Role of Psychological Contract in Starbucks

The concept of the invisible contract can also be expressed as psychological contract which entails the unwritten employment relationship between the employer and the employee. It is an unspoken set of beliefs usually hidden or remains invisible, held by both parties which co-exist with the written contract of employment. The psychological contract is used to refer to the perceptions of what both employers and employees have regarding their business relationship based on what they are to give and receive from each other respectively. This concept can be traced back to Ancient Greek Philosophers as well as social contract theorists like John Locke and Thomas Hobbes. Kotter (1973) describes the psychological contract as an implicit contract with specifications of how both the individual and organisation are meant to behave in their employment relationship.

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The psychological contract is an abstract relationship between employers and employees driven by their perceptions of values. According to Cluterbuck (2005) value has three core meanings and they are value as respect, value as worth and value as beliefs. Value as respect refers to the perceptions of the employees towards the organisation with regards to how the employee feels about working with that particular organisation. If the employees feel that they are contributing positively to the organisation and if these efforts are being recognised by the organisation, the hidden orientation becomes successful. Value as worth on the other hand refers to how the employers and employees create added value for each other through reciprocal rewards. For example, the organisation providing Good pay and providing training and development opportunities for the employees while the employees in turn add value to share holders in order to raise capital.
In this proposal various psychological aspects will be described in the context of organization and also its employees and also the appropriate methodology for this research will be discussed for the further completion of the investigation.
1.1 Research Question
What is the role of the invisible contact or psychological contract between employers and employees in Starbucks coffee in City East District?
1.2 Key Aims
This research seeks:

To compare the Old and New Types of the Psychological contract
To explore the opinions of a selection of Starbucks Coffee’s employees and their managers about their side of the psychological contract.
To evaluate the assumptions both employers and employees have towards the concept of the psychological contract.
To explore how psychological contracts can be enhanced to increase competitive advantage in supermarkets.
To examine the changes in the psychological contract over the years, the reasons for the changes and the influence the new contract is having over both employees and the organisation.

1.3 Background of the Company:
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.
In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee Company stores in the UK. The two companies shared a common culture, focussing on a great commitment to customised coffee, similar company values and a mutual respect for people and the environment.
CHAPTER 2
2.0 Literature Review
This chapter highlights the major arguments surrounding the concept of the psychological contract. The psychological contract is unwritten and therefore it is merely implied but could be explicit to some extent but not necessarily allow for agreement to the parties involvement. It can differ from individual to individual as well as from various organisations because individuals have various perceptions even with the same terms and conditions it still varies amongst individuals.
The concept of the psychological contract can be traced back to Ancient Greek Philosophers and social contract theorists like John Locke and Thomas Hobbes. William Morris described “Love of work” as a Man at work creating something which he feels will exist because he is working at it and wills it and is therefore exercising the energies of his mind, soul and body (Morris 1870).
2.1 Definitions of the Psychological contract
Agyris (1960) has been given credit for bringing to limelight the concept of psychological contract. He describes the psychological contract as a set of practical and emotional expectations of benefits that both employers and employees have of each other. Kotter’s (1973) defines the psychological contract as an implicit contract between an individual and his organisation which specifies what each is expected to give and receive from each other in the relationship. Morrison and Robinson (1997) on the other hand describe the psychological contract as an employment belief about the reciprocal obligations between that employee and his or her organisations where these obligations are based on perceived promises and are not necessarily recognised by agents of the organisation. According to Schein (1978) the psychological contract was described as “a set of unwritten reciprocal expectations between the individual employee and the organisation”.
According to Goddard (1988), the way psychological contract is managed will determine how successful an organisation will become. The psychological contract entails what both parties to the contract (i.e. the employer and employee) expect from each other based on their employment beliefs and values.
2.2 Types of Psychological Contract
Rousseau (1995) describes four types of psychological contract. The first type is the transactional which is short term and there is very little involvement of the parties, employees are more concerned with compensation and personal benefits rather than being good organisational citizens (Robinson et al 1994). The second type of psychological contract is the relational, which is a long term type focuses on more emotional factors like support and loyalty rather than on monetary issues like pay and compensation. The third type is the hybrid or balanced which aims at long term relationships between employers and employees as well as specifying performance requirements. The fourth type is the transitional contract which according to (Rousseau, 1995) does not offer any form of guarantee because of the ever changing nature of the organisation’s environment.
Short Term Long term
Transactional (ex. retail clerks hired during Christmas shopping season)
Low ambiguity
Easy exit/high turnover
Low member commitment
Freedom to enter new contracts
Little learning
Weak integration/identification
Balanced (ex. high involvement team)
High member commitment
High integration/identification
Ongoing development
Mutual support
Dynamic
Transitional ex. employee experiences following merger or acquisitions)
Ambiguity/uncertainty
High turnover/Termination
Instability
Relational (ex. family business members)
High member Commitment
High affective commitment
High integration/identification
Stability
Table 1: Types of Psychological contract (Rousseau 1995 Pg 17)
The psychological contract is an abstract relationship between employers and employees driven by their perceptions of values. According to Cluterbuck (2005) value has three core meanings and they are value as respect, value as worth and value as beliefs. Value as respect refers to the perceptions of the employees towards the organisation with regards to how the employee feels about working with that particular organisation. If the employees feel that they are contributing positively to the organisation and if these efforts are being recognised by the organisation, the hidden orientation becomes successful. Value as worth on the other hand refers to how the employers and employees create added value for each other through reciprocal rewards. For example, the organisation providing Good pay and providing training and development opportunities for the employees while the employees in turn add value to share holders in order to raise capital. There must also be a sense of equilibrium here so the parties involved feel a sense of fairness.
There are two main types of psychological contract and they are the Transactional and Relational Psychological contracts. The transactional focuses on short term and specific monitory agreements with little involvement of the parties where employees are more interested in good benefits and compensations. The relational psychological contract on the other hand is a long-term contract that focuses on support and loyalty rather than on monitory issues, it is a more emotional contract. Rousseau (1990) categorisation of obligations as relational or transactional is shown below (Table 2)
Employer Obligations:
Transactional
Employer Obligations: Relational
Employee Obligations: Transactional
Employee Obligations:
Relational
Advancement
Training
Notice
Overtime
High Pay
Job security
Transfers
Loyalty
Merit Pay
Development
No competitor support
Extra role behaviour
Support
Minimum Stay
Source: Rousseau (1990)
Table 2: Categorisation of employer and employee obligations as Transactional or Relational
2.3 Changes to the Psychological contract
The concept of the psychological contract has led Academics to carry out a vast and in-depth research on the subject matter. The concept of the psychological contract has changed over the years and this chapter will describe its changes. Holbeche (1998) noted that the old psychological contract existed before the 1980’s where employment was guaranteed as long as employees continued to perform their best at work. The change occurred from the 1980’s to the present as a result of emergent challenges to corporate strategies which were being influenced by economic turbulence. There was an urgent need by organisations to adopt change to deal with economic downturns and as a result of this most organisations began the process of downsizing and began to focus more on their core business and outsource other peripheral activities. These business strategies were required for organisational development and they challenged the old psychological contract that was based on Job security and moved focus to a new contract that is based on employability.
According to Hiltrop (1995), the psychological contract that gave job security and job stability to the relationship of both employees and employers has dramatically altered in the past two decades. He further stresses the change in nature of loyalty and commitment with the emphasis changing from long term careers to current performance. Rousseau (1995) acknowledges these changes by stating that contracts were previously transactional in nature but with the emergence of the bureaucratic era they developed to become relational.
The old psychological contract was based on a reciprocal obligation of both employer and employee where employees provided loyalty to employers and employers gave Job security. Various factors led to the change in the psychological contract and they include amongst others the recession in the early 1990’s as well as the effects of globalisation. This resulted in a change from the old psychological contract to a new contract.
Individual offered:
Organisation expected:
Loyalty
Loyalty
In-depth knowledge of organisation
Staff with a deep understanding of how the business functioned
Acceptance of bureaucratic systems that defined the individual’s rate of progress
Willingness to build a career slowly through a defined system
Willingness to go beyond the call of duty when required
Individuals who would put the organisation’s needs before any outside interests
Individual expected:
Organisation offered:
Job security
Job security
Regular pay increases
Regular pay increases based on length of service
Recognition for length of service
Status and rewards based on length of service
Recognition of experience
Respect for experience
Table 3: Adapted from Pemberton’s model of the psychological contract (1998)
Table 3 represented above describes the characteristics of the old psychological contract where the organisation provided job security and rewards based on length of service and the employees provided loyalty and commitment on their part.
Sparrow’s (1996) interpretation of this new contract is outlined in table 4 below:
Change vs Stability
Continuous Change
Culture
Performance based reward
Development
Employees for self-development and increasing their employability. Emphasis on development of competencies and technical skills
Rewards
Paid on contribution
Promotion Criterion
Performance
Promotion Prospects
Fewer chances of promotion due to essentially flat organisational structures focus on sideways moves to develop a broader range of skills
Relationship Type
Transactional rather than relational; no job security guarantees
Responsibility
Accountability and innovation encouraged
Status
Fewer outward symbols
Trust
No longer seen as essential. Emphasis on engendering commitment to current project or team.
Table 4: Adapted Sparrow’s new psychological contract (1996)
These changes occurred against a background of economic hardship; redundancies were widespread, unemployment increasing and government focused on reducing trade union powers. The outcome was a more vulnerable and wary workforce. The economic climate forced companies to examine cost reduction as a means of sustaining or increasing profits. Human resource policies were cost effective rather than paternalistic. Staff were increasingly seen as resources who were useful for a specific role and either adaptable or replaceable when that role ended.
The new contract is based on the offer of the employer to provide fair pay for the employee as well as providing opportunities for training and development. As a result of this, the employer can no longer offer Job security and as such has weakened the amount of commitment employees have to offer. Atkinson (2002) suggests that the new contract focuses on the need for highly skilled flexible employees who have little or no job security but are highly marketable outside the organisation.
Bagshaw (1997) states that, in this new Psychological contract, individuals need to commit to five key areas which have both short term and long term views. They are Continuous learning, Team working, Goal setting, Proactive change management and Personal advocacy and networking (Bagshaw 1997 pg 188). He further argues that if these key areas are focused on, the employees will be raising their values of future employability. Furthermore, the common dialogue between the two parties with similar interests in mind will establish commitment and loyalty.
The reasons for such changes were described by Herriot and Pemberton (1997) as the Restructuring and continuous change of organisations led to increased feelings of inequity and insecurity and as a result, motivation was affected negatively.
Hall and Moss (1998) demonstrate the shifting of the psychological contract using three stages of adaptation. The first stage, they described as the trauma of change state and they argued that a lot of organisations go through this stage. The second stage they described as adapting to the new contract where they estimated a 7-year period may be needed in order to fully adapt to the new contract stressing it’s not a linear process and as such it is possible to fall back to previous states. The third stage is described by Atkinson (2002) as the point of gradual change and continuous learning, valuing the employee and offering loyalty to employees based on performance and development. This stage seeks to avoid the trauma of the changing contract by offering fundamental respect for the individuals involved.
Hall and Moss (1998) argue that changes to the psychological contract are possible without going through the first and second stages if handled appropriately. Atkinson (2002) further develops two concepts that emerge from long term management of the contract. The first is that organisations that are successful will provide opportunities and resources to enable individuals to develop their own careers through a relational approach. The second is that organisations will need to be more effective in renegotiating contracts and minimising risks of violating contracts (Rajan, 1997). This is because violating contracts will have negative impacts on employee attitudes and motivation.
2.4 Employer and Employee Perceptions
Shore and Barksdale (1998) describe a productive employment relationship as one in which a degree of balance in perceived employee-employer obligations exist. This degree of balance suggests a mutual supporting relationship in which employees offer their skills and organisational commitment in return for rewards from the organisation.
Winter and Jackson(2006) argue the need to consider both employer and employee perspectives, they suggested that it will enable investigation into the perceptions of mutuality of both parties and through this process, evaluate how well the employer has fulfilled his obligations to the employees and vice versa.
Rousseau (1995) states that psychological contracts are formulated in the minds of the individuals and as a result reflect individual beliefs shaped by the organisation in regards to exchange terms between the employee and the organisation (Winter and Jackson 2006). Rousseau (1995) stresses the need for a link between the employees promises and obligations towards the organisation and that of the employer towards the employee. This is because of the differences in perceptions of both employers and employees of what constitutes the conditions of a reciprocal exchange agreement (Winter and Jackson 2006).
Above describes the employment relationship of both employer and employee with transitions employees are likely willing to make and what they are able to offer in return. Herriot (1998) describe the process of contracting and negotiating between the employer and employee with a need for organisations to discover individual or group wants and match them with their own wants and offers through negotiation.
Holbeche (1998) describes what employer’s perceptions of employees obligations are, as:
Employees will take responsibility for managing their own careers

