MN7181 - People & Organization - importance of ethics in Banking Business

Resource : V- comply editorial , ( 2014 ) 

Regulations & Ethics , the two controversial words which has led to forming and continuation of  development & key secured point to man kind is obvious .Ethics are been seen in each & every field & it has been eveloved to keep the culture of any development .Further This blog  illustrates on few business ethics &   discuss of the effects & situational analysis  of fundamentals to banking business & impact on  Banking Sales Culture .  

Source : tutor2U , ( 2015) 

Definitions of Business Ethics : 

• Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance,insider trading  bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval. ( investopedia , 2015 ) 
• Business ethics is a topic receiving much attention in the literature. However, the term ‘business ethics’ is not adequately defined. Typical definitions refer to the rightness or wrongness of behavior, but not everyone agrees on what is morally right or wrong, good or bad, ethical or unethical. To complicate the problem, nearly all available definitions exist at highly abstract levels. Lewis P V , (1985)
• is the application of ethical values ( fairness , honesty , openness and integrity ) to the business behavior .it applies to all aspects of business conduct (inc.employement practices ) but also the discretionary actions that organizations and employees make on daily basis in practice . CIPD , (2013 ) 

  

In consideration of above all to banking business ethics , values are been kept as primary effective option .Trust & Integrity could be seen as the greatest impact on forming of banking business.If we consider early beginnings , Autocrats used to keep their valuables insider Banks ' safety lockers .All important Files were kept and bankers were Charged certain amount of commission to keeping their Valuables safety .Bankers were recognized as pillars of Utmost Trust .

Implementation & continuation of practices such as  Oath of Secrecy could be a living example Those who joins to banks are used to sign this oath o secrecy and any  deviation or violation would be punished with heavy disciplinary actions .

Bankers are taught to be conduct excellent customer service with out any discrimination and this has been another pillar of client attraction and could be a reflective of bottom Line .Further bank culture is fully designed with keeping client ethics.This has been implemented with banks communication policy to safe guard Client respect & importance for banking business .

Banks are more focused into fee and commission base income since this would be a clear hot to bottom line.& focus more into trade related activities ,  all trade related activities are based on situational impact and information circulation on best buying and best selling opportunities .useally Traders ( Business People , ) communicate these information s' to their banker to mitigate any loss or dis advantage as a course of action  Eg : Forward booking in banking Treasury .    

It could be seen that banking business is much governed with Ethics than regulations .All regulations are been imposed to show case the borderline of business  ethics and practicing o ethics would be the back bone of banking business continuation .

Reference 

• V Comply - editorial, (2014), Ethics in business world [ONLINE]. Available at: https://blog.v-comply.com/ethics-in-the-business-world/ [Accessed 6 January 2020]
• tutor2U. (2020). Topic briefing - Business ethics. [Online Video]. 27 May 2015. Available from: https://www.youtube.com/watch?v=EK1ak9lXLo8. [Accessed: 6 January 2020].
• investopedia. 2015. Business Ethics. [ONLINE] Available at: https://www.investopedia.com/terms/b/business-ethics.asp. [Accessed 6 January 2020].
• Lewis, P.V., 1985. Defining ‘business ethics’: Like nailing jello to a wall. Journal of Business ethics, 4(5), pp.377-383.
• huczynski, A and Buchanan , D 2013.organizational behaviour : An introductory text. Financial Times/prentice Hall.Chp2
• Svensson and Wood, (2008), The ethical Business module [ONLINE]. Available at: https://www.researchgate.net/figure/A-model-of-business-ethics_fig2_46545845 [Accessed 6 January 2020].

MN7181 - People & Organization - Develop Capacities as Knowledge workers in Banking Sector ( effects of Globalization )

Globalization , the term that have effected to change many definitions and interpretation of current situation .Globalization trends could be seen to each & every segment of existence & its is obvious that any field which is not make direct or in direct contract with the term is no longer could find its survival in current context . 

Many Visionaries and researchers have predicted that knowledge would be much useful than mechanical or physical force more than 50 years ago .Current trend have witnessed that the higher contribution for impact or correlation effect on overall goal achievement would be knowledge more than any era .

