CONTINUING EDUCATION & TRAINING FOR THE SINGAPORE WORKFORCE

A DOUBLE-EDGED SWORD?
BACKGROUND CONTEXT
As announced in the Economic Strategies Committee's report on 1 February 2010,
Singapore aims to sustain annual productivity growth of two to three per cent over
the next ten years. A comprehensive national effort to raise every worker's skills
and productivity is the only viable way to improve the real wages of Singaporeans
and this is the best way to help low-wage workers. Companies will need to innovate
to improve their top-of-line offerings, expand their markets and streamline their
operation processes. They should also invest in their workers to upgrade their skills
so that they can take on higher value jobs.
The Ministry of Manpower (MOM) works closely with the Singapore Workforce
Development Agency (WDA) to develop a nation-wide system of continuing
education and training (CET) to give everyone the opportunity to acquire greater
skill proficiency, knowledge and expertise. Workers can also sign up for programs
and courses under the Singapore Workforce Qualifications System (WSQ) to
upgrade their skills and enhance their employability. Higher skills will improve
productivity, which is necessary for Singapore to achieve sustainable and inclusive
growth.
Taken from the Ministry of Manpower website: www.mom.gov.sg > Skills,
Training and Development

THE ECONOMIC/ORGANISATIONAL CONTEXT & THE NEW DEAL

The changing economic landscape over the last

two decades or so,

characterized by global competition, deregulation of markets in Asia and advances

in information technology have forced organizations to become leaner and meaner
(Millward 2002) in order to cut costs and remain competitive and responsive in a
dynamic environment. This is in turn, characterized by downsizing, streamlining,
delayering, and out-sourcing of peripheral functions.
The bursting of the US housing bubble in 2007 which sparked off the Global
Financial Crisis resulted in the collapse of large financial institutions, downturns in

stock markets around the world and prolonged unemployment in many countries.
The crisis played a significant role in the failure of key businesses, declines in
consumer wealth and a downturn in economic activity leading to the 20082012
global recession and contributing to the current European sovereign-debt crisis
(Williams, 2012).
In this economic and organizational context, the idea of a job for life seems
no longer relevant or appropriate (IMS, 1994; The Economist, 1994, cited by
Millward and Brewerton, 1998). In place, we have entered an era of fixed term or
temporary exchange agreements (Millward, 2002). Authors like Handy (1989) and
Pritchett (1995) have predicted that temporary or part-time work will be the norm.
The New Deal is thus characterized by job insecurity, performance related renumeration, employee-managed careers, and a tit-for-tat mentality (Arnold, 1996).
Clearly, this represents a shift away from the traditional or Old Deal.
Consequently, this has had a major psychological impact on the nature of the
employee-employer relationship; factors like job-security, opportunity for promotion,
status and salary increases are no longer guaranteed.

In addition, the onus is

increasingly being inclined towards the individual to be a better worker

in terms of working longer hours, taking on more responsibility and coming
equipped with a broader range of skills in order to secure performance-related renumerations (Arnold, 1996).

With the present emphasis on leveraging on

information technology in order to stay ahead of the competition, people that

can manage technology and keep abreast with the latest methods and
equipment will be in great demand. Those who are not in demand will have to
adapt in order to survive; the culture of Continuing Education and Training (CET) is
therefore one that they can ride on. In short, in the present socio-economic
context, it is clear that the onus is on the individual to seek constant
upgrading of knowledge and skills in order to enhance his employability in
a market that is likely to be dominated by time-limited contracts and performancerelated rewards. The increasing leveraging on technology by organizations is also
likely to entice people to keep themselves abreast of the latest equipment and
procedures so as to increase their employability in a market of rapid product and
production-method obsolescence.

What then are the social psychological

implications of CET on organizations? Is it a Blessing or a Curse?

This paper examines the possible impact of a culture of CET on organizations,

highlights the possible negative unintended consequences of such a culture and
postulates what needs to be done to ensure that that CET does not become a
double-edged sword.

THE PSYCHOLOGICAL CONTRACT

Rousseau (1995) defined the psychological contract as an individuals belief
regarding the terms and conditions of a reciprocal agreement between an individual
and an organization.

In the context of careers, the psychological contract

represents an unwritten agreement (Argyris, 1960; Schein, 1980), between the

employee and employer that represents what each believes is expected in terms of
contribution (employee) and what he will get in return. With the New Deal, the old
psychological contract has been shattered (Herriot and Pemberton, 1995).

