UNIVERSITY OF SUNDERLAND PROGRAMME

ASSESSMENT COVER SHEET / FEEDBACK FORM

Student Name & ID: Module Name/Code: UGB162 Introduction to HRM

Ikramova Shokhsanam and Talent Development
B1903883
UOS 209198966

Center / College: MDIS in Tashkent Due Date:3 May 2021 Hand in Date: 21 April

Assessment Title: Individual Assignment

Learning Outcomes Assessed:

Learning Feedback relating learning outcomes assessed and assessment criteria given to
Outcomes students:
Assessed:

Areas for Commendation:

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General Comments:

Assessors Signature: Overall Mark (subject to Moderators Signature:

ratification by the assessment
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Students Signature: (you must sign this declaring that it is all your own work and all sources
of information have been referenced)
Table of conten

t
Q1. Should organisations take the psychological contract seriously? Justify your answer
using theory and evidence......................................................................................................3
1.0 Introduction...................................................................................................................3
2.0 The essence of psychological contract..........................................................................3
2.1 Theories justifying the position of the psychological contract...................................3
2.2 Methods of maintaining psychological contract in organization................................4
3.0 Conclusion.......................................................................................................................5
Q2. What talent management is and why it is a consideration addressed by a growing
number of employers.............................................................................................................6
1.0 Introduction.................................................................................................................6
2.0 Talent management application guide........................................................................6
3.0 Innovations changed the course of work....................................................................7
Q3. "Interviews are the most widely used, but the least valid, selection method." What are
some of the uses and problems associated with employment interviews?............................8
1.0 Introduction.................................................................................................................8
2.0 One of the most notorious types of personnel selection.............................................9
2.1 Deepening into the method of interviews....................................................................9
2.2 Based on numerous practices and researches............................................................10
3.0 Conclusion................................................................................................................11
References............................................................................................................................12
 Q1. Should organisations take the psychological contract seriously?

Introduction

In the modern industrial world, human resource management plays an important role. It not
only helps the employer estimate employee accurately but also facilitate to the firm’s
development. Consequently, the origin of psychological contract is one of the most effective
methods to assist the organization in a way of improving and expanding their HRM structure.
Before analyzing the question one formula should be fixed:
How an employee recognizes they are treated be their employer = What the employee is
willing to put into the job, based on this quote the main review of the question will take place
below. (Towler, 31 May 2019)

2.0 The essence of psychological contract

Recently the term “psychological contract” has been extensively used in foreign science to
investigate the basic characteristics of the behaviour of employees in their relationships with
the organization, and in practice to establish effective staff strategies and policies, as well as
informal arrangements and perceptions between two hands. The field of the psychological
contract methodology is extremely comprehensive, ranging from the observation of the global
trends in employment scope to the analysis of problems in relationships at the “employer-
employee” level. (Towler, 31 May 2019)

2.1 Theories justifying the position of the psychological contract

According to the survey conducted be the Charted Institute of Personnel and Development
(CIPD), 9 out of 10 HR managers accept the usefulness of applying the psychological contract
methodology in personnel management (recruiting), and more than a third of them use it in
their daily work. There are two primary forms of psychological contract such as transactional
and relational, distinguished by Denise Rousseau and Wade-Benzoni in 1994. The first type
called transactional contract contains of exchange conditions, which are set in monetary
terms and influence on the behaviour of the employee in the short term and on the formation of
staff loyalty. Some scientists observed that McGregor’s Theory X about motivation of
employees is closely interrelated to the transactional relationship of the employer and
employee, which aim to highlight the interdependence of the organization and the rate of social
exchange.
The second type called relational contract refers to conditions that affect the relationships
between an employee and organization on a long-term basis and involve powerful emotional
attachments. Moreover, employees on this type of psychological contract expect professional
development and high training opportunities. As it can be seen, this contract has similarities
with McGregor’s Theory Y, which is manifested in the commitment and belief in the inner
values of employees who work not only for financial purposes, contrariwise for pleasure, trust
and reliance.
As Ronald R. Sims said: “A balanced psychological contract is essential for an extended
harmonious relationship between the employee and the enterprise. Nonetheless, the termination
of the mental contract can be a clear signal that parties no longer share common organizational
values and goals” (1994)

