A ANALYSIS ON EMPLOYEE RELATION AND PSYCHOLOGICAL … · Key words: Psychological contracts,...

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International Journal of Mechanical Engineering and Technology (IJMET)

Volume 9, Issue 7, July 2018, pp. 1197–1208, Article ID: IJMET_09_07_130

Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=9&IType=7

ISSN Print: 0976-6340 and ISSN Online: 0976-6359

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A ANALYSIS ON EMPLOYEE RELATION AND

PSYCHOLOGICAL WOK COMMITMENT IN

PRODUCTION AND MANUFACTURING

INSUSTRIES IN INDIA

Dr. R. Srinivasan

Assistant Professor, AMET Business School, AMET University, India

R. Divyaranjani

Assistant Professor, AMET Business School, AMET University, India

Dr. S. Poongavanam

Associate Professor, AMET Business School, AMET University, India

ABSTRACT

Through industry experiences, the Psychological contracts are dynamic. They

basically highlight employees trust structures is to occur in the industries and their

expectation. To carry out the obligations and their contract to influence the future

growth in the production and manufacturing industry. The control of employees

relation and work commitment depends on the psychological stress in the

manufacturing industries. It increases the certainty by creating in employees - a sense

of predictability, job security and control. It revolves around equity perception of the

effort–reward relationship, thus focusing on reciprocity.

Key words: Psychological contracts, predictability, job security.

Cite this Article: Dr. R. Srinivasan, R. Divyaranjani and Dr. S. Poongavanam,

A Analysis on Employee Relation and Psychological Wok Commitment in Production

and Manufacturing Insustries in India, International Journal of Mechanical

Engineering and Technology 9(7), 2018, pp. 1197–1208.

http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=9&IType=7

1. INTRODUCTION

Understanding Psychological Work Commitment

The psychological contract refers to mutual unwritten expectations that exist between an

employee and his/her employer regarding policies and practices in the organization. Argyris

(1960) first referred to the psychological contract only in passing as the relationship between

employer and employee. Levinson (1962) is the father of the concept and defined

psychological contract as unwritten contract, the sum of the mutual expectations between the

Dr. R. Srinivasan, R. Divyaranjani and Dr. S. Poongavanam


organization and employees. Psychological contracts are mental models or schemas that

develop through an individual‘s interactions and experiences. The definition given by

Rousseau (1990) highlights employees perception of the existence of mutual obligations

deposited with the employer.

Psychological Work Commitment: Meaning

The relationship between employees and their organizations has often been described as an

exchange relationship and many concepts have been set forth in the literature to describe this

exchange. The psychological contract (Argyris, 1960; Rousseau, 1989; Schein, 1980) is an

exchange concept providing a broad explanatory framework for understanding employee—

organization linkages.

A psychological work commitment underpins the employment relationship and is viewed

as a set of unwritten expectations that exist between employees and their employers. It is

generally accepted that a psychological contract is concerned with an individual‘s subjective

beliefs, shaped by the organization, regarding the terms of an exchange relationship between

the individual employee and the organization. A psychological work commitment governs the

continuing development of the employment relationship which evolves over time, with the

expectations of the parties taking the form of unarticulated assumptions that calls for

discussion and agreement with individuals and teams.

The Most Widely Accepted Definition is Rousseau’s (1995)

The psychological contract is individual beliefs, shaped by the organization, regarding terms

of an exchange arrangement between the individual and their organization.

Rousseau’s (1989) Earlier Definition is also Instructive

The term psychological contract refers to an individual‘s belief regarding the terms and

conditions of a reciprocal exchange agreement between the focal person and another party.

Key issues here include the belief that a promise has been made and a consideration offered in

exchange for it, binding the parties to some set of reciprocal obligations.

2. TYPES OF PSYCHOLOGICAL CONTRACTS

Four types of psychological contracts, as explained below, have been defined (Rousseau,

1995) on the basis of (a) performance requirements being specified or non-specified, and (b)

time-frame being short or long.

Transactional contracts are of a limited duration with well specified performance terms. It

is present when the employment arrangement is for a short-term, primarily focused on

exchange of work in lieu of money with a specific and definite description of duties and

responsibilities and limited involvement in organization. This is particularly true for

employees hired on short-term contracts as well as workers located off-site.

Relational contracts are open-ended membership but with an incomplete or ambiguous

performance requirements attached to continued membership. They result from long-term

employment arrangements based upon mutual trust and loyalty.

The contract is derived from long term membership and participation in the organization. This

type of contract is very common in family run organizations in India where trusted and loyal

employees manage most of the senior managerial/supervisory work in the organization.