Be loyal and committed
Be dispensable when they are surplus to requirements
Be adaptable and willing to learn new skills and work processes
Holbeche (1998) further suggests the main components of employee expectations as:
To be more employable in exchange for job security
For organisation to support career development in return for loyalty
For high skills and expertise to be recognised and duel rewarded

According to Armstrong and Stephens (2005), a positive psychological contract is strongly linked to higher employee satisfaction, better employment relations and higher commitment to the organisation. They further suggest how performance management processes can help clarify the psychological contract and make it more positive through:

Defining the level of support to be exercised by managers.
Providing non-monetary rewards that reinforce the messages about expectation.
Providing a basis for the joint agreement and definition of roles.
Providing financial rewards through schemes that deliver messages about what the organisation believes to be important.

Shields (2007), states, trust has been discovered to be a critical factor in employee behaviour and outlook. He further argues that when the level of trust between employers and employees fall, employee commitments and satisfaction deteriorate as well as motivation and effort. Guest and Conway (1997) outlined the following set of practices as having the most positive influence on employee work attitudes and behaviour and they are:

Job security
Training Opportunities
High Pay
Open communications
Employee involvement programs

According to Turnley et al (2003), psychological contract breach results in a number of negative results which include, lower levels of employee commitment, increased cynicism, reduced trust, reduced job satisfaction and high turnover.
2.5 Employee Motivation and the Psychological Contract
Employee Psychological contracts are defined by Flannery (2002) as the important additional component to an employee’s job description which makes the job worth doing and reflects the main source of employees’ motivation. These contracts are part of what motivates employees to be productive at work and enables them to give their all at work. Shore and Barksdale (1998) discovered that employees reported higher levels of commitment, lower levels of turnover and higher organizational support when their employment relationships with their organisations were fulfilled.
Rousseau (2004) suggests three ways in which employees design their own psychological contract. First, through their career aspirations, employees make different commitments to the organisation based on whether they view it as a long term employment possibility or a short term one which they need to move on to attain better opportunities. Employees with a stepping stone perspective tend to adopt transactional contracts while employees with long term employment possibilities tend to be more relational in contract nature.
The second determinant is the personality of the individual, employees that are highly neurotic will tend to adapt more transactional contracts because they tend to reject actions by organisations to build relationships while conscientious workers on the other hand who possess great value for duty are more likely to have relational contracts. Thirdly, Rousseau states that employees who have negotiated special arrangements that are not usually available to others usually believe they relational contracts. This is because they have negotiated for opportunities for training and development which are special arrangements and a feature of relational contracts.
A survey conducted by Guest and Conway (1997) on The Motivation and effort of employees discovered that the more motivated employees had a more positive psychological contract which presupposes that employees who are satisfied with their jobs and committed to their organisations report higher levels of general motivation so also do those with a positive psychological contract (Guest and Conway 1997).
It was also discovered that attitudes have the highest influence on reported levels of motivation. Osteraker (1999) suggests there is a link between values and needs stating that individual needs, influence motivation and those needs determine how individuals will behave. Osteraker (1999) further stresses that values and attitudes can change over time due to a change in the organisation such as downsizing and restructuring.
2.6 Culture
Hofstede (1984) suggests that different cultures imply different mental programming that controls activities, values and motivations. Therefore, organisational commitment is a psychological state that characterises the employee’s relationship with the organisation (Kong 2007). Culture is described as consisting of a system of values, attitudes, belief and behavioural meanings shared by members of a society (Thomas et al 2003). According to King and Bu (2005) employees of different cultural traditions and socio-economic environments are more likely to have very different perceptions on employer-employee relations.
The type of psychological contract that individual employees will form with their employers is influenced by the personality traits, societal values and cultural norms of that particular individual (Raja et al 2004). This further implies that individual personality traits and cultural norms could provide a system that will explain why employees facing similar work environment and work conditions may form very different employment relationships with their employers (Zhao and Chen 2008). These norms, values and beliefs provide a framework that will determine the way individuals behave and act accordingly. Individualism is defined by Gould and Kolb (1964) as an emphasis on one’s self as separate from the others and an end in itself. The individual is independent and self reliant believes in self development and competition. In collectivism, the self often overlaps with a group. The main focus is on cooperation with a group, interdependence, social norms with the group comprising of the main unit of social perception with individuals viewed as embedded in a universe of relationships (Lebra 1984).
According to Thomas et al (2003) individualism refers to the tendency to be more concerned about consequences of behaviours of one’s personal goals through viewing oneself as independent of others while collectivism on the other hand refers to view oneself as interdependent with selected others with consequences of behaviour for the group as a whole and group interest. Research carried out by Zhao and Chen (2008) discovered, that individuals with an individualistic cultural value tended to form more transactional psychological contracts while people with a collectivism cultural value formed more relational contracts.
It was discovered that collectivism motives tend to avoid differentiation and focus on relational contracts while self motives were more transactional in nature. This goes in line with research conducted by Lee (2000) where it was discovered that relational contracts are more likely related to behaviour in work groups in Hong Kong than in the United States.
2.6.1 Culture, Personalities and the Psychological Contract
Rousseau (1995) outlines the two most important influences of employee’s psychological contract and they are both the organisational influences and employees personal dispositions. According to Tallman and Bruning (2008), the way employees interpret information from their employers, their observations of actions and activities in the workplace, together with their personal dispositions are theorised to create idiosyncratic contract attitudes in the minds of employees. Additionally, if management understand the factors that influence the development of employee psychological contracts, they may be able to manage these contracts more effectively (Tallman and Bruning 2008).
Research carried out by Raja (2004) established a link that connected several facets of employee personality to their psychological contracts. Their research examined personality traits, including extraversion, conscientiousness and neuroticism and the extent to which these personality constructs related to employees choice of a transactional and relational psychological contracts.
People high in neuroticism have poor job attitudes and they are unlikely to give of themselves other than what is necessary to maintain their jobs (Tallman and Bruning 2008). Kichuk and Wiesner (1997) further argue that people high in neuroticism are fearful, angry and functions as poor team performers with poor attitudes towards change. Neuroticism has been found to be negatively related to self-esteem and locus of control (Judge et al, 1998). These findings suggest that employees high in neuroticism will develop obligation attitudes that reflect low job commitment and an unwillingness to take initiative in their work.
The outcome of Raja et al (2004)’s research was that neuroticism was positively related to transactional contracts and negatively related to the relational psychological contracts. Relational contracts are dynamic, involving, emotional and prolonging contracts in nature while transactional contracts are short term contracts with little close involvement of the parties (Rousseau 1995). These findings suggest that neurotic employees reject actions by organisations to build relationships with them and as such are focused on instrumental needs such as good pay and benefits.
Raja et al (2004) found extraversion positively related to relational contracts and negatively related to transactional contract indicating extroverted employees are willing to engage in long term relationships with their organisations. This is line with the research conducted by Judge et al (1998) that discovered that extroversion has been related to high job performance, job satisfaction, team performance and low absenteeism.
2.7 Psychological Contract Violation
Psychological contract violation has been defined as a failure of the organisation to fulfil one or more obligations of an individual’s psychological contract (Robinson and Morrison 1995). They further make a distinction between breach and violation, stating that the breach is the identification that the organisation has failed to fulfil one or more obligations within one’s psychological contract.
Robinson and Morrison (1995) further emphasise that the breach could be relatively short term and as a result individuals could return to their normal ‘stable’ psychological state or it could alternatively evolve into the full contract violation. Violation on the other hand is the more personalized emotional state that follows from the belief that the organisation has failed to uphold its part of the psychological contract. Rousseau (1989) describes the contract violation as a broken promise that calls into question respect and codes of conduct which increases intensity of responses.
Robinson and Morrison (1995) suggest that the beliefs by employees that obligations and promises have been unfulfilled by the organisation will lead the employees to most likely report a reduction in perceived obligations to their employers, lower job satisfaction and lower citizenship behaviour. Additionally, psychological contract violation reduces organisational commitment and increases cynicism (Robinson and
Prior research conducted by Robinson and Rousseau (1994) reveal that contract violations frequently relates to promotion, compensation and training and development where the employees feel that the organisations has not fulfilled their side of the promise.
CHAPTER 3
3.0 Research Methodology
There are two types of research method

Quantitative Method
Qualitative Method

Quantitative Method
All research will involve some numerical data or contain data that could usefully be quantified to help researcher’s question and to meet objectives. Quantitative method re
 

Vegetarian vs Meat Eater Comparison Contract

Diet plays an important role for our body health. Choosing the right, healthy and balance in diet is very important for everyone. One way to stay healthy is by adopting a vegetarian diet. A vegan diet is a plant-based diet that includes only natural foods and does not include meat at all. It can also be considered as a cruelty-free act to the nature because by switching and adopting a vegetarian diet, human societies will be able to alleviate the needless suffering and deaths of countless animals. The average American meat-eater is responsible for the abuse and death of about 90 animals per year. Human beings do not need to eat meat in order to maintain a good health. This is because they can also get all the nutrition and their food needs from meatless product. Vegetarian diet is currently increasing in popularity and the number of vegetarian is rising so quickly because they have seen many significant effects that contribute to a better health. According to a 2006 Mintel survey, 6% of the population, which is about 3.6 million people, is vegetarians, and 10% eat no red meat which somehow showed that UK has the largest proportion of vegetarian in its population among the European country. (The Number of Vegetarian, n.d.) As whole, over half of the world population is vegetarian. They start to care about animals and stand up for the animals’ right. In fact, a vegetarian diet offers many benefits to human beings that are guards against disease, physical benefits, conserve natural resources, nutritional benefits, and improve the environment.