Industries have flourished after Industrial revolution of 19th Century  and many businesses were evaluated with its effects .Banking has ever been a crucial factor with emerging transnational purposes , Offering Credit for local & overseas , Interference for import & export business .This blog will be discussed on Impact of transformation of banking employee perspectives towards knowledge as effect of Globalization .  

Resource : Audiopedia.com ( 2016 ) 

Definition of Knowledge Worker , 

• Workers population whose base their professional activity on the knowledge . igi -golbal.com , ( 2017 ) 
• A knowledge worker is anyone who works for a living at the tasks of developing or using knowledge. For example, a knowledge worker might be someone who works at any of the tasks of planning, acquiring, searching, analysing, organising, storing, programming, distributing, marketing, or otherwise contributing to the transformation and commerce of information and those (often the same people) who work at using the knowledge so produced.  Drucker P F ,  ( 2011 ) 
• Individuals who routinely identify, process, share, and apply new information and knowledge as a part of their daily work .Druker P .F , ( 2017 

Resource : artandtechnology.com ( 2016 ) 

Reflection 

HSBC , Citi Bank , Standered Charted Bank , Overseas Bank of India , Deutch Bank , ICIC Bank are few Examples of few cross national Banks or rather Multi national Banks which are established in SL .These banks have established here in due to few purposes more than bottom line impact ( Profit ) .As effect of Globalization , establishment of multi National corporations have high in lsland & those giants are having corporate relationship with these Banks as their agents of moving funds & been the secure media of all electronic transactions .As a result many locals have received  opportunity to serve in these Banks as Knoweldge Workers.Thier main task would be adopting Data 's to information on understanding KYC Process , Linking with opening of LC to  CUSDEC Clearance of of Clearing shipped Goods .

Source : Thepostiveencourager , ( 2016 ) 

As per observations special trade related activities of banking field required much usage of globalization effects as its cope up with international transactions .

CBSL ( Central bank of Sri Lanka has thus stress the importance of controling electroni Funds Transfer where a one major effect which has totally changed the banking concepts .Further this has opned many electronic platforms to open up the Virtual banks where you meet customer only through Laptop screen & Customers would not have to stepped to Banks physically to perform any transactions.One such major improvement was Easy Cash launched by Dialog recently & it was seen that they operates the on line cash flow bigger than some of the early banks who have island wide networks .

References : 

• igi-global.com. 2017. Relations between knowledge. [ONLINE] Available at: https://www.igi-global.com/relations-between-knowledge-acquisition-forms/16493. [Accessed 6 January 2020].
• Drucker, P.F., 2011. Landmarks of tomorrow: A report on the new. Transaction Publishers.
• http://www.theaudiopedia.com. (2016). what is Knowledge Worker ?. [Online Video]. 6 January 2020. Available from: https://www.youtube.com/watch?v=7AU2rnJ6LrI. [Accessed: 6 January 2020].
• thepositiveencourager, (2016), knowing-how-to-manage-knowledge-workers/ [ONLINE]. Available at: https://www.thepositiveencourager.global/k-is-for-knowing-how-to-manage-knowledge-workers/ [Accessed 6 January 2020].
• dunning-cruger effect, (2016), graph of effects of knowledge [ONLINE]. Available at: google.com/search?q=graph+of+effects+of+knowledge+worker&rlz=1C1EXJR_enLK882LK882&sxsrf=ACYBGNTR28YSvECnQjoUogyYZU_oig_njw:1578333098334&tbm=isch&source=iu&ictx=1&fir=ljYDHbRFpyCHTM%253A%252CWExzz4rE5y5HaM%252C_&vet=1&usg=AI4_-kQbZnkS3NctRC65tKgkTqxb6XBFhw&sa=X&ved=2ahUKEwjVi6f9xO_mAhWMbn0KHXECDDcQ9QEwAnoECAYQDA#imgrc=aVm7fP-HV2Z7xM:&vet=1 [Accessed 6 January 2020]

