As discussed in the case study, Skyline international is facing the issue of employee dissatisfaction. This is due to the reason that, in the initial stage of the operation, employees in the Skyline international are motivated and engaged in their workplace. However, after the turbulence in 2014, employees are becoming more stressful and are more resisting to the strategic change of the organization. Thus, it can be said that, there is a need of positive psychological contract between the employers and the employees. Psychological contract refers to the informal and causal forms of relationship between the employers and employees, which helps to creates positive impression and expectation among the employees regarding their employers (Bal, Kooij and De Jong 2013).
This essay will discuss about how psychological contract can be integrated in Skyline international and how it will help in converting the negative feedback of the employees in positive form. Theories related with the management of the employees will also be used in this essay in order to present the integration of the psychological contract in the organization.
McGregor theory X and theory Y will be the most effective and proper theory that will be applicable in integration of the psychological contract in the organization. According to this theory, there are mainly two types of employees seen in the organization. One type of the employees are considered as theory X (Mohamed and Nor 2013). This theory refers to the employees who are not engaged in their workplace and are having negative impression in their workplace. In addition, both positive and negative coercive factors are being used to motivate the employees in their workplace. This theory also states that these employees also create resistance to organizational change.
On the other hand, theory Y refers to the positive set of the employees who are more engaged in their workplace and who are not in the need of authoritative style of leadership (Russ 2013). Moreover, these employees know to take responsibility in their workplace along with meeting the goals and objectives of the organization effectively.
In the case of the Skyline International, the given elements of the employees can be more relate to the theory X, which denotes more negative compared to the theory Y set of employees. Thus, the psychological contract should be designed and integrated in the organization in such way that, it will help in reducing the negativity of the employees along with converting them in the set of theory Y.
Skinner’s reinforcement theory will be applicable in integrating the psychological contract in the organization (Skinner 2014). This is due to the reason that, Skinner’s reinforcement theory states the positive and negative reinforcement according to the situation. It is stated that positive reinforcement such as reward should be used for positive motivation of the employees and punishment should be used for negative motivation of the employees. In the case of the employees who are not engaged in the workplace, negative reinforcement will help in maintaining their job performance. On the other hand, positive motivation in the further stage will help in enhancing the impression of the employees along with increasing their loyalty to the organization (Deci and Ryan 2014).
Communication is also one of the key components in psychological contract. In the case of the Skyline International, it was discussed that, the communication process is ineffective and incomplete in nature. For instance, employees of Skyline International were told that voluntary retirement option will be provided to the interested ones. However, they are not being communicated about the guidelines for the concept along the packages to be received. Thus, it is creating negative impression and confusion among the employees. Communication process should be made effective in order to reduce these issues.
Fairness should also be maintained in managing the employees. This will help in creating the sense of equality among the employees in their workplace (Cohen 2015). Moreover, employees should be given proper support by the upper level management. In the case study, it is discussed that, employees are not having the support about how to cope up with the organizational turbulence. Thus, they should be given support, which will enhance the psychological contract between the employees and the employers (Lee and Jensen 2014).
This essay discussed about the integration of psychological contract in the Skyline International. Theories such as McGregor theory X and Y and Skinner’s reinforcement theory are being used in order to identify the elements to initiate psychological contract in the organization. Some of the elements being identified are the communication process, support for the employees, positive and negative reinforcement. Various recommendations are also being discussed in this essay. It is expected that effective implementation of these recommendations will help in enhancing the psychological contract in Skyline International.
Effective business communication is one of the most important elements to be followed by the contemporary business organizations. This is due to the reason that, in the current scenario, feedback of the employees is also important for the upper level management in the decision making process (Schullery 2013). In the case of Skyline International, it is identified that, the communication process in the organization is mainly one way process rather the two way process. Thus, it is important for the upper level management to initiate a process of communication, which will not only ensure coordination among them but also with the employees.
This essay will discuss about the different mechanisms of communication and the most effective one, which will help in having proper system of communication in Skyline International.
Effective process of communication is important for the contemporary business organizations such as Skyline International. This is due to the reason that, the more effective and efficient will be the process of communication, the more coordination will be there in between the internal stakeholders. According to the McGregor two factors theory, there are mainly two factors, motivators and hygiene, which determines the level of job satisfaction of the employees (Damji et al. 2015). This theory states that, motivators are the factors, which enhance the level of satisfaction among the employees such as recognition of the employees in their workplace, career growth of them and sense of achievement of them (Bradler et al. 2016). Thus, these factors can be initiated only with the help of the effective communication process. Employee benefit activities driven by the organization can be transmitted to the employees only with the help of the effective communication process.
This theory also stated that, among the hygiene factors, interpersonal relation is one of the key factors to be maintained by the organization. Thus, having positive interpersonal relation among the employees and other internal stakeholders can only is possible when the communication process is effective.