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A vegetarian diet is considered as healthy as it has shown to guards against diseases. According to new medical research, a person who adopts plant-based diet is one third less likely to suffer from diabetes and cardiovascular diseases such as heart diseases and stroke. People tend to stand a better chance of not developing the high blood pressure and bad cholesterol that might affect their health problem. According to a study from German Cancer Research Center in Heidelberg, vegetarians’ have more effective and strong immune systems to kill tumor cells in the body compared to meat eaters’. (Dworkin 1999). There are several risk factors of metabolic syndrome, which are high blood pressure, high glucose levels, high triglycerides which are fat levels in the body, and having a big waistband. Dr Rebecca Reynolds, a reader in endocrinology and diabetes at University of Edinburgh Centre for Cardiovascular Sciences, said: “Metabolic syndrome is very prevalent in Scotland because it linked in with obesity and Scotland has some of the highest obesity rates in Europe. Studies have shown that Mediterranean style diet is also beneficial to our body health because people who are vegetarian consume more fruit, vegetables and olive oil.” (Newbury 2011). Improvement of cardiovascular health can be done by the consumption of nuts and wholegrain, at the same time; it can also eliminate the consumption of meat and dairy products. A British study indicates that a vegan diet reduces the risk for the biggest killer – heart disease and Type 2 diabetes. On the other hand, according to the American Dietetic Association, vegetarians tend to have a lower risk of getting obesity, breast cancer, and prostate cancer other than cardiovascular disease and diabetes. Obesity is very common especially in America. According to former Surgeon General C. Everett Koop, 70% of all Americans are dying from different types of diseases which directly tied to their eating habits. (Dworkin 1999). This is because in the American diet, there are too much of carbohydrates, proteins, oils, fats, and sugar. A very clear and obvious example is their morning breakfast that includes of sausages, chicken ham, french fries, fried eggs, and accompanied by milk or orange juice. Sausages and chicken ham are processed food which made from animal meat. As we know, processed foods are extremely bad for our health because it contains of preservatives, toxins, and unnatural fillers that will cause kidney failures if we over consume it. Studies have shown that a diet high in animal products and dairy products which contain huge amount of hormones and saturated fat can cause breast cancer. However, there’s a huge connection and relationship between vegetarian diet and breast cancer. A vegetarian diet can help prevent and even reverse it, which is taking a diet low in sugar, dairy products, and meat but high in leafy greens, fruits and vitamin D. Vitamin D is an immune system booster that has the special ability to attack breast cancer cells by preventing the cancer cells from multiplying to more and more cancer cells in the body. “Vitamin D is a key component in helping the body responds to many different kinds of assaults and stimuli,” says Robert Heaney, Ph.D., professor of medicine at Creighton University. (Biggar 2009). Vitamin D can be obtained from natural foods such as mushrooms, soy milk, and dark leafy green vegetables. Research found that consumption of isoflavone containing soy products such as tofu during childhood and adolescence protects women against the risk of breast cancer later in life. (Am & Clin 2009). Vegetables and fruits also contain phytochemicals that help destroy tumour in the body. (Biggar 2009). A Harvard Medical School study of more than 90,000 women revealed that the women who often consume meat everyday are twice as likely to develop breast cancer as those who did not often consume meat. (Sloan 2008). Too much of meat consumption will also lead to certain degenerative diseases such as Parkinson’s, Huntington’s, and Alzheimer’s disease when human being start to get older. As the famous saying goes like this, “you are what you eat”. Subsequently, vegetarian diets can reduce the risk of getting diseases that can affect body health and cause death.
Vegetarian diet is much better than diet that contains meat because of physical benefits. Several population studies showed that people who adopt a vegetarian diet tend to have lower body mass index (BMI), which is the indicator of weight and fat of the body. This is normally associated with high intake of fibre and low intake of animal fat. Vegetarians may also have a higher metabolic rate compared to meat eaters. In a study of lacto-ovo vegetarians, one of the types of diet, resting metabolic rate (RMR) was 11% higher in vegetarian compared to meat eaters. This was partly due to a higher level of plasma norepinephrine which results from higher intake of carbohydrate and lower fat intake of vegetarians. (Mangels, Messina & Messina 2004). Vegetarians will usually have better and good-looking skin textures. For instance, nuts such as almond, pumpkin seed, sesame seed, sunflower seed, vegetables that contain vitamin A and E play a big role for this part. A remarkable reduction in blemishes and improvement in the skin texture can be seen once a meat eater changes to a vegetarian diet. Vitamin A and E are actually effective and strong antioxidants that can help neutralize free radicals in our body. A vegetarian diet is especially beneficial to female or woman who wants to look younger and live a healthier lifestyle because it prevents the aging and damage of the skin. Fruits that could improve the skin condition are tomatoes, watermelon, cucumber, apples, and papaya. Tomatoes are rich in vitamins A and contain iron. It is a strong antioxidant that helps fight cancer as well. Cucumber is a natural cooling and brightening agent of the skin. You can simply consume it or slice it into pieces and put it on to the face. Apples and papaya contains vitamins and high in fibers. These fruits are very useful for people who have constipation problem and high cholesterol. In addition, several studies indicate that people who adopt vegetarian lifestyle live an average of 3 to 6 years longer than those who do not. According to a study from Loma Linda University, vegetarians live about 7 to 15 years longer than people who are not vegetarian. (Dworkin 1999). This can be proven with the example of monk. Buddhist monks are vegetarian and they do not consume meat at all. This is because in their belief and religion, killing and eating the animal is a sin and it’s cruel. It will also go against their beliefs and religion. Therefore, there is no doubt that monk who adopts vegetarian diet for the rest of their life would normally live longer than normal people. Some monks are even as old as 100 years above. Besides, nail health is considered as an indicator of a person’s body health. You can see the person’s health by looking at their fingernails. People who are vegetarian tend to have a healthier and longer nails, which indicates that they are healthy. People who normally consume meat and have lesser intake of vegetables tend to have a shorter and yellowish nails. This indicates that their health is at risk. Research showed that vegan diet helps reduce the suffering from Premenstrual Syndrome (PMS) for female. The diet includes reduction of meat consumption but increase in consumption of complex carbohydrates, leafy green vegetables, fruit, cereals and whole grains. (Cornforth 2009). A vegetarian diet also helps to stop allergies for a certain people. Researchers found that people report lesser personal problems such as runny nose and asthma when they switched to a vegetarian diet. This is basically due to the reduction of common food trigger that contains hormones and toxins such as meat, dairy and eggs. As a matter of fact, a vegetarian tend to be thinner than meat eater. Harvard’s long-term Nurses’ Health found that thin people have only one-third the risk of getting asthma compared to meat eaters. (Barnard, n.d.) For instance, if overweight people adopt a vegetarian diet, they are more likely to lose their weight and alleviate asthma because people who are thin normally do not have asthma problem. All of these are the results and physical benefits that can be gained from a vegetarian diet.
Furthermore, a vegetarian diet does not only beneficial to human beings in terms of health; it also contributes to conserve natural resources. The meat industry is very wasteful of natural resources. Approximately 10 pounds of plants are needed to be fed to the animals in order to produce one pound of meat, which is also one of the inherent problem of eating meat. (Bronk & Su 2006). Thus, 70% of grain grown is almost used to feed the animals in America, which means much more food is being consumed to support the animals than would be needed if more people were vegetarians. (Bronk & Su 2006). Due to the extreme and increasing growth of animals feed, the meat industry require a huge amount of water in order to grow the grain and feed the animals. Vegetarian author John Robbins calculates that it takes 168, and 229 pounds of water to produce one pound of maize and rice respectively. (Vidal 2010). On the other hand, a pound of beef requires approximately 8000-9,000 litres of water. Pigs are one of the thirstiest animals in the world. An average-sized of pig farm in North America with about 80,000 pigs requires nearly 75 million gallons of fresh water to feed the pig in a year. (Vidal 2010). In contrast, a large sized of pig farm with more than millions of pigs may requires the water as much as a city. When the demand for meat increases, the uses of water in the meat industry and farming land will rise as well. Consequently, there will be lesser source of water available for the crops and also drinking for human beings. (Bronk & Su 2006) say that almost half of the water that is consumed in the America is mostly being used by the meat industry and the groundwater is being withdrawn 25% faster than it is being replenished. In order to conserve energy in terms of water resources, the best choice and option is to adopt a vegetarian diet. This is because when people start by vegetarian diets, they will consume lesser meat in their daily diets. As a result, lesser amount of water will be used to grow the grains and the number of animals to be fed by the meat industry will greatly be reduced. This can also be said to conserve water resources because there will be a sufficient amount of water to provide to both human beings and animals in the world. Other than that, vegetarian can also conserve energy in terms of oil. Oil crisis is one of the major problems faced by human beings in the world currently. (Bronk & Su 2006) also say that 8 times as much fossil fuel energy is being used in the production of animal protein as is used in the plant protein production. There are actually some reasons for this. In fact, fuel is needed for manufacturing pesticides and fertilizers to grow grains and crops for animal feed. Besides, fuel is needed for transportation in the meat industry and also the operation of machinery in the farming industries. In this case, it is said that about 400 gallons of fossil fuels are being used in order to produce foods for the average meat-eating for the American each year. (Bronk & Su 2006). Therefore, it is the truth that vegetarian diet can actually help to conserve natural resources in terms of water and fuel.
Critics of vegetarianism claim that being a vegetarian is not good for our body because a vegetarian diet is lack of animal fat, protein, each of the 9 amino acids, iron and calcium, which scientific evidence showed that human need these nutrients for an optimum health. It is true that vegetarian diet could not afford to provide animal fats and other essential nutrients that our body somehow needs it. Yet, a vegetarian diet offers much more other extra nutritional benefits to our body compared to a diet containing meat. It does not mean that you need to consume meat in order to achieve an optimum health level. A carefully planned vegetarian diet can still provide an optimal health for everyone. There is always another alternative ways to get it. For example, vegetarian foods such as nuts, seeds, and dark leafy greens provide magnesium that aids the absorption of calcium. Nuts such as almonds are a great source of protein for vegetarian other than providing vitamin E, calcium, magnesium and zinc. In addition, almond can helps lower the cholesterol level especially for the elders. According to a study from Health Research and Studies Centre, they found out that almonds are even better than olive oil in lowering LDL cholesterol. (Top ten vegan super foods 2009). Other than that, seeds such as pumpkin seeds contains high amount of amino acids, calcium, potassium, magnesium and tryptophan. Tryptophan is one of the essential amino acids that aids in the production of serotonin in our body. Serotonin is actually one kind of hormone that can make us feel happier and lively. It is considered as “happiness hormone” despite it is not really a hormone. This is because it sort of activates our brains and able to makes us to be more lively and energetic than normal. Several studies has shown that pumpkin seeds contain one kind of special compound called phytosterol that helps enhance and improve the body’s immune system. (Top ten vegan super foods 2009). By adding pumpkin seeds into our daily diets, it can also help to reduce the inflammation on our body. We can also get the source of protein from several vegetarian foods such as beans, tofu and other soy products. In order to gain a classic combination that provides complete protein, a vegetarian is advised to eat beans and grains together to get the optimum result. This is because beans actually do not contain the complete amount of protein in it. Certain brand of tofu or soy milk is fortified with extra beneficial nutrients such as calcium and potassium for the need of a vegetarian. Soy protein has been shown to have as much proteins as in meat. (American Heart Association, n.d.).
Food type
Total Kcal/100g*
Protein (g)*
Kcal from protein
Beef
310
22.5
90 (29% from protein)
Wheat(flour wholemeal)
310
12.7
51 (16% from protein)
Source: Collins Gem’s Calorie Counter (averaged for raw meat)
(Patel, n.d.) showed the amount of daily requirement for energy in terms of calories and protein based on the table as shown above. An assumption of calorie requirement for normal active lifestyle is made, which is 2400 Kcal every day. Experts say that 10% of calorie should come from the source of protein. As 1g of protein generates 4 Kcal, it is said that human being requires 60g of protein every day. (Patel, n.d.) Based on the table above, wheat provides 51 Kcal of calorie from protein which somehow reached the amount of daily requirement for energy. In contrast, the calorie in beef is much higher than that, which is 90 Kcal. This is considered as too much of calorie for a normal healthy diet. Moreover, a vegetarian have a higher risk of having iron deficiency compared to a meat eater. For meat eaters, iron can be found in meat products such as red meat, liver and egg yolk. However, we can also get it from the plant sources such as dried beans and spinach. Hence, it is not necessary to consume meat in order to get iron. Plant-based diet alone can already provide as much nutrient as what meat can provide to us. It is also not a healthy way to get protein just by eating meat alone. You will get surprise when you get older because all those symptoms of diseases would appear due to a long-term of meat consumption.
One of the arguments put forward to support the view that vegetarian diet could not contribute much towards saving the environment. Although this statement may be true, but there is no doubt that a vegetarian diet can actually save the environment and make the world a better place to live in. A vegetarian helps to reduce the destruction of rainforest and save the wildlife habitat. Malaysia is a clear example of country that has rainforest. Rainforest is very important in the world. This is due to several reasons such as regulating the global climates; regulate the cycle of water, and the absorption of carbon dioxide from the atmosphere. The environmental community has recognizes global warming as one of the gravest threats to the planet. (Mohr, n.d.). Unfortunately, mankind in this century have become more and more obsessed with the earning of maximum profits. People only think of earning as much as they could. As a result, rainforest is being cut down and enormous of fires are used to burn down these forests in order to have more space to raise the cattle before the meats, typically found in hamburgers and processed meat, are being sold out in the market. Approximately a football field of rainforest is being destroyed in order to produce 257 hamburgers for the population every second! (Animal rights and Vegetarianism, n.d.). By switching to a vegetarian diet, we can actually save a lot of animals and also their habitat. Hundreds of thousands of animals are innocently being killed by human every year. Some corporations even inject certain chemicals, hormones, or veterinary drugs into the body of the animals so that they could grow faster and reproduce more. This is to enhance their production and gain more profits. For examples, chicken and beef cattle are injected with growing hormones. What goes beyond the doors of the corporations and industries are extremely terrible and insane. Animals are regularly being butchered alive on speeded-up conveyor lines. These innocent living things are forced to be killed for human use and purposes, where in fact human have no right to do that at all. If people still continue to kill huge number of animals just to feed the human beings, one day, these animals will extinct forever and our next generation will have to pay the price for what human being are doing right now. Like the quote that says, “When the buying stops, the killing stops.” A vegetarian diet also reduces water pollution and land pollution. In the modern and high technology society, a large amount of grains are sprayed with different types of fertilisers such as herbicides and pesticides by factories in order to feed the cattle. These two chemicals are very harmful and acidic. Extreme amount of acidic chemical will destroy the top soil and leak into rivers and grounds. Over 4 million acres of cropland are lost to erosion in the US every year due to plundering farmlands to fatten animals. (Animal rights and Vegetarianism, n.d.) When these chemicals flow into the oceans and seas through the river, this causes the deaths of millions of fishes. Other than that, meat industry contributes significantly to global warming as well. For example, methane that is released by bacteria in the rumens of cattle worsens global warming. This is because methane is a relatively potent greenhouse gas that will raises global temperature. Burning down of forest will also release carbon dioxide gas into the atmosphere. As a result, this would cause the temperature to rise and global warming worsens from day to day. Thus, a vegetarian diet can reduces the production of carbon dioxide into the atmosphere. The damage to the environment does not stop at cattle or chicken, the fishing industry also somehow contributes to the degradation of environment. What does this means? It actually means that many different species of fishes are being caught away by fisherman faster than they can reproduce. (Bronk & Su 2006). This damaged the ecosystem of the oceans and sea, which in turn, affect the whole environment and worsen global warming. Approximately 300,000 different types of sea animals such as whales, dolphins and porpoises are being killed every year before their meats are being sold in the supermarket. (Bronk & Su 2006). Thus, by switching to a simple and easy vegetarian diet, we can actually conserve the environment and preserve the nature’s biodiversity without spending too much money or figure out the other alternative ways.
All in all, a vegetarian diet contributes a lot to humans’ lifestyle, eating habits and the environment and there are numerous of benefits of it. Basically, animals and human can actually get the nutrients required for the body from plants, and not by animals itself. Human are actually getting the nutrients from second-hand sources if they eat meat. If they eat the animals, all the toxins, hormones and chemical will automatically go into the stomach which is hard to be expelled and removed from the body. The truth is that a vegetarian diet even contains sufficient beneficial nutrients for the body which they have been mistakenly claimed to be lacking in, especially protein. (Health Benefits, n.d). As a matter of fact, the anatomies of herbivores, carnivores and human are compared which shows that man is actually vegetarian by nature. (Doshi, n.d.). The comparison can be shown in the table below.
Carnivores (meat-eating)

