Download Managing the Psychological Contract: Using the Personal Deal to Increase Performance PDF

TitleManaging the Psychological Contract: Using the Personal Deal to Increase Performance
File Size1.0 MB
Total Pages261
Table of Contents
List of Figures
List of Tables
1 Introduction and Why the Psychological Contract Matters
	Purpose of this book
	Why the psychological contract and personal deals matter
	Chapter summary
2 Current Use of the Psychological Contract
	Background to the psychological contract
	How some business organisations describe their psychological contracts
	A different psychological contract
	Redefined view of the psychological contract
	Change and the psychological contract
	Shifts in the prevailing psychological contract over time
	Chapter summary
3 Viewing the Psychological Contract as a Personal Deal
	Business deals and personal deals
	All our relationships involve a personal deal
	Expectations lie at the heart of the personal deal
	A closer look at a personal deal
	Visualising the personal deal
	Personal deals at work
	Difference between the personal deal at work and the psychological contract
	Chapter summary
4 Making and Breaking Personal Deals
	Pre-employment steps in creating personal deals
	Recruitment steps in creating personal deals
	Creation of personal deals during new job socialisation
	Value of the personal deal in induction and socialisation
	Frequency of broken personal deals after initial socialisation
	Impact of personal deal breach on employee attitudes
	Impact of personal deal breach on employee behaviour
	Chapter summary
5 The Personal Deal Process
	The dynamic nature of personal deals
	Personal deals occur between each leader and their people
	How the deal operates in practice
	Using the personal deal to understand and manage ourselves and our people
	Using the model to understand Anna’s personal deal
	Predictions about the personal deal process
	Chapter summary
6 Types of Personal Deal
	Relationship personal deals
	Emergence of transactional personal deals
	Business pressures for increased transactional personal deals
	Persistence of relationship personal deals
	Requirements for a personal deals framework
	Four types of personal deal
	Chapter summary
7 How Three Companies Use the Psychological Contract
	CMS Cameron McKenna
	Richer Sounds
	Parallels between the three companies’ psychological contracts
	Chapter summary
8 Using the Personal Deal to Improve Leadership Effectiveness
	Nature of leadership
	Determining direction through objective setting
	How to use the personal deal to improve performance
	A leader’s one-to-one use of the personal deal to enhance performance
	Organisation-wide use of the personal deal to improve performance
	How the deal complements fundamental leadership
	A radical alternative approach to leadership based on the personal deal
	Value of the personal deal for leadership
	Chapter summary
9 Using the Personal Deal to Change Organisation Culture
	What is organisation culture?
	Effective approaches to culture change
	Business context of culture change in Royal Mail Sales
	Viewing culture as the prevailing personal deal
	Chapter summary
10 How Human Resource Practitioners Manage Personal Deals
	How HR shape personal deals
	Reshaping personal deals in an organisation
	Evolution of the human resource function from the welfare function
	Professional personnel management
	The human resource process
	Strategic human resource management
	Chapter summary
11 How to Shape Your Personal Deals
	Preconditions for discussing our personal deals
	Steps involved in having a personal deal discussion
	Personal deal training
	Chapter summary
12 Behavioural View of the Personal Deal
	Introducing transactional analysis as a framework for understanding personal deal behaviour
	Behaviour underpins all our personal deals
	Methods for changing personal deals
	Chapter summary
Document Text Contents
Page 2

Managing the Psychological Contract

Page 130


How Three Companies Use the
Psychological Contract

The focus now shi�s to how the personal deal can be used to enhance the

performance of organisations. In this chapter we will concentrate on how three

business organisations, Arup, CMS Cameron McKenna and Richer Sounds, use

the psychological contract to add value to their business performance.

These three organisations have been chosen for closer discussion for

a number of reasons. Firstly, each comes from a different sector – Arup is

primarily in engineering design, CMS Cameron McKenna is in legal services

and Richer Sounds is in retail. A second reason is that each organisation has

been independently evaluated to be a great place to work, from recent ratings

in ‘The Sunday Times Best 100 Places to Work’ survey.1 A third reason is that the

author knows something about these three organisations and has contacts with


Each organisation will be described, followed by a description of its

psychological contract provided by a senior individual in the organisation.

The value and benefit each organisation believes it gains from its prevailing

psychological contract will be considered, as well as some of the implications

and challenges each company faces because of it.

