HRM552 Organisational Behaviour: Casualisation of the Workforce Assessment Item 2 Answer
CASUALISATION OF THE WORKFORCE
This study sheds light on employee behaviour and organisation practices to improve workforce culture and avoid casualisation of work. Reduction of employee power can create a lack of understanding of company management to the employers resulting in slow production rate and overall decline in financial and organisational aspect. Implication of two different theoretical models can help build up an ideal workplace management plan with further modification as suggested by managerial expertise for the company. Recommendations were made based on two different aspects behavioural and individual employee satisfaction and simplified aspect for declining trend in the workplace can be mitigated.
Casualisation of the workforce is a process, where workers are shifted from permanent and full-time positions to contract and casual positions. Under the process of casualisation of workforce, workers are marked as those workers, who working for other Organisation and are paid their wages daily or periodically. The main reason of Casualisation of the workforce is lack of opportunity in different sector and increasing demand for employment. For this reason, most of the Organisation focuses on the casualisation of the workforce. This process has lots of impact over employee and employer relationship. This report is focused on the impact of Casualisation of workforce over the psychological contract, the performance of an employee and career development for the worker.
Analysis of the impact of casualisation of workforce
The recent trend of most of the Organisation is workforce casualisation. In this context, it can be said that there are impact on the nature of the employee-employer relationship.
- Gig economy is a situation where freelancer and part time workers are hired by the organisation in order to reduce employment burden and completion of a part of a job through fulfilment of criteria. Implication of gig economy can be considered as an effective measure to avoid inconveniences regarding termination from organisation aspect. Contract workers are facilitated in this method and organisation gets beneficial solution for avoiding employer agitation regarding casualisation. Cherry & Aloisi (2016) argued Gig economy in long term can affect full time employers and direct towards shortfall of full time jobs due to fulfilment of organisational criteria.
- Casualisation of the workforce
Casualisation of workforce helps an employee to explore an avenue of their interest as they do not for full time in an organization. Besides, the Organisation allows such workers to decide their working days and hours as per their availability. As suggested by De Stefano (2016), it also helps the Organisation to hire more workers to increase their productivity. For instance, most of the companies in Australia hire more than 40% of workers in a casual position. The problem of lack of employment is also solved by this approach. On the other hand, it can be said that an Organisation does not secure the regular income and work for a casual employee. There is no guarantee for casual workers about their employment. Casual workers can be terminated at any time as per organizational needs. Casualisation of workforce does not allow steady income flow for the employment.
- Psychological contract
The psychological contract defines the unwritten part of employee expectations. This contract is vital for an employee-employer relationship. For the casual worker, the psychological contract is important for an organization. In the process of Casualisation of the workforce, psychological contracts are developed by daily communication between employee and employer. Communication skills can help better understanding of the company goals, mission and vision, which can be significant for experiencing a change in workforce management. In this contract, a casual worker can represent their expectations towards their organization. As mentioned by Sanchez (2018), the Organisation also changes its perception as per their employee’s need. The psychological contract provides mutual belief, common ground, perception and informal arrangements between casual workers and the organization. Besides, a negative psychological contract can damage the relationship between employee and employer, reduce the productivity of the organization, and decrease mutual understanding. A psychological contract becomes successful when an Organisation can understand employee’s demand. It can be said, when an Organisation gives facilities and opportunities to their employee, a positive psychological contract is created. By this process, casual workers become motivated and efficient to their works.
- Impact on performance
Casualisation of workforce has a deep impact on the performance of the employee. This process shifts their employee form a permanent position to a casual position, which creates insecurity among causal workers. In such a case, an employee gets demotivated towards their performances that lead to deceased in productivity within the workplace. On the other hand, the Organisation provides flexible working hours and days for their casual workers, which help to perform well as per their efficiency. In the words of Kimber & Ehrich (2015), it ensures the increase of productivity of an organization. Casualisation of the workforce provides a good environment for those workers, who are trying to explore their skill in different task. For instance, a UK based software firm predicts that they will hire more than 43% of workers in the process of Casualisation of workforce. As casual workers do not work for long hours, it helps to perform more efficiently and appropriately. This process helps casual workers to gain about the work as per their skill.
- Engagement of the employees
Employee engagement is associated with the performance of an employee. This is a crucial impact of an organization, who are approaching the process Casualisation of the workforce. As mentioned by Simeon & Daniel (2018), in the process of Casualisation of the workforce engage their workers by providing flexibility in work. This flexibility motivates workers to understand the purpose and perception of the organization. Casualisation of workforce increase the competition between engaged workers. It helps workers to perform well in the organization. In this aspect, the Organisation becomes more innovative as their workers perform with full potential.