The

unwritten contractual obligations based on mutual trust and respect, where

employees offered loyalty, commitment and goodwill in return for security,
promotion prospects, bonuses, etc. are no longer viable. In order to cut costs and
remain competitive, organizations have become leaner and meaner, relying on
the skills, knowledge and creativity rather than on the goodwill of their
employees to remain responsive to a dynamic market. As a result, factors like job
security, opportunity for promotion and salary increases are no longer guaranteed;
an action perceived by employees that organizations are not keeping their side of
the bargain. Organizations have the upper hand; or is it really the case? With
CET, workers will be better educated, trained and equipped with a wider variety of
skills. Coupled with strong working ethics, e.g. offer to do longer hours and accept
more responsibility (Arnold, 1996), they have more options to move around in a
todays tight labor market, in search of better paid jobs or higher status/senior
appointments.
Where organizations previously had the upper hand, they now face the
prospect of high employee turn-over by employees who are capable of seeking
greener pastures elsewhere. While the injection of new blood might be somewhat
beneficial to organizations, the instability created might be detrimental in the
short and medium terms. What then can organizations do to avert this potential
threat?

ORGANISATIONAL COMMITMENT
Arguably the most influential and well-researched multi-dimensional view
of Organizational Commitment is the 3-Component model proposed Meyer and Allen
(1991) who noted that in spite of the many and varied definitions of commitment
that appeared in the literature since the 1980s, there appeared to be consensus on
at least three general themes:

an affective attachment to the organization,

perceived costs associated with leaving the organization, and an obligation to

remain in the organization. Meyer and Allen referred to these as the affective,
continuance and normative commitments respectively.
Affective Commitment refers to an employees emotional attachment to,
identification with, and involvement in the organization.

Employees with strong

affective commitment stay with the organization because they want to do so.
Continuance Commitment refers to an awareness of the costs associated with
leaving the organization.

Employees remain because they need to do so.

Normative Commitment reflects a feeling of obligation to continue employment.

Employees stay because they feel that they ought to. Meyer and Allen preferred to
consider the three as components rather than types of commitment. This implies
that the psychological states characterizing them are mutually exclusive and it
might be possible for an employee to experience all three forms. Common to these
three approaches is the view that commitment is a psychological state (feelings and
beliefs concerning the employees relationship with an organization), which both
characterizes

the

employees

relationship

with

the

organization

and

has

implications for the decision to continue or to discontinue membership in the

organization.

From an organizational perspective, attracting and retaining a

work force with the necessary knowledge and experience may help organisations to
continue to innovate and maintain their competitive advantage and financial
success (Mowday, 1998). Conversely, high job turnover and absenteeism increases
costs in terms of morale, performance disruption, outflow of important knowledge
and experience, as well as the training of replacement staff (Mobley, 1982). The
approach of inculcating high levels of psychological attachment to the organisation
(Mowday, Porter & Steers, 1982) was therefore aimed at getting employees to

develop and engage in extra-role behaviours (Katz, 1964) to enhance organisational

functioning
organisation.

and

effectiveness,

thus

lowering

the

potential

costs

to

the

From an individuals perspective, joining and staying with an

organisation allows for the provision of economic rewards, both current and future
(e.g. pensions). There may also be intrinsic/psychological rewards associated with
continuing membership, such as job satisfaction and the support of friends and
colleagues. Hence, Mowday (1998) suggests that for employees, commitment to
work in an organization represent a positive relationship that may potentially
enhance the individuals self-worth.

Impact of the New Deal & a CET Culture on Organizational Commitment

With the changing economic trends described earlier, a culture of CET would
appear to effect a change in the psychological contract between the employee and
the organization.

A cycle is likely to be created, where employees are

increasingly expected to be responsible for their own development. This

would have important implications on Organizational Commitment. In this context,
one cant help but feel pessimistic about the development of employee
attachment.

With organizations no longer able to guarantee job security and

career development prospect, and operating largely on fixed and temporary term
arrangements, it may be an uphill challenge to expect employees to develop
Affective and Normative Commitments.
In the same vain, any Continuance Commitment that might have
existed is likely to be weaken by the successful implementation of a CET
culture. The literature postulates the antecedents of Continuance Commitment
to include job status and benefits accruing from long years in service, retirement
benefits, opportunities for employment elsewhere, as well as the perceived
transferability of work skills. In particular, age and tenure are usually taken as
proxy measures of accumulated investment in an organization that is associated
with job status and benefits (Cohen and Lowenberg, 1990). Alternative employment
opportunities may also be measured by perceptions of skill transferability and
employment mobility.

Education level is usually taken as a proxy as it is

associated with a higher capacity for further training and hence transferability
(Mayer & Schoorman, 1998). With a culture of CET, employees will be more
mobile, with a greater variety of alternatives available to them.
In short, we can expect, ceteris paribus, there is a likelihood that
Organizational Commitment will be adversely affected, resulting in high
employee turn-over. How then, might this potential decline be avoided?
ORGANISATIONAL IDENTITY

Organizational Identity is a complex construct that defies a simple definition.