The description of each organisation’s psychological contract in this chapter

is based on indepth conversations with at least one senior manager in each

business. While the descriptions are not based on robust empirical research, the

performance of each of these organisations in their respective marketplaces is

beyond reproach, with regard to people practices and financial performance.


Arup is an international design and engineering firm which employs just

over 3000 staff in the UK and a further 4000 internationally. Operating

out of 70 international offices, Arup typically has over 10 000 engineering

1 ‘100 Best Companies to Work For’, The Sunday Times, March 2006 (London: Times

Page 131


projects running concurrently. Projects typically focus on design solutions,

predominantly in the building environment.

People in Arup pride themselves on being the creative force behind many

of the world�s most innovative and sustainable designs. Global landmarks to

which Arup has made a signi�cant contribution include the Sydney Opera

House, the Channel Tunnel Rail Link, Sea�le Library, Stonecu�ers Bridge in

Hong Kong and the Water Cube for the Be�ing Olympics.

Arup has three main global business areas: building, infrastructure and

consulting. However, it adopts a multi-disciplinary approach which means

that any given project may involve people from any or all of the sectors or

regions in which the �rm operates. Arup�s fundamental aim is to bring together

the best professionals to meet its clients� needs.

Arup was founded in 1946 by Sir Ove Arup, a powerful visionary, not only

for what the �rm stands for and what it delivers but also its ownership. Sir Ove

and his partners handed over the business to be held in trust for the bene�t

of its employees and their dependants. Without external investors, the �rm is

at liberty to make long-term investment decisions unhampered by short-term


Arup has grown organically over 60 years to become an international

consulting �rm with exceptional scope. The skills base within Arup has grown

considerably beyond its original core of structural and civil engineering.

It now counts master-planning, economics, environmental and project

management, alongside business and management consulting skills. The ethos

of the �rm emphasises the importance of technical excellence and continuing



The psychological contract in Arup originates with Sir Ove Arup�s vision and

ideals, not just for innovative design, but for life. The Arup values are enshrined

in a document known as the �Key Speech� which he gave on 9 July 1970 to the

partners, about the future of their business. The Key Speech describes the core

values of the �rm, the six aims of the business and how they can be practically

brought to life in the way Arup does business.

The aims of the �rm are:

quality of work�

Page 260

About the Author

Michael Wellin is Director of Business Transformation Ltd, a niche consulting

�rm specialising in organisation change, team e�ectiveness and coaching.

He works primarily at board and partner level, delivering practical solutions

which enable people and organisations to be�er achieve their goals. Michael

has consulted to a wide range of organisations and sectors including companies

such as Arup, Ernst & Young, Ford, Reuters and Royal Mail.

One of his principals which underpins Michael�s workis that all of us

have enormous talent, and our challenge as we travel through life is to bring

out more of that talent for our and others� bene�t. Michael has over 20 years

successful consulting experience and a hallmark of his work is the creation

and application of innovative practical methods which help people and

organisations to leverage their talent.

In his earlier work he was one of the �rst users of Belbin�s team roles and

transactional analysis as vehicles for leadership and organisation change. In

the 1990s he created a framework of e�ective board behaviours, and a generic

framework of business behaviours � Talent Inventoryfi. Most recently he has

pioneered techniques to help organisations use and improve their psychological

contract, which culminated in the writing of his book.

Michael�s interest in the psychological contract was stimulated both by

his experiences of working in diverse business organisations across di�erent

sectors as well as his extensive personal world travel. Exposure to di�erent

cultures at national and organisation levels taught him that each culture has its

own subtle conventions about acceptable behaviour.

Before taking up consulting Michael received a very good grounding in

all aspects of human resources, working in the peronnel functions of large UK

and international organisations, including Fisons, BOC, ICL and Continental

Illinois National Bank. Michael brings to his work as a business psychologist

an understanding of people and their behaviour with a strong drive to achieve

business results.

He studied social psychology at Sussex University, and then pursued his

interest in business psychology by gaining an MSc in personnel management at

Page 261

City University Business School. In 1992 he was elected Chartered Occupational

Psychologist and Associate Fellow of the British Psychological Society.

Michael speaks at conferences and has wri�en several articles on people

issues in business. His previous book, Behaviour Technology, advocated many of

the people practices which are now common in organisations today.

He lives with his wife Ruth and son Zack in North London. As well as his

family he is passionate about things Indian and Nepali. He loves trekking in

high mountains, particularly the Himalayas, and also spends time with friends

and cultivating a Japanese garden.

Michael can be contacted at: [email protected]

Similer Documents