Impact of the Psychological Contract on Relations Within Company X

Impact of the Psychological Contract on Relations within Company X

1. Executive Summary
2. Problem analysis and solution
2.1. Description of the problem
2.2. Analysis of the problem
2.3. Solutions to the problem
3. Website information
3.1. The Chartered Institute of Personnel Development
3.2. Chief Executive Officer
4. Conclusion
5. References

1. Executive Summary
This report discusses how the concept of the psychological contract pertains to the relationship between company X owners and their members. It helps to understand more about the “give and take” relation that characterises working for the company and is very useful in understanding why employees are difficult to motivate, or difficult to manage, especially when the company faces any challenges. Analysis of the psychological contract helps company managers to understand better how to bind their people's needs with those of the company.

2. Problem analysis and solution
Company X is a family run business. For almost 30 years it has been successfully providing quality event catering and ice cream vans in London and sites around the UK. For the summer months the company hires a number of additional staff. The employer provides just a standard form contract stating hours worked, pay rate, some major job tasks and entitlements, leaving the details of the employee's duties to be clarified "on the job". The owners themselves are working very hard and are equally demanding towards the staff. They often ask staff to do extra work. Company interests often are put first allowing staff no time off to meet personal or family needs. In such an intense and stressful environment people quickly get tired and lose interest and motivation to perform well because the amount of work they have done is not adequate and sufficient to their expectations and wages they receive.

Written contracts only reveal some of what employees do at work. The psychological contract is becoming a powerful concept in the work...