  

MN 7181 - People & Organization - Culture - As a back bone of Continuation of a banking Sales Unit

Organizational Culture or rather an Artifact ( Visible product of the group )  of bigger term Culture , has been exposed to many research reviews and findings .Public perception on culture may reflect and address  only the surface or might be not more than an observational  description of  surface of a Lilly pond .But true values , norms and behaviors could be dig only by peeling off this onion with careful attention to all its blocks .Long term understanding , Simulation success or virtual realities, early life long learning through success and failure  are true root  course of all behind the term Organizational culture .
This blog peeps into in depth understanding of the Culture and relates perspectives with banking sales culture evaluation .

Definitions of culture 

Cultural definitions have been defined with different perspectives based on scopes and environments  such as , 

• Values , Patterns & norms approach 
• Religious , Ethnic , Organizational approach 

Definitions of Culture 

• According to hofsted G , ( 1984 ) National cultural patterns are highly effected to Quality of Life of people
•  ‘Culture ... is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society. Avruch , (1998)
• culture systems may, on the one hand, be considered as products of action, on the other, as conditional elements of future action.’Jahoda, G., 2012. Critical reflections on some recent definitions of “culture”. culture & psychology, 18(3), pp.289-303.: 181
•  Adler ,  ( 1997 ) , Culture consists of the derivatives of experience, more or less organized, learned or created by the individuals of a population, including those images or encodements and their interpretations (meanings) transmitted from past generations, from contemporaries, or formed by individuals themselves.’
•  Hofstede G ,  ( 1994) the set of attitudes, values, beliefs, and behaviors shared by a group of people, but different for each individual, communicated from one generation to the next.
• By culture I mean the shared beliefs top managers have about how they should manage themselves and other employees , and how they should conduct business  ( Lorsch, 1986 :95 )  

Resource : Tim Kuppler. (2020). What is culture. [Online Video]. 3 March 2014. Available from: https://www.youtube.com/watch?v=zR9giyTu4pI. [Accessed: 5 January 2020

Situational picture & Reflection 

Banking sales units have been establishing and evaluating since early 2000 with the intention of aggressive canvassing of Retail clients for  structured Retail products such as Credit Cards / Consumer Loans & Housing loans .Central Sales Units were basically established ( Colombo & suburbs areas )  As Teams members  of 10- 15 members .
A Sales Team comprised with Team Leader & Assistant Team Leader & few Senior Hands.
High employee turn over has been witnessed in this module & it was introduced strong cultural aspects  to these modules in order to keep the employee with the Bank & keep on aggressive canvassing the Clients to structured portfolios .

• According to Avuruch J ( 1998 ) , introducing of knowledge to new Comers , customs that should be practiced from seniors & juniors were laid down .These Values have been the back bone of the continuation of such sales modules .
• Seniors were gather at every evening to share their experiences among new comers to boost  moral and to avoid possible difficult situations .
• Further Top Managers & middle managers have founded main key points which has  laid down with the support of  certain ethics  at team Management .
• Currently , These Team Management Concepts are been passed to each & every member who promoted to middle Management such as Sub Team Leader & Team Leader 

Reference

• Tim Kuppler. (2020). What is culture. [Online Video]. 3 March 2014. Available from: https://www.youtube.com/watch?v=zR9giyTu4pI. [Accessed: 5 January 2020].
• Hofstede, G., 1984. The cultural relativity of the quality of life concept. Academy of Management review, 9(3), pp.389-398.
• Hara, K., Yonezawa, K., Weng, Q.P., Kozlowski, M.T., Belham, C. and Avruch, J., 1998.
• Jahoda, G., 2012. Critical reflections on some recent definitions of “culture”. culture & psychology, 18(3), pp.289-303.
• Kirkman, B.L. and Shapiro, D.L., 1997. The impact of cultural values on employee resistance to teams: Toward a model of globalized self-managing work team effectiveness. Academy of Management Review, 22(3), pp.730-757.
• Hofstede, G., 1994. Management scientists are human. Management science, 40(1), pp.4-13.
• Lorsch, J.W., 1986. Managing Culture: The Invisible Barrier to Strategic Change. California Management Review, 28(2).

