In today’s ultra-competitive global economy, organizations must take every action necessary to ensure they are as competitive as possible. Although advancements in technology, over the last few decades, has meant that oftentimes organizations have focused their efforts on the technological aspect of their business, those that have neglected their human resources have struggled despite technology. (Gutteridge, 2004) Today, employees drive productivity, customer satisfaction, and profitability. (Harter, Schmidt, & Hayes, 2002, in Stajkovic & Luthans, 2003) With this in mind, businesses across a variety of industries have come to realize the important part their employees play in their continued success. Hiring and retaining the best employees equals greater efficiency and efficacy. This increase in efficiency and efficacy equates to greater company profitability, which leads to increased market share and industry success. As such, hiring and retaining quality employees has never been more important than in today’s business world.
The question then arises, why do some companies, divisions, or even managers seem to be able to consistently hire and retain the cream of the crop, while others fail to do so? Do managers truly get the staff they deserve? By analyzing the psychological contract between employee and employer, the impact of organizational structure and culture, group dynamics and leadership, motivation, and performance management, this paper will show that indeed managers do get the staff they deserve.
Table of Contents
Introduction
The Psychological Contract
Organizational Culture & Structure
Group Dynamics and Leadership
Motivation
Performance Management
Conclusion
Objectives & Core Themes
This paper examines the fundamental relationship between management practices and employee retention, arguing that managers significantly influence the quality of staff they attract and keep by effectively managing psychological contracts, organizational culture, team dynamics, motivation, and performance systems.
- The role of the psychological contract in employee satisfaction.
- The impact of organizational culture and structure on performance.
- Group dynamics, leadership styles, and their influence on staff retention.
- Application of Maslow's Hierarchy of Needs for employee motivation.
- Strategic implementation of performance management systems.
Excerpt from the Book
The Psychological Contract:
The term ‘psychological contract’ was coined in the 1960s. (“Psychological”, n.d.) Argyris used this term to refer to the mutual obligations, values, expectations, and aspiration between an employer and employee that go beyond the formal employment contracts. (Smithson & Lewis, 2003) It is an unwritten and unspoken agreement between employee and employer in which both parties surmise certain expectations and obligations.
The common misperception is that money is the most powerful motivator on the psychological contract list. This is simply not true. (Eglin, 2004) For employees, these expectations can include a variety of non-monetary factors, including: Safe and hygienic working conditions, Job security, Challenging and satisfying work, Unbiased personnel policies and procedures, Personal and professional development opportunities, Respectful and considerate treatment.
While for employers, this psychological contract may include: Employee’s acceptance of the organization’s ideology, Diligent work by employee to accomplish organizational goals, Not to misuse management’s goodwill, To maintain the organization’s image, To demonstrate loyalty and uphold positions of trust, To maintain dress and appearance in a reasonable and acceptable fashion. (Mullins, 2002)
Summary of Chapters
Introduction: Outlines the importance of human resources in today's competitive global economy and introduces the central thesis that management practices directly shape staff retention.
The Psychological Contract: Explores the unwritten mutual expectations between employees and employers and explains how these factors influence job satisfaction more significantly than monetary rewards alone.
Organizational Culture & Structure: Discusses how corporate environment and structure affect employee engagement and productivity, emphasizing the need for a cultural fit between the organization and the individual.
Group Dynamics and Leadership: Analyzes the influence of team interactions and leadership styles on employee commitment and highlights the growing necessity of managing virtual team dynamics.
Motivation: Details how applying Maslow's Hierarchy of Needs can help managers foster a motivated workforce, moving beyond simple financial compensation.
Performance Management: Reviews the role of effective performance systems in communicating expectations and aligning employee behavior with organizational objectives.
Conclusion: Synthesizes the core arguments, reiterating that managers must actively manage these five key areas to ensure the attraction and retention of high-quality talent.
Keywords
Psychological contract, employee retention, organizational culture, leadership, group dynamics, motivation, Maslow's Hierarchy of Needs, performance management, human resource management, job satisfaction, productivity, workplace environment, team-based management.
Frequently Asked Questions
What is the central focus of this paper?
The paper explores how management strategies, such as fostering psychological contracts and organizational culture, directly correlate with the ability of an organization to attract and retain high-performing staff.
What are the primary themes discussed?
The key themes include the psychological contract, organizational culture and structure, group dynamics and leadership, employee motivation, and performance management.
What is the main objective of the author?
The primary goal is to demonstrate that managers are largely responsible for the quality of their staff and that they can improve retention by proactively addressing the needs and expectations of their employees.
Which scientific framework is used to explain motivation?
The author utilizes Abraham Maslow’s Hierarchy of Needs to illustrate how different levels of human needs—from physiological to self-actualization—must be met to maintain high levels of employee motivation.
What does the main body cover?
The main body breaks down specific management levers: the unwritten expectations between parties, the importance of cultural fit, the impact of team dynamics, the psychological aspects of motivation, and the strategic use of performance management tools.
Which keywords characterize this work?
The work is defined by terms such as employee retention, psychological contract, organizational culture, leadership, and performance management.
How does the psychological contract evolve?
The paper explains that the psychological contract is not static; it changes as the employee-employer relationship progresses, requiring periodic evaluation and communication to ensure expectations remain aligned.
Why is performance management considered controversial?
While essential, performance management can be detrimental if handled poorly; specifically, tools like electronic monitoring can negatively impact morale if not balanced with trust and fairness.
- Quote paper
- Kimberly Wylie (Author), 2004, Managers Get the Staff They Deserve, Munich, GRIN Verlag, https://www.grin.com/document/57780
