management to
include employees into decision making process. The fact behind this approach is making
personnel fully absorbed by and enthusiastic towards their work in order to ensure positive
attitude among them (Randeree and Chaudhry, 2012). Here, the remain possibility that
organization with engaged workforce perform in better manner than those of low employee
engagement. It all depends on management that how they want their workforce to behave and
complete the work allotted to them. Though, employee satisfaction and employee engagement
are both different concepts which can be related to each other. Human resources and internal
communications are imperative aspects for employee engagement practices in an organization
(Waltz, 2009).
Furthermore, there are several kinds of benefits associated with such kind of practices
which ensure upward direction of business with increased rate of return. However, an
organization operating at large or small scale require to involve personnel in decision making
process for betterment of both parties (Agarwal, 2014). For this purpose, different alternatives
way are adopted through which employees can be engaged effectively. The first one is employee
perception of job importance and the second one reflects that workforce have clarify related to
job expectations. Furthermore, regular feedback from employees is also one of the imperative in
order to resolve their issues and make them feel comfortable at workplace.
Overview of case scenario
The overall scenario rely upon employee engagement as public sector is facing issue in
context of transformation challenge. Here, public sectors like Cronwall Council, Wychavon
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District Council and City of York Council. Here, authorities are ordered to cut down expenses
and do more in relatively less budget (Tohidinia and Mosakhani, 2010). Furthermore,
organizations operating in the same sector are expected to bring bottom up innovation. In this
regard, transformational agenda in public sector service shed light on challenges faced by local
authority policy and fire service. For this purpose, target for achieving financial saving were set
for smooth operation of public sector in catering requirement of general communities. In this
regard, spending review was set out for deep cuts in grants which is offered by local government
from central government. For instance, 27.4% cut was planned by Department for Communities
and Local Government (DCLG) which is given to local government. At this juncture,
corporations like Cornwall Council stay in favour to finish the task related to cut in two year in
order to bring balance in coming year. This aspect tend to reduce the proportion of saving in later
years and accordingly services can be delivered to end users as per the order of government.
This scenario has direct impact on psychological contract in local government because of
broken expectations related to stable employment. Here, performance related pay for managers
are stopped along with wage freeze. It serves as the paternalism approach under which workforce
do not like to get exploit as they are not able to work with broken expectations. For this purpose
majority of authorities are trying to articulate new psychological contract where personnel have
down expectations of lifetime employment. Rather focusing upon employment and extra
benefits, focus will be laid on development of employability skills. This helps in engaging
employees and determining growth as well as success of public sector. Hence, overall case study
lays emphasis on psychological contract and employee engagement in public sector for
implementation of transformational agenda.
Barriers in psychological contract
Psychological contract is a key to make workforce feel comfortable at workplace by
meeting their expectations in an effectual manner. It might not be helpful in satisfying individual
but help them to work with integration. The given case study reflects employees generally face
issues while working in public sector like health care, fire services and other related services like
policy (Spagnoli and et. al., 2012). They use to expect a lot from this sector because it is directly
in contact with government and they have sense of achievement from the same. At this juncture,
workforce find issue in managing themselves at workplace as they cannot work with low
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expectations. Furthermore, breach of psychological contract has implication on attitude and
behavior of personnel. The most important aspect is that organization performance get affected
because of breach of psychological contract (Singh, 2009). It is well known fact that employees
put their efforts to convert expected outcome into reality. Owing to this, it becomes potential for
management of public sector organizations to meet expectations level of workforce. Here, the
main issues which is being faced regarding making workforce understand to expect very low.
The scenario indicates that transformational agenda aim to reduce expenditure and do more with
less. It can be critically evaluated that individual cannot keep the same level of enthusiasm when
their expectations are broken. However, study of Pate, Martin and McGoldrick (2003) reflects
that breach of psychological contract does not affect behavior of employees rather affect their
attitude towards work (Shahin, Naftchali and Pool, 2014). Owing to this, management can have
issue related to less favorable attitude of personnel and they cannot be able to deliver quality
services for end users. They cannot accept violation of this contract because their higher level of
expectations. The same thing works as the motivating factor for them and in case of its absence
they cannot focus on delivering good quality of services.
However, district council put efforts to achieve 25% cut in spending with the help of
different alternatives. It consists of outsourcing, business improvement, better procurement and
energy reducing. Along with that, optimizing use of assets and other related aspects are adopted
by Wychavon in single year only (Sambrook, Analoui and Doloriert, 2013). Though it was
targeted for two years. For this purpose, team of senior staff has been reduced from nine to five
and some of the middle managers were also take out. Here company just have main focus on
covert its capital into revenue and for the same Waitrose is built for getting return of 7.5%.
Furthermore, a new hospital has also been formed which in turn create higher rate of return. The
major issue faced in health care sector is related to pressure on social care budget because of
continuous increase in demand and services. Though, the scenario is being critical because
workforce are not satisfied and they expect higher salary and job security by working in public
sector.
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Opportunities to establish a new psychological contract as part of work re-organization in public
sector
There are several opportunities available with local authorities and public sector to
establish new psychological contract as part of work re-organization in public sector. Here, The
Localism Act 2011 is formed for shifting power from central government to communities or
local authorities. This aspect gives power to local authority for taking decision at their own.
Though, they cannot take decision in specifically prohibited areas (Saame, Reino and Vadi,
2011). Similarly, it is helpful for establishing community right to challenge for helping different
groups which are dealing with local services. In case they can get voluntary groups, parish
councils and social enterprises.
For making new psychological contract, corporations are putting their efforts on localism.
