Case study - Vision, Values and the Psychological Contract
The Stuart Mitchell Group of Companies has been supporting a European-wide organisation dealing with mutual co-operation issues throughout the original 15 and now 25 member states of Europe since 2002.
Initially addressing the quality of their performance appraisal system, a request for organisational development consultancy revealed the need to communicate the vision and values of the organisation more clearly to all members of staff.
Fundamental to the Organisation Development consultancy was the need to address the flaws in the delivery of the organisation's Psychological Contract.
The psychological contract is defined as 'The perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other'
These perceptions are created initially at the recruitment stage where expectations are created by promises from the employer, and what the employee perceives to be the employers obligations or commitments.
Some of the psychological contract will be written in a contact of employment and some will just be verbalised in the form of company statements, policy or from informal chats with management.
From a performance perspective the psychological contract is essential in influencing positive employee discretionary behaviours or effort. An employee has the ability to work as hard as he or she wishes. If employees believe they are not receiving a fair reward for their contribution, they will adjust that contribution.
It is then of paramount importance to discover what employee's perception is of this psychological contract in order to influence their behaviours.
So what are the expectations from the psychological contract? They include:
- Career development
- Opportunity to progress
For optimising employee contribution is this a clear case of under promising and over delivering? And at what cost?
Career HORIZONS represents an opportunity to deliver at minimum cost with maximum effectiveness.
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