Have claws for killing
Sharp front teeth for tearing meat
Stomach acid is twenty times strong
Perspire through tongue

Herbivores (plant-eating)

Have no claws
No sharp front teeth
Weak acid in stomach
Perspire through skin

Humans

Have no claws
No sharp teeth
Weak acid in stomach
Perspire through skin

The above table has clearly shown that human beings are naturally a vegetarian and should not be a meat eater. This has strongly support the fact that vegetarian diets is much better and healthier than a diet that contains meat. In order to produce meat for meat eaters, human need to kill billions of animals to fulfil the need of population in the world. However, human do not need to kill a plant to obtain vegetarian food. This is not only an act of kindness to the animal, which is a living like human being; it also shows the appreciation to the nature and conserves the environment.
 

Managing The Psychological Contract Essay

Introduction
The psychological contract (TPC) was first coined by Argyris (1960), who observed an unwritten agreement existed between employer and employee, summarising that staff performed to a higher level if they received fair wages and had a degree of autonomy in the manner in which they worked. TPC consists of expectations, beliefs and implied obligations; none of which are written in the tangible contract between the employer and employee (Schein, 1985). Rousseau (1995, P.9) developed this idea and defined TPC as ‘individual beliefs, shaped by the organisation, regarding the terms of an exchange agreement between the individual and their organisation’.