MN7181 - People & Organization - Employee Engagement in Banking Sales Units

Introduction to employee  Engagement 

Employee  engagement could be seen & happen  as commitment of employees  towards Organization & to their work ( Profession .) Many scholar have many debates on born of this concept  this that  engagement implies to commitment  towards profession and some may argue that engagement born as the commitment towards organizational goals .

As relatively this theory is quite new to scholars , still could not find  qualitative  or quantitative ample research data .Following discussion focus on employee engagement definitions & effects of engagement towards organizational success .

https://www.youtube.com/watch?v=Uu7EG6EZeAM

Definition of employee Engagement 

• According to Global work force study ( 2003 ) , employees willingness and ability to help the company succeed largely by providing discretionary efforts on a sustainable basis .according to the study , engagement is effected by ,many factors which involved both emotional & rational factors relatively to work and overall work experience .
• Robinson et al. (2004) define employee engagement as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.” 
• Gallup organization defines employee engagement as the involvement with and enthusiasm for work. Gallup as cited by Dernovsek (2008) likens employee engagement to a positive employees’ emotional attachment and employees’ commitment.
• This verdict and definition forwarded by Institute of Employment Studies gives a clear insight that employee engagement is the result of two-way relationship between employer and employee pointing out that there are things to be done by both sides  
• it happens when people are committed to their work and to the Organization (Armstrong ,  2017)
• For practitioners it has become an umbrella concept for capturing the various means by which employers can elicit additional or discretionary effort from employees . ( CIPD, 2012 ) 

Situational Analysis of Employment engagement in Banking Sales Unit as a behavioral  approach . 

As detailed in above definitions , employment engagement is arise as a result of highly motivation and employee willingness and ability to help organization to achieve its corporate goals .
Sales Teams are usually drive with high level of motivational aspects & consistence drive for targets .As such Sales Team ,  it self creates a autonomous work flow process to stimulate this thrive condition with the involvement of senior team members of the Unit or Group with a structured approach and Culture .
Banking Sales cultures inherits with certain values and ethics where  employee engagement has been planted on it .Leaders are tend to be create with in engagement module and subordinates are advice to be volunteering advice for young team members of the value of employee engagement .Success or rather achieving sales numbers could be done only as working as the a Team and with shared values .
This tradition has been passed from generation to generation with involvement of employee engagement .
Senior members of the sales team usually work on extra hours in weekdays and even on  week end days  with out any incentive or allowance to train their team members , to distribute product knowledge , train sales techniques. Seniors consider young people has part of their children and groom for better sales modules with out any hesitation or complain they tend to sacrifice their time and money .

                                            https://youtu.be/VA_z5mvjeLc

Self Reflection 

Employee engagement is a newly produced idea of HRM and many organizations are keenly investing resources for improvements .Definitions have been forwarded by institutes more than individual scholars noted .Employee engagement could be predict as employee self actualization of the company and profession .This activity is vital for each and every organization to be success and drive for excellence .To effect employee engagement its is important to have better communication scope for both employees and all stake holders of the organization . Active engagement is a vital for sustainable growth of the company and employees who depends with engagement & where Staff are work on volunteer for work and progress for the  organizational activities and success .Many factors are effecting to this nature to be established  ( Employee engagement ) & following could be recognized as key effective ,

• Environment 
• Leadership 
• Job 
• Individual factors .

