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The Importance of Psychological Contracts in Human Resource Management within the New Global Economy

Copyright © 2012. 29 pages.
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DOI: 10.4018/978-1-61350-207-5.ch006
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MLA

Martínez-León, Inocencia M. "The Importance of Psychological Contracts in Human Resource Management within the New Global Economy." Human Resource Management in the Digital Economy: Creating Synergy between Competency Models and Information. IGI Global, 2012. 96-124. Web. 23 Aug. 2014. doi:10.4018/978-1-61350-207-5.ch006

APA

Martínez-León, I. M. (2012). The Importance of Psychological Contracts in Human Resource Management within the New Global Economy. In S. de Juana-Espinosa, J. Fernandez-Sanchez, E. Manresa-Marhuenda, & J. Valdes-Conca (Eds.) Human Resource Management in the Digital Economy: Creating Synergy between Competency Models and Information (pp. 96-124). Hershey, PA: Information Science Reference. doi:10.4018/978-1-61350-207-5.ch006

Chicago

Martínez-León, Inocencia M. "The Importance of Psychological Contracts in Human Resource Management within the New Global Economy." In Human Resource Management in the Digital Economy: Creating Synergy between Competency Models and Information, ed. Susana de Juana-Espinosa, Jose Antonio Fernandez-Sanchez, Encarnacion Manresa-Marhuenda and Jorge Valdes-Conca, 96-124 (2012), accessed August 23, 2014. doi:10.4018/978-1-61350-207-5.ch006

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Abstract

Human resources are considered the company’s most valuable resource. For that reason, organizations require a Human Resource Management (HRM) that provides the adequate work force within the new global economy. The psychological contract includes solid agreements between company and its employees, beyond the written contract, specifying their contributions, expectations, beliefs, promises, and obligations between both parties. Their management requires the definition of the concept of psychological contract, the analysis of its main characteristics and contents; and the identification of its stages of development. Electronic Human Resource Management (e-HRM) introduces a way of implementing HRM strategies through Web-based tools, improving the psychological contract management. Information phase, Intranet, and internal electronic mail have an important role in socialization stage. The consolidation of psychological contract (maintenance phase) is favoured by Intranet, business-to-employees, internal electronic mail, database, videoconference, and groupware. Finally, in breach phase, intranet, electronic mail, database, videoconference, and groupware are important E-HRM.
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2. Main Purpose

The classical employment relationship, open-ended as to both its task content and its duration, was tying stable rates of pay to indefinite duration jobs. Employers offered job security and internal career opportunity with little risk of exposure to their workers (Kluytmans and Ott, 1999; Rousseau & Schalk, 2000), because workers did not leave, and certainly not to the competitor (Kluytmans and Ott, 1999). Employees were obedient and disciplined when carrying out their function and when requesting reallocation; and provided maximum performance at present function (Kluytmans y Ott, 1999).

In return, employees expected the reward of loyalty through continuation of the labour relationships and job security (Hiltrop, 1995; Kluytmans and Ott, 1999), irrespective of economic circumstances; the control of career by employer (Kluytmans and Ott, 1999) and payment of a guaranteed wage (Garud & Shapira, 1997; Rousseau and Shperling, 2003).

In the new global economy, increasing international competition, deregulation and globalization of markets have demanded greater flexibility and productivity of organizations. Firms have made the organizational structure change from a hierarchical to a flat form, accompanied by rapid reduction of the permanent core workforce, supplemented by a larger group of temporary contract and contingent employees, which has become a common employment staffing practice in today’s modern organizations (Byrne, 1993; Allred et al., 1996; Nicholson, 1996). New forms of labour contract has therefore emerged, such as fixed-term contracts, temporary contracts, etc (atypical contract). They are more short-term contracts and provide fewer career development activities (Pieters, 2009). Companies introduce new strategies, methods and techniques to attract and retain talented workers (Hiltrop, 1995, 1999; Ermel and Bohl, 1997; Rousseau and Shperling, 2003). Large companies had a core group of professional employees who were dependable, who would work hard and who would sacrifice the present for the future (Hiltrop, 1995).