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This essay will proceed to discuss the importance for organisations of managing the psychological contract (TPC) and the implications of a breach. The essay will move on to critically analyse the difficulties organisations face in managing TPC, with particular reference to those resultant of the shift from the traditional to the contemporary employment relationship. This essay concludes with a brief summary of the importance of managing TPC and the key challenges which arise when attempting to do so.
The importance of managing the psychological contract
Fulfilment of TPC from employers has been proven to result in reciprocation from employees, leading to positive organisational attitudes, affective commitment (Tekleab & Taylor, 2000) and reduced turnover intention (Montes & Zweig, 2009), which lowers an organisations recruitment and training costs, therefore it increases its efficiency (Wilton, 2013). A balanced PC is linked with organisational citizenship behaviour (Decktop, Mangel and Cirka, 1999) and high employee engagement – meaning the employee has a high level of commitment to the organisation and its values, and exhibits willingness to help their colleagues (CIPD, 2009).
Due to TPC consisting of unarticulated beliefs, expectations and perceived obligations breaches are not uncommon (Wilton, 2013) as neither party can ever fully know what the other expects of them (Cullinane and Dundon, 2006). Social Exchange theory undergirds TPC postulating that employees and employers engage in exchanges with each reciprocating the contribution of the other (Blau, 1964). In line with the theory of reciprocity (Gouldner, 1960), when employers do not fulfil their implied or understood obligations a breach of TPC can occur, resulting in the employee reciprocating by withholding their effort from work (Bal, Chiaburu, & Jansen, 2010), negative organisational attitudes (Piccoli and De Witte, 2015), reduced performance (Restubog, Bordia, & Bordia, 2011) and workplace deviance (Bordia, Restubog, & Tang, 2008). Many organisations attempt to manage TPC in order to mitigate these potentially harmful effects.
A breach of TPC can occur for reasons such as implementation of large scale organisational change often without employee consultation (Gerber et al, 2012). Resistance to change can be extremely problematic for organisations, and the adjustment period to such change can cause vast decreases in efficiency leading to loss of competitive advantage (Dawson and Andriopoulos, 2014). Heuvel, Schalk and Assen (2015) found organisations which communicated their full intentions of change with employees implemented large scale organisational change with lower levels of resistance, due to perceived fulfilment of TPC. This suggests balancing TPC can reduce the resistance to change many employees experience and help to mitigate the potential for loss of competitive advantage.
A study by Atkinson (2007) discovered the expectations within TPC widely vary between individuals and organisations, Restubog et al, (2015) found that an aggressive and competitive culture within an organisation exacerbated any breach of TPC and increased the likelihood of employees actively seeking revenge. This suggests that organisations requiring their employees to behave in a highly competitive manner are at greater risk of negative effects from TPC breach and should take necessary measures to minimise the likelihood of this occurrence (Bankins, 2015), as the effects on the organisation will likely be more damaging than if the employee were to simply withhold their effort or decide to leave the firm.
Rousseau (1995) implied that within TPC the employer was the independent variable and the employee the dependant variable, believing the employment relationship to be dependant on the actions of the employer and their ability to recognise and meet the expectations of the employee, however this proved contentious. Theorists such as Guest and Conway (2002) advance that TPC is subject to both parties meeting the others expectations rather than just the employer meeting the employee’s, and concluded that the state of TPC is dependent on mutual trust, fairness and delivery of the deal. The following section will discuss the ways in which organisations can attempt to manage TPC and the difficulties that arise in doing so, with particular reference to the contemporary employment relationship.
The challenges of managing the psychological contract
The dynamics of the labour market have constantly changed and evolved over time (Wilton, 2013), in particular the rise in organisational demand for flexibility has resulted in a paradigm shift from an exchange of job security in return for organisational loyalty to one in which experience is offered to the individual in exchange for temporary service to improve their future employability (Adamson, Dochetry and Viney 1998). Resultantly the contemporary employment relationship can be seen as much more individualised, with Rousseau (2004) terming this as a shift from a relational to a transactional employment relationship. The new PC consists of employee assurances to work hard and be flexible and employer’s obligation to provide adequate pay, opportunities for skill development and interesting work (CIPD, 2009).
A prevalent issue in managing TPC is known as “multiple agency” (Hui, Lee and Wang, 2015). This refers to employees receiving different messages from the different managers they come into contact with within the organisation. It is therefore imperative for an organisation to ensure that they manage to maintain congruency in their messages throughout their organisation (Lapalme, Simard and Tremblay, 2011). Wilton (2013) suggests that an organisation must utilise a mechanism through which clear communication can be ensured between employer and employee in order to explain managerial decisions and give a platform for employees to voice their opinions. This is in line with Guest and Conway’s (2002) findings that employee voice in relation to managerial decisions positively influenced TPC. Internal social media is an increasingly popular method for firms to improve internal communications within their organisation and promote the brand internally in order to positively influence TPC (Mazzei, 2010). Ironically the implementation of internal social media is exactly the type of large scale organisational change which, without the correct communications could encounter significant resistance to change (Dawson and Andriopoulos, 2014) and result in a PC breach. Critics of social media note that it is impossible to regulate (Jones, 2015), as such employees could use this platform to exact revenge for a perceived breach of TPC in a more public and far reaching way than before, so organisations should exact caution when implementing this as a strategy for managing TPC. Organisational policies which are adopted in the favour of the workforce will likely positively effect TPC and result in improved workforce efficiency. This systematic adaption of a corporation’s policies to improve their attractiveness as an employer is known as employer branding (Taylor, 2005), however while this can positively affect TPC, organisations perusing this strategy must be aware that those with stronger employer branding must work harder to maintain TPC due to raised employee expectations (Bains, 2015). Bowen (2015) cites generational differences in comfortability utilising social media platforms, and so using internal social media to give employees a voice could potentially alienate some of the workforce, which if not addressed, could result in a breach of TPC. In order to mitigate this risk, training could be provided on the platform, which will likely have a positive impact on TPC as it is in line with the new psychological contract which emphasises the employer providing training and new skills for employees (CIPD, 2009).
A challenge for organisations attempting to manage TPC within this contemporary relationship is the generational diversity of the workforce. (Lyons,and Kuron, 2014). Lub et al (2015) found that different generations held very different expectations of their employer’s obligation and their own personal contribution to that organisation, suggesting that a multi-generational cohort solution offers the most effective way to maintain a positive psychological contract with the workforce. In countries with an aging workforce like the United Kingdom the generational diversity is likely to be extremely high (Hertel and Zacher, 2015), making it costly and time consuming for management to implement policies to balance the psychological contract for all. This could therefore constitute an area for further research, in order to realise the most efficient way to collectively manage the expectations of such a diverse workforce.
It is not only generation diversity which has increased within the modern employment relationship, there has also been rapid growth of a cultural diversity within the global workforce due to the phenomena of globalisation – resulting in what is known as the global workforce (Ryan and Wessel, 2015). Some commentators argue that many of the theoretical frameworks within HRM are underpinned by western cultural values, and that perspective which much of the HRM discourse is written from does not hold a universally applicable view of employment attitudes to authority or risk (Yi et al, 2015). Westwood, Sparrow and Leung (2001) found the dynamics of TPC of junior and senior management from Hong Kong proved, from a western perspective, to be extremely one sided. It seemed the underlying sense of duty and respect which is deep-seated in Chinese culture is reflected in the attitude of the employee, who believes they are more obligated to their employer than their employer is to them. This is in direct contradiction of the western findings of Rousseau (2004) who stated that the employer was the dependant variable and the employee the independent, highlighting the cultural disparity in how TPC is viewed. Not only is the holistic view of TPC likely to be different depending on the cultural context, there are likely to be international differences in the extent to which employees respond to a breach of TPC (Lucas, Lupton and Mathison, 2006), not only making it harder for managers to balance the psychological contract within the confines of foreign cultures, but also making it more difficult for management to predict what retaliation, if any, is likely to occur. A huge challenge facing managers can occur when they are of a different cultural profile to the employees they are managing, due to the commonality of difference in both motivation and interpretation of the parties (Thomas, Au and Ravlin, 2003). As a result it is recommended that organisations with cross cultural management practices give time to understanding the complexities of TPC within their workforce, and work hard to ensure that it can remain balanced.
Conclusion
The importance of an organisation managing the psychological contract within a western cultural context is well documented within HRM discourse, allowing organisations to reap the rewards of improved employee relations (Tekleab & Taylor, 2000), and mitigate the risks associated with PC breach (Piccoli and De Witte, 2015). If an organisation does not manage TPC negative work behaviours such as withholding effort or employee deviance could become typical for the organisations workforce (Bankins, 2015) causing loss of competitive advantage.
The main challenges with managing TPC in the contemporary employment relationship stem from the widening generational and cultural diversity experienced in many workforces due to the global aging population and globalisation.
HRM discourse is primarily based on western cultural assumptions, many of which do not hold true in other cultural contexts (Wilton, 2013). This presents challenges for managers working outside of their own culture or working within a multicultural society. Due to the unwritten and unspoken nature of TPC any organisation would be advised to adequately research the expectations of employees in any foreign context in which they plan to engage, in order to avoid discrepancy. It can be argued that HRM practices developed within the western culture offer ineffective ways to manage labour in divergent cultural settings, constituting a possible area for further research.
The growing generational diversity of the global workforce presents difficulty for organisations seeking to implement policies to manage TPC (Cogin, 2012), due to differing generational expectations. Thus to effectively manage such a diverse workforce time must be taken to individualise TPC (Lub et al, 2015).
Managing TPC in the individualised manner required of a culturally and generationally diverse global workforce has the potential to be both financially and time intensive. Organisations should therefore analyse the potential implications of non-effective management of TPC before adopting this policy. Consideration should be given to the individual organisational culture, as in organisations with a more competitive and aggressive culture the implications for not managing TPC can be extremely serious, with heightened likelihood of employee revenge (Restubog et al, 2015). Such an organisation would therefore be ill advised to not pursue a policy of PC management.
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Lapalme, M. È., Simard, G., and Tremblay, M., (2011). The influence of psychological contract breach on temporary workers’ commitment and behaviours: A multiple agency perspective. Journal of business and psychology. 26 (3), 311-324.
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Evil Amongst Social Contract Theory

 Throughout and currently within our world history, many have suffered through traumatic events, such as experiencing the horrors of war or battling a mental or physical illness, these events shape our mentality of the world and how to pursue a peaceful and happy life. Many of those seeking comfort and answers look towards a religious path, their paradigms of how to achieve peace and tranquility somehow fulfills their need of enlightenment throughout their darkest hour. Although Thomas Hobbes is not a founder of a religious order, his philosophical thoughts establish a reform of how to create harmony amongst society with Contractarianism, otherwise known as Social Contract Theory. Hobbes’ Social Contract Theory first depicts natural equality, in which, it states that “all cannot retain rights to all things” and it is essentially the survival of the fittest amongst society.[1] To rectify the potential chaos amongst humanity, Hobbes proposes that human beings should give up some rights in exchange for security and protection from the State.[2] This philosophy has been adopted by many countries such as the United States of America where they incorporated the concept within Thomas Jefferson’s “Bill for Establishing Religious Freedom”.[3] However, with the belief that the relinquishment of someone’s right for the protection and security of the State, it could be questionable as history has shown that even with the protection of State, an individual can be thrust into heinous situations or events. With the promise of protection and security and the failure to provide that to a society who was dependent on the State, could the concept of Social Contract Theory encourage and allow evil acts to occur? In this essay it will assemble the evidence that Contractarianism, also known as Social Contract Theory, plays a roll in providing a basis for evil to occur throughout our history within the world, whether if it is through a religious or political perspective.

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 Initially the theoretical framework of Contractarianism requires individuals within society to relinquish their rights in return for the protection and security the Sovereign of the State can provide from the dangers that exist in the state of nature.[4] The fear and danger within the state of nature derive from the notion that individuals enter the world with social obligations and are equal amongst others.[5] With equality within society it creates a brutal and dangerous society as “every man has a Right to every thing; even to one anothers body” where it implies that because everyone is equal to one another, it is gives individuals the right to steal and hurt other individuals as it is their natural right.[6] In the notion that anyone can implement a “survival of the fittest” lifestyle in order to survive life because of natural rights, it brings along fear within society as Rousseau believes that individuals are weak and uncapable of defending themselves and therefore need a social contract between the State as a means to gain protection and security against the threats within the state of nature.[7] Although there are some benefits within a social contract to gain security and protection from a sovereign of the State, social contract theory has its flaws as it does not explicitly state who the sovereign is protecting. Throughout world history, the problem of fairly treating women, ethnic minorities, and others has been on going to present day and resolutions such as applying Contractarianism has not made any progress. According to some critics of social contract theory, women, minorities, and other individuals/groups are placed in a category called the “outliers” that enable individuals from gaining justice and the benefits from subjecting themselves to a social contract between the State and its people.[8] Reasons to exclude these minority groups from the theoretical perspective of social contract theory is that it allows to distinguish those who contribute to society and to those who do not.[9] In spite of the social contract the State had made with society to protect and secure them from the dangers and evilness within the state of nature, discriminating individuals/groups based upon their gender, ethnic background, and disabilities they may face through life can be seen as evil in itself. The “outliers” are a part of society; although their role may be small or unrecognized by society during the period of the time when social contract theory was developed, they had intentions of gaining protection and security from the State in exchange for relinquishing their natural rights. Instead, the State declares that their role amongst society doe not create a big impact and therefore the State’s protection is limited. By deceiving individuals into believing they are protected by the State through a social contract only to discover that it is a false claim, I believe that it is an evil act as the State is powerful and society looks to the sovereign to protect them but when the trust is broken through this deception, individuals are left to defend and protect themselves when it is the State’s responsibility to protect and secure their citizens.

         Another perspective of how Contractarianism could be the basis of evil is seen through how the sovereign of the State can command and gain society’s trust into relinquishing their natural rights to the State in order to be protected from oncoming dangers that may exist outside of the State. In an approach that Wintrobe developed, he proposed that dictator sovereigns often use repression and loyalty as means to achieve their objective, whereas other political sovereigns such as totalitarians and tinpots extract power by maximizing power from utility and remaining at the level of power at which secures them.[10] With establishing the importance of recognizing how sovereigns maintain their power amongst society, the introduction of Olson’s “stationary bandits” can be worrisome as they are a type of sovereign that only has the interest of retaining and controlling power to benefit their self-interests.[11] Although there have been researchers such as Henning and Lu that determine that Olson’s predatory state is most likely to not happen, there have been instances where the State has been acting on the best interest of the sovereign and not the population of the State. In looking at the government of the United States of America, President Donald Trump is retaining control to benefit his self-interests through his businesses that he had previous started before his campaign.[12] According to the New York Times, after the 2016 elections had ended, the government of Kuwait moved their event location to a Trump International Hotel; in trying to buy graces from the newly elected president, foreign government are spending money at the Presidents establishments to bypass the Constitution that forbids government officials to accept gifts unless it is approved by Congress.[13] With the United States as one of the leading world powers, the President should be thinking in the best interest for the people as to oppose the self-interests through his business ventures mixing in with political affairs. By consenting to exchange their natural rights and the agreement of putting their faith into a sovereign for security of the State, it is an evil to have to consent to actions the sovereign as it may affect the lives of the people living under the sovereigns ruling as they are bounded by the social contract to obey and accept that it is in their best interest when it is not.[14] Although there are heinous intents behind theoretical framework of social contract theory when dissecting through a simpler version, academic scholars developed a theoretical approach on preventing the framework to cause additional harm onto society.

