Flexibility & the psychological contract

Flexibility & the psychological contract

1. FUNCTIONAL FLEXIBILITY - multi skilling of employees

2. NUMERICAL flexibility - different types of contract

3. TEMPORAL - number and pattern of hours i.e. annualised/seasonal

4. WAGE - individualised wages, performance based pay

5. PERSONAL/BEHAVIOURAL - going above & beyond

6. ATKINSON'S FLEXIBLE FIRM

   • CORE GROUP - primary labour market - functional flexibility
   • First Peripheral Group - secondary labour market - numerical flexibility
   • Second peripheral group - temporal flexibility
   • Outside the org - numerical flexibility

7. WORK INTENSIFICATION

   • Often cited as an outcome of flexible working, high job satisfaction & commitment to org can be explained in employees exchanging effort for flexible working
   • IMPOSED: higher workload after downsizing
   • ENABLED: increased effort enabled by changing shift pattern - work at busiest time or work harder in return for flexibility
   • RECIPROCAL: exchange effort for flexibility in working arrangement

8. POLITICS & FLEXIBLE WORKING

   • 2010
     • LABOUR: offered fathers a month of paternity leave
     • CONSERVATIVES: offered shared parental leave
     • LIB DEMS: the right for anyone to request flexible working
   • 2014: 0 hours contracts - plans to prohibit employers restricting those working under tham from working for another company

9. THE PSYCHOLOGICAL CONTRACT

   • ROUSSEAU 1995; the employment relationship in terms of mutual obligations & expectations
   • implications for HRM - managing the contract and "getting" commitment from employees (CIPD 2005) and through reward (Hilltrop 1996)
   • TYPES OF PC
     • TRANSACTIONAL - short term, specified job roles, low ambiguity, quick exit, low commitment, little learning i.e. retail staff
     • TRANSITIONAL - short term, not specified job roles, high turnover/termination - usually acquisitions/mergers
     • BALANCED - long term, specified job roles, high commitment, ongoing learning, mutual support, dynamic
     • RELATIONAL - long term, unspecified, high member commitment, stability i.e. family business
   • CHANGING NATURE OF PC
     • OLD org is parent, identity & worth of employee defined by org, those who stay are loyal, leavers are traitors, growth through promotion, those who comply work until retirement
     • NEW: mutual adult contracts based on mutually beneficial work, employee defines own worth, regular attrition healthy, long term employment unlikely, growth through accomplishment
   • AND LINE MANAGERS
     • CIPD 2005 satisfaction & commitment flow form employees having interesting work, opportunities to develop, fair treatment & competent managers
     • PURCELL ET AL 2003 FLMs provide differentiator by delivering policies through implementing, enacting, leading & controlling

10. PERFORMANCE

    • PURCELL ET AL 2003 - PEOPLE PERFORMANCE LINK - performance is a function of people's ability motivation & opportunity to perform. 11 HR policies & practices that enable this, it is the way in which line managers deliver these policies that is the key differentiator

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