Managers Get the Staff They Deserve

by: Kimberly Wylie

Table of Contents

Introduction 2

The Psychological Contract 2

Organizational Culture & Structure 5

Group Dynamics and Leadership 7

Motivation 8

Performance Management 10

Conclusion 12

References 14

Introduction:

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.

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)

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