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(2), pp 165–74Noon, M and Blyton, P (2007) The Realities of Work, Palgrave Macmillan, BasingstokeRifkin, J (1995) The End of Work: The decline of the global labour force and the dawn ofthe new economy,Putnam, New YorkThomas, K (ed) (1999)The Oxford Book of Work, Oxford University Press, OxfordWomack, J and Jones, D (1970) The Machine that Changed the World,Rawson, New York15. THE EMPLOYMENT RELATIONSHIP
Teaching notesLearning outcomes of sessionThe session will cover:Basis of the employment relationshipEmployment relationship contractsWhat is happening to the employment relationshipManaging the employment relationship Developing a high-trust organizationTheories explaining the employment relationshipIn addition, definitions will be provided of the following concepts and terms:Agency theoryEmployment relationshipExchange theoryHigh-trust organizationLabour process theoryMutualityPay–work bargainPluralist framework of referenceProcedural justicePsychological contractRelationship contractTransactional contractTrustUnitary framework of referenceKey concepts and termsContentsThese notes contain:An outline of the sessionDefinitions of key concepts and termsQuestions and discussion pointsA bibliography
Session outlineBasis of the employment relationship●An undertaking by an employee to provide skill and effort to the employer in returnfor which the employer provides the employee with a salary or a wage.●The employer's obligations also include the duty to provide a safe workplace, toact in good faith towards the employee and not to act in such a way as toundermine the trust and confidence of the employment relationship.●The employee has corresponding obligations, including obedience, competence,honesty and loyalty.Employment relationship contractsThe three types are:1.Relational contract: A contract expressing the relationships between employersand employees in abstract terms that refer to open-ended membership of theorganization. Performance requirements attached to this continuing membershipare incomplete or ambiguous. It is less well-defined than a transactional contract(qv).2.Transactional contract: A contract that has well-described terms of exchangebetween employer and employee, which are usually expressed financially.3.Psychological contract:The combination of beliefs held by an individual and his orher employer about what they expect of one another. It can be described as theset of reciprocal but unwritten expectations that exist between individualemployees and their employers.What is happening to the employment relationshipThree of the more important developments in the employment relationship (Gallie et al,1998) are:1.New forms of management, often based explicitly or implicitly on HRM principlesand emphasizing individual contracts rather than collective bargaining.
2. There was some increase in task discretion but there was no evidence of a