Organisational relationship

 HR practices of an organization plays a key role in the relationship between individuals and their employers (Boon et al, 2011). As shown in figure 1. Psychological Contract, Job Satisfaction, Commitment, engagement, and loyalty are the Important elements of the organizational relationship (Mathis et al, 2017).

Figure 1.0 The Individual–Organisational Relationship

(Source: Mathis et al, 2017)

Psychological Contract

Psychological contract is the unwritten agreement that exists between employers and employees which identifies each party’s mutual expectations (Cullinane and Dundon, 2006). As an example, the management of an organisation will treat employees fairly and provide satisfactory work conditions expecting the employees to respond by demonstrating good attitude, showing loyalty to the company and by following the instructions given by the upper management (Dessler, 2017). Equity Theory of motivation explains how tangible and intangible items affects the employee motivation and the motivated employees are with a positive psychological contract while the demotivated employees carry a negative psychological contract (Ngobeni, Saurombe, and Joseph, 2022). 

Job Satisfaction and commitment

Job satisfaction can be defined as the pleasurable feeling that results from perception that one’s job fulfills or allows for the fulfillment of one’s important job values (Aziri, 2011). Unsafe work conditions, personal dispositions, job tasks and roles are the main sources which lead to job dissatisfaction. The HR department of an organization must always be aware of these and manage properly depending on the person to reduce employee withdrawal (Noe et al., 2017).

Figure 1.1 Key Components of Job Satisfaction

(Source: Mathis et al, 2017)

As explained by Hackman and Oldham (1974), if the core job characteristics are satisfied by the design of the job, the employees would perceive that the work is worthwhile, feel responsible and would know if the work had been completed satisfactorily. This leads to higher work performance and job satisfaction as a result of Intrinsic motivation (Armstrong and Taylor, 2014). The level that employees accept and believe organizational objectives and want to be employed in a company is called organizational commitment (Vance, 2006). The job satisfaction which was discussed above plays a major role in organisational commitment.

Figure 1.2 Engaged and disengaged employees

(Source: Mathis et al, 2017)

As per figure 1.2, engaged employees are usually intrinsically motivated. They love what they do in the company and always try to deliver a better job. They even strive to master new skills and are enthusiastic about applying their talents in their day-to-day work. This indicates that an engaged employee helps the company to boost the bottom-line profits. Intrinsic motivation is more important when it comes to Employee engagement because extrinsic motivation is something you need to keep prodding in order to produce (Singh, 2016). Every job task cannot be rewarded with monetary rewards. If the motivation of the employee is fear based like displeasing the management or fear of losing the job, they will get disengaged quickly (Vance, 2006).

Considering all above it is proven that motivation is a key element of the Employees Psychological contract, Job Satisfaction and employee engagement which are the main parts of Organisational relationship. Therefore, it can be concluded that motivation is a key aspect of Organisational Relationship.

References

•  Armstrong, M. and Taylor, S (2014) Armstrong’s Handbook of Human Resource Management Practice. 13th Edn. Philadelphia.

• Aziri, B. (2011) Job Satisfaction: A Literature Review,Management Research and Practice, 3(4), pp 77-86, [online].Available at https://mrp.ase.ro/no34/f7.pdf Accessed on 28^th November 2022

• Boon, C., Den Hartog, D., Boselie, P. and Paauwe, J. (2011) The relationshipbetweenperceptions of HR practices and employee outcomes: Examining the role of person-organisation and person-job fit, International Journal of Human Resource Management - INT J HUM RESOUR MANAGER, 22(1), pp 138-162, doi: http://dx.doi.org/10.1080/09585192.2011.538978

· Cullinane,N. and Dundon, T. (2006) The Psychological Contract: A Critical Review,International Journal of Management Reviews,8(2), pp 113-129, doi: https://10.1111/j.1468-2370.2006.00123.x 

 ·     Dessler, G (2017) Human Resource Management. 15th Edn. USA: Pearson Education   Limited.

• · Mathis, R.L., Jackson, J.H., Valentine, S.R. and Meglich, P.A. (2017) Human Resource    Management. 15th Edn. Boston: Cengage Learning.

•     Ngobeni,D.A., Saurombe,M.D. and Joseph, R.M. (2022) The influence of the                    psychological contract on employee engagement in a South African bank, Frontiers in      Psychology, doi: https://10.3389/fpsyg.2022.958127

•     Noe, R., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2017) Human Resources            Management. 10th Edn. USA: Mcgraw-Hill Education.

• ·  Singh, R. (2016) The Impact of Intrinsic and Extrinsic Motivators on Employee                  Engagement in Information Organizations, J. of Education for Library and Information      Science, 57(2), doi: https://10.12783/issn.2328-2967/57/2/11

     ·         Vance, R.J. (2006) Employee Engagement and Commitment.SHRM Foundation                        [online]. Available at https://www.shrm.org. Accessed on 28^th November 2022