A unifying psychological theory of employee-employer relations

Although we have seen that there are different theories guiding the understanding of industrial relationships, all in all, the work of Chris Argyris in 1960s on psychological contracts is highly informative (Guest 2001). According to the theory, employees and employers enter into a psychological contract in which they establish an implicit set of obligations and expectations concerning what an individual and the organisation is expected to give and receive from each other. However, since individuals and the organisation operate in a system, the psychological contract is also determined by a number of factors as shown in Figure.

Figure ; A model of psychological contract

The arrows in Figure  show the antecedents that influence the extent to which the psychological contract is fair, trustworthy and is delivered to each party. The outcome of the enabling environment is a win-win situation for all parties manifested through good relationships, motivation, job satisfaction and commitment to the organisation’s success.

Work regulations

When employees join organisations they are bound by different regulations. Regulations help to establish a common standard of behaviour to be upheld by all parties in the relationship. Working relationships in organisations are regulated by various regulative frameworks.

Employer regulations

The employer regulations consist of rules and codes of conduct in the workplace. They are found in manuals, standing orders and other directives and circulars. They include civil service regulations, parastatal service regulations and private business regulations. The employer has the managerial right to make these regulations.

Employee – employer work regulations

The employer – employee regulations are made jointly. They are created through a process of collective bargaining involving trade unions because of differences in interest, objectives, values, and attitudes. The objective is to establish a level playing field in the employment relationship. The process is called bargaining because each side is able to apply pressure such as strikes or termination of the contract of service.

Statutory regulations

These are laws and regulations made by the government to regulate employment. The state makes regulations through the responsible ministry. A problem is identified, for example, by an organisation or through collective bargaining and it is brought to the attention of the responsible ministry. The ministry uses experts to draft a law. The draft is presented to the cabinet or similar organ. In the case of Tanzania, the draft is sent to the parliamentary committee for scrutiny to make a bill. The bill is discussed in the national assembly. If passed, it is sent to the President for approval. When the bill is approved it becomes an act. The act can now be used as law. Regulatory legislation is categorised into three main areas. The first is protective regulations, which are mainly concerned with the protection of employees’ rights. They include the security of employment act 1964, industrial court of Tanzania act 1967, work-man’s compensation act, cap 263, severance allowance act 1962, and regulations of wages and terms of employment ordinance cap 300. The second category concerns grievance handling.

These regulations are used when there is a grievance or dispute between the employer and the employee. The regulations include the permanent labour tribunal act 1967, factories act 1991, the public service (negotiating machinery) act 2003 and the employment and labour law act 2007. The third category are regulations designed to establish specific institutions to keep relations in the organisations harmonious, they include the pensions ordinance cap 371 and the national social security fund act 1997.

Grievance and discipline at the working place

In the employment contract, employees as well as the employers have basic rights and obligations to meet in order to maintain a harmonious working relationship and coexistence. However, if there are grievances and a lack of discipline, the organisation and employees cannot effectively meet their obligations. Grievance and discipline management are means for resolving differences in working relationships. There are many concepts used in literature that govern the main issues in discipline management. For example, Torrington & Hall (1991) provide useful explanations of important key concepts in discipline and grievance management in organisations, which we need to share here.

Discipline

This is a regulation of human activity to produce a controlled performance. For example, time keeping, attendance, performance according to standard etc. In an organisation, discipline is shaped by the nature of the organisation (production, service delivery, location, history, local or foreign, big or small) organisational culture including management style, values and norms. These factors determine how events, situations or procedures that affect parties are perceived and interpreted. For example, a bureaucratic organisation with dozens of rules and regulations is likely to create an environment for the development of grievances and indiscipline than is the case with more decentralised structure with flexible working regulations.

Grievance

Grievance is a complaint that has been formally presented to the management representative or union official. It arises from dissatisfaction and complaint. The grievance may be reported in writing or verbally. What is important is the complainant’s intention to pursue the matter officially.

Complaint

This is a spoken or written dissatisfaction that is brought to the attention of the supervisor or a team leader. The dissatisfaction could lie in matters related to performance, pay, and conditions of work or just relationships at the workplace.

Dissatisfaction

Anything that disturbs an employee causes dissatisfaction and will affect working morale, teamwork, commitment, and job performance. If for some reason employees are dissatisfied but cannot report the matter through the official channel to ensure remedies are sought, then a situation such as this can potentially lead to serious performance problems.