ABSTRACT
The M I T research (1991) highlighted flexible human resource practices as one of the essential requirements of organisations wishing to succeed in business transformation. This chapter examines the ways in which organisations are changing and developing new strategies to motivate their employees. It outlines the views of respondents and focus group members on the changing nature of the psychological contract. It looks at the effects on motivation, and the need for alternative career paths and opportunities for selfdevelopment to support continuing employability and rebuild loyalty and trust in corporate governance. It examines retail financial services firms' efforts to introduce new forms of remuneration and performance management systems.
