Michael Page Company’s Psychological Contract & Motivation

Subject: Company Analysis
Pages: 2
Words: 313
Reading time:
2 min

Motivation is a major concern for Michel Page because its consultants have significant autonomy. In order to perform their duties efficiently and without supervision, they need to have high levels of motivation, which would make them more organised and committed to the organisation. The motivation strategy applied in Michael Page includes four components. The first components are performance evaluations that result in feedback that clarifies employees’ goals and gaps in performance that have to be addressed. The second component is career progression, which is embedded in the company’s culture. As explained in the case, all junior employees have the opportunity to become senior executives if they deliver excellent results over the course of their careers. The third element of the company’s approach to motivation is training, which is critical to learning and development within the organisation. Lastly, the compensation offered to Michael Page’s employee’s increases over time and is tied to performance outcomes. This can also encourage employees to work harder and achieve better results with clients by developing their skills and expertise.

The term ‘psychological contract’ is crucial to organisational theory since it predicts various employee-level outcomes. For example, the psychological contract is associated with commitment, organisational citizenship, and motivation. The formation of a psychological contract depends on human resource processes and organisational agents, including workgroup relations and supervision or mentoring. While the company’s HR processes are appropriate for developing a psychological contract with employees, the case suggests that employees who finish the initial training often work on their own, and there is no mentorship available to them. This could impair the formation of a psychological contract, leading to reduced motivation. Facilitating teamwork among employees and establishing mentorship could help to solve the issue. As a result, the company would benefit from improved psychological contracts, resulting in higher levels of motivation, productivity, and organisational commitment.