2.2 Methods of maintaining psychological contract in organization

So how does the psychological contract work? The balance of the psychological contract
guarantees an optimal equilibrium of explicit and implicit responsibilities and expectations,
which, in turn, account for the fulfillment of the conventional conditions of both parties to the
employment relationship. In other words, the employer and the employee are satisfied with
each other and maintain their collaboration on the current conditions. The basic essence of the
psychological contract is that it develops over time as working experience accumulates,
working conditions change and reassess of employee’s expectations.
The next question that interested us sounded like this, how exactly should the psychological
contract be maintained between employer and employee?
There are several tips for doing it:
 building trust- this aspect can be succeeded by generating a work environment that includes
general career support, reliability in behavior and integrity of actions;
 communication- this sphere assists us to gain a shared comprehension of the psychological
contract, especially through the communication various organizations can manage people much
better and effort them to reform the skills and knowledge for increasing productivity and
gaining competitive advantages and positive impact on the organization and business itself;
 aligning work with strength- includes an appropriate and individual selection of employees
according to the tasks at hand.
 allow time for questions- due to the fact that leaders frequently ask for questions and
consult with the team can strengthen interpersonal relationships as well as upgrade problem-
solving skills, also employees will feel themselves as motivated and highly-respected and
valued collaborators.

Furthermore, as Dr. Shane has emphasized, the importance of the psychological contract is
justified by the extent to which employee’s own expectations of what the organization will
provide them and what they, in turn, owe through it, coincide with the organization’s
expectations. In essence, the main function and importance of the psychological contract is to
ensure the predictability and reliability of labor relations concentrated on trust and bipartite
obligations, which in a complex reinforce the productivity of each other, i.e. the company and
the performance of employees.

3.0 Conclusion

In conclusion, maintaining positive psychological contract requires a vigilant attitude, a lot of

time, effort and resources, but in return, in the organization will reign balance and harmony in
the relationship of the employer and employee, due to the correctly drawn up psychological
contract that helps to avoid creating impracticable expectations of one another and eliminate
negative reactions. Furthermore, it should be underlined that psychological contract is not a
tool or strategy, it is a philosophy. In consequence of taking all the above material into account
will be a worthy opportunity to prevent a breach and keep a balance contract in the relationship
between the two sides, namely employer and employee.
Q2 What talent management is and why it is a consideration addressed by a
growing number of employers.

1.0 Introduction

According to new BCG and WFPMA researches exactly strong human resources management
and talent management can significantly improve business performance. So, let’s figure out
what it is, talent management is an area and basic process of Human Resource Management
(HRM) was coined in the late 1990s in the USA due to numerous researches in the sphere of
labor market and production optimization, that firstly deals with recruiting and attracting high-
qualified employees, integrating new workers to meet/project current and future organizational
goals through motivation and development of their professional skills, secondly identifies and
develop specialists who have valuable skills and qualities that they demonstrate with high
performance in their work, simply put this process has been called the “war for talent”. Talent
management has become an inevitable process in present days. Due to fierce competition in all
spheres of the business world, organizations are contending for the best people in the modern
labor market.

