With the growing numbers of competitors and high technologies in the market, where company will be an Increased need for skilled employees at every level and department of the organization. (Nelson, 2000) Have a better understanding of what individual desire and how to attract talent people is important. This paper aim to look at the connection between psychological contract and motivation theory by analyzing commitment and trust model The Herbert theory, Broom’s expectancy theory, and
McGregor motivation theory will be discussed to see how psychological contract align with employee motivations. Psychological Contract Psychological contracts has been defined as a ‘motivator’ that employees will give in the way of contribution when employees are confident that employer will reciprocate fulfill commitment, such as rewarding work, promotion or other forms of career advancement. (Rousseau, 2004). Research conducted by Robinson & Morrison demonstrated that employees holding different types of psychological contract (relational, transactional) treat perceived violations differently.
Grossman, 2004) In the dynamic global environment, downsizing, organization restructuring, corporate mergers and acquisition, then these trends make it difficult for organization to fulfill anticipated results in psychology contract. Rousseau. (2004)Robinson (1996) showed that the effects of psychological contract violations could reduce employee contributions. That is why organization will need to reduce violations and learn how to manage if is unavoidable. AAU, 2001) Psychological contract was rooted in three mall principle constructs; the relationship, trust and commitment, these not only intricate to the construction or reconstruction of the psychological contract, but also identified an inter action between each; (Shore L. M & Trick E. L, 1994) ‘motives change may alter trust, which will In turn change the commitment form. Meanwhile, changes in trust and commitment may also alter the relationship’. (Grossman, 2004) It is important to analysis the trust, since it is an initial entry to establish relationship.
The expectation and predictability constitute the principle of trust that Indicates the employees and employer will behave in an acceptable manner. Atkinson C, 2006) Sand (1972) found that high trust groups perform better than low trust groups. (Grossman, 2004) Employees who trust their organization will more likely engage In their career, since they know what they can get from Company. But trust as a construct may be loss because downsizing, cutting the benefit. Rousseau, 2004) Deutsche (1958) suggests, With trust comes the risk that behavioral expectation will not be met, with uncertainty leading to swings in behavior between engaging in and avoiding trust’. (Gradual U & Braggart S, 2009) Motivation theory & Psychological contract Consolidating the various motivation theories, It can be concluded that employee demands, employers are trying to identify the ways to satisfy their employees on both an extrinsic in financial level and an intrinsic psychological level.
Herrings (1968) theory of motivation stated motivator factors which is able to cause high Job satisfaction associated with positive attitude by recognizing for achievement, enjoying work itself, taking more responsibility. (Wilson F. M. 2010)Hygiene factors are important to remove Job dissatisfaction; examples are working condition, personal legislation, and company policy. (Herbert, 1968) For instance, ARM Holdings PL is the world’s leading semiconductor intellectual property supplier. ARM uses employee engagement as a key tool in motivation.
A variety of other satisfiers are used as well, such as undertaking more responsibility, employees receiving shares in company. The aim is for employees to act and feel like a part of business owner, and help them to be recognized for their contribution. (Business Case Studies, 2013) By understanding what motivates individuals it will encourage workers more efficient in oracle. It also helps to ensure that employees are enjoying their work. This in turn will create satisfied employees, and establish of trustworthiness in psychological contract.
According to the expectancy model, people will be motivated as they perceived that put more effort will lead to a good performance, which also increase the probability of rewards (Flynn. S, 2011) It is the psychological contract (expectation) that effectively tells employees what they are required to do in order to meet their personal goals and what they can expect from their Job. For example, SAD Stores Ltd, a British supermarket chain is an equal opportunities employer by providing progression routes to every employee. The career path shown is for a store manager who wants to area manager.
To accomplish goal, SAD use psychometric tests, 360 -degree leadership survey to help identifying training needs, working performance, and ultimately motivate employees and achieve business objective. (Business Case Studies, 2013 ) If employee contributions are based on their expectations, managers can take steps to create favorable expectations among their employees. When people trust organization and believe high effort lead to good performance appraisal which potential lead to valued reward, they will undoubtedly work harder. (AAU.
C, 2001), Generally, the ‘Theory X’ perceptions are that the employees are lazy and need to be closely monitored and controlled Theory Y states that employees actually become more productive when more trust and responsibility is delegated to them. (Wilson F. M. 2010) Deco’s leadership framework is differentiated with other organizations. Deco’s programmer for building leadership is based personal characteristics and behaviors. They believe the best management adopt leadership styles appropriate to the situation, and good leadership style can set up positive employment relationship.
The group leaders from different department in Tests, they mostly take democratic approach and encourages his managers to put forward ideas, developing plans, and this increases team motivation encourages creativity. (Business Case Studies, 2013) detailed practicality of the work to be done. (Mohamed, R. K. M 2013) Recognition for effort and performance may more satisfy employees. Conversely, organization has an autocratic management style this may have a negative impact on motivation. It can conclude mainly Theory Y management’s style is about psychological contract fulfillment.
