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Today we will talk about the first aspect that we raised in the previous article regarding management 4.0 and begin with the “psychological contract” to manage your subordinates, whereas a new way of thinking about dealing with the relationship between superiors and subordinates.

Whether a person devotes himself to work or decides to leave is mainly determined by the “psychological contract”. The concept (psychological contract) was first proposed by a management professor, Dennis Rousseau in the 1990s, referring to the unwritten mutual expectations and expectations between employers and employees. [https://en.wikipedia.org/wiki/Psychological_contract]

For instance, when a person joins an organization, he has an expectation of what the organization can give him and what he needs to give. People make calculations based on expectations, which are carried out in everyone’s mind, although it is not explicitly stated like an employment contract. But this is also a kind of “exchange agreement”. This kind of exchange agreement is called a psychological contract.

Between you and your subordinates, apart from the relationship between top-down superior leaders and a to-be-led subordinate, there is such a tacit understanding that, on behalf of the company, you need to understand and meet the needs of your subordinates, and at the same time, he works hard in return.

This kind of superior-subordinate relationship is also called “replacing management with trading”, it is like using a trade instead of management which is trading between the two constraints, not by management. If an employee can see that he is actually working for his own needs, instead of passively working for the company’s requirements, he will not be a mindset of taking a passive attitude toward one’s work. Thus, the management doesn’t have to stare at the staff every day, whether being late, being lazy at work or not. You don’t have to “manage” him, he will be active to take the initiative to work.

The one who promotes the establishment of this psychological contract must the direct superior, or you, the manager, or front-line management. As per, Procter & Gamble has a classic saying: “Employees join because of the company, and leave because of their superiors.” It means that in employee management, the role of direct superiors is very important. You are the bridge between the company and the employees.

Therefore, there are three types of information process map you need to know to create an effective “psychological contract,” as follows. First, understand what subordinates want; second, let the subordinates see what the company can bring them; third, let your subordinates know what you expect of them.

Understand what your subordinates want

Different subordinates value different things at different stages, so you have to put things right. Just imagine yourself as you’re your subordinate, and you can ask yourself first: Do you really know what your subordinates want?

The most basic, how much do you know about the basic situation of your subordinates? Is he married? Do you have children? Have you bought a house yet? How long have you been working? You can get this kind of information by eating and chatting with him every day.

For example, an employee with a relatively superior family background may be more concerned about personal achievements; another subordinate with a family may want more income. Pursuing stable employees, he wants more vacation time to spend with his family, and whether he can get a promotion or a salary increase may not be so important to him.

Young employees will especially attach importance to personal growth and future development. Don’t think that everything will be fine if the subordinates complete the work. Smart employees will know that they must not only be competent in their current jobs but also continuously improve their capabilities. Employees who hope to be promoted quickly, if you don’t give them more opportunities and challenges, will find it boring.

To be more specific, what are your subordinates’ plans for their own career planning? Does the current job match his career development goals? Does he want to change industries or change jobs? How do you help him combine his goals with his current job?

In addition to income and development, employees also have emotional needs. They hope to have a sense of accomplishment in their work and give full play to their strengths. They need a sense of belonging, need their own values to be affirmed and supported in this team, and so on.

Are your subordinates satisfied with the status quo? Knowing the pain point can also help you better target it.

Of course, the subordinates will not tell you all these needs and goals from the beginning, and even many times, the subordinate themselves do not think clearly. As a superior, you need to make good use of every opportunity to communicate with your subordinates to understand and use the opportunity to work with them to observe.

A wise superior will not judge which demand is right and which demand is wrong or complain about why subordinates have so many needs. Instead, you have to make good use of these needs and drive your subordinates to fulfill the company’s requirements.

Let the subordinates see what the company can provide

In addition to understanding what your subordinates need, you also need to let your subordinates see what the company can give them.

Many superiors think that the only cards in their hands are salary and promotion. In fact, there are many cards that superiors can play. For example, provide opportunities for growth, whether it is training, communication, or more attractive projects. You know the company’s resources better than your subordinates. You need to let your subordinates know that they have opportunities. receive anything.

At the same time, you have to learn to “market” these resources and opportunities. For example, often only the best employees are eligible to participate in the company’s recruitment. This is very helpful for exercising the leadership of subordinates who know people and see people. If you don’t take the initiative to explain the value of this matter, subordinates will even think that this kind of work is an extra burden.

In other words, if you are nice to your subordinates, you have to let them know.

Let the subordinates know what you want from them

As observed, by some department managers, when explaining their work, it was like this, “Brown, your loss will be reduced by 30% next month.” And, “Blue, your profit margin will increase by 10% next month.

This way of communication makes employees feel like a landlord urging long-term workers to pay rent, and employees do not realize the importance of themselves in the team. In this way, it is also easy for subordinates to develop a bad mentality: “I will do what the boss says.” Instead of giving full play to their own initiative on the job.

When every employee enters the job, he usually knows the basic requirements of his position. But what I want to remind you is that you have to tell your subordinates very clearly about their job responsibilities and the meaning of the job, instead of just “assigning tasks” to them.

In contrast, we are better to make the work arrangement like this instead. When you assign a role to your subordinate to accomplish the tasks, you have to let them know the value of the role/position. Whereas, when you set goals for your subordinates, you have to let them understand the meaning of each goal targeted.

For example, you can explain to your subordinate as follows. “Brown, the profit target of the whole company is currently facing difficulties. On the one hand, we need to increase revenue, and we need to cut costs by reducing losses. You are a key employee in the logistics department. I need you to come up with a plan to reduce 30% of the loss.”

This way of communication is helping your subordinates to establish their sense of responsibility for this role or position. At this time, subordinates will think for themselves, how to do a better job.

In addition, there is a very important point to be added, when your subordinates meet or exceed your expectations and help you very well at work, you must show it and let them know. And sincerely say thank you to them. Don’t underestimate this simple thank you, your subordinates will be very touched when they hear it.

Conclusions

In conclusion, if you want to establish an effective “psychological contract”, which three types of information should you make a smooth transmission, there are three more points for attention. First, the formation of a psychological contract is a gradual process. On the one hand, the sense of trust between you and your subordinates is gradually established; whereas, the company and people are both developing, and the needs of both parties are not static. So don’t rush, just keep paying attention.

Second, as a superior, you must take the initiative in the process of running the psychological contract. You have to take the initiative to understand and care about your subordinates in every communication opportunity. Let subordinates feel that he is an asset to the company.

Third, manage subordinates’ expectations. For unrealistic psychological expectations, you have to tell him clearly the first time, no. The sooner you tell, the more responsible you will behave.