Essay on Psychological Contract and Organizational Behaviour

5138 Words Apr 11th, 2008 21 Pages
Part A

Critically evaluate what impact the events in this scenario are likely to have on the attitudes and perceptions of your staff and critically discuss what actions you would take to manage these negative attitudes and perceptions.

Introduction
‘Throughout the 1990s, the psychological contract has emerged as an important construct to explain the changing nature of the employment relationship. Initial interest was fuelled by consequences of a more cost focused and competitive business Environment’ (Judy Pate, ‘The changing contours of the psychological contract’, Journal of European Industrial Training, Vol. 30 No. 1, 2006, pp. 32-47). Over the years researchers have analyzed and presented various views based on cultural
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One of the other major factors in this regard is also the directive stance of the management and this might enhance the workforce to indulge in malpractices.
Management’s view of Amalgamation
Micheal Beer and Nitin Nohria in their article have described the two theories about the management perspective of implementing change, Theory ‘E’ and theory ‘O’ (Michael Beer & Nitin Nohria, ‘Cracking the code of change’, R00301, http://harvardbusinessonline.hbsp.harvard.edu). We have analyzed the scenario at hand and its affect on employee’s attitude and perspective due to the amalgamation but on the other hand we also have to realize why the change has been implemented. Theory “E” suggests that the organizational change is based on economic value. In the above scenario the management has opted for theory E and the amalgamation has resulted as an outcome. Negative attitudes and perception of employees have to be weighed against the management options and circumstances in which Management has decided for amalgamation.
Corrective Actions
In the above discussion we have analyzed the scenario, negative attitudes and perception that have resulted after amalgamation, various aspects of management views, let’s now discuss and analyze the situation and the corrective measures as a Manager I will take to improve the current situation.
Start building contact and Trust
First step as a Manager I will take is to focus on trust building and contact with the subordinates.

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