Highly employment engagement would result following key indicator increase in any organization or Group , 

• Employee retention 
• higher productivity and always exceed budgeted profits 
• Increase in brand  recognition 
• Employee mind of Great place to work 
• Higher CSR Initiatives intends from employees  
• Higher efficiency  

References 

• Accord Management Systems. (2004). Employee Engagement Strategy: A Strategy of Analysis to Move from Employee Satisfaction to Engagement. [Online] Available: www.accordsyst.com/papers/engagement_wp.pdf (March 3, 2009) 
• Dernovsek D. (2008). Creating highly engaged and committed employee starts at the top and ends at the bottom line Credit Union Magazine, May 2008. Credit Union National Association, Inc . 
• Armstrong M .( 2017 ) 
• kevin cruize. (2019). what is employee engagement. [Online Video]. 27 December 2019. Available from: https://www.youtube.com/watch?v=Uu7EG6EZeAM. [Accessed: 27 December 2019].
• What great employee engagement looks like. (2019). https://youtu.be/VA_z5mvjeLc. [Online Video]. 2 December 2019. Available from: https://youtu.be/nFE8IaoInQU. [Accessed: 27 December 2019].
• ( CIPD ) , 2012 

MN7181 - People and Organizations - HRM & Design of Works - Team Development of Banking Sales Unit

What is Job Design & how it effects to Team Development 

Literature Review

Job consist of related set of tasks that are carried out by a person to full fill a purpose .It can be regarded as a Unit in an organization structure that remained unchanged in the job . ( Armstrong , 2014 p .326 )

The Job design has been carried out with aligning individual perspectives with organizational purpose & following has been considered & given priority in any organization when setting up Job design .

• The Process of intrinsic motivation 
• The Characteristic of task structure 
•  The motivating characteristics of the job 
• The Significance of job characteristics model 
• Providing intrinsic motivation  ( Armstrong , 2014 p .328 ) 

Definition of Job Design 

• Job design specifies the contents of jobs in order to satisfy work requirements and meet the personal needs of the job holder , thus increasing level of employee engagement .       Armstrong ( 2014 , p .145 ) 

The Job design has been carried out in following two Purposes .

01) To Satisfy the requirement of Organization for , 

• Productivity
• Operational efficiency 
• Quality of products or service 

02)  To Satisfy the individual on , 

•  Interest 
• Challenge 
• Accomplishments    ( Armstrong , 2014 p .331 )

Team Development 

Definitions 

• Team Development is enhancement of the effectiveness of work groups by improving goal & role classification and interpersonal process . ( Businessdictionery , 2019 ) 
• Team Development has been seen with below Stage wise developments , 

1. Forming 
2. Storming 
3. Norming 
4. Performing 
5. Adjourning 

 ( toggle.com. 2019. Stages of Team Development.)

Grapgh : 01 

E R Services, (2019), five stages of team development 

Video 01 :

Businessballs. (2019). 5 Stages of Team Development. [Online Video]. 27 December 2019. Available from: https://youtu.be/nFE8IaoInQU. [Accessed: 27 December 2019].

Situational Analysis 

Currently  banking sales units are much popular in  professional sales environments as respectable roles in the society  & sales  jobs  or designations have been designed in purpose of achieving sales Targets on monthly basis .Sales Jobs are  in line with individual target achievements for structured sales products such as Credit Cards / Consumer Loans / Balance Transfers & CASA Products  and team target achievements .High potential & interest could be seen for young unemployment market and school leavers  for these job roles  as high sales commissions are been paid for selected  individuals and no major educational qualifications are been considered at the time of entry level to the jobs .
Though many Banks have designed these job roles only very few banks have allocated  permanent carder level structure for these level employees and career progression could not be seen after attaining a certain higher level of  position .Banks have utilized these talents  to remain in contract basis in their HR pools  and terminate after completing 05 years in service with out absorption to permanent carder .Since these sales people are compelled to look for other banks in a similar job role or some have to leave from the entire sales field which creates a vacuum for the field of talented guiders .
Bank Sales cultures are  highly driven under Team Development mentality & leadership skills . .Forming a Sales team with proper Talent could be find as the challenging task for all Sales Leaders where many get failed and some times all sales culture collapsed due to errors in formation of team .
Team Leaders and seniors should voluntarily provide  knowledge and currently conduct buddy programs to storm new recruitment to maturity levels .
Once Forming & Storming are done accordingly Sales team is ready to come to normal level where it could be perform on exceptionally well .Sales Teams usually continue these trends if policy makers supports well .This stage could be understood as pinnacle for Sales people and much growth of Sales volumes could be seen on these stages with lot of job satisfaction and personal growth could be seen .

