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The cut to central government grant to local council has led to twenty percent head count cut since the chancellor spending review announcement. We are currently going through a consultation period leading eventually to redundancy within the next six month. Also, because the government has curtailed local council ability to raise council tax, this policy has stopped the council from plugging any shortfall from central government spending cut. Training and development funds for staff training have now been dramatically cut over the last one year especially in the last six months.

Political: the new government has stated its intention to rebalance the United Kingdom economy within the next five years, as it perceives public sector segment of the economy has grown too big over the past decade. The recent spending review has made it clear that the government is trying to encourage private sector by cutting red tape so that they can take on former public sector made redundant by their cuts. Technological: the council is now adopting a new computer based technology to deliver more of the services we do manually at the moment.

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By the middle of 2011 council is expected to launch an online based application processing system, linking it up with the present system. The implication of this is that at least two teams from housing services have virtually been sacrificed. Also, it has become apparent to staff that those left in their job after implementation would have a reduced job description and possibly be downgraded due to information technology system taking on some of their present task. A critical appraisal of the psychological contract and how it might be used to assist an organization in the management of people

Effective human resource planning should assist organisations to anticipate potential future difficulties while there is still a choice of action. Forward planning should enable the organisation to develop effective strategies related to such as: recruitment, management development, career progression, training, redeployment and redundancies. It provides the trigger for a personnel management action programme aimed at reconciling differences between supply and demand. Mullins L. J. (2005)

Focused training is one of the ways, an employer could use to motivate and retain their workforce. “Typically the focus of training is to benefit the individual rather than the organisation. Hussey (1985) argues that it may be better to design training to implement the business strategy, thus indirectly benefiting the individual through the organisation’s growth. In this manner, training creates promises that are more likely to be kept. Training viewed as an investment signals a desire to retain and deploy the individual skills overtime.

Training does convey future promises, especially when the training focuses explicitly on strategic organisational concerns. ” Rousseau D. M (1995) Tangible benefits packages are generally useful tools for organisations to attract skillful individuals and as well as in retaining current employees as long as the overall cost is sustainable to the organisation in the long run. Better pension provision due to growing aging workforce, relocation package for professionals’ workers wanting to relocate. Flexible working is now practice practically by most organisations in the United Kingdom.

Flexibility in working hours is generally attractive to employees and can contribute significantly to job satisfaction. Organisation can generally benefit from reduced staff turnover, lower absenteeism and more committed employees, because they appreciate the work life balance it gives them especially in the case of working mothers. Compressed working week arrangement is increasingly been used at my workplace by staff for variety of reasons. There is also, the practice of job sharing which is encouraged from the very moment applicants fill in their application form.

Career-break scheme and especially working from home scheme should be widely encouraged for employees when suitable. The introduction of quality circle by Waltham forest over the last five years has been very helpful for employment relationship within the council. Selected employees were meeting at regular interval to map out any change to procedures and also trying to tackle any problem situation arisen within the council. The maintenance of ISO 9000 is a good example of employees taking part in programme of continuous quality improvement within Waltham forest.

Well designed job should arguably be one of the most important challenges of human resource management team within most organisations, so therefore it should pay particular attention to it when undertaking job evaluation for employees. As most organisational theorist would argue for organisation for fully maximise the output of their employees, their jobs ought to fulfill all the characteristics of a well designed job, such skill variety, task identity, task significance, autonomy and feedback.

Communication is the fundamental process of organizing and leading in the workplace, due to the ever changing group of employees that is getting more diverse by the day. The growth of diversity in the workforce over the past few decades has produce new developments in managing employee relations, making it one of the biggest challenges facing managers. Employers must flexible to meet this challenge by improving skills such as active listening, adaptability and decision-making. These core skills can assist managers in tackling difficult issues that may arise within their workforce.

However, while the skills mentioned already are important, greater emphasis should be applied interpersonal communication skill for managing employee relations. The first skill for managers to understand and practice is interpersonal communications, because it is the foundation for all actions in the workplace and it allows the manager an opportunity to build relationships with the overall workgroup without alienating anyone in the work environment. Working with diverse groups of people requires a tremendous amount of interaction.

If these interactions are positive, they can help create the right workplace climate, attitudes, beliefs and behaviors. Roper G. (2005) Conclusion There is the undeniable recognition that employees form the lifeblood of any organisation. It is essential for organisations to put effective employment relationship at the forefront of their organisation strategy. For organisations to gain a competitive edge in this globalise, there ought to be a synergy between the corporate strategy and human resource strategy. Direct correlation between effective people’s management and business performance could not be overstated.

Facilitating positive psychological contract in the workplace should be a paramount task of any good manager. Positive psychological contract should be nurtured from the very outset of an employee joining the any organisation. Reciprocal communication between the parties is so crucial to understanding unwritten obligations as well as managing conflicts whenever they arise. The economic recession is definitely having some negative effects on psychological contract at my workplace, but it has not deteriorated to the extent of no return.

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