- Motivation for career development
Casualisation of workforce allows workers to focus on their own interest and help them to motive to career development. As mentioned by Seing (2015), in this process, employees are allowed to pursue further study or explore hobbies. In such a case, employees perform effectively in the Organisation as they are given task as per their capability and talent. In the words of Houeland (2015), Casualisation of the workforce focuses on the development of employee’s performance. For this reason, the Organisation introduces different opportunities for their employee that helps them to focus on their career development. However, Casualisation does not prove job security as employees are hired for a temporary period. Employment can be canceled any moment for those workers. In such cases, lack of motivation among employee effects company development to large extent.
Discussion of content and process theory
Various researchers have analysed the situation of different workforce trends and searched for recommendation according to workplace condition and increase productivity. Two theories of generating motivation in the workplace will be discussed below, which consists of one process and one content theory. As stated by Al Mehrzi & Singh (2016), content theory creates an individual focus on motivation, which aggregates to an overall change in workplace culture. Process theory provides insight into the behaviour and can be applied to a overall change in the work culture.
- Content Theory: Maslow's Hierarchy Theory
Abraham Maslow was the inventor of the concerned theory model in 1943, which comprises of various categories of personal needs, separated in a hierarchy. Basic context of the theory relates to the fulfilment of various needs for motivation, which can reflect on the individual workforce. This hierarchy of needs can be specified into five different sections. This Five-stage model generates a contradiction between needs of deficiency and needs for achieving growth. As stated by Závadský, Hitka, & Potkány (2015), deficiency needs can be considered as passively negative state of mind and lack of satisfaction due to the increased impact of the needs. Deficiency relates to the time as deficiency of the needs can grow with time and increases rapidly with destruction of the workforce. Higher growth needs development of workforce and it can be attained through reaching self-actualisation.
Psychological needs: Biological requirements for survival can be considered as the mean of psychological needs. Air, food, drink, shelter, clothing, sex, sleep are the basic psychological needs.
Safety needs: Safety can be considered as the most sensitive issue in human life, which includes Security relating to health, financial security, personal security.
Love: Third level of psychological need arises after fulfilment psychological and Safety needs, which is the feeling of being loved. Personal relationship, intimacy, friendship, trust, giving, and receiving affection and inclusion in a healthy relationship in terms of family or else can be motivating for improved workforce culture.
Esteem: It can be further divided into two different categories, esteem for own self and desire of getting esteem or respect from others, which can greatly increase motivation and workforce culture.
Figure 1: Maslow's Hierarchy Theory
(Source: Závadský, Hitka, & Potkány, 2015)
Self-actualisation: Realisation of personal ability and having faith for self-fulfilment can be considered as a mean of growth need. It can be fulfilled through achievement as per the capability.
As an instance of implication, Chip Conley implemented this theory model for helping employees for an advanced understanding of individual job roles in a staff retreat. Conduction of an interview through a specific questionnaire was conducted among 8 different housekeepers and results were analysed for evaluation of value realisation ( hbr.org 2002).
- Process Theory: Herzberg's Two-Factor Theory
Proposed theory was coined by psychologist Frederick Herzberg in 1950 and deals with workforce motivation for a generalised method through two different factors. Herzberg conducted an analysis for obtaining those two factors through data collection from 200 accountants and engineers. Detailed analysis of the collected data and evaluation sheds light on the two most important factors for employee workforce improvement, Motivator factor and Hygiene factor.
Motivator Factors: Employee satisfaction and motivation can be achieved through these factors and results in hard work for achieving better productivity. Progression of work, improvement of work enthusiasm, motivation from recognition can be stated as example of this factor.
Figure 2: Herzberg's Two-Factor Theory
(Source: Huang et al. 2016)
Hygiene Factors: Lack of this factor can result in demotivation and dissatisfaction of employee. A healthy relationship with managers, company policies, benefits from company structure, salary is the examples of Hygiene factor in a workplace.
As an instance of the implication of the two-factor theory model, it was implied in the emerging market of Macedonia for development of work culture and resulting in financial stability regarding employee outcome ( thewire.in 2019).