Self Reflection 

Job design plays a key role in directing human resource to achieve company / Organizational goals .

HR Departments are keen on special characteristics of organization and individuals before set up job design  as job task should satisfy both individual & Organizational goals .Job design has a clear effect on creating the organizational structure and authority lay outs .

Further job designation is a process where it effects entire levels of the organization which has high impact .The ideas for establishment of job designations should be cross border and ideas should be gather from bottoms up level ..Some jobs are generalized & skilled jobs are very sharp and highly depend on individual capabilities .

Job designations  are effecting a lot for Team formation and Development .

Every job holder is been interact with a certain one team or more based on his / her job function .

Team Development is comprised with 05 major evaluation stages which every team member should understand along with the team Leader .Communication plays an important role in Team development and all team members should equally communicate for positive reflections on decision making and achieving goals as a team .All Team members should associate for team development with understanding the stage of the Team and should provide level best of effect to thrive and maintain the Team in a performing stage .

Reference 

•  Armstrong, M., 2019. Armstrong's Hand Book of Human Resource Practice. 10th ed. London: Kogan Page. p .326
• Armstrong, M., 2019. Armstrong's Hand Book of Human Resource Practice. 10th ed. London: Kogan Page.p .328
• Armstrong, M., 2019. Armstrong's Hand Book of Human Resource Practice. 10th ed. London: Kogan Page. p .145
• Armstrong, M., 2019. Armstrong's Hand Book of Human Resource Practice. 10th ed. London: Kogan Page. p .331
• E R Services, (2019), five stages of team development [ONLINE]. Available at: https://courses.lumenlearning.com/suny-principlesmanagement/chapter/reading-the- five-stages-of-team-development/ [Accessed 27 December 2019]
• https://youtu.be/nFE8IaoInQU
• Businessballs. (2019). 5 Stages of Team Development. [Online Video]. 27 December 2019. Available from: https://youtu.be/nFE8IaoInQU. [Accessed: 27 December 2019].
• businessdictionery. 2019. Team Development. [ONLINE] Available at: http://www.businessdictionary.com/definition/team-development.html. [Accessed 27 December 2019].
• toggle.com. 2019. Stages of Team Development. [ONLINE] Available at: https://toggl.com/stages-of-team-development/. [Accessed 27 December 2019

MN7181 - People and Organization - Managing Performances - In perspective with Banking Sales Culture

Definitions of Managing Performances 

Behaviors that accomplishes results ( Armstrong , 2017 p .392 )

Assessment of performance entails evaluations of inputs & outputs ( Brumbach , 1988 )

Performance Management is the system through which organizations set works , goals , determine performance standards , assigns and evaluate work , provide performance feedback , determine training and development needs & distribute rewards .  ( Briscoe and Clause , 2008 )

According to Mohrman & Morman ( 1995 ) , Performance Management is managing the business , It is what Line Managers do continuously , not an HR Directed annual procedure .It is a natural process of Management . 

Performance Management is much more than appraising individuals .It contributes to the acheivement of culture change and it is integrated with other key HR Activities , especially Human Capital Management , Talent Management , Learning & Development and reward Management . 

( Armstrong , 2017 ) 

 Managing performance could be justified as Managing the business .

 ( Mohrman and mohrman  ( 1995 ) which is the total reflection .Further it has been defined as natural process of Management .

Performance Management process could be divided to following elementary sections 

• Agreement 
• Feedback
• Positive enforcement
• Dialogue 

 Principles of performance management 

Performance Management should have below clear indicators , 

• Direction 
• Freedom to get their work done 
• Encouragement 
• Leading to growth 
• Leading to strategic collaboration ( Egan Cited in Armstrong , 2017 ) 

Discussion of present situation in banking sector 

Once the Annual goals and values are been decided by the  Bank director Board & Corporate Management after budgeting meetings  , all  business directions are circulated through the HR & respective department Heads .Further the big picture Goals are been segregated to particular specified fields ( Eg - If Sales Department has been finalized annual volumes with Cards & Loans target for month,  target distribution will be aligning all behaviors / group talent focus & identifying necessary learning & development points of group of individuals ( employees ) towards achieving  company goals .

