Managing People – Contracts of employment take a great deal of thought

Managing People – Contracts of employment take a great deal of thought

Following on from yesterday’s post about the Psychological Contract, Annabel Kaye,  Irenicon – employment law in a mad world, thought you would find this video useful. It is about how employers make life so much tougher for themselves than it needs to be by using another organization’s contracts. And Annabel is right, many employers do not understand how important the right contract is  in setting up good performance management and employee relations for the future. One size really does not fit all, better to reflect the spirit of that organization’s particular psychological contract.

Wendy Smith, Career, life and Business Coach
Wendy Smith, Principal Coach, WiseWolf Life and Career Coaching

Wendy Smith is a career consultant, life coach and business coach with depth of experience in organisational development, management, coaching and personal development. That experience means she is equally at home helping clients find a new career direction, starting-up new businesses or dealing with life’s more challenging personal issues. You can contact her at

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Leadership – The Psychological Contract At Work

Work – Psychological contract

Leadership – The Psychological Contract At Work

This post discusses the theory of psychological contracts in the workplace and in the wider world outside work.

‘The Psychological Contract’ is increasingly relevant in workplace relationships.

The idea of Psychological Contract first emerged in the 1960s and it was widely discussed, particularly in the work of organizational and behavioral theorists Chris Argyris and Edgar Schein.

Many other experts have contributed ideas on the subject since then, and they continue to do so, either specifically focusing on the Psychological Contract, or approaching it from a particular or new perspective.   The Psychological Contract means many things to different people – it is open to a range of interpretations and theoretical studies.

Usually, the Psychological Contract refers to the relationship between an employer and their employees, and it relates to their concerns and their mutual expectations of that relationship, in terms of what each will put in and receive.

The Psychological Contract is usually seen from the standpoint or expectations of employees, although to understand it properly means you need to see it from both sides.

At its simplest, at work, the Psychological Contract is about fairness or balance. What can reasonably be expected! How will the employee be treated by the employer?  What will the employee put into the job? What will be the reward?

The closer you look at the real nature of the contract in any particular organization, the more complicated it becomes; there will be  unwritten “rules” and “expectations” on both sides.

The whole thing becomes more complicated when the organization is in change or when the outside environment intrudes – such as in times of recession when the employer’s ability to reward may be limited.

Of course, the theory and principles of the Psychological Contract can also be applied beyond the employment situation to human relationships, wider society and certainly in the world of politics between leaders and those led.

The concept of the Psychological Contract is still continuing to develop and it certainly is not recognized in all organizations.  It is even less well understood in the world outside work.

But respect, compassion, trust, empathy, fairness and objectivity – qualities that characterize the Psychological Contract, are worth the regard and respect of all of us, inside work and out.


Becoming a Leader Today – Can you have friends in the team?

Vector image of two human figures with hands i...
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It is remarkable that most of our metaphors for leadership seem to come from the battlefield.  Well I suppose, when you think about it, it isn’t that surprising.  After all, that is where it all started with leading the tribe and then leading the army!

Doesn’t it sound confrontational?

So what about modern leadership with its concept of servant leadership and leadership as a dialogue?  Thinking about that led me into thinking about leadership and friendship more generally (no pun intended).

Many moons ago when I started to manage people – in those days you heard little of leadership in the workplace – you were warned not to try to be friends with the people you managed.  Even at quite junior levels in the Civil Service, you were expected to forego the friendships you had already, if they were with members of the team you were to manage, on promotion.

Certainly, personal friendship can make both managing and leading more difficult.

As for closer personal relationships well that can be a minefield.  But, remember, in many small businesses, husband and wife teams work together successfully alongside other family members.

I have found myself managing and being managed by friends.  Also, I have been in teams led by friends and have had friends in teams that I have led. Honestly, I can’t remember it causing much of a problem for me and for my friends; apart from the loss of the odd lunch where we would have shared confidences.  But, in truth, I can see the potential for others to feel threatened by the relationship we had.

I looked up various dictionary definitions of friendship – one had a statement about “mutual trust and support”. Now, therein, may be a potential problem.

I wonder if relationships can be truly mutually supportive, when one party is in a position of power over the other.  Surely, even when the leader is fully committed to servant leadership, there is something of an in balance of power between the leader and the led – the degree depending on the circumstances.

In my own experience, the friendship survived the leadership experience but sometimes it did take maturity and judgment.

I suspect friendship works much better when goodwill exists between the leader and all members of the team.  In those circumstances, trust and support are part of the culture and all feel its benefits.

But, if you do find yourself with personal friends in teams you lead, I would recommend an early discussion with the friends about the ground rules.  I believe you need to be completely honest about how you intend to play it.

I believe, as well, that it is better to let other people in the team know from you that you are friends.  If you don’t tell them, you can guarantee they will find out at some point later and feel betrayed.

In any case you will need to reassure all that there will be no favouritism and, my word, you will need to make sure you don’t show it.

I hope you are blessed understanding friends and an even more understanding team!

Have you ‘led’ friends or been ‘led’ by them?  Please send me your comments on your experience.
I am Wendy Mason and I work as a personal and business coach, consultant and blogger.  I have worked with many different kinds of people going through personal  and career change. If you would like my help, please email me at or ring ++44(0)2084610114 or ++44(0)7867681439.  I will be very pleased to hear from you. I offer half an hour’s free telephone coaching to readers of this blog who quote WW1 – email me to arrange.

  • Becoming a Leader Today – Manifesto for a Servant Leader (