Research suggests that those organisations downsizing can reduce the Essay

Research suggests that those organisations downsizing can reduce the likelihood of psychological contract violation by ensuring - Essay Example Cooper, Pandey and Campbell, (2012) asserts that today downsizing of employees is perceived to be part of most companies working life. This is as a result of cost cutting and the need to become accustomed to the current changing demands in the market. Most organizations have continually faced steep fall in their revenues and even sales considering the rate and intensity of economic crisis that started in 2007. Hence, most companies had to downsize their employees as one of the ways to reduce on cost. On the other hand, companies conduct downsizing as a component of a wide workforce strategy intended to support business overall plan. Layoff is perceived as being one of the tools utilized to improve the performance of an organization. As for those in the managerial positions, they perceive this as being an opportunity to improve company’s alertness both in the short term and long-term. This is possible only through designed and targeted coaching, and transformation. This essayâ €™s first paragraph consists of psychological contract definitions. The focus here will also be and the impact on individual’s behavior in the organization. The second paragraph focuses on the expectations and perception of both the employer and the employee. In addition to this, it also consists of employee attitude. The third paragraph focuses on a situation where employees are forced leave the organization due to job loss. Employment relationship comprises of various beliefs between an employer and an employee. It mainly concern what the two parties expect from each other. This is also known as psychological contract. Psychological contract is mainly termed as being an agreement that is informal and is between an employee and an employer. The expectation and beliefs involved are not written and are mainly held by both the employee and the employer. Psychological contract exists in all the categories of employment that include; full time, part time, contract work and ev en temporary. It presents proper framework that helps in appreciating and supervising the behavior of an employee. According to Petersitzke (2009), psychological contract is a deal that is open-ended and consists of expectations of an individual and an organization. The expectation consists of what both parties will have to give and what they get in return from the relationship. Over time various expectations arises as the views develop regarding employers dedication. Psychological contract has its foundation on trust and thoughtfulness and varies among the employees. It is based on social exchange theory. This theory clearly highlights that the basis of individual relationships are on the assessment of individual cost benefit and review of other options. In psychological contract, the costs mainly involve time and effort. The benefits on the other hand are; financial achievement, social class and other benefits emotionally that include; job contentment or sense of reason. Cost bene fit analysis result is evaluated with possible alternatives that include one’s accessibility to other available jobs and obstacles to departing from the present job. Hence, the agreement between the two parties focuses on various aspects both social and emotional. The perception of an employee towards employer’s observance of psychological contract greatly influences work and plan to stay in a given organization. Fair treatment of employees and appreciating their work boosts productivity and continuity in a given company. This is