The entire process of target evaluation to determine current position will be conduct on monthly basis through Monthly Sales meetings and following methods are currently practicing .Planing for the next month with exact promotions and out line expected derivatives, ( obtain agreement with sales officers, follow up on activities in daily activities follow up plan and tracking on weekly basis , mitigate obstacles and coaching for enhance efficiency of achieving the target .Monthly sales meeting will be utilize to review monthly progress and identifying the mistakes and good practices and encourage / appreciate those individuals who have done well and present rewards and certificates .

discourage poor performers and change the goal setting path and carry out personal inspection process in order to re align those individuals .

Self Reflection 

Performance Management system is a pivotal task in annual business process of any organization thus it is involve in regular business and HR function .Performances are key drive factor to thrive human capital in line with company goals and values .Performance evaluations are considered as key indicator to change individual perspective thus leads to change culture in the Organization. Performance evaluations to be carry on frequently & evaluations should conduct with in the business cycle & rewards / recognition is very important .Performance Management should have clear aims in measurable criteria , should be simple  and much more functions are involved .Performance Management is important to varies factors including motivation , to increase self esteem , to build strong employee relationship ,to help employee developments , to become employee more competent and etc ....further it has been understood that performance management is on key important role on working towards organizational success & will be make on thrive effect on all aspects of human capital interaction .

https://youtu.be/RhAJkhIFFno?t=19

References 

• Armstrong , M and Taylor , S ( 2017 ) Armstrong's Handbook of Human Resource Management Practice . London : Kogan Page 
• Armstrong, M., 2017. Armstrong's Hand Book of Human Resource Practice. 1st ed. London: Kogan Page.
• Mohrman, S. and Mohrman, M., 1995. Designing Team Based Organizations. 1st ed. London: Jossey Bass Management Series.
• Brumbach, G.B. (1998); Some Ideas, Issues and Predictions about Performance Management, Public Personnel Management, Winter: 387-402. 
• Briscoe, D. and Clause, L., 2008. Performance Management System. 1st ed. London: Chapman & Hall.
• https://youtu.be/RhAJkhIFFno?t=19

MN7181 - The imporatance of psycological contarct in HR in a Veiw with employee Realtions

The psychological contract has captured the attention of researchers as a
framework for understanding the employment relationship.  In terms of research,
there has been an exponential growth in publications on the topic in the last 15 years
(following the publication of Rousseau’s 1989 article) giving the impression of a
relatively new concept.  Its introduction can however be traced to the 1960s.  The
concept developed in two main phases: its origins and early development covering the
period 1958 to 1988, and from 1989 onwards.  This chapter begins with a review of
the initial phase in the development of the psychological contract highlighting the
commonalities and differences amongst the early contributors.  We then review
Rousseau’s (1989) reconceptualization of the psychological contract, as this has been
very influential in guiding contemporary research.  The two distinct phases in the
development of the psychological contract have given rise to a number of key debates
which we discuss prior to outlining an agenda for future research.
Historical Development of the Psychological Contract
 In tracing the development of the psychological contract, we focus on the
seminal works of Argyris (1960), Levinson, Munden, Mandl and Solley (1962) and
Schein (1965).  We also review the work of Blau (1964) and Gouldner (1960) as these
represent the foundational ideas of social exchange theory upon which subsequent
theorizing on the psychological contract draws. 

A psychological contract can be understood as a ‘deal’ between employer and employee concerning ‘the perception of the two parties, employer and employee, of what their mutual obligations are towards each other.

CIPD 2005:2

Psychological contracts are a set of ‘promises’ or ‘expectations’ that are exchanged between the parties in an employment relationship. These parties include employers, managers, individual employees, and their work colleagues. Unlike formal contracts of employment, they are often tacit or implicit. They tend to be invisible, assumed, unspoken, informal or at best only partially vocalized. Because of this, you have to make a determined effort to find out what they are.