In the case study, it is stated that, employee are becoming more disengaged in the workplace due to the reason that, they are not be communicated effectively and properly about the change being going to happen in the organization. Thus, there is a direct relationship between the employee engagement and effective communication process in the organization (Anitha 2014). The more effective will be the process of communication, the more helpful will be for the upper level management of Skyline International to determine the feedback and issues of the employees. If these issues can be mitigated effectively, then the employees will be more motivated and engaged in their workplace. Thus, it is of urgent need for Dean and his managers to determine different mechanisms of communication and initiate them in their organization.
Synchronous communication refers to the process of communication where multiple parties or stakeholders can participate at once and they can interact with each other at a single time. Thus, it helps in transmission of the particular message among all the related parties and they all are aware about the development in the process (Berger and Iyengar 2013). On the other hand, asynchronous communication is mainly what is practiced by Skyline International. This is mainly one way process of communication and there is no surety for the sender of the particular message to get any reply from the receiver. This is currently practiced in this organization, where employees are having lots of queries to resolve but there is no effective communication initiate from the upper level management.
Thus, from the above discussion, it can be conclude that Dean and his top management team should adopt the Synchronous communication process in their organization and they should involve the lower level employees also in the process also in order to gain their feedback or opinion. The more will be gathering of the opinion from the side of the employees, the more will be their engagement in the organization (Giesbers et al. 2014). Thus, it is recommended to the Skyline International that they should initiate the process of synchronous communication mechanism in order to have effective communication practices with the employees also.
Conclusion
Thus, it can be concluded that, communication is one of the important steps in engaging the employees. This is due to the reason that, the more effective will be the communication process in the organization, the more positive will be the relationship between the internal stakeholders. This essay also discussed about the types of communication mechanisms and which will be the most effective for the Skyline International. It is recommended that, synchronous communication mechanism will be more effective for them in communicating with the lower level employees.
In the current business scenario, rewarding the employee performance is much more important due to the reason that, the competition is higher in the market and there are various rival companies present in every sector to attract the right talents (Salleh et al., 2013). Thus, it is important for the business organizations to reward their employees through different means in order to retain them and to attract new talents. Rewarding employees can be of different types ranging from annual salary increment to providence of bonus. On the other hand, appraisal is also important due to the reason that, conducting appraisal will help to determine the performance of the employees and rewarding them accordingly (Aggarwal & Thakur, 2013).
In the given case study, it is stated that, employees of Skyline International have not received any salary increment for the last few years. Moreover, their current salary is also much lower than that of their competing organizations in the market. It is causing dissatisfaction among them and is causing decrease in the morale and motivation of them. Moreover, some of the key talents of the Skyline International are also trying to change the organization.
This essay will discuss about the importance of conducting appraisals and rewarding employee performance on a regular basis in order to retain these employees, which will in turn help to maintain the competitiveness in terms of the skill sets of the human resources.
According to the Maslow’s need theory, there are some sorts of needs of the employees, which should be met by the employers in order to further motivate them in their workplace. One of these needs is the safety need (Jerome, 2013). This need refers to the financial and personal security and safety of the employees. Thus, conducting appraisal will lead to the increase in the compensation of the employees in accordance to their performance. Thus, their financial need will get met periodically. This theory also stated the esteem need. This refers to the feeling of confident and respect of the employees in their workplace (Howell, KUrai & Tam, 2013). Therefore, conducting performance appraisal of the employees will make them feel the importance of their job in their workplace. In addition, employees will feel more confident and motivated if they are being given proper importance and value through appraisal. The more will be the recognition of the work of the employees in their workplace through appraisal, the more will be the level of motivation of the employees (Zhang, Hu & Qiu, 2014). Thus, it is suggested that, upper level management in Skyline International should initiate the process of employee appraisal in order to recognize the contribution of their employees and make them feel valued in the organization.
Financial reward is important in order to retain the performing employees in the organization. This is due to the reason that, employees are professional and they will opt for the organization where they will receive the maximum financial value (Massingham & Tam, 2015). Expectancy theory of motivation states that, workers are tending to work harder and perform better if they have the perception that they will receive reward on the successful completion of their job (Parijat & Bagga, 2014). Thus, it will act as positive motivator for them. According to this theory, if the employees are being promised that they will receive some kind of financial reward such as pay hike, then they will more likely to perform better and vice versa.
In the case of Skyline International, the recent organizational performance of them is not up to the mark due to the reason that, employees are less motivated and they are not being paid in accordance to their performance. Hence, Skyline International is trailing in the competition in terms of the effectiveness and efficiency of the employees. Thus, it is suggested that, the employees of them should be rewarded properly or at least at par to the competition. This will ensure that the employees will be motivated to perform better (Presslee, Vance & Webb, 2013). This will in turn enhance the quality of the services and the organizational performance and will help in regaining the lost position in the market.
Thus, from the above discussion, it can be concluded that, conducting performance appraisal and rewarding the employees will have positive impact on the business performance of Skyline International. This is due to the reason that, the more effective and frequent will be the performance of the employees in the organization, the more will be their interest in performing better in their workplace. Hence, the average level of performance of the employees will get enhanced. On the other hand, rewarding the employees will help in enhancing the level of motivation and morale among the employees. They will work more hard and better in order to gain the rewards. Therefore, this will help Skyline International to retain the maximum employees and to enhance the organizational performance.
Reference
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