The Importance Of Employment Relationship

Employment relationship has a substantial effect on the employees work performance and the overall organisations success (Randmann, 2013). However, individuals attitudes and behaviours in the organisation do not fully correspond to the formal written employer contract, but it’s to a large extend influence by the individuals perception of one’s obligation, promises made by the employer and how well the employer has fulfilled ones obligations (Shore,2006). A fulfilled obligation in an employment relationship results in more desirable benefits for organisations. Throughout the employment relationship employees and employers will try to make sense of the social context in which they work, and this sense-making affects their perceptions attitudes and subsequent actions. Therefore, the psychological contract deals with the pattern of unwritten beliefs held by the employee and organisation about the exchange relationship that operates between them (Rousseau, 1995).

As a consequence, a psychological contract is essential to the employee relationship and is a useful concept for understanding the challenges associated with managing employment relationship (Guest, 2004). It is an effective way to understand what an employee is ready to contribute and what he or she expects to receive in return from the employer. It provides a framework for studying how employees and employers have different perceptions of neutral obligations and how these obligations have been fulfilled.

Due to globalisation, economic instability and labour market trends, organisations such as Toyota would have to adapt to the changing external environment by changing its organisational strategy, structure, process and people. This essay outlines that strategic change ...

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...eral ways. Such as using employee attitude surveys, which states the attitude and perceptions of employees regarding the change.

Supervisors play a key role in corporate change plans , they are the ones the key leaders to communicate the need and nature for the change, Supervisors at Toyota should be providing briefing sessions prior to the major change , that would include layoffs they would also ask about the concerns regarding the change. These are then articulated to the management for them to work out as many recommendations as they possibly could to reduce the negative outcomes of the psychological contracts. The final plan of supervisors should articulate and explain why the change is needed. Management should also develop change booklets to guide face to face discussions between the employee and the employer and between the supervisors and the employees.