 With the issues of the social contract theory being seen as a basis of evil, some researchers have attempted to reform the theoretical frame as to resolve the problems that is connected to the theory itself. As mentioned previously, the theoretical framework discriminates against women, ethnicities, and other minority groups as they barely or do not contribute to the societal needs of the State.[15] To resolve the issue of discrimination against minority groups within a social contract theory framework, Silvers and Francis propose that the process of social contract theory should be emphasized within a trust culture instead of a bargaining culture.[16] The central argument to implement a trust culture within the framework of social contract theory is that it eliminates the term “outlier” onto minority groups where they are seen as important and equal within the community with gain the benefits that were not available to them before; with the implement a bargaining culture that was based on mutual agreements between individuals that benefited their own needs.[17] Thus, eliminating immoral actions of contractarianism. However, with the formatting of using a trust culture within a social contract theory frame could be accomplished, it neglects the reality of life in the perspective of Hobbes. In Hobbes’ reality, humans are naturally driven through their needs and desires by performing benevolent acts to attain them, in other words, the brutality of the world is caused by humans’ need to attain their desires.[18] By ignoring the basis of Hobbes’ philosophical thoughts that developed social contract theory, it cannot be fully be recognized as the theoretical frame of contractarianism. In an opinionated belief on how to reduce the malicious acts that appear along side social contract theory, the aspect of having a lone sovereign assert their dominance over a community by public vote is slightly alarming as the community is driven to place a sovereign into power through what they are campaigning to achieve once they are placed in the State. The use of fear as a tactic to gain to community’s approval to be their sovereign can be seen frequently such as the United States and within the Philippines. In Southeast Asia, the targeted areas when politically campaigning to become the States’ leader is by appealing towards religious and ethnic divides and working and lower-middle classes as they are driven to have a leader that has a solution to improve their lives.[19] In 2016, Philippine President Rodrigo Duterte campaigned that he would end the war on drugs within the country through violence and dismantling corrupted government officials who were in office.[20] Through utilizing society’s fear of the war on drugs, Duterte was able to win the election within the Philippines and implement his violent plan of ridding drugs from the country which imposes more fear as he has already killed around twelve thousand people since his appointed into office.[21] Allowing sovereigns like Duterte to gain power and control over a society could be detrimental as it could be equally dangerous as if the social contract between the State and the population did not exist. 

 Hobbes’ social contract theory, also known as Contractarianism, imposes that a social contract is needed for humans to survive the brutal world within the state of nature.[22] By contracting a social contract between the people and a powerful sovereign, the community is able to survive under the protection and security of the sovereign and in return they renounce some of their natural rights in exchange.[23] However, in close analysis, I set out to argue that social contract theory enables evil to be carried out effortlessly. Throughout the paper, it is founded that social contract theory allows for sovereigns to easily discriminate and disregard women, racial minorities, and other groups that the State identifies as unable to contribute to societal needs.[24] Also, the sovereign can act on their own self-interest instead of the community’s best interest, in which, they use tactics such as manipulation and playing on the fear of the people to create a basis for them to publicly determine that that one individual is to be their sovereign. [25] This can be evident in the analysis of Philippine President Rodrigo Duterte through his ascension to power. In concluding the paper, social contract theory can be beneficial to society as provides a connection between the population and the State to create a harmonious society when all participants within the contract plays their role. However, when one of the participants acts selfishly enacts on their own accord to benefit themselves, namely the sovereign, the harmonious society is faced with the brutality of their actions and must live through it as the social contract is binding. As to answer the initial question that was stated in the beginning of this paper, “Could the concept of Social Contract Theory encourage and allow evil acts to occur?”, I believe that the premise of which social contract theory is based upon is not evil, but a sovereign of the State may be an evil towards society dependent of whether the sovereign is enacting based on the interest of the people or enacting on their own self-interst.

Endnotes

[1] Murphy, Andrew R. “The Uneasy Relationship between Social Contract Theory and Religious Toleration.” The Journal of Politics, vol. 59, no. 2, 1997, pp. 368–392.

[2] Murphy, pp. 374.

[3] Murphy, pp. 369.

[4] Dicus, Andrew. ““Some Man” and the Savage.” Prose Studies 37.2 (2015): 97-111. Web.

[5] Dicus, pp. 98.

[6] Dicus, pp. 98.

[7] Dicus, pp. 98.

[8] Silvers, Anita, and Leslie Pickering Francis. “Justice through Trust: Disability and the Outlier Problem in Social Contract Theory *.” Ethics 116.1 (2005): 40-76. Web.

[9] Silvers & Francis, pp. 42.

[10] Kirstein, Roland, and Voigt, Stefan. “The Violent and the Weak: When Dictators Care about Social Contracts.” The American Journal of Economics and Sociology 65.4 (2006): 863-889. Web.

[11] Kirstein & Voigt, pp. 865.

[12] Leonhardt, David, and Ian Prasad Philbrick. “Trump’s Corruption: The Definitive List.” The New York Times, The New York Times, (2018), www.nytimes.com/2018/10/28/opinion/trump-administration-corruption-conflicts.html.

[13]Leonhardt and Philbrick, “Trump’s Corruption: The Definitive List.” 

[14] Kirstein & Voigt, pp. 865.

[15] Slivers and Francis, pp. 42

[16] Slivers and Francis, pp. 43

[17] Silvers and Francis, pp. 44

[18] Mcgraw, David K. “A Social Contract Theory Critique of Professional Codes of Ethics.” Journal of Information, Communication and Ethics in Society 2.4 (2004): 235-43. Web.

[19] Kurlantzick, Joshua. “Southeast Asia’s Populism Is Different but Also Dangerous.” Council on Foreign Relations, Council on Foreign Relations, (2018) www.cfr.org/article/southeast-asias-populism-different-also-dangerous.

[20] Kurlantzick, “Southeast Asia’s Populism Is Different but Also Dangerous.” 

[21] Kurlantzick, “Southeast Asia’s Populism Is Different but Also Dangerous.” 

[22] Mcgraw, pp. 236

[23] Mcgraw, pp. 236

[24] Silvers and Francis, pp. 41-42

[25] Kirstein & Voigt, pp. 865.
 

Aspects of Contract and Negligence for Business

Introduction:
Contract and negligence are two of the most important components of business law needed to build and execute relationship with different parties. A business is always in need of creating and maintaining relationship with internal and external parties for making sales products and services to the customers, appointing employees for organization or purchasing saleable products and manufacturing materials from suppliers. So it is usually thought that a business following terms and elements of contract law can become efficiently successful so as to build secured and good relationship with availing deserving rights. Negligence is a common issue faced in the business during operation. Harms or damages caused by negligence can be brought under a frame to negotiate claims of parties involved. Victims facing harms because of negligence of one party are entitled to make claim on the loss due to harms or damages by showing relevance to elements and terms of negligence. 
Task 1
1.1 Explanation of Importance of elements required for forming a valid contract:
A contract to be valid needs to have some elements. Absence of those elements makes a contract invalid due to its significance between the parties of contract. Following elements are considered as essential ones:

Legal relation motive: Parties having involvement in the contract should have legalized intention for making contract. Illegal intention of any party can turn a contract into an invalid one.
Offer: Offer is intention of doing something. Unconditional acceptance of the offer by other person in the contract is essential.
Acceptance: Offer made by a party must be accepted by the other party to whom the offer is made. Acceptance of offer can be in oral or in writing preferring the convenient one.
Consideration: Defined in terms of contract law, consideration is detriment of a person making the promise or benefit generated for other party of the contract. Both types of consideration should be measured in economic.
Capacity: people not reaching the age of 18 and not mentally ordered are not entitled to form contract and be party of contract.
Expressed or implied terms of a contract: Generally, the parties of a contract should have the agreement on the terms of contract. Contracts with terms which are not expressly mentioned in contract are called implied contract.
Genuine consent of Parties: There can’t be any kind of forces physically or mentally on any party of the contract in making the formation of contract. They will freely show the consent to contract.
Discharge of contract: A contract with validity can be discharged by the ways of mutual agreement, contractual parties’ performance and breach of frustration.

1.2 Discussion on Impact of different types of contract:
Different types of contract have different extent of impact on the terms, objectives and parties of a contract. Types contract with impact on parties of contract have been discussed below:
Written contracts:
A written contract are formally signed by parties in written description with maintaining the assumption that all terms of agreement among contract parties are mentioned in the contract document without regarding verbal agreement (Wilson Huhn, 2002). These terms of the contract must easily be understood by them when present to them. There is also an assumption that terms of contract have been read and agreed to.
Verbal contracts:
Stronger level of trust among the parties is required in this contract and it can’t be used as proof against any written contract. Verbal agreement support following ways:
1. Conduct other party both before and after the agreement,
2. Specific actions of the other party,
3. Past dealings with the other party.
But in following its impact may not be positive:
1. The value of transaction is remarkably high,
2. The presentation of a substantial document may raise more questions and uncertainty in the mind of parties (Eliott and Quinn, 2011).
Executed contract:
Executed contract is such a contract in which both parties of the contract have completed their specified obligations and responsibilities maintaining terms of the contract. This sort of contract is easier to form and transparent to perform undoubtedly.
Executor contract:
When parties of the contract are still to perform their own obligations and duties, it is called executor contract. This contract remains incomplete because of not performing some of its obligations by any or both of the parties. Parties of the contract need to have proper assumption over future incidents.
1.3 Terms of contract with reference to their meaning and effect:
Following terms are used in the formation of contract and these terms have different meaning and extent of effect on contract:
Circumstances:
Circumstances are the indication that is essential to assume the discussion with the assigned deal. A dislocate associated with station may capacitate detriment result.
Expressed contract:
When parties of contract mention terms of the contract either in verbal or in written during the formation of the contract, it is called expressed contract. A definite written or oral offer is made with the expectation of acceptance in a manner that explicitly expresses consent to the terms.
Implied contract:
Although contracts implied in fact and in law are known as implied contracts, a real implied contract consists of some obligations which arise from mutual agreement and intention of making promise without expressing it in words. A contract in implied nature depends on substances for its existence (Lunney and Oilphant, 2010) . So, an implied contract requires the act or conduct of a party before coming it into effect. Therefore, a contract with implied terms is not expressed by the parties but rather suggested from facts and circumstance referring to a mutual agreement.
Task 2
2.1 Application of the elements of a contract in different business situations:
Law contract provides the guidance to make the agreement and to make compensation if agreement is violated by any parties. With following business scenarios, application of the elements of contract has been discussed:
Scenario 1
It was really a matter of disappointment for Miss Kaur not finding fountain pen available coming back to the antique as shop assistant Harry had made the promise of selling the pen to any other customer willing to buy it before her return. Moreover, to return to that antique shop she had to bear additional travel expenditure. They made the contract with offer and acceptance and this contract has been discharged on making a mutual agreement. Shop assistant should have informed Miss Kaur before selling the pen to another customer. Therefore, from view point of contract law, she can utilize the option of taking legal actions against the shop for claiming her travel expenditure used to return to the shop.
Scenario 2
To make renovations to the building of Charles, Murphy made a contract which was modified to increase the amount of renovation fee despite an unexpected argument between them. But Charles did not the pay increased amount to Murphy as per modified contract putting an argument that it was over the original contractual price. In such situation, Murphy has the option of showing the writings which were used to increase the price of renovation and agreement sent by Charles. Additionally, the witness of modified contract can be asked to be present to enforce Charles to fulfill the promise for making extra payment. Murphy is legally supported to sue against Charles for receiving that additional payment through following terms and elements of contract properly.
Scenario 3
At the time of starting career as self employed builder, Mia kept tow requests of his brother and his friend with the condition of fixing and getting payment from them. But after getting service from Mia, both of them showed reluctance to make payment the agreed money with showing an excuse that they took the service of Mia for making getting the scope of gaining more experience on related job. As the contract was formed verbally, there was the risk of such sorts of avoidance. As he had congenial relationship with both of them due to be his friend and brother, he did think of making a written contract for security. Mia can force these two service receivers to make full payment through reminding description of contract formation and can search witness for the legality of claiming payments.
2.2 Application of Law on terms in different contracts:
Elements and terms of UK contract do not have difference from that of general contract. As a standard form contract, a business deal between transporting companies, LSA Logistics Ltd. made a contract with a manufacturing company to distribute its products with following expressed and implied terms:
Expressed terms:

Charging £250 per day for a single vehicle
Transport Company will carry its products Five days in a week.
Additional per day beyond selected days will be charged at £300.
LSA Logistics will distribute only the products of that company etc.

