It’s Not What You Think
- New Horizons in Management series
10. Implications for employees In Chapter 4, we said that all organizations and their employees are both suppliers and customers, and in Chapter 9, we stressed the need for managers to deliver those things that their customers, that is, their employees, value. This chapter looks at the other side of the coin, where the organization and the manager are the customers, and the employees are the suppliers. EMPLOYABILITY The dissolution of the psychological contract absolved organizations of more than employee job security. It also shifted the responsibility for that employability away from organizations. At a stroke, employees became independent contractors, accountable to themselves as much as they ever had been to anyone else. Managers recognized almost immediately these implications. Principally, it was no longer their responsibility to continue to provide work for those they currently employed. Instead, they contracted workers for a ﬁxed period of time, from a few months to perhaps a few years. The employment contract personiﬁed a kind of no-fault event in which both parties collaborated and then separated and, at least in theory, had no regrets. Many employees have failed to grasp the implications of this transformation. They expect to have their contracts renewed, as well as everything else attendant to them; that is, they still expect the employer to do all that is necessary to provide them with work, and they expect that same employer to provide the plant and equipment to perform that work. In addition, they expect their employer to pay them...
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