Owing to this, chief executives of local authority, commission third parties are entering into
partnership for redesigning delivery of services. Here, focus is laid on changing public sector
values and culture along with organizational design. It will help to make workforce satisfied and
expect low in accordance with current trend of scenario (Iqbal, 2011). They also shed light on
changing public expectations and behavior through which new psychological contract as part of
work re-organization in public sector can be formed with employers and employees.
Here, corporation are relying more on technological innovation in order to reduce need of
more staff. It aids to give rich experience to public and ensure trenchant and economical for in
delivery of services. For example, public sector supermarkets are using self-service checkouts
where they can easily pay for services (Drucker, 2012). However, this approach make it clear
among public that requirement of personnel is lowering down with innovation in technology. In
this regard, some of the private trading companies are set up for selling services. These private
companies work on the basis of casual staff provided by council where opportunity arises to
establish new psychological contract. It an be critically evaluated that transformational changes
shed light on selling future HR and payroll services to public sector organization in order to
enhance rate of return (Waltz, 2009).
Furthermore, new psychological contract is formed on the basis of rising career ladder
and not on the basis of commitment of job security. Here, public sector organization will focus
upon quality employment which consists of opportunities to develop their skills and degree of
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employment will be kept high. At the same time, councils and other public sector can make
workforce assure that they work with employers so they will have idea regarding employment.
Here, in case of any kind of emergency their staff will be communication as well as possible with
certainty of employment (Maloney and Stanford, 2011).
Apart from this, police service can be professionalized with inclusion of people who can
use their problem solving and discretion aspect for dealing with some specific issues like from
major organized crime such as counter-terrorism and cyber terrorism. Similarly, public sector
directly communicate that they need to connect with people' energies and sympathetic to the fact
that cooperation will be required in time of change.
Employee engagement as part of work re-organization in public sector
Engagement of employees is also the most important aspect through which personnel will
come to know about the requirement to implement the change. However, performance of public
sector can be enhanced only on the basis of employee engagement where workforce become
ready to provide immense support for management in implementing changes. For this purpose,
clear communication will take place with management and staff members. Accordingly there
will be strong cultural change which in turn company can easily modify internal structure and
cope with changes in an effectual manner (Brigitte and Charissa, 2013). Similarly, employee
engagement is one of the effective measure for work re-organization in the public sector because
personnel will tend to develop attitude for not expecting higher.
Furthermore, aspect of workforce engagement make it possible to empower staff rather
than controlling them. Here, engaged managers appreciate their staff members and make them
understand and the current scenario along with consequences that how it is affecting business
performance for long run. They also give reward for personnel who show their dedication for
achieving long as well as short term objectives of public sector like police, fire and health care
services (Agarwal, 2014). Not only this, employee engagement practices proves top be effective
for developing leadership capabilities. This in turn, public sector can get new and innovative
ideas through which they can easily implement transformational changes at workplace. It shows
that clear communication between management and workforce can lead to produce better
outcome in the direction of growth and development of corporation.
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According to the given case study workforce are suffering from drastic changes and
accordingly management also need to establish new psychological contract. Here, it becomes
crucial to launch effective aspects of workforce engagement (Dries and et. al., 2014). This will
be helpful for them to understand the need of company with regard to shrinking staff. Also, it
will enable public sector corporations to effectively implement transformational change related
to cut down in cost. In addition to this, case study of Derbyshire Fire and Rescue Services
reflects that how engagement practices motivate personnel. Here management visited all
department and noticed all issues faced by workforce. Owing to this, personnel also find it easy
to implement the changes in an effectual manner.
CONCLUSION
The aforementioned report concludes that public sector is facing several issues due to
cutting down cost and meeting expectations of local community effectively. At this juncture,
sector need to re-organize work by establishing psychological contract. Here, focus is laid on
making workforce understand to keep low expectations because of financial issues. It can also e
said that, employee engagement is the one of the effective aspect through which management
can communicate the message of drastic changes among personnel. However, accessing private
trading companies for selling services is the effective option for establish psychological contract
as part of re-organization in public sector.
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REFERENCES
Journals and book
Pate, J., Martin, G. and McGoldrick, J., 2003. The impact of psychological contract violation on
employee attitudes and behaviour. 25(6) pp.557-573.
Parzefall, M. and Hakanen, J.,2010. Psychological contract and its motivational and health‐
enhancing properties. Journal of Managerial Psychology. 25(1). pp.4 – 21
Behery, M. and et. al., 2016. Psychological contracts and intention to leave with mediation
effect of organizational commitment and employee satisfaction at times of recession.
Review of International Business and Strategy. 26(2).
Dries and et. al., 2014. Self-perceived employability, organization-rated potential, and the
psychological contract. Journal of Managerial Psychology. 29(5). pp.565 – 581.
Agarwal, U. A., 2014. Linking justice, trust and innovative work behaviour to work
engagement. Personnel Review. 43(1). pp.41 – 73.
Brigitte, K. and Charissa, F., 2013. Can HR practices retain flexworkers with their agency?.
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management in UK ICT organisations. Journal of Management Development. 32(1). pp.4–
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performance based on balanced score card. International Journal of Productivity and
Performance Management. 63(3). pp.290 – 307.
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Tohidinia, Z. and Mosakhani, M., 2010. Knowledge sharing behaviour and its predictors.
Industrial Management & Data Systems. 110(4). pp. 611–631.
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engagement. Personnel Review. 43 (1). pp.41 – 73.
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Journal. 30(3). pp.297–299.
Randeree, K. and Chaudhry, A. G., 2012. Leadership – style, satisfaction and commitment: An
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Architectural Management. 19(1). pp. 61–85.
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