Question:
Discuss about the Relational Versus Transactional Beliefs.
The relationship between the organisational performance and human resource management” href=”https://#”>human resource management is appeared to the statistically weak. However, according to Rousseau (2001), human resource is the integral part of the business that deals with the performance parameter of the associates. Some of the significant issues are identified while linking the relationship between the organisational performance and human resource management (Guest, 2004). The human resource department requires maintaining the responsibilities of recruiting, motivating, and managing the entire work environment in a significant way. It has been observed that the HRM practices even have the strategic linking with the psychological contract. The major focus of the efficient human resource management is to motivate the workforce to retain them for a longer time (Guest, 1998). However, the inappropriate human resource practices can accordingly lead towards the failure of the people management. The study concentrates on the evaluation of psychological contract within ADF (Australian Defense Force). The ADF members claim that their pay rise is minimal and they do not receive the deserving treatment from the Australian Government. It creates the psychological contracts between the members of Australian Defense Force and Australian Government. The study would focus on some of the specific suggestions on the human resource management in terms of performance and rewards, training and career management, and employee wellbeing. The further study would develop the bets human resource practices in mitigating the conflicts emerged within ADF.
The case scenario is based on the Workplace Remuneration Arrangement between the Australian Defense Force and Australian Government. The human resource management pays attention towards the wages of the associated workers. The associated ADF members claimed that their wages increased almost 4.5% over 3 years (Aihw.gov.au., 2014). This low rise of the wages has been affecting the psychological contracts between the Australian Government and ADF (Army.gov.au, 2017). It has been observed that there is there is the psychological based conflicts emerged that was shifted from the relational value. The areas of the career development and the long-term job security are the major factors to increase customer loyalty (Grimmer & Oddy, 2007). The case study highlights some of the significant issues faced by the associated members due to the improper HRM practices. Undermining the psychological contracts is the major reason for the rise of lower wages. This lower wages are considerably breaching the rules and obligations of the Australian Government (Rousseau, 2001). Such unintended consequences in the Australian Defense Force Pay Deal are affecting the long-term commitment of the soldiers. The members of Australian Defense Force have been facing major issues with the improper training process, low rise of the wages, and lack of proper employee well-being (Army.gov.au, 2017). In fact, it is also notable that the members do not receive the proper training and development session for their defense programs. The ADF members claim that their pay rise is minimal and they do not receive the deserving treatment from the Australian Government. It creates the psychological contracts between the members of Australian Defense Force and Australian Government. The study would thus focus on some of the specific implication for the future improvement of the Human Resource Management.
The efficient HR management plays the significant role in increasing the performance parameter of the employees. The development and success of the employees help the organisation to accomplish the business goals. On the other hand, the effective performance of the employees depends on the extent to which the organisation is maintaining the fairness to influence loyalty programs. The members associated with the Australian Defense Force exclaimed that they do not receive the proper treatment from the association (O’Donnell and Shields, 2002). It is necessary for the human resource department to explain the performance rating scale to understand the employees in different levels. It is to be indicated that the human resource management is the integral part of an organisation. Starting from the recruitment and section process, the human resource management of an organisation requires taking care of the entire data of the organisation, management of the people, and retaining the employees with proper motivation. The HR set the reasonable deadlines for completing the strategic activities undertaken by the management (O’Donnell & Shields 2002). The human resource management requires concentrating on maintaining the effective interpersonal relationships with the employees. The members associated with the Australian Defense Force exclaimed that they do not receive the proper treatment from the association.
It is the major responsibility of the human resource management to manage the training process of every associate, executive, managers and the involved members. It is necessary for the human resource department to explain the performance rating scale to understand the employees in different levels. This performance monitoring process is quite helpful in understanding some of the specific areas of improvement (Dunt, 2009). The lack of proper motivation creates the considerable impact on the psychological mindset of the employees. When the employees receive the proper motivation from the organisation, it creates the positive impact on the associated employees. Similarly, when the employees fail to receive those motivational factors, such as proper training, appropriate wages, and rewards, their performance can be degraded. It is essential for the human resource management to keep the record of the proper performance and activities of the associated employees (O’Donnell and Shields, 2002). It is even essential to receive the proper feedback from the employees to understand the major areas of concerns (Grimmer & Oddy, 2007). The human resource management requires developing such environment that can satisfy their concerns and improve the willingness to work. In fact, the human resource management requires focusing on the internal business strategies and the environmental benefits for the associated employees. Some of the specific motivational factors are needed to be taken into consideration for leading the employees towards job satisfaction (Guest, 1998). The further study would provide the major concerns related to the employees satisfaction. The role of the human resource management has the clear link with the motivation theories. Herzberg’s Two-Factor theory provides the insightful ideas of the necessary factors that the human resource management needs to be concerned about to retain the employees. The following section of the study would discuss these factors associated with the motivation theory of Herzberg.