2.0 Talent management application guide

Therefore, the fundamental purpose of talent management is to create a motivated workforce on
a long-term basis, but, unfortunately many companies make the fatal mistake of making huge
efforts with the aim to attract new employees, at the same time, not spending enough time and
resources on retaining and evaluating operating workers, which has a deplorable effect on the
future operation of the enterprise. Despite of all natural resources, infrastructures and
technologies, the talent management strategy is unmatched and in fact, exactly talented
employees take the organization to the next level of success.
A talent management strategy involves several steps:
1) search, attraction, recruiting, and adjustment of corresponding candidates:
 in course of interview it is necessary to evaluate and measure the candidate’s skills and
qualities in various ways, for instance using special psychodiagnostic tests, projective
questions, and even via using a self-invented organizational scale;
2) management and identification of appropriate and competitive wages;
 after selecting the right candidates, talent management implements competitive wages,
which can include regular promotions, health insurance, vacations and etc.;
3) training and development of selected candidates;
 consists of providing special training programs that allow to quickly adapt to operation and
work with high quality, also regular updates to constantly correspondence arising requirements
of the enterprise;
4) performance management;
 includes employee engagement due to ongoing and open communication;
5) staff maintenance programs;
 creating favorable conditions for the expression and application of concepts and suggestions
from employees, which can be considered like an intangible way of motivation;
6) promotion
 maintenance of growth and innovation in the organization, also development of professional
skills and competencies among workers.
Following all of the above guidelines will be a source for beneficial effects on organization
revenue, customer’s feedback, productivity of operation and market capitalization.

3.0 Innovations changed the course of work

By the same token, it is necessary to say about the change affecting this strategy: if previously
only employees with high potential were considered as talents (the so-called HiPo’s), currently
all employees of organization are meant by this term. What is the reason for such change? The
operation becomes more complicated, the requirements for employees become more
sophisticated and also increases the competition between companies for the most productive
employees. That’s why the emphasis is on unleashing the all staff’s creativity potential, on
providing them with maximum opportunities for organizational and personal growth, learning
and self-realization. Recently, more and more employers are resorting to talent management
strategies and based on Bersin & Associates researches about 26% companies get better profit
after implementation the talent management strategies, below are several explanations as
evidence of the importance of talent management:
1. assists the organization in realizing its vision with the help of perspective and talented
people;
2. the realization of a personnel reserve, which includes a list of talented people to meet future
organizational needs;
3. contributes to the formation of more competitive and progressive organization;
4. promotes the automation of key processes and helps to collect data for better decision
making;
5. increases individual and group proficiency and the ability to effectively compete in dynamic
environments to accomplish sustainable growth;
6. maintains constructive employee engagement, inclusion and diversity;
7. promotes persistent and high productivity of employees, as well as a long-term collaboration
with the organization.
Employees are the heart of the enterprise. Without the appropriate talent, organizations run the
risk of a low customer satisfaction, poor culture and more significantly, a shortage of
innovation and development. Nowadays, employers face a more complicated landscape of
talent management than before, and those who regulate talent properly will be able to have a
competitive advantage over those who don’t. Initially, employee-related expenses have been
considered as business costs. However, to keep up with the fast pace of change, organizations
must deftly use the capacities of their employees to innovate and grow. The takeaway is that
companies must continually invest in development of their workers. According to one of the
manifestations of the Pareto law in business, 80% of all the organization’s profits are generated
by exactly 20% of “A” class employees, which again proves the need to implement a talent
management system.
In conclusion, it should be highlighted that creating a talent management model is not effortless
process, but if all steps are done properly, this system will be a source for involvement of high-
performing employees and increasing the overall productivity of organization.
Q3 "Interviews are the most widely used, but the least valid, selection method."
What are some of the uses and problems associated with employment interviews?

1.0 Introduction

Nowadays, the use of more valid personnel selection methods brings significant economic
benefits to the organization, therefore it is compulsory for HR managers to apply the most
effective methods, abandoning the less effective ones. The term personnel selection presents
the process of exploring the psychological and professional characteristics of an employee in
order to establish his applicability for performing responsibilities at a certain workplace or
position and selecting the most suitable one from a set of candidates corresponding of his
qualifications, skills, facilities to the nature of the activity, the interest of enterprise and
candidate himself.

2.0 One of the most notorious types of personnel selection

One of the prominent forms of selection is the interviewing method, posturized by the way of
obtaining specific data, standing in the middle between open conversation and mass polling,
concerning the collection of information through direct communication.

