IDIOSYNCRATIC DEALS

GROUP – 9

58. AKASH JAIN 61. AMIT PANDEY 78. MAYANK JAIN 97. SHUBHAM AGARWAL

2 INTRODUCTION

Idiosyncratic deals are special deals made between an individual employee and the employer which benefit them mutually

Organizations have started to negotiate the employment conditions with valued employees to suit their preferences so that the individuals can craft their jobs

3 APPLICATIONS

Attract the employeesIncrease their retention in the organization

Induce motivation in them

4 TYPES

Extrinsic e.g. Compensation

Intrinsic e.g. flexibility in

working hours

5 CHARACTERISTICSbetween the employer and the employee who mightNegotiated

individuallyhave better knowledge, skills or quality than others

i.e. these deals are different from those made with otherHeterogeneous

employeesi.e. both the employers and employee are mutuallyMutually beneficial

benefitted from these arrangements

i.e. negotiations vary from person to personVary in scope

6 PARTICIPANTS

Employees which contribute to the organization significantly and are highly valued than colleaguesEmployers i.e. agent of the organization like supervisors, immediate manager etc. and not some abstract entity

7 TIME

• Ex-ante - Before the employment on the basis of qualifications

• Ex-post - After employment on the basis of worth, performance and proved competence

8 I-DEALS AND SOCIAL EXCHANGE THEORY

•Social exchange relationships emerge due to interdependence of the employee and the employer so that they help each other to achieve the goals

•I-deals, the deals are

negotiated with the aim of mutual benefits.

9 I-DEAL AND VOICE OF EMPLOYEE

• This increase in the control of personal decisions motivates employees to use voice to participate in organizational decisions with more vigour and higher frequency.

I-DEALS VOICE OF EMPLOYEE

SOCIAL EXCHANGE THEORY

Work Role Flexibility

Social Networking Behaviour

Organisation Trust

10 I-DEALS AND SOCIAL ENHANCEMENT THEORY

Focus is on maintaining long term employment relations

Offering of i-deal results in: The feeling inside the employee that his work is praised and valued Leads to a self-perceived value of being an organizational member

11

• The intensity of motivation depends upon the degree of individualism in the employee

More individualistic employee - more motivation Less individualistic employee – less motivation

I-DEALS AND SOCIAL ENHANCEMENT THEORY

12 DIMENSIONS

• Financial incentives (WHY?)• Task and work responsibilities (WHAT?)• Location Flexibility (WHERE?)• Schedule flexibility (WHEN?)

13 ANTECEDENTS

Tenure of the employee Employees who are working in an organization from long period have high experience and skills than others. The firms would want to retain such individuals. Thus, tenure should be positively linked to i-deals negotiation but the research proves that tenure is related negatively with the negotiations of i-deals

Because sometimes high performing individuals leave the organizations voluntarily to grab better opportunities in other companies

14 ANTECEDENTS

Political skillsPolitical skills refer to a person’s ability to understand others and use that knowledge to influence them so as to achieve a personal or an organizational goals. So, politically skilful employees are more successful in negotiating i-deals. Hence, there is a positive correlation between political skills and i-deals negotiation

15 ANTECEDENTS

Leadership member skillsLeader-member exchange (LMX) theory suggests that leaders form a trust, respect and emotional based relationship with some of the employees, but not with all of them. So, employees who are present in the in-group of a leader may have more access to him and may be able to successfully negotiate i-deals

16 OUTCOMES

Financial incentives Concrete and transactional in nature Employees don’t attach them emotionally to the organization Organizational commitment and job satisfaction is low

17 OUTCOMES

Task and work responsibilities Relational and emotional nature Development of high quality exchange relationship Organizational commitment and job satisfaction is higher

18 OUTCOMES

Schedule and location flexibility Shows the concern of an organization for employee’s needs More transactional than task and work responsibility but lesser than

financial incentives Organizational commitment and job satisfaction is higher compared to

financial incentives but lesser if compared to task and work responsibility

19

Possibilities for employees to negotiate I-deals enhance their motivation to continue working because

They have different needs and wishes Ambitious employees want to get another step up on the corporate

ladder They desire a better work–life balance

WORK BEYOND RETIREMENT

20

Development• soft• particularistic• subjective

Flexibility• hard• objective• universal

MotivationDevelopment Opportunities

21 RECOMMENDATION FOR ORGANIZATIONS

Employee will work after retirement if:• Organizational support to employees• Better work environment• Encourage old employees to take new challenges

22 DISADVANTAGES &SHORTCOMINGS

• Increase in the costs of operations• Differentiation among employees which can lead to demotivation of

other employees• Researchers failed to recognize the intentions behind reciprocation• Differentiation on the basis of individual behaviour