Transitional contracts are essentially a breakdown in contracts, reflecting the absence of

commitments regarding future employment as well as little or no explicit performance

demands or contingent incentives. It is not exactly a psychological contract, but a cognitive

A Analysis on Employee Relation and Psychological Wok Commitment in Production and

Manufacturing Insustries in India


state which reflects the changes in organizational context and socio-economic changes and

transitions that are in contradiction with a previously established arrangement or

psychological contract.

Balanced contracts represent open-ended and relationship-oriented employment with well-

specified performance terms, subject to change over time. They are dynamic and open-ended

employment engagements, pre-conditioned on business success of the employer organization,

employee developing himself/herself, and opportunities for career advancement based on

performance and skills. The employee and his/her organization contribute to each other‘s

development.

Need for the Study

In any organization employer and employee relationship plays an important role in taking up

the business successfully. Understanding the employment relationship throught psychological

work commitment, to get a knowledge about the bonding between them even more better and

to improve working capacity

Primary Objective

An Exploration of Employment Relationship in terms of Psychological Work Commitment at

Venture Lighting.

Secondary Objective

To understand the psychological contract from the employees perspective

To study the working environment factors moulding performance from employees point of

view

To explore the impacts that the psychological contract has no employees‘ attitudes

To find out the employees willingness to assist organisation to recover from crisis

To suggest the measure for understanding employment relationship through the concept of

psychological contracts.

Scope of the Study

This study covers lower to middle level workers.

The scope of the study is to understand employer and employee relationship through

psychological work commitment.

To know the psychological contract from the employees perspective.

To learn the environment factors molding performance from employees point of view.

Limitation of the study

One of the important limitations was the time period which was not sufficient.

The management of the organization allowed the researcher to collect the data from the

limited respondents only.

The research based on the study may subject to change in future.

Due to security issues all department are not permitted to observe.



3. REVIEW OF LITERATURE

(1) Paper Title: An Exploration of Small Firm Psychological Contracts

ABSTRACT: It is argued here that more sophisticated frameworks of analysis than currently

exist are required to support deeper understanding of small firm employment relationships. A

psychological contract framework is adopted, presenting data on three small firm case studies

and contrasting this with existing perspectives on small firm employment relationships. The

degree of heterogeneity demonstrated in employment relationships in the small firm sector

leads to the argument that a single typology of `small firm' employment relationships is not

possible. While small firms may differ in nature to large firms, there is a range of forces in so

heterogeneous a sector that go to create employment relationships and a narrow framework,

especially one predicated upon notions of size, will not adequately reflect the complexities of

the relationships under consideration. A broader, less deterministic, framework such as the

psychological contract supports the development of more nuanced understandings of small

firm employment relationships.

AUTHOR: Carol Atkinson

PUBLICATION: Manchester Metropolitan University Business School

SOURCE LINK: [email protected]

(2) Paper Title: The Psychological Contract as an Explanatory Framework in the

Employment Relationship

ABSTRACT: The relationship between employees and their organizations has often been

described as an exchange relationship (Mowday, Porter 8: Steers, 1982), and many concepts

have been set forth in the literature to describe this exchange (Eisenberger et a1, 1986;

Greenberg, 1990). The psychological contract (Argyris, 1960; Rousseau, 1989; Schein, 1980)

is an exchange concept providing a broad explanatory framework for understanding

employee—organization linkages. The purpose of this chapter is to explore the role of the

psycho1ogica1 contract in organizations. It examines the meaning and function of the

psychological contract, including factors that contribute to its formation. In addition, the

different types of contracts which can emerge, and implications of violations of these various

contracts, are discussed.

AUTHOR : Lois E. Tetrick & Lynn McFarIane Shore

PUBLICATIONS: Georgia State University, USA and Wayne State University, USA

(3) Paper Title: Psychological Contract and Employment Relationship -Christ

University Institute of Management

ABSTRACT: Psychological contract refers to mutual unwritten expectations that exist

between an employee and his/her employer regarding policies and practices in their

organization. Psychological contract influences job attitudes and performances of the

employees. This study aims at developing a deeper understanding about psychological

contract and employment relationship. Six psychological contract variables - relational

contract, transactional contract, employer's commitment/obligation to employee, employee's

commitment/obligation to employer, employer's relationship with employee, and employee's

relationship with employer - were measured on 202 employees from 15 IT companies

randomly chosen for the study. A 52-item Psychological Contract Questionnaire (PCQ),

adapted from the Psychological Contract Scale (Millward and Hopkins, 1998) and the

Psychological Contract Inventory (Rousseau, 1995), was used for collecting the data. The

study revealed that relational contract was dominant in the IT companies under study.

Employees' commitment/obligation to their employers was higher than employers'




commitment/obligation to their employees. Employees' relationship with their employers was

also stronger than employers' relationship with their employees. The implications of the study

for the IT industry have also been discussed for harnessing the energy, knowledge and

creativity of employees for competitive advantage.