The case of Design Fabrications illustrates some issues raised by the existence of a group psychological contract. 

https://www.alchemyformanagers.co.uk/topics/6ixdhhPwDvZFjsZc.html

Classical early studies
Although Argyris (1960) was the first to coin the term psychological contract,
the idea of the employment relationship as an exchange can be traced to the writings
of Bernard (1938) and March and Simon (1958).  Barnard’s (1938) theory of
equilibrium posits that employees’ continued participation depends upon adequate
rewards from the organization.  Here lies the idea of a reciprocal exchange underlying
 2
the employee-organization relationship.  This was elaborated upon by March and
Simon (1958) in their inducements-contributions model.  They argued that employees
are satisfied when there is a greater difference between the inducements offered by
the organization and the contributions they need to give in return.  From the
organization’s perspective, employee contributions need to be sufficient enough to
generate inducements from the organization, which in turn need to be attractive
enough to elicit employee contributions.  The work of March and Simon (1958) is
rarely acknowledged in the psychological contract literature (Conway & Briner, 2005)
but the idea of a reciprocal exchange bears a remarkable resemblance to a core tenet
of the psychological contract.    
 Argyris (1960) viewed the psychological contract as an implicit understanding
between a group of employees and their foreman, and argued that the relationship
could develop in such a way that employees would exchange higher productivity and
lower grievances in return for acceptable wages and job security (Taylor & Tekleab,
2004).   Argyris (1960) believed that employees would perform at a higher level if the
organization did not interfere too much with the employee group’s norms and in
return employees would respect the right of the organization to evolve. The defining
characteristics of this first explicit conceptualization of the psychological contract
viewed it as an exchange of tangible, specific and primarily economic resources
agreed by the two parties that permitted the fulfillment of each party’s needs. 
 Subsequently, Levinson et al. (1962) introduced a more elaborate
conceptualization of the psychological contract that was heavily influenced by the
work of Menninger (1958).   Menninger (1958) suggested that in addition to tangible
resources, contractual relationships also involve the exchange of intangibles.

Content 

 In light of the subjective nature of the psychological contract, researchers have
attempted to categorize psychological contract items (e.g., job security, interesting
work, career prospects, pay, training and developmental opportunities, autonomy in
job) in terms of two underlying dimensions: transactional and relational.  The
distinction between the two draws upon the legal work of MacNeil (1974; 1980) and
also parallels Blau’s (1964) distinction between economic and social exchange .

New’ psychological contracts

New psychological contracts are potentially more unstable, since they can be more temporary or ad hoc. They assume a greater sense of ‘partnership’ between employer and employee, usually on the expectation of a less permanent period of salaried ‘employment’. There is a growing trend towards employment arrangements with ‘interim workers’, contract workers, portfolio or knowledge workers, or ‘interim managers’. Such people may work with an organisation for a limited period, or on an agency or freelance basis. The psychological contract of interim workers is even more complex, because it is negotiated – consciously or unconsciously – as a tripartite relationship between the placement agency, the temporary worker and the temporary ‘employer’.

References 

Argyris, C. (1960).  Understanding Organizational Behavior.  Homewood, IL:   Dorsey Press. Arnold, J.  (1996).  

The psychological contract:  A concept in need of closer scrutiny?  European Journal of Work and Organizational Psychology, 5: 511-520. 

Aselage, J., & Eisenberger, R. (2003).  Perceived organizational support and psychological contracts: a theoretical integration.  Journal of Organizational Behavior, 24: 491-509. 

Barnard, C.I. (1938). The functions of the executive. Cambridge, MA: Harvard. Blau, P. 1964. Exchange and power in social life. Wiley: New York.

 Conway, N. & Briner, R.B. (2002). A Daily Diary Study Of Affective Responses To Psychological Contract Breach And Exceeded Promises, Journal of Organizational Behavior, 23: 287-302.

 Conway, N & Briner, R.B (2005).  Understanding psychological contracts at work: A critical evaluation of theory and research. Oxford, UK: Oxford University Press. Conway,