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Table of Contents QUESTION 1: 2 A. How the employer – employee relationship is changing? 2 1) The psychological contract 3 2) Traditional psychological contract 3 3) Transforming the psychological contract 4 B - Why the employer – employee relationship is changing? 4 1) Diverse Workforce 4 2) Competition in the Business Environment 5 3) Structure of Organization Change 5 4) Technological changes 6 QUESTION 2 6 A- Analyse critically the rationales that Facebook and McKinsey & Company emphasizes on offering different kind benefits to its employees. 7 1) Different types of employees 7 2) Employee’s satisfaction and company’s performance 7 3) Public image 8 4) Efficiency, effectiveness and productivity 8 5) Retaining talents 9 B- Discuss to what extent that Facebook & McKinsey has to be responsible to its employee’ wellbeing 9 1) Health 9 2) Safety 10 3) Welfare 10 CONCLUSION 11 REFERENCES 12

QUESTION 1: It is notable trend that relationship between employers and employees are changing? Critically evaluate and discuss what likely reasons of this change.
According to Mathis and Jackson (2012) the relationship between managers and their employees must be handled efficiently if both the employees and the organization are to prosper together. Whether or not some of the workers are represented by union, activities related with employee health, safety, and security must be addressed in all organizations. To facilitate good employee relations, employee’s right must be addressed. It is important to develop, communicate, and update Human Resource Management policies and rules that managers and employees alike know what is expected. In some businesses, union and management relation must be addressed as well.
A. How the employer – employee relationship is changing?
For over the past ten years, research done by Rodriguez, Green and Ree (2011), has shown that, the relationship between employers and employees has changed.



References: Alfonso, S. (2005). Well-being at Work: A Cross-national Analysis of the Levels and Determinants of Job Satisfaction. The Journal of Socio-Economics.. Vol. 29, No. 6, pp. 517–538. Bereau of labour Statistic (2012) Union Member’s Summary. [Online] Retrieved from: www.bls.gov/news. Realese/union2.nr0htm [Accessed on 29 June 2013] Brown, J Brown, R. (2006). The International Labour Conference Provisional Record [Online] Retrieved from: http://www.ilocarib.org.tt/index.php?option=com_content&view=article&id=1073&Itemid=1168 [Accessed 29 June 2013] Cheng, M., Wang, H Currall. S, Towler. A, Judge, T. and Kohn, L. (2005). Pay Satisfaction and Organizational Outcomes. Personnel Psychol. Vol. 58, No. 3, pp. 613–640. Employee Assistance Services. (2013) Lifeworks When Relationship Matter.[Online]. Retrieved from: http://www.lifeworks.com.au/eap.html [Assessed 30 June 2013]. Glassdoor Haniph, M. (2012) How the Employer- Employee Relationship Has Permanently Change [Online]. Retrieved from: http://adage.com/article/talentworks/employer-employee-relationship-changed/138282 [Accessed 29 June 2013] Holzer, H Jones, T (2012). The Relationship between Employee & Manager [Online] Retrieved from: http://smallbusiness.chron.com/relationship-between-employee-manager-4879.html [Accesed on 8 July 2012] Kosner, A Kwod, L. (2013). McKinsey Tries to Recruit Mothers Who Left the Fold. [Online]. Retrieved from: http://www.ncwit.org/news/mckinsey-tries-recruit-mothers-who-left-fold [Accessed 29 June 2013]. Langen, Pri De. (2012). Screening Wellness. [Online]. Retrived from: http://www.hrmasia.com/resources/corporate-health/screening-wellness/144174/ [Assessed 28 June2013]. Mancesti, M Mathis, L. O.C and Jackson, H. (2012). Human Resource Management Essential Perspectives. 5th ed. Cincinnati, Ohio. South Western Publication McKinsey & Company McKinsey & Company. (2013). Role: Associate. [Online]. Retrieved from: http://www.mckinsey.com/careers/roles/associate [Accessed 29 June 2013]. Miles (2012), Facts on the Relationship between Employee & Manager [Online] Retrieved from: http://smallbusiness.chron.com/relationship-between-employee-manager-4879.html [Accesed 29 June 2013] Noelcke ,Liz (2012) Peiris, R. (2012) Managing- Employer Relationship in a Competitive Business Environment. [Online]. Retrieved from: http://www.sundaytimes.lk/120108/BusinessTimes/bt10.htm [Accessed 29 June 2013] Pushpendra, P Rodriguez, G (2011) Employment Relationship [Online] Retrieved from: http://leadershipcenter.osu.edu/library/publications/leadership-discoveries/2003/november-2003-leading-generation-x [Accessed on 29 June 2013] Roosevelt, T (2010) Wayne, R. (2010). Human Resource Management. 11th ed. New Jersey. Pearson Publication.

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