Thus for the purpose of this paper, we shall describe Organizational Identity as the
perceived oneness with the organization (Ashford and Mael, 1989). As OReilly and
Chapman (1986) acknowledged, identification with an organization has long been
recognized as having an important impact on organizational effectiveness. Interest
in the concept has also taken a leap with the deterioration of the employeeemployer

relationship

described earlier.

resultant

of

the

changing

socio-economic

landscape

According to Ashford et al (1989), Organizational Identity is a

form of social identity in which the distinctiveness of an organizations values and

practices increases a persons tendency to identify with their organization, which in
turn, serves to enhance a persons self-esteem.
Research has shown that people attempt to preserve a sense of integrity and
self-worth (Steele, 1988; Staw, 1980).

Self-worth can be sustained by positively

evaluating the organization with which one identifies with.

In other words, the

stronger the identification with the organization, the more likely it is that the
organization will be viewed positively (Dutton et al, 1994). Members who strongly
identify with an organization are likely for example to believe that the organization
is producing valuable inputs. Another consequence of Organizational Identification
is increased contact and submersion in organizational activities and practices.
Findings by Dutton et al (1994), and Mael and Ashforth (1992) suggest that
organizations affect their members through socialization or identification processes,
influencing the way they think about themselves, how others see them, and the way
they behave as employees.

In this way, increased identification would lead to

increased commitment through citizenship behaviors (as a result of psychological

attachment).
Impact of the New Deal and a Culture of CET
The social psychological implications on the psychological contract as well as
organizational commitment should also be viewed in the light of the impact on
Organizational Identity. The introduction of new ways of working characteristic of
The New Deal, together with the violation of the old psychological contract, would

cause an employee to be faced with an element of psychological incongruence.

Where previously he functioned under the ambit of loyalty, hard work, trust and
commitment, he is now forced to adopt a more self-centered mental and
working framework as his efforts are not reciprocated by the organization. With a
culture of CET, he has to shape up or ship out, as everyone else joins in the rat
race. At an individual level, such an effect would shatter a workers self-identity
within the framework of the organization. Just as identification with the organization
could lead to the development of psychological attachment, the loss of identity
could result in the opposite.

Again coupled with improved employability, the

chances of one remaining with an organization will be greatly reduced.

SUMMARY & INTEGRATED PERSPECTIVE
Thus far, this essay has suggested that employee commitment and loyalty
seemed destined to be doomed. Job-hopping may well be the modus operandi,
resulting in high turnover and threatening the stability of organizations.

In a

nutshell, the issue is really one of managing employee expectations and

commitment in an unfavorable context. The task faced by organizations is to
continue retaining a work force with the necessary knowledge and experience to
maintain continuity and protect their competitive advantage and financial success.
The problem has been presented from 3 different (but highly related) perspectives.
Hence a possible solution would be for organizations to leverage on the very
concepts that are threatening them and to turn these threats into an
advantage. The next part of this paper will thus focus on how organizations can
make use of research findings to manage psychological contracts, imbue
organizational identity, and enhance employee commitment to the organization. As
one can surmise from the presentation so far, the three concepts are heavily linked
to one another, and thus will be discussed in conjunction with how each
complements the others.
ENHANCING EMPLOYEE COMMITMENT: AN INTEGRATIVE APPROACH

Meyer and Allen (1997) suggested that Affective Commitment is fostered

by organizational processes which make the employee feel psychologically
comfortable, enhance employee perceptions of the organizations supportiveness
and fairness, and thus foster employee feelings of self-worth (Allen & Meyer, 1993,
1997; Cramer, 1996).
Meyer and Allen (1997) also postulated the antecedents of Continuance
Commitment to include job status and benefits accruing from long years in service
and retirement benefits, amongst other things (Note: it is important to note that
these postulations were made more on the strength of theoretical arguments than
empirical evidence).

While organizations can tackle these issues directly to

enhance commitment and employee loyalty, they could also be managed via
prudent management of the psychological contract and via the imbuing of
organizational identity. These will be discussed shortly.
With regards to

Normative

Commitment, Allen and Meyer (1997)

postulated two possible sources that influence employees feelings of obligation.

The first refers to processes employed to internalize a particular set of values,
attitudes and behaviors consistent with being loyal to the organization e.g.
socialization

of

newcomers

to

the

organization

(Wiener

1982).

