Hrm and Employment Relationships

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HRM and Employment Relationships
Employment Relationship
Employment Relationship can economical, social and political relationship in which employees provide manual and mental labour in exchange for reward from employers (Gospel and Palmer 1993) There are 4 Dimensions within the employment relationship

* Economic exchange – Wage-effort bargain
* Socio-political - Power
* Legal/Contractual
* Psychological contract/social exchange

Contract of employment is formed when an offer of employment is made and accepted There are 3 ‘types’ of contract in the employment relationship (Schein 1980): 1. Formal - Economic and legal;
2. Informal - Reflecting the social norms in the workplace (the organisational ‘culture’) and those in wider society about how people should treat each other (‘Natural justice’); 3. Psychologrcal (implicit ‘contract’ made up of unspoken expectations and obligations).

The Psychological Contract of Employment
A set of unwritten reciprocal expectations between an individual employee and the organisation’ (Schein 1977) Positive psychological contract through particular configurations of HR policies and practices * Behavioural and performance outcomes such as job satisfaction, employee commitment, motivation and lowered intention to quit.

The Explicit Contract of employment
An agreement between two parties enforceable by law... a contract of service and comes into being when an employee agrees to work for an employer in return for pay’ (ACAS) * Accumulation of rights and responsibilities for both parties * The terms of a contract can be:

* Express (explicitly agreed between the parties, either in writing or orally) * Implied (not explicitly agreed but which would be taken by the parties to form part of the contract

Control VS Commitment
With the evolution of people management there is now more of a focus on control.

The logic of control
Direct control
* Low trust employment...
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