Critical Analysis of the theories
- Maslow's Hierarchy Theory
It is important for an organisation to implicate proposed theoretical model according to needs and relevancy. Application of Hierarchy theory needs modification before application. Gelfand et al. (2017) argued that human beings show a huge variety of needs, which cannot be measured within a particular time for sudden improvement and some of the needs, cannot be fulfilled due to privacy breach or lack of resources relating to the solution. Prioritization of needs can only be understood by employee thus it was executed by the company, which can make complication regarding solving. Kanfer & Chen (2016) stated human behaviour is a multi-motivated aspect, which needs a resolution of more than one needs at a time. Complications of human life including personal problem cannot be intervened by the organisation, which creates an inability of the fulfilment of needs. Inclusion of Cognitive need is important for the overall growth of work culture. Need of knowledge, explanation, answering to curiosity, fulfilment of predictability can help ascertain employee motivation along with the five factors mentioned. Hanaysha, & Majid (2018) argued inclusion of aesthetic need in this theoretical model as appreciation and need for balance can be suspended through self-actualisation. Other than all these needs various transcendence needs can motivate a person, which is beyond organisation capability to justify. Experiences originating from mystical incidents, success in pursuit of science and faith in religious practices can generate satisfaction, which reflects in workforce behaviour. Whole theory model relating to the theory model is based in a biographical analysis. Definition of self-actualisation is missing in the model regarding a scientific perspective, which directs towards incomplete analysis and limitation.
- Herzberg's Two-Factor Theory
Two-factor theory is considered as a primary guide to the construction of a healthy workplace management environment thus it needs further improvement according to situational variables. Concerned theory is constructed upon the reliability measured upon the raters, which can result in different opinion in adverse condition. The two-factor theory model looked forward to employee satisfaction and almost overlooked company productivity increase, which makes it more of a content theory rather than process. Comprehensive measures were undertaken for assessment of satisfaction, which focuses on job satisfaction regardless of leaving an option for an employee as a choice for leaving the job for prioritizing disliking. Khuong, & Hoang (2015) argued that two-factor theory revolves with prejudices, which are prevalent as the satisfaction of the employees is considered as the result of hard work by them and nothing else relating to pay scale or work hour. Apart from limitation, this theory is widely used by various organisation of improvement of quality of work and workforce.
- It can be said from this report that Casualisation of workforce has a deep impact on a different aspect of employment issue. The main impact of this process on employment is job security. In the words of Arshad et al. (2017), Casualisation of workforce appoints workers for a contract position. This contract positions can be changed any time as per the organization’s needs. In such cases, a worker becomes unemployed for a long period. For this reason, an Organisation needs to focus on its employee management strategies. An Organisation must secure the employment status for their employee. They need to introduce different opportunities so that their employee feels secure in the organization. Different training season must be promoted for employees. In the words of Bozionelos et al. (2016), a casual employee must be promoted for the permanent employee as per their skill and performance. This process helps to motivate employee regarding their job security. The Organisation has to ensure their employee about their employment. An employee’s preference and demand must be evaluated by the organization. As mentioned by Cardoso et al. (2015), employees must be trained as per the organizational needs so that they become experts in the work that they are given. Periodical increment schemes should be introduced to the employees so that they feel secure about their job. Incentive schemes are also effective in this aspect.
- Establishment of improved workforce culture can be practised for solving various organisational problems in the workforce. Application of the improvement needs an overall structural change of business framework. Needs for improvement among the components of the organisation starts with an understanding of the needs within managers and subordinates. Individual need fulfilment can lead to the realisation of job importance and motivates a worker for contributing to the workforce. Flexible office hours can provide satisfaction to employee for scope of focusing on the families. As stated by Závadský, Hitka & Potkány (2015), personal need fulfilment can help create motivation for work and better output for the organisation. An organisation consists of different employees thus provision of unified solution cannot result in overall satisfaction thus, it needs personal interaction and action effective for resolution of the problem. Paying attention to individual employee needs and formation of a supportive and integrative system can result in favourable growth of workforce culture.
Figure 3: Three main recommendation over casualisation of workers in workforce
(Source: created by researcher)
- Generalised changes can be implemented in the workforce of a company that lacks motivation. Increase in productivity can be achieved through the establishment of satisfaction of employees.
After determining all the impact of Casualisation of workforce, it can be concluded that it is a more powerful aspect for employee-employer relationship. In this study, the main focus is on the impact of Casualisation of the workforce over the performance of the employee, their motivation towards career development and so on. It can be said from this report that Casualisation of the workforce can reduce the shortage of employment issue. On the other hand, it does not provide job security as they hire casual workers for a short time. Moreover, it does not ensure a steady income for an employee. Casualisation of workforce becomes more acceptable if the Organisation give new opportunities to the employee. However, this process needs to focus on job security, steady income and another aspect of employment.