Normative

Commitment may also arise from experiences which make the employee feel that
their organization is providing them with more than they can reciprocate e.g. paying
college fees, thus obliging them to continue membership with their organization
(Allen and Meyer 1996). Again, it can be seen that these issues are closely linked
with that of facilitating organizational identity.
Hence, the next section will focus on theoretical and empirical research on
how the management of psychological contracts and the facilitation of identity
processes can in turn strengthen employee commitment.
Managing the Psychological Contract to enhance Affective and
Continuance Commitment

10

When employees feel that employers had violated their psychological

contract, it is not surprising that they will be inclined to feel less sense of obligation
and less commitment to their employing organization (Arnold et al, 1998). Coupled
with greater employability they would be much more inclined to leave. Thus, it is of
paramount importance that organizations realize the need to and indeed properly
manage the issue of psychological contracts.

Stiles et al (1996) pointed to the

particular importance of the psychological contract management especially in the

context of the New Deal.
Dunahee & Wangler (1974) suggests that management of the psychological
contract may be effected by clearly structuring employee job responsibilities,
maintaining

continuous

feedback

between

organization

and

employee,

by

emphasizing the employee and the job as a total system and by correlating
compensation with the terms of the psychological contract.

In this way, the

organization will reduce the likelihood of employees feeling that their employees are
not keeping their side of the bargain.
According to Schein (1990), peoples expectations change with needs and
external forces.

The psychological contract is a dynamic one that needs to be

constantly renegotiated.

With fixed-term employment becoming commonplace,

organizations will have to constantly re-evaluate the transactional nature of the

psychological contracts to ensure that employees get what they see as a fair deal,
thus reducing the likelihood that they will leave prematurely.
By managing the above, organizations will be indirectly addressing the
antecedents of Affective & Continuance components of employee commitment
described earlier, thus reducing the effects of turnover which might arise as a result
of a CET culture.
Facilitating

Organizational

Identification

to

enhance

Normative

Commitment
Organizational Identification is believed to be highly sensitive to how
members think outsiders view the organization. This has been termed perceived

11

organizational image (Dutton & Dukerich, 1991), a concept that has been linked to
that of Corporate Image or Corporate Identity, which itself can be framed within
the perspective of Identity Process Theory.

Therefore organizations can facilitate

the identification process by exploiting the five tenets of the latter, namely, selfefficacy, self-esteem, self-evaluation, distinctiveness and continuity as follows:

Self-efficacy.

By engendering confidence in customers, suppliers and its

employees that the organization can deliver on its promises.

Self-esteem. By demonstrate pride in its products and services and at the same
time, by instilling in employees a sense of pride to be part of the organization.

Self-Evaluation.

By surveying and evaluating the efficacy of the impact of its

corporate image on all its audiences, so that improvements in its potency can be
made.

Distinctiveness.

By highlighting a companys distinctiveness and special

abilities so that it stands out from its competitors.

Continuity.

By creating an impression of corporate solidity and continuity, to

convince employees, customers, suppliers, creditors, shareholders etc. so as to

secure their respective continued commitment and support.
In this way, organizations can increase commitment (particular Normative
and to a lesser extent, Affective Commitments) through citizenship behaviors
through an increased in organizational identification.
SUMMARY & CONCLUSION
In the context of the present socio-economic landscape, organizations need
to adopt a lean and mean structure in order to cut costs and remain competitive.
As a result, the relational relationship between employees and the organization
characteristic of the Old Deal are no longer viable.

Instead, organizations are

employing a more transactional approach, relying on the knowledge, skills and

creativity of their employees rather than on their goodwill.

With job security no

longer guaranteed, employees have come to realize the need to continually

upgrade their knowledge and skills in order to enhance their employability. While
organizations previously seemed to have the upper hand, a culture of CET would put

12

them in a situation where they will be dealing with employees who come with a
wider variety of skills and are hence more employable. With the employee-employer
relationship likely to be more transactional than relational, it is likely that employees
would feel that their employers have violated their psychological contracts.
Coupled with the short-term nature of work contracts, organizations face an uphill
battle to imbue employee commitment.
In short, the climate is highly conducive for job-hopping (in search of better
paid jobs or more socially valued appointments), resulting in frequent turn-over and
organizational instability. In order to counter these threats and turn them into an
opportunity, this paper has suggested that organizations would do well to make use
of the research findings on the management of psychological contracts, leveraging
on antecedents of commitment and facilitating the development of organization
identity in order to boost and maintain employee commitment.

In this way,

organizations would benefit from the implementation of CET, in the sense that they
would retain employees (who now come with a wider variety of skills and are keen
to continually upgrade themselves) in order to maintain continuity and hence, their
competitive age.

Note: The opinions expressed in this paper are solely that of the author
and does not represent the views of MOM or NBS.

13

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