Frederick Herzberg, the behavioural scientist observed the needs of several important segments that create the impact on employees’ minds. The Two-Factor theory is also noted as motivation-hygiene theory that results the satisfaction or dissatisfaction of the associated staffs. The case scenario defines that the members of Australian Defense Force have been facing major issues with the improper training process, low rise of the wages, and lack of proper employee well-being (Defence.gov.au, 2017). According to this theory, it is notable that some of the specific job factors result in satisfaction or dissatisfaction of the associated employees. The ‘two-factor’ theory describes two major factors, such as motivators and hygiene factors. The elements associated with these factors are discussed further:
According to Herzberg, there are some factors, which are necessarily needed to be implemented within the environment. These factors do not often lead to the satisfaction, but the absence of these factors may dissatisfy the employees. The factors do not even stay for a longer period and these are reasonable in a job. According to Guest (2004), these factors are generally describing the exact workplace and the environment. The hygiene factors usually symbolize the necessary psychological needs of the associated employees (Mentalhealthcommission.gov.au., 2017). The case study also follows the issue with the psychological contracts of the ADF members due to the absence of several essential factors. The following hygiene factors are needed to be taken into account.
Pay: The salary structure or the pay structure is the major factor for every organisation. The employees usually look for the effective pay structure when they are associated with the organisational activities. As per the scenario, the members of Australian Defense Force experience their pay rise in every 3years cycle in which they only receive the hike to 4.5% of the amount (O’Donnell and Shields, 2002). This amount is much less for influencing their motivational aspects. The structure of this amount is needed to be equal and competitive to the organisations belong to the same domain (Dobre, 2013). Australian government thus requires paying attention to such monetary factor that create the influencing impact on the employee satisfaction.
Administrative and Company Policies: The rigid policies of the company often lead to dissatisfaction. The maintenance of the fairness and appropriate rules and regulations is necessary for every organisation. The flexible working hours, vacations, and appropriate dress codes are some of the considerable components associated with this segment. The case scenario reflects that the ADF members usually face issues with the improper maintenance of fair treatment and effective policies (Rousseau, 2001). The administrative department fails to manage the significant traits that are influencing the minds of employees. Hence, the Australian Government requires make some of the considerable modifications for improving administrative laws for the members of Australian Defense Force.
Fringe Benefits: In an organisations, the employees look for some of the motivating benefits offered by the organisations. In usual cases, the employees seek the proper medical or health care plans, benefits or facilities for their family members, and the employee health programmes. The members associated with the Defense Force need such facilities for their families since they are often involved with life risk situation (Whelan, 2016). Their claims for the medical facilities are quite justified. The medical benefits are necessary for leading them towards satisfaction.
Physical Working Conditions: The safe working conditions, maintenance of the hygienic level and cleanliness are the basic requirements for every employee working under an organisation. The members of Australian Defense Force are concerned about the equipment used for their activities. The equipments are needed to be properly checked and updated for the betterment of the work functions. Moreover, upgrading the equipments would also be helpful for the safety parameters of the ADF members (Williamson, O’Donnell and Shingles, 2015). The issues with such improper maintenance of these equipments are creating the negative influence on the minds of the associated staffs.
Interpersonal Relations: The maintenance of the effective interpersonal relationship with the employees is another considerable factor for the employee satisfaction. The human resource management requires concentrating on maintaining the effective interpersonal relationships with the employees. The members associated with the Australian Defense Force exclaimed that they do not receive the proper treatment from the association (O’Donnell and Shields, 2002). It is necessary for the human resource department to explain the performance rating scale to understand the employees in different levels. This performance monitoring process is quite helpful in understanding some of the specific areas of improvement. The human resource management has the power of controlling such situations by improving the behavioral aspects within the association. The peers, superiors, and associates require concentrating on the well behaviour with the employees for generating trust and retaining them for a long run.
Job Security: The major satisfaction of the employees is facilitated with the assurance of the secure job environment. Once the employees feel secure within the organisation and about the job, it becomes the greater satisfactory element (Dobre, 2013). The human resource management thus requires paying attention towards such security for the associated staffs.
According to the theory developed by Herzberg, it is notable that the hygiene factors are completely different to the motivational aspects. It has been observed that the HRM practices even have the strategic linking with the psychological contract. The human resource management requires developing such environment that can satisfy their concerns and improve the willingness to work. In fact, the human resource management requires focusing on the internal business strategies and the environmental benefits for the associated employees. The major focus of the efficient human resource management is to motivate the workforce to retain them for a longer time. The hygiene factors are thus not considered as the motivators for the employees. The elements associated with the motivational factors are discussed further:
Rewards and Recognition: The efforts of the employees are needed to be appreciated by the top management. The accomplishments of the employees are needed to be rewarded and recognized (O’Donnell and Shields, 2002). In fact, the members associated with the Australian Defense Force expect to be rewarded for their enormous efforts. The human resource management require concentrating on such aspects.