AUTHOR: Harold Andrew Patrick

PUBLICATION: The Icfai University Journal of Organizational Behavior, Vol. 7, No. 4, pp.

7-24, October 2008

4. RESEARCH METHODOLOGY

Meaning of Research

In common parlance, research refers to a search for knowledge. Research simply put, is an

endeavour to discover answers to problems (intellectual and practical) through the application

of scientific method. The Webster‘s International Dictionary gives a very inclusive definition

of research as ―as careful, critical inquiry or examination in seeking facts or principles,

diligent investigation in order to ascertain something".

Research Methodology: Research Methodology is a way to find out the result of a given

problem on a specific matter or problem that is also referred as research problem. In

Methodology, researcher uses different criteria for solving/searching the given research

problem. Different sources use different type of methods for solving the problem. If we think

about the word ―Methodology‖, it is the way of searching or solving the research problem.

(Industrial Research Institute, 2010). According to Goddard & Melville (2004), answering

unanswered questions or exploring which currently not exist is a research.

Research Design: It is the blueprint for conducting the study that maximises control over

factors that could interfere with the validity of the findings. Designing a study helps the

researcher to plan and implement the study in a way that will help the researcher to obtain

intended results, thus increasing the chances of obtaining information that could be associated

with the real situation (Burns & Grove 2001:223).

Descriptive Research Design

The main goal of this type of research is to describe the data and characteristics about what is

being studied. The idea behind this type of research is to study frequencies, averages, and

other statistical calculations. Although this research is highly accurate, it does not gather the

causes behind a situation. Descriptive research is mainly done when a researcher wants to

gain a better understanding of a specific topic.

Descriptive research is the exploration of the existing certain phenomena. The details of

the facts won't be known. The existing phenomena's facts are not known to the persons.

Population

In a statistical investigation, the interest usually lies in the assessment of general magnitude

and the study of variation with respect to one or more characteristics relating to individuals

belonging to a group. This group of individuals or units under study is called population or

universe. Thus in statistics, population is an aggregate of objects or units under study. The

population size of this study is 1000.



Sample

A sample is a subset of a population selected to participate in the study, it is a fraction of the

whole, selected to participate in the research project (Brink 1996:133; Polit & Hungler

1999:227).

Sample size

A general rule of the thumb is to always use the largest sample possible. The larger the

sample the more representative it is going to be, smaller samples produce less accurate results

because they are likely to be less representative o f the population (LoBiondo-Wood & Haber

1998:263-264). Sample is described as a portion chosen from the population. The sample size

chosen for this study is 300.

Sampling Design

There are many types of sampling methods. In this study Convenience sampling is used for

selecting the samples.

Convenience Sample

Convenience sampling is a type of non-probability sampling which involves the sample being

drawn from that part of the population which is close to hand. That is, a population is selected

because it is readily available and convenient. Which happens to cross the researcher‘s path,

and meets the criteria of the study, gets included in a sample? The researcher finds it easy to

obtain participants, but the risk of bias is greater than in a random sample, because each

member of the population does not have an equal chance of being included in the sample.

Obtained results might not be generalisable to the entire population.

Pilot Study

The aim of pilot studies is to explore certain issues before undertaking a large-scale study.

Pilot atudies are rarely just a small version of a Larger study, they have othea objectives than

large-scale study. Polit and Hungler (1999:37) refer to the population as an aggregate or

totality of all the objects, subjects or members that conform to a set of specifications

Data Collection

Primary Data: The primary data from 300 respondents with the help of a structured

questionnaire.

Secondary Data: The researcher used the management books, Journals and references from

net as the secondary source of data.

Contact Method: The contact method was direct.

Period of Study: The period of study is limited to 45 days from November-December, 2012.

Statistical Tools Used:

Simple percentage analysis

Chi-Square Test




5. ANALYSIS AND INTERPRETATION

Table 1 Showing What the Respondents Prefer as a Good Job Outcome

Interpretation

From the above table, It shows that, 12% of respondents are Quantity oriented and 88% of

respondents were Quality oriented Towards a good job outcome.

Chart 1 Showing What the Respondents Prefer as a Good Job Outcome

Table 2 Showing Whether Job Performance Improve, If, Job Security Is Provided.

Opinion No of Respondents Percentage of Response (%)

Yes 254 85

No 46 15

Total 300 100

Interpretation

From the above table, It shows that, 85% of respondents say yes, providing job security

improves job performance and 15% of respondents say No, providing job security doesn‘t

improves job performance .

Chart 2 Showing Whether Job Performance Improve, If, Job Security Is Provided.

