Psychological Redundancy Case Study

2.5

A psychological contract is an unwritten agreement between employer and employee where both parties have an unwritten understanding to ensure balance in mutual expectations of each other and encourage discretionary efforts. “The beliefs individuals hold regarding the terms and conditions of the exchange agreement between themselves and their organizations”. Rousseau (1989).The psychological contract reduces insecurity in the employment relationships as all aspects are not covered in a formal written contract. A psychological contract is based on employees trust and belief that employee will honor the ”deal” between them and this may encourage an employee to put in extra efforts and time without being asked to do so or an employer to

There are five main stages to be followed during the redundancy process: Stage 1: Preparation. Before starting the redundancy process it is required to assess its real necessity and is there any option to prevent it.If it looks that it's necessary then we have to define the time frame and prepare all necessary documents.

Stage 2: Selection. In this stage, the people are selected who are considered for redundancy. It’s necessary to define the clear criteria for selection of those individuals. Selection criteria must have a definite objective and can be applied equally and fairly across the organization. For example, length of service, disciplinary records, qualification, experience, capability, relevant skills, performance records, and competencies.

Stage 3: Individual Consultation. The legal time frames about the consultation to be followed which depends upon the number of people proposed for redundancy. In any case, it is important to explain why an individual has been selected and why redundancy option is chosen.

Stage 4: Notice of Redundancy and Appeals. In this step, employees considered for redundancy are informed via written notice and allow them the right of appeal against their