Growth and Promotional Opportunities: The employees look for the advancements and sense of achievement for the input they provide to accomplish the goals. The results would ensure their satisfaction and loyalty towards their jobs. In fact, in case of ADF members, the scenario is quite same. It is necessary for the human resource department to explain the performance rating scale to understand the employees in different levels (Williamson, O’Donnell and Shingles, 2015). This performance monitoring process is quite helpful in understanding some of the specific areas of improvement. They seek for the proper recognition from the Australian Government for their efforts provided to the defensive activities for the country. Hence, the human resource management requires focusing on this requirement.
Responsibility: The employees always need to hold themselves responsible enough for the work (O’Donnell and Shields, 2002). If the employees receive the ownership of the work, they become more motivated and fond of their job activities (Williamson, O’Donnell and Shingles, 2015). The human resource management requires developing such environment that can satisfy their concerns and improve the willingness to work. Accordingly, the ADF members would generate the sense of satisfaction within their workplace.
The above discussion focuses on the necessary factors that serve as the motivational aspects for the employees. The case study reflects the improper management of these factors that create the negative influence on employees’ satisfaction level. The human resource management is the integral part of an organisation. It has been observed that the HRM practices even have the strategic linking with the psychological contract. The major focus of the efficient human resource management is to motivate the workforce to retain them for a longer time. Starting from the recruitment and section process, the human resource management of an organisation requires taking care of the entire data of the organisation, management of the people, and retaining the employees with proper motivation. The HR set the reasonable deadlines for completing the strategic activities undertaken by the management In order to accomplish this concern, the HRM needs to concentrate on following implications:
Conclusion
The case study focuses on the specific issues related to the improper human resource management within ADF. The ADF members claim that their pay rise is minimal and they do not receive the deserving treatment from the Australian Government. It creates the psychological contracts between the members of Australian Defense Force and Australian Government. The human resource management requires developing such environment that can satisfy their concerns and improve the willingness to work. In fact, the human resource management requires focusing on the internal business strategies and the environmental benefits for the associated employees. After identifying the motivational and hygiene factors, it can be implied that the human resource management requires concentrating on some of the specific implications. Developing the effective training session, providing the proper rewards and recognition to the members, and improving the employee wellbeing would be beneficial enough to generate satisfaction among the ADF members.
Reference
Aihw.gov.au., (2014)., Incidence of suicide among serving and ex-serving Australian Defence Force personnel 2001–2014https://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129557671)
Army.gov.au, (2017). [online] Available at: <• https://www.army.gov.au/our-people/our-contract-with-australia> [Accessed 8 Oct. 2017].
Army.gov.au, (2017). [online] Available at: <• https://www.army.gov.au/our-work/good-soldiering> [Accessed 8 Oct. 2017].
Defence.gov.au, (2017). [online] Available at: <https://www.defence.gov.au/pathwaytochange/docs/120410%20Pathway%20to%20Change%20-%20Evolving%20Defence%20Culture%20-%20web%20version.pdf> [Accessed 8 Oct. 2017].
Dunt D, (2009)., Review of Mental Health Care in the ADF and Transition through Discharge. https://www.defence.gov.au/health/DMH/Review.htm accessed 5 October 2009
Grimmer, M., &Oddy, M. (2007). Violation of the psychological contract: The mediating effect of relational versus transactional beliefs. Australian Journal of Management, 32(1), 153-174
Guest, D. E. (1998). Is the psychological contract worth taking seriously? Journal of organizational behavior, 649-664
Guest, D. E. (2004). The psychology of the employment relationship: An analysis based on the psychological contract. Applied psychology, 53(4), 541-555
Mentalhealthcommission.gov.au., (2017)., Review into the Suicide and Self-Harm Prevention Services Available to current and former serving ADF members and their families.Final report: Findings and Recommendations National Mental Health Commission,28 March 2017. Available at: https://www.mentalhealthcommission.gov.au/media-centre/news/australian-defence-force-review.aspx).
O’Donnell, M. and J. Shields. 2002. ‘Performance Management and the Psychological Contract in the Australian Federal Public Sec- tor’. Journal of Industrial Relations 44(3):435– 457
Rousseau, D. 2001. ‘Schema, Promise and Mutuality: The Building Blocks of the Psychological Contract’. Journal of Occupational and Organizational Psychology 74:511–541
Whelan, J. (2016). Ghost in the Ranks: Forgotten Voices & Military Mental Health. Friesenpress, Canada.
Williamson, S, O’Donnell, M and Shingles, J (2015) ‘Unintended Consequences: Implications of the 2014 Australian Defence Force Pay Deal’, Australian Journal of Public Administration · March 2015 DOI: 10.1111/1467-8500.12149
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