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Complete Chapter List

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Table of Contents
Foreword
Juan Llopis-Taverner
Preface
Susana de Juana-Espinosa, José Antonio Fernández Sánchez, Encarnación Manresa Marhuenda, Jorge Valdés Conca
Chapter 1
Inmaculada Beltrán Martín
A flexible workforce is emerging as a critical success factor to counteract certain organizational rigidities and to guarantee organizational... Sample PDF
Toward a Unifying Framework for Defining Internal Human Resource Flexibility: A Proposal Based on the Resource-Based View Approach
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Chapter 2
Mireia Valverde, Sergi Romeu, José Luís Gascó
In the current changing economic environment, organisations are searching for ever more flexibility in their quest towards competitiveness. One of... Sample PDF
Outsourcing the HR Function in the New Economy: Literature, Facts, and Research Agenda
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Chapter 3
Roberto Luna-Arocas
Talent management is a new concept in the scientific literature, but not in the practitioner arena. In this sense, this chapter underlines the... Sample PDF
Talent Management: A New Perspective in Human Resource Management
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Chapter 4
Alexis Bañón, Manuel Guillén, Ignacio Gil
In order to achieve this, CEOs and Human Resource (HR) policies should potentially contribute to knowledge development by creating authentic... Sample PDF
Ethics and Learning Organizations in the New Economy
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Chapter 5
Anna B. Holm
E-recruitment, also known as online or Web-based recruitment, is little discussed in research from an organizational perspective. The aim of this... Sample PDF
E-Recruitment: The Move towards a Virtually Organized Recruitment Process1
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Chapter 6
Inocencia M. Martínez-León
Human resources are considered the company’s most valuable resource. For that reason, organizations require a Human Resource Management (HRM) that... Sample PDF
The Importance of Psychological Contracts in Human Resource Management within the New Global Economy
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Chapter 7
Nuria Calvo, Paolo Rungo, Ignacio Moreno
The aim of this chapter is to assess the impact of different organizational factors on the success of e-learning programs, in terms of both... Sample PDF
Strategic and Organizational Considerations Related to an E-Learning Model: A Case of Study
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Chapter 8
Sandra M. Sánchez Cañizares, Fernando J. Fuentes García
People are an essential source on the competitiveness of organizations. Numerous authors have recognized the importance of organizational commitment... Sample PDF
Organizational Commitment and Job Satisfaction: An Empirical Analysis of Their Relationship in Private Teachers
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Chapter 9
José Antonio Carazo
The economic situation in the last few years has forced companies to adjust their workforces and reduce hierarchical levels. They have also had to... Sample PDF
The Role of Internal Communication in Commitment Management
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Chapter 10
José Antonio Fernández Sánchez, Encarnación Manresa Marhuenda
In times of recession, survival for most businesses means to do more with fewer resources. It is necessary to encourage policies that will help a... Sample PDF
Staff Restructuring in the New Economy
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Chapter 11
Jorge Valdés Conca, Susana de Juana-Espinosa
It seems appropriate and coherent to start this study with a detailed description of the basic analysis unit in the human resource management model... Sample PDF
The Competency-Based Human Resource Management Model
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Chapter 12
Jaime Izquierdo-Pereira, Carmen Avilés-Palacios, Joaquín García-Alfonso, Manuel López-Quero
Web 2.0 is changing the rules, reducing costs of access to technology, increasing the volume of cyber social contact through networking, both social... Sample PDF
Competencies 2.0: A Theoretical Model for Defining and Managing a Presence Plan on the Web
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Chapter 13
Lourdes Canós-Darós, Cristina Santandreu-Mascarell
In this chapter, the authors list different points of view about entrepreneurship and entrepreneurs. For this, they take into account the... Sample PDF
Competence-Based Profile to Characterize Successful Entrepreneurs
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Chapter 14
Irene Martin-Rubio, Drew Rodgers, Erik Døving
Cross-cultural knowledge management in the e-environment results from interactions with others from different cultures that require new... Sample PDF
Cross-Cultural Competences in the New Economy
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Chapter 15
José Manuel de Haro, José Antonio Carrión
In this chapter, the authors analyze how it is possible to achieve the best results in the task of developing leaders. For this purpose, they first... Sample PDF
Leadership Talent Development in the New Economy
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Chapter 16
Santiago Gutiérrez
This chapter focuses on the analysis of two factors; the characteristics of new work teams and the management and leadership tools required for... Sample PDF
Management and Leadership of Innovative Work Teams
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Chapter 17
Listening and Leadership  (pages 316-334)
Javier Pagán Castaño, Dolores Garzón Benítez
In this chapter, the authors will focus on three ideas: the connection between the company results and the leader’s listening skills; people as the... Sample PDF
Listening and Leadership
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Chapter 18
Nuria Calvo, María Bastida, Jacobo Feás
The main goal of this chapter is to undertake a critical analysis of the current situation concerning the equal treatment of female managers in... Sample PDF
Analysis of Gender Equality in Higher Management Levels: A Study Model
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