2.1 Deepening into the method of interviews

The essential determination of interviews is to assess the rate to which the candidate matches
the overall portrait of the ideal employee, competencies to fulfill the primary requirements of
the job offer, the potential for organizational and professional growth and self-development, the
abilities to assuredly adapt in the company, satisfaction of enterprise’s expectations and etc. It
is very consequential to interpret that any kind of interview is a two-way process, not only the
organization evaluates skills of candidate, but at the same time candidate assesses the
organization in terms of its relevance to own benefits, concerns and needs. During the interview
HR manager should concentrate on assessing the candidate’s general characteristics, motivation
sides, life philosophy, compatibility with the organization and the degree of productivity. With
the aim to get answers to the following questions, recruiters resort to such a selection method as
interview. There are several methods to select high-qualified candidates such as structured
interview, situational or case interview, projective, behavioral (interview on competencies) and
stress interview, each type will be fully described below:
1. Structured interview:
During the interview the candidate is asked standard questions in order to comprehend the
professional data, personal competencies, financial and cultural expectations of the candidate.
2. Situational interview
The main essence of the method lies in the fact that the HR manager establishes hypothetical
situations that may appear in the course of the candidate’s professional operation. As a result of
the response, the recruiter has the opportunity to catch the correspondence or fault of the
applicant.
3. Projective interview
In order to successfully apply this method HR manager should ask questions at a quick pace
one after the other, so that the applicant will not be able to ponder the answers in detail. Based
on the psychological principle of projection, the first thought expressed by a person is the most
significant and meaningful for him. The main advantage of this method is the high authenticity
and truthfulness of the given answers, since it is based on the special psychological principle of
projection, according to which a candidate transfers own life experience, values and behavioral
algorithm in order to interpret the operations, situations and character of other people. Despite
the substantial advantage, this method of selection has its own drawbacks, for instance, long-
term data processing and excessive energy consumption.
4. Behavioral (competency interview)
One of the effective types of interview, requiring preliminary preparation. Due to this type of
interview, it becomes possible to understand how the candidate fit into the team and the
organization as a whole, whether his values coincide with the values of the corporation or not.
In addition, this method can be used in personnel rotation, for establishing an internal
development plan for employees and etc.
5. Stress interview
In the course of interview HR manager creates stressful environment for the candidate to
unbalance him with the aim to identify professional qualities and competencies such as stress
resistance, communication skills, flexibility of behavior, positive willingness to cooperate and
loyalty. Accordingly, a stress interview will be especially effective while selecting client
managers, administrators, sales manager and service managers.
2.2 Based on numerous practices and researches

Different scientific researches related to evaluating the suitability of various ways of personnel
selection for predicting the productivity and effectiveness of operation and training has been
carried out continuously over the past hundred years. In order to select candidates for a vacant
position, many companies resort to the interview method, which is fairly unpretentious and
budgetary form for assessing the abilities of candidate. Despite the extensive list of variations
of interviews, there are several exceedingly significant disadvantages that extremely reduce the
effectiveness of this selection method, such as:
 an extremely subjective evaluation of the applicant and, as a result, a relatively low
probability that the selected candidate will meet all the requirements for a vacancy as much as
possible;
 the complexity of processing and interpretation of the obtained data, as a rule requires the
contribution of special psychologists or high-qualified HR-managers;
 shortage of efficiency to correctly forecast production indicators;
 lead to ambiguous and subjective judgements of the narrated skills and qualities of
candidates.

3.0 Conclusion

As a result, delving into the topic of personnel selection, the main conclusion was the fact that
interviews cannot be used as an independent tool, much more benefit can be obtained using this
method as a secondary source. In this way, personal communication with the candidate through
the correctly selected variation of interview allow the recruiter to appropriately evaluate
personnel and professional data. After all, in our highly modern world, such strategy forms
enormous opportunities for a competitive advantage. However, it should be added that recently
HR- managers have begun to use a number of psychological tests, questionnaires and case
methods in the initial selection of candidates, which credible assess the employee’s personality
type, professional qualities, even prediction of behavior in the future. By combining the
interview method with the psychological tests can be accomplished a high degree of accuracy
and specification of the evaluation.
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