Table of Contents
A. How the employer – employee relationship is changing?
1) The psychological contract
2) Traditional psychological contract
3) Transforming the psychological contract
B - Why the employer – employee relationship is changing?
1) Diverse Workforce
2) Competition in the Business Environment
3) Structure of Organization Change
4) Technological changes
A- Analyse critically the rationales that Facebook and McKinsey & Company emphasizes on offering different kind benefits to its employees.
1) Different types of employees
2) Employee’s satisfaction and company’s performance
3) Public image
4) Efficiency, effectiveness and productivity
5) Retaining talents
B- Discuss to what extent that Facebook & McKinsey has to be responsible to its employee’ wellbeing
QUESTION 1: It is notable trend that relationship between employers and employees are changing? Critically evaluate and discuss what likely reasons of this change. According to Mathis and Jackson (2012) the relationship between managers and their employees must be handled efficiently if both the employees and the organization are to prosper together. Whether or not some of the workers are represented by union, activities related with employee health, safety, and security must be addressed in all organizations. To facilitate good employee relations, employee’s right must be addressed. It is important to develop, communicate, and update Human Resource Management policies and rules that managers and employees alike know what is expected. In some businesses, union and management relation must be addressed as well. A. How the employer – employee relationship is changing?
For over the past ten years, research done by Rodriguez, Green and Ree (2011), has shown that, the relationship between employers and employees has changed. According to Haniph (2012), the relationship is changing because the psychological contract has been broken. Apart from that, according to the International Labour Conference Provisional Record (2006), the employment relationship, it is stated in the report that the relationship takes the form of a “psychological contract” that describes what employee expect from the employment relationship. It includes the traditional version; organization expects their employees to contribute time, effort, skills, abilities and loyalty exchange for job security and opportunity for promotion. Today modern company’s needs are constantly changing. Organizations now require top performance and longer working hours but cannot provide job security. While, employees are looking for flexible working schedules, comfortable working conditions, greater autonomy, opportunities for training and development and performance related financial incentives. For Human Resource Management, the changes require planning for flexible staffing levels. 1) The psychological contract
According to Mathis and Jackson (2012), the long term economic health of most organizations depends on the effort of employees with the appropriate knowledge, skills and abilities. The concept that has been useful in the discussion of the employee’s relationship with the organizations is that of a psychological contract, which refers to the unwritten expectation that employers and employees have about the nature of their work relationship. Miles and Nathan (2011), “Bloomberg Business week”, stated that both tangible items (such as wages, benefits, employee productivity, and attendance) and intangible items (such as loyalty, fair treatment, and job security) are encompassed by psychological contract between employers and employees. Many employers may try to communicate their expectations through employee handbooks and policy manuals, but those materials are only part of the total “contractual” relationship. 2) Traditional...
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