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HRM552 Organisational Behaviour: Casualisation of the Workforce Assessment Item 2 Answer

Subject: HRM552 - Organisational Behaviour

Assessment item 2

Length: 2,500 

trend of your choice: casualisation of the workforce

Textbook: 

McShane, S.L., Olekalns, M., Newman, A.H. & Martin, A. (2019). Organisational behaviour: Emerging knowledge, global insights. (6th edition), McGraw Hill.

We will be supplementing the textbook indicated above with:

Arnold, J., Randall, R., Patterson, F., Silvester, J., Robertson, I., Cooper, C., Burnes, B., Harris, D., Axtell, C. (2016). Work Psychology: Understanding human behaviour in the workplace (6th edition), Pearson United Kingdom.

Task

As a group, choose a workplace trend of your choice (e.g., flexible work arrangements, work-life balance, outsourcing, wellbeing, casualisation of the workforce, process re-engineering, ethics and values, millennials, technology, etc.). In your report:
 
   a) Analyse the impact of the chosen trend on the changing nature of the employer-employee relations, (6 REFERENCES) 

a. Gig economy/casualisation of the workforce

b. Psychological contracts

3. Performance

4. Engagement

5. Career development Motivation
   b) Describe how one content and one process theory of motivation of your choice could be applied to the chosen trend. (5 REFERENCES)
   c) Critique the two chosen OB theories of motivation (one process and one content theory of motivation) based on their strengths, weaknesses and relevance to the OB trend) (5 REFERENCES)
   d) Provide three recommendations for improving employee motivation given the organisational trend. Each recommendation needs to be justified based on the relevant academic literature (e.g., journal articles, academic conference papers, government reports, and books). (5 REFERENCES)

The task in this assignment highlights a complex situation and there are no right or wrong answers. The quality of your findings will depend on the depth of the research your group conducts into these issues and the depth of your understanding of relevant Organisational Behaviour theories.  

Motivating and empowering workforce is one of the key managerial tasks. However, not all managers have a background in organisational behaviour and hence, their understanding on how to motivate employees may be limited.

This assessment task will assess the following learning outcome/s:

  • be able to critically examine assumptions and propositions of theorising about organisational behaviour in general. 
  • be able to compare and analyse the strengths and weaknesses of organisational behaviour theories relevant to managers with human resource responsibilities. 
  • be able to evaluate current organisation practice and to develop strategies that may assist in the understanding and management of employee behaviour. 

This assignment is designed to develop further understanding of an OB topic/trend and ways of dealing with its implications in the workplace.

Presentation

The report needs to be coherent, logical, and use a unified voice, and should not be appeared to be written by four different people.

Executive summary, Table of contents, Tables, Figures, and the list of references are not included in the word count for this assignment. 

All assignments must be typed, and they should be at least 1.5 line spaced with 12pt font size. Use of headings and subheadings is recommended to help focus your work. This does not mean that you can dispense with the need to create a coherent discussion. This is always critically important. Please note that in all assignments the following are expected: Careful analysis, Evidence of wide and careful reading (beyond what has been provided), Coherent argument and structure, Correct spelling, Appropriate use of English grammar, Appropriate citation of references, Correspondence with the given word length, Referencing presented in the APA6th system adopted by the Faculty of Business, and a reference list included at the end of your Report. When using material taken from the Collection of Readings provided by the University please refer to the original sources which is provided.

Requirements

Only one group member should submit the report via Turnitin on behalf of the group.

Notes:

  •  if you do not participate in the group work, you will not share the group marks.
  • if your contribution to the work is observed to be very minimal you may not share the group's marks either

Please stay within 10% below to 10% above the word count (e.g. 2250 to 2,750 words for this 2,500-word requirement) to avoid incurring a length penalty. (e.g. for lack of length or for excessive length). Length penalties range between 1% - 10% of the total assessment weighting and are calculated according to the following mathematical formula: 1% deduction for every 1% below required length range. 5% deduction for every 1% above required length range. 

Please acknowledge the source of any existing documentation (e.g. from your focus organisation or other source), and be careful to avoid unwittingly plagiarising anything. Please remember to support your views using relevant research including that from quality practice-based sources, relevant peer reviewed journal articles, and subject sources such as the prescribed text. Your work should include appropriate section headings throughout, and also visual communication devices such as table/s, graph/s and diagram/s. Note that images or pictures are not considered to be assessed visuals for the purposes of this assessment. Self-developed visuals (especially those which contain original content) are generally more highly regarded than 'copy and paste' external visuals.

Please only submit a MS word file through Turnitin for assessment (i.e. no PDF files please). 

Answer

CASUALISATION OF THE WORKFORCE


Executive Summary

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. 

Introduction 

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. 

Maslow's Hierarchy Theory

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.

Herzberg's Two-Factor Theory

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. 

Recommendation

  • 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. 

Three main recommendation over casualisation of workers in workforce

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. 

Conclusion 

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.

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