Implied terms:

LSA Logistics will follow allowed time for distributing manufacturer’s products.
LSA Logistics will not carry any illegal products.
LSA will not carry beyond standard weight in its vehicle.
LSA Logistics will distribute products in agreed areas etc.

Both of the parties signed on a document in this contract supporting exclusion clauses. Maintaining relevance to this term, LSA searched the way of breach of contract as the manufacturer was not fulfilling the elements and terms of contract. Manufacturer was forcing LSA to carry products beyond specified and standard weight and distributing products specified limit. Among different types of exclusion clauses, LSA followed true exclusion clause to breach the contract by firstly recognizing it and making excusing liability for this breach. This is a standard contract which has been breached following the agreed exclusion clause.
2.3 Evaluation of the effect of different terms in contracts:
Scenario 4
X and Y made a written contract which contained some expressed terms. As Miss Y agreed to take dress smartly always during staying at office and not to wear trousers under any circumstances, she was supposed to wear dress smartly on 1st and 2nd June. Moreover, as research assistant Miss Y will work not considering hours to complete necessary tasks or assignments. But she has not been to complete the task within given time. For violating those mentioned terms, X became angry and upset and also got humiliated. For such sorts of depression, she had to take medical treatment. From this scenario, it is reflected that violation of terms of contract can lead to unexpected consequences to any party of the contract.
Task 3
3.1 Contrast liability in tort with contractual liability:
Both of the liabilities are on the basis for failure to observe a duty imposed by law. One of them is by agreement and the other one is by duty of acting and performing in a reasonable manner.
A contract is formed by making agreement to be entered into by two or more parties. if one of the involved party fails to perform regarding contract terms, then that party is thought to incur contractual liability (K.L. Hall, 1989),. This kind of liability is created if two or more than parties intend few things to each other. When default on the agreement is happened by any of the parties that is termed as breach of contract.

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Tort is a common mistake arising due to the failure of one party in performing one’s duty to have acted in reasonable manner so that no harms happen to others. Tort is termed as breach of some duties independent of contract which gives rise to a civil contract. Although most of the torts happening in the breach of contract are negligence but few others are intentional. (Clarke, 2010) defined that tortuous liability arises due to the breach of a duty primarily determined by law; such duty should be to person and its breach can be recognized by the action for making compensation.
Few differences between contract and tort are given below:

A tort is usually consent but a contract is founded on the consent of parties.
Privities are essential in tort but it is important implied in contract.
A arises from violation in performing responsibility but a breach of contract happens through infringement of a right.
Motive is considered with giving special emphasis in tort but it does relevance to the breach of contract.

3.2 Nature of Liability of negligence:
Negligence in liability is defined as the failure to exercise the level of care for ensuring safety of another and this level of care a person would reasonably exercise under normal circumstances. This area of tort law known as negligence involves harms which is caused due to carelessness of a party. According to Jay M. Feinman (2010), the negligence concept requires people exercising care when they act by taking potential harm into account that they might cause harm to other people. But laws of intentional torts allow an applicant to sue for the harm or loss caused by defendants either in accident or in careless. For that reason, tort of negligence is defined as a failure to behave with level of care that someone of ordinary prudence would have exercised under the identical situation (Schrader, 1987).
3.3 Vicarious Liability in a Business:
Vicarious liability arises from a situation when one party becomes responsible due to unlawful actions of a third party. Moreover, the liable party also becomes responsible for his own share of liability. The liability comes into existence if one party has the possibility to become responsible for a third party and does show willingness to carry out the respective responsibility and exercising control (Eliott and Quinn, 2011).
A Vicarious liability can happen in a business in following way:
Unlawful and outlawed actions such as harassment or discrimination in workplace of an employee make his employer liable. Even though employer himself did not have involvement in committing unlawful action, he carries the liability as he is considered to take the responsibility to prevent or limit any kind of unlawful actions performed by its employees. In this case, the employer is assumed to have the capacity to avoid vicarious liability with taking proper exercise so as to prevent such unlawful behavior.
Task 4
4.1 Application of tort of negligence and defenses in different business situations:
Scenario 5
Causing damage to the wharf by oil spilling from UK ship in Sydney harbor makes it legitimate to sue against chatters of the ship. For the possibility of facing such damage, taking required safety measures signals that there was the proximate cause in the event of this accident. Besides, the ship did not exercise reasonable standard care during taking oil from harbor. Again, in the tort of negligence, there must be actual injury to the party who sued. For this reason, fire from spilled oil on water caused damage wharf. So, owners of wharf should take action of suing against chatters of ship by following requires procedures and terms.
Scenario 6
Bell who was serving in vehicle maintenance by Shell lost sight of good eye due to flowing chip metal into his eye. Though the risk of losing sight of eye was little but protective measures should have been taken. Unfortunately, the duty of protection was not followed here. Carefulness by Shell in maintaining reasonable care was not standard enough and this has leaded to blinding bell.
4.2 Application of the elements of vicarious liability in different business situations:
Alf employed as warden in Safe Care Home Ltd was accused of sexual abusing boys made a matter of disappointment for this company. As he was employed by that company, any kind of outlawed actions by Alf should have been countered by his employer. Though Safe Care Home Ltd proceeded to take advice on this issue as whether this company is vicariously liable for the torts, but trial of sue will go against this company for not verifying Alf’s manner and ethics.
Mr. Khan sued against AB and Song Garage Ltd and its employee, Amos Bridge for disrespect and being hit by attendant Amos. AB and Sons Garage ltd has been liable vicariously in this case for the unlawful actions in its working place though it didn’t directly engaged in this actions. Being a customer, Mr. Khan logically expected good manner from attendant but situation and manner was unexpectedly opposite. So in this case sued by Mr. Khan, AB and Sons Garage Ltd can be considered as vicariously liable for attendant Amos. 
Conclusion:
Contract along with its aspects have been described in the study. As the important aspects of contract, elements and terms of contracts are encompassed with making required explanation. Moreover, to clarify on contract, its different types have been discussed by bringing their definition and impact on the formation and execution of contract. For gaining proper understanding, several business scenarios have been answered with explanation and relevant advice. Negligence is an important issue of contract law and this issue arises from context of liability due to causing harm to any party of business. For suggestion to the victims of harm generated from negligence, the given business scenarios have been solved. 
References:

Elliott C., Quinn F., (2011), Contract Law, London, Longman Richards P., 2011, Law of Contract.
Lunney M., Oliphant K., (2010) Tort Law: Text and Materials Fourth Edition, New York: Oxford University Press.
Clarke P., (2010) A Straightforward Guide To Contract Law, Brighton: Straightforward
Elliott C., Quinn F., (2011), Contract Law, London, Longman Richards P., 2011, Law of Contract,
Poole J., (2003); Casebook on Contract Law Sixth edition, Oxford: Oxford University Press.
Wilson Huhn (2002), 5 Types of Legal Argument, Mumbai University.
D. Schrader (1987), ‘The Corporation and Profits’ 6 Journal of Business Ethics.
K.L. Hall (1989), The Magic Mirror : Law in American History, New York, OUP.

 

Design and Build Contract in Project

The term ‘procurement route’ considers all the activities undertaken by the client or client’s representative, whether this is a sole decision or a decision made with the help of other parties, such as the various consultants or in some cases even the contractor, towards the goal of developing a construction project that the client is ultimately happy with.  There are various procurement routes, which can be categorized into three main procurement route contracts, a Traditional contract, a Design and Build contract, and a Management contract.

