PC – the iceberg model

is helpful to illustrate crucial aspects and influences. an iceberg is 90% underwater, so are perceptions of the PC.

This is especially so for junior workers in old-fashioned “X-theory autocratic organizations, where mutual expectations typically have little visibility and clarity (appr. 95-99% submerged)

By contrast, between a more modern employer and its employees, esp senior mature experienced and successful staff, it is likely to be more understood and visible (appr. 60-70% submerged).

as the iceberg rises with the success and experience of the employee, so does the contract value and written contractual expectations on both sides.

the process can also operate in reverse, although in a healthy situation the natural wish of both sides is for the iceberg to rise.

(left side – employee inputs and employer’s needs, right side – vice versa. above the water level – factors mostly visible and agreed by both sides (work/pay – visible written employment contract), thick arrows – visible clear market influences on work/pay, thin arrows – iceberg rises with success and maturity, experience, etc. (bringing visible perceived factors to the visible agreed contract), below water level – factors mostly perceived differently by both sides, or hidden, and not agreed; red arrows – influences on employee and employer affecting perceptions, mostly invisible or misunderstood by the other side)

More mature experienced and high-achieving employees will tend to see their personal iceberg rising so that their hidden contractual factors become visible and written into formal employment contracts. Employees generally want the iceberg to rise. So do progressive employers. They want the hidden aspects of the PC to become applicable. A rising iceberg signifies increasing employee contribution to organizational performance, typically rewarded with deeper rewards and benefits.

PC – basic contexts and implications

Autocratic leaders which we might define as “X-theory” in style, are probably less likely to appreciate the significance of the PC and the benefits of strengthening it. modern people-oriented leaders (Y-theory in style) are more likely to understand the concept and to develop a positive approach to it.

An old-style autocratic X-theory leader: “I pay the wages so I decide the contract.”

A Y-theory leader: “People work for many and various reasons; the more we understand and meet their needs, the better and more loyalty our people will perform. ”