Reference no: EM132941730

Question

Jim Woods was a senior IT analyst for a leading national food company, Gatz Pfizer(GP). Jim had been with GP for 25 years beginning work at the company initially as a summer casual whilst completing this university degree. On completion of his biology degree he took up a full-time position with the organization's head office in Essendon Victoria, working initially in the food hygiene section. However, over the years Jim undertook a variety of positions as he moved up through the organization. With little experience in the area, Jim joined the IT section as it expanded and rose to the position of senior analyst. As a result of his skills and knowledge of the company's new IT system, and his communication skills, he was approached by senior management to help set up the system in the other states where they were still working on manual arrangements that relied on the tacit knowledge of senior logistics people. Whilst this tended to work at a local level, the increasing need to manage the systems and logistics nationally meant that these systems and to be integrated into a new system.

An initial discussion with the consultants who helped design and install the current system indicated that they would charge over $250,000 to train and develop the staff in the other states. The company, in meeting of senior management suggested that Jim fly over to Perth and Adelaide to spend a week in each plant helping train the logistics and IT staff in the new system. The senior manager called Jim to his office to ask him to undertake the role, pointing out that it would provide an opportunity to broaden his skill base and would reflect well in his next performance appraisal. In addition the Senior Logistics Manager indicated manager indicated that Jim would be rewarded year-end bonus 10% of the saving the company could make with the successful implementation of the system (estimated at RM150, 000).

Jim readily took the opportunity and in the two weeks successfully implemented the system despite the initial hostility at the twos sites. His success is attributed to his effective communication skills and sound knowledge of the system from an operator's perspective. These attributes gave Jim strong credibility with the IT role and that wasn't just another consultant pushing another company's product. Jim also worked 13-hour days toe sure he covered both shits at the plants. On his return to head office the manager said little, but pointed to the backlog of work that had accrued whilst he was away. However, he knew with the new systems in place that the backlog and integration problems should be quickly eliminated, and after all he had his bonus to look forward to. At the end of the year Jim sat down with his manager to undertake his performance appraisal. As the meeting progressed to its conclusion, Jim was increasingly concerned that the issue of his inter-state work was not raised and when he raised it his manager said that the work he did was not his concern. When Jim asked about the cost saving and his bonus, his manager said that his agreeing to go interstate and help had in fact caused major problems and backlogs in the Victorian plants at Carrum Downs and Essendon and he should be happy he was getting the same bonus as everyone else, considering the problems he had caused.

Jim left the meeting stunned as he had expected to be commended for his work and get some indication of his bonus. Jim went back to his office and thought about the situation. That night he updated his CV and the next day sent it to three recruitment agencies specializing in IT work. As he waited for the recruitment companies to respond to him he worked his required hours, rather than the hours of unpaid overtime he used to undertake and spent the time networking for a new position.

1. Why does psychological contract exist in the above case? Explain THREE (3) reasons for the existence with reference to the above case. You may use example.

2. Identify the type of psychological contract between Jim and his organization prior to the performance management in the case study? Explain with suitable examples.

3. Identify the type of psychological contract between Jim and his organization after the performance management in the case study? Explain with suitable examples.

4. Has Jim's attitude change towards his workplace? How would you describe the occurrence of such attitude in this case study?

5. a) Explain THREE (3) implications of psychological contract (PC) on human resource management in the above case study. Suggest THREE (3) effective strategies to enhance the goal of Gatz Pfizer in the long run. Provide appropriate examples.

b) In a course of HRMT 5615 Current Issues in Human Resource Management, can PC occurs in during the class? Why and why not? Provide own example and how to overcome such occurrence ( if any)?