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A Traditional contract benefits in cost and quality, but at the expense of time.  It is not the fastest of methods, and with this procurement route it is desirable to have all the information at tender stage.  It is basically straightforward, but complications can arise if the client requires that certain sub-contractors are used.  With this procurement route the client requires certain standards to be shown or described, but the client is wholly responsible for achieving the stated quality on site, and controls the design and variations to a large extent.  It has certainty in cost and time before commitment to build, and requires clear accountability and cost monitoring at all stages.  Competitive tenders are possible for all items.  The risk is generally fair and balanced between all the parties. 
(CLAMP, Hugh, COX, Stanley & LUPTON, Sarah, 2003)
A Design and Build contract benefits in cost and time, but at the expense of quality.  It is a relatively fast method. The pre-tender time largely depends on the amount of detail in the client’s requirements, but the construction time can be reduced because the design and building phases proceed in parallel.  With this procurement route the client has no direct control over the contractor’s performance, has little say in the choice of specialist sub-contractors, and has virtually no flexibility once the contract is signed.  It has a guaranteed cost and completion date.  The risk with this procurement route lies almost entirely with the contractor.
(CLAMP, Hugh, COX, Stanley & LUPTON, Sarah, 2003)
A Management contract benefits in time and quality, but at the expense of cost.  An early start on site is possible with this procurement route, long before tenders have been invited for some of the works packages.  It involves a complex management operation requiring sophisticated techniques.  The managing contractor is responsible for quality of work and materials on site and can easily adjust the programme and costs, meaning the client can also easily modify or develop design requirements during construction.  With this procurement route the client is committed to start building on only a cost plan, project drawings and a specification.  The risk lies mainly with the client in this method of procurement.
(CLAMP, Hugh, COX, Stanley & LUPTON, Sarah, 2003)
For the purpose of this project we propose to use a Design and Build contract.  We have made this decision based on the project requiring cost and time to be prioritized, a guaranteed completion date being essential to minimise down time, and the benefit of having the responsibility of risk being taken away from the client.
Tender Process
Tendering is the name given to the process or procedure that is used to obtain offers leading to a contract between two parties.  The two main types of tender process are single stage tendering and two-stage tendering.
Single stage tendering is suitable for small simple projects, where the key issues are speed and cost assurity.  It is considered by clients because of a need for greater cost certainty during the design and construction phases, the need for a well documented, fixed-price contract, the benefit from the discipline of completing the design before a contractor appointment takes place, and the use of commercial pressure to secure cost reductions for projects that might otherwise be unviable.  A single stage tendering process however offers limited scope for a team to develop a shared objective or for a contractor to contribute to design development, and changes introduced by the design team will undermine the certainty achieved with a lump sum tender.
A two-stage tendering process is particularly suitable for large or complex projects, where a key factor is the close collaboration between the contractor and client, particularly during the design phase, as the contractor will endeavour to find the best solution for the project in terms of cost programme and design.  A two-stage tendering process is considered by clients because of its second stage being based on more complete information and therefore the contractor having a better understanding of the scope of works, which in turn should help obtain a final account that is closer to the contract sum, the ability to continue the development of the design during the second stage of the tender in conjunction with the main contractor and specialist sub contractors, and because it helps promote a specific focus on issues of buildability and economic construction during the later stages of design.  However the cost of second stage tenders tend to be higher because of negotiation premiums and the inclusion of additional risk transfers, and not exceeding the cost and completion date are not binding prior to the finalisation of the contract.
In two-stage tendering, like single stage tendering, the first stage is a competitive tender and it is usual to base these on the tenderers’ track records, preliminaries, overheads, an outline programme and the contractors pricing documents in relation to the preliminary design information.  Unlike a single stage tender, the first stage ends not with a contract being awarded but with the selection of a contractor for the second phase, in which the level of pricing provided in the first stage of the tender is used to open negotiations to produce a firmer price based on the drawings, bills of quantities and any other relevant documents that reflect the completed design.
For the purposes of this project we propose to use a single stage tendering process.  We have made this decision based on the need for speed and cost assurity on the project, with the two key issues being time and cost.
As early as possible during the design process we will propose a list of suitable contractors obtained from an electronic database containing a list of approved contractors.  The main criteria for selecting contractors for the initial tender list will include adequacy of available resources, adequacy of technical and management structure, financial stability and insurance cover, health and safety record, quality of work and adequacy of quality control, and performance record.
We propose to issue preliminary enquiries to each contractor on the initial tender list 4-6 weeks before the tender documents are due to be issued, including a project information schedule and a questionnaire.  This will determine whether each contractor is both suited to the project and willing to submit a tender.  The contractors will be given 10 days from its original dispatch to return the completed questionnaire.  
Once a short list of tenderers has been agreed and the tender documents are ready for release, they will be sent to the tenderers along with a Form of Invitation to Tender and a Form of Tender.  The latest time and date for submission of the tender will be included on both the Invitation to Tender and the Form of Tender, and will state that they are to remain open for acceptance for a period of 28 days from the bid submission date.
When the tender return forms are received, the ones which are returned by the closing date will be analysed and a summary report will be written and sent to the client, and those which are returned after the closing date will remain unopened and be sent back to the sender.  As project managers we will offer advice upon the choice of appointed contractor, if the client requests so.  When we have received confirmation from the client regarding the chosen contractor we will notify them that they have won the work, and notify the unsuccessful tenderers that they have not.
On Site Strategy
Prior to work commencing on-site we propose to call a pre-start meeting, where the programme of works will be discussed and a letter of intent will be issued to the client. 
When the contractor begins work on site we propose to take a monitoring roll.  On the first day of the work commencing on-site, as contract administrators, we will meet with the contractor and discuss site security, access, welfare facilities, deliveries and storage, and notify them of the time and date that snagging will be carried out.
We propose to commence snagging 6 hours before the end of the construction phase, in order to give the contractor time to rectify any issues raised during the snagging process.  The snagging process will assess the quality of the work, the workmanship, and ensure all of the work complies with the client’s specification.  We propose, as the contract administrators, to write the snagging list in conjunction with the foreman on site due to time constraints, of which a copy will be left with the foreman on site so that they can rectify any snags prior to the completion of the construction works.
We propose to commence de-snagging once the contractor has informed us, as the contract administrators, that the construction work has been completed.  At this point, acting as the contract administrators, we will issue a certificate of practical completion and initialize the defects liability period, as determined in the contract.   
References
CLAMP, Hugh, COX, Stanley & LUPTON, Sarah. (2003). Which Contract? Choosing the Appropriate Building Contract. 4th ed., London, RIBA Enterprises Ltd.
Bibliography
CHAPPELL, David. (2006). Construction Contracts, Questions & Answers. Oxford, Taylor & Francis.
CHAPPELL, David. (2006). Contractual Correspondence for Architects & Project Managers. 4th ed., Oxford, Blackwell Publishing Ltd.
LUPTON, Sarah. (ed.) (2001). Architects Handbook & Practice Management. 7th ed., London, R.I.B.A. Publications.
LUPTON, Sarah. (ed.) (2000). Architects Job Book. 7th ed., London, R.I.B.A. Publications.
ROY, Morledge, SMITH, Adrian & KASHIWAGI, Dean T. (2006). Building Procurement. Oxford, Blackwell Publishing Ltd.
MURDOCH, John & HUGHES, Will. (2008). Construction Contracts, Law and Management. 4th ed., Oxon, Taylor & Francis.
 

The Social Contract According to Immanuel Kant

In a society that the people are free to do as they see fit and are governed by natural laws, where individuals can abuse and exploit of one another and there is no fear of consequences is known as the state of nature. When individuals give up a little of their freedom to do as they like, and voluntarily agree to obey laid down laws (civil laws) to have protection of life and ownership of property, this agreement is known as the social contract. The political philosophers would explain the social contract theory as individuals giving power to the government (state) to govern over them in exchange for protection. It must not be misinterpreted that an individual, who is under the social contract has to give up their total freedom rather, the person is still at liberty to do as they please so far as it does not cause harm or impede on another individual’s freedom. Giving up this freedom under the social contract is viewed as a benefit to the society.

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The social contract which brings into existence a well ordered society “state of states”, is said to be of three key elements. The first element is an imagery of how a society will be like with no laws, under the state of nature. People would be exploited, abused and there will be no fear of justice since they are free to do as they like and are not confined by any laws that restrict them from doing unto others as they please. Individuals’ attempt to escape from such brutality brings about the second element which is recognizing the “state” to have the power to bring about order and stability to a society; recognizing the sovereign power. The third element is the obligation of the people under the social contract to respect and obey the laid down laws by the state. In their obedience to these laws they are showing gratitude to the state for securing an organized and stable society. Some philosophers believe though, that the social contract is imposed on society to demonstrate the structure of rationality.
Immanuel Kant (1724-1804) born in Eastern Prussia was a German philosopher and an idealist. The author of Groundwork of the Metaphysics of Morals, in his book he defines morality as “an action that is not determined by its consequences, only by the intentions behind it”. He believes that a person’s intention to do good or bad justifies the action as good or bad. For example when a person finds a bag of money and the person’s intention is to report it to the police, according to Kant this makes the person good (moral). But if the outcome is different from the supposed intention that is, the person ends up keeping the money, the person is still seen as good; “In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing it”. The outcome of the action whether good or bad should not be considered in determining an action as moral but only the original intention. These actions are said to be motivated by duty and inclination.
Duty is an action that has been outlined by society to be in the right moral direction. Duty is described in four cases; (i) when actions are contrary to duty (e.g. stealing) (ii) when actions are dutiful because of fear of penalty (e.g. paying taxes) (iii) when duty is in accordance to one’s inclination (e.g. labor of love) and (iv) actions that are in accordance to duty but contrary to inclination (e.g. not committing suicide despite being in unbearable distress). Duty is seen to be “morally worthy” because it is approved by society whereas inclination is seen as “praise worthy” because it is motivated by emotions. He argues that people are more concerned about their self-interest as such, when they act in accordance to their inclinations then they are acting out of self-interest, but since duty is determined by society it will contrast with their self-interest thereby making it moral.
Kant’s moral theory is centered on a system that distinguishes a moral from a maxim known as the categorical imperative. A maxim is the principle or general rule that determines an actions moral worth. When a maxim has contradictions then it cannot be considered as a moral maxim, an example used is when a person borrows money and promises to pay knowing very well he won’t. This cannot be willed as a moral maxim then because everybody will promise and fail and people with needs will be seen as liars. His attempt to solve the problem of morality and solidify his theory brought about the categorical imperative. The categorical imperative is seen as a criterion for determining obligatory and forbidden actions and is made up of three formulations; (i) universal moral law, (ii) treat people as ends and (iii) the kingdom of ends.
The first formulation, the universal moral law looks at how one’s maxim can be accepted by another person, in other words, can your maxim be accepted by all and will everybody feel the same about it. “Act only on that maxim which you can, at the same time will it to be a universal law”. For example my maxim is when I borrow something from somebody I like to return it as soon as I am done using it. The real test here is can this be universally adopted and willingly accepted. A universal maxim should also have the ability to remain consistent. If a maxim passes the test, then the maxim is morally accepted and is seen as permissible but if it fails then that maxim should be disregarded and forbidden. When weighing a maxim as a universal law there is no exception, an individual’s maxim should not only apply to others around him but should also be applicable to him, and he must accept it with no hesitations.
The second formulation which is treat people as ends explains how we should see people as ends and not as means to an end. People can be seen as both means to an end and as end at the same time, but never should they be treated as means to an end only. An example is a man who makes a false promise to a friend so as to secure a loan. The friend here is seen as a mean to attaining his self-interest. He argues that people in themselves are ends, it is therefore wrong to use people to satisfy our selfish desires. Kant believes that in doing so; treating people as a means, we deny them the importance of their humanity. By disrespecting their personhood and dignity and not recognizing them as rational individuals we deny them of their humanity and we denial ourselves as well of the importance of humanity.
The third formulation the kingdom of ends can be seen as a totality of the two formulations. With this formulation we are urged to imagine ourselves as the law makers in the “kingdom of ends”. The kingdom of ends is “an imaginary state whose laws protect an individual’s autonomy”. In this kingdom we put our maxims to the test to satisfy the two formulations; universal moral law and treat people as ends. When these maxims satisfy the conditions of the formulations, that is, they become universally adopted and accepted, and people are treated as ends and not means to an end, then the maxims can be known as a moral law. A society that acquired its laws by the means of using the system of the categorical imperatives to Kant is an ideal society because the society is based on moral laws.
Kant views a society under the social contract as a society based on moral laws. Under the social contract individual desires are not used in determining the law, but rather the maxim that satisfies the conditions of the categorical imperative. To Kant this is ideal because the state addresses the wants of the people and not the desires of a particular group. He uses an example the war tax to support his argument explaining; when the state imposes a fair tax that is just, citizens cannot argue against it because the state might have legitimate reasons for imposing the tax that citizens are not aware of. This goes to justify the state concentrating on benefits of the society rather than benefits of an individual. This is Kant’s description of an ideal society under the social contract.
CRITICISM
Kant’s theory is based on having an ideal society that is based on moral laws. These moral laws have been acquired by the use of categorical imperatives; the criterion for determining a moral, therefore making these laws ideal. He believes that when a society is governed by these laws then people treat each other as equals and our conscience will prevent us from doing otherwise . Arthur Schopenhauer a German philosopher disagrees with Kant’s theory saying, the “categorical imperatives speaks before the deed but the conscience after the deed.” He argues that the conscience cannot act as a deterrent against people having their freedom impeded, since it is an afterthought after the deed has been done.
The social contract is an ideal society which seeks to bring order and safety to the people under a government. Kant’s formulations of the moral laws by using the categorical imperatives are fascinating theoretically but do not seem to hold in real life; the universal moral law, treating people as ends rather than means to an end and kingdoms of ends. Kant’s ideal society using these imperatives might be a solution to finding laws that will be accepted by all and obeyed as well, since we how we feel about these laws help in their formulation.