12 %

88 %

Quantity Quality

Percentage of Response

85 %

15 %

Yes No


Opinion No of Respondents Percentage of Response (%)

Quantity 36 12

Quality 264 88

Total 300 100



Table 3 Showing the Level of Stress the Employees Feel in the Job

Opinion No of Respondents Percentage of Response(%)

High 66 22

Moderate 126 42

Low 72 24

Very low 36 12

Total 300 100

Interpretation

From the above table, It shows that, 22% of respondents say they are highly stressful in job,

and 42% of respondents say they are Moderately stressful in job, 24% of respondents say they

are Low stressful in job, 12% of respondents say they are very low stressful in job

Chart 3 Showing the Level of Stress the Employees Feel in the Job

Table 4 Showing the Sufficient Lighting and Ventilation are Provided

Opinion No of Respondents Percentage of Response(%)

Yes 262 87

No 38 13

Total 300 100

Interpretation

From the above table, it shows that, 87% of respondents say there is sufficient lighting and

ventilation and 13% of respondents say there is no sufficient lighting and ventilation.

Chart 4 Showing the Sufficient Lighting and Ventilation are Provided

22%

42 %

24 %

12%

High

Moderate

Low

Very low

0

20

40

60

80

100

Yes No

87%

13%

pe

rce

nta

ge o

f re

spo

nse

opinion





Chi Square Analysis

To find out the relationship between Age of the respondent and providing job security

improves performance

Null Hypothesis

There is no significant relationship between Age of the respondent and providing job security


Alternative Hypothesis

There is significant relationship between Age of the respondent and providing job security


Age of respondents * Job security Cross tabulation

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 3.313a 3 .346

Likelihood Ratio 3.457 3 .326

Linear-by-Linear

Association 1.966 1 .161

N of Valid Cases 300

a. 1 cells (12.5%) have expected count less than 5. The minimum

expected count is 4.60.

CHI SQUARE VALUE = 3.313

P value = 0.346; α = 0.05

INFERENCE

Hence p Greater than α we reject alternative hypothesis and we conclude that there is no

relationship between Age of the respondent and providing job security improves performance

6. FINDINGS

Most of the Respondents (88%) are quality oriented than Quantity.

Majority(85%)of the employees feel that providing job security improves their job

performance

Only few of the Respondents (24%) say that they are not stressful at work.

Job security

Total yes no

Age of respondence below25 88 10 98

25-30 25 5 30

31-40 93 22 115

above41 48 9 57

Total 254 46 300



Most of the Respondents (87%) say that, the sufficient lighting & Ventilation is there in the

organization.

Majority of the Respondents (76%) say that providing benefits being a Motivational Factor.

Most of the Respondents (94%) say they get adequate safety gadgets and Training Program.

All of the Respondents (100%) say that, they have attended the Safety Training Program.

Only few of the Respondents (10%) have strongly agree that the training program

effectiveness.

Only few of the Respondents (21%) say that, this environment is not suitable for women

workers.

All most all the respondents (93%) say that, the impact of psychological contract is there on

attitude.

Most of the respondents (68%) say that they take part in work plant crisis.

All the respondents (100%) say that they will assist there coworker in sorting out their

problems.

More than half of the Respondents (70%) say that they will be interested toward reaching the

target by working extra hours.

All the respondents (100%) are aware of all the safety measurement provided in organization.

Only few of the Respondents (49%) say that they have been understanding employment

relationship through psychological contracting.

7. SUGGESTION

Providing a proper stress managing training program can help the employees in managing

their stress level at work.

Management can improve the effectiveness of training program even better.

Collecting Feedback will be helpful in finding the effectiveness of training program.

Management can provide proper work environment for women workers.

Understanding employment Relation through Psychological factors can be emphasized on

training programs for even more better Understanding.

The employee‘s phone depositing area can be moved little way from the main entrance so the

people can move faster without any disturbance.

Organization‘s visitors shall be addressed properly on time.

Organization should allot its employees with a durable shift method than changing regularly.

The availability of food, in canteen all through the day can be ensured ,so that employees who,

due to work are not able to come to canteen for lunch in the prescribed lunch hour are able to

have lunch.

Organization can place a counsellor to help its employees.

Transportation facilities have to be giving much importance, area drop can be giving to its

employees.




8. CONCLUSIONS

A building, machines, materials and all other thinks comes to life with a beautiful relationship

created by two people under one roof which is known as the organization.The life and the

people inside it need some key to build their relationship that is the psychological contract

The psychological contract is fascinating for many reasons because it offers so many

different perspectives. It‘s not a tool or a process. The psychological contract is a model and

philosophy which can guide us in the way we structure and manage organizations, and deal

with employees within them. At a basic level it helps us understanding more about the ‗give

and take‘ that characterizes working for an organization, and particularly leading an

organization.

This study concludes that the management of Venture Lighting India limited has provided

the employees with all necessary facilities required to perform their task however the

management can try out new training methods and strategic to understand the relationship

between the employer and its employees in a psychological contracting ways which will

enhance a better bonding in the organization and to achieve their goal which will bring win on

both the sides.

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