Free Management Dissertations - Additionally The Corporate Environment In Terms Of Employment Contracts
Additionally the corporate environment in terms of employment contracts themselves a process of socio-economic exchange often in national contexts is particularly crucial as it defines formalised arrangements between employee and the organisation employing, (Clark, 2004). Contracts between employee and employer determine the terms and conditions of employment like security and health issues related to the job and contractual employment rights. Clark (2004) points out that the relationship between employees and management teams not only impacts on corporate performance but also influences how successful and organisation is at retaining its workforce.
While Wright and Cropanzano (2004) concentrate on the psychological meaning of well-being in contributing to better job performance David and Smeeding (1985) propose that significant attention be paid to well-being from an economic perspective. Economic elements such as changing prices compared to incomes then are proposed as affecting people’s behaviours and psychological reactions. For instance research has demonstrated that higher income individuals are more likely than lower income individuals to report themselves as enjoying higher levels of happiness, (David and Smeeding, 1985). It hence is unsurprising to note that traditional human resource management approaches view performance management as enhancing individual performance by assessing past performance and rewarding improvements in terms of tangible economic benefits, (Walker, 1992). Jacques (1962) claims that every employee displays strong feeling towards to the level of payment in that such payments correspond to the perceived values attached to the performance of tasks associated with the job. This economic model closely reflects psychological conceptions in that when employees feel they are underpaid job performance will suffer in terms of productivity and efficiency.
Wright and Cropanzano’s model suggests that fair payment contributes to the happiness level of staff however it is vital to mention that the expectation of employee namely the subjectivity of well-being largely indicates different attitudes towards fairness. This is to say the employee who is paid comparably higher than others due to higher levels of education and vocational skill might feel unhappy because the pay level is still lower than the expected level. This is similar with subjective accounts of poverty of the unemployed being more a negative experience than poverty as a student dependent on their ability to adjust the reality of situations with their expectations. This corresponds with David and Smeeding’s (1985) framework on the subjectivity of well-being as a personalised experience. Recent research carried out by Gregg and Wadsworth (1999) illustrated that a good number of employee departures was due to either poorly managed expectations or ineffective inductions into positions.
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