This essay answers the following questions.1) Why and how to proactively manage absences without damaging the psychological contract?2) What advice would you give to directors for measuring the levels and causes of absences ?3) What procedures would you recommend establishing to manage absences? You need to justify your recommendations.4) How should the devolution of people management responsibilities to first-line managers be managed?1) Why and how should absences be managed proactively without damaging the psychological contract?The psychological contract is a informal and unwritten contract between employer and employee. It includes their mutual agreement regarding each other's obligations. It will involve some expectations that you should try to maintain. This contract is based on trust and respect, and employees with effective managers should have a strong understanding of what their psychological contract entails, as well as their formal written contract that can be legally enforced. All Insure it Wright employees should understand both of these contracts and it is important when trying to manage an issue, such as absence, that the psychological contract is not affected. Directors have identified absences as a problem, which is having a negative impact on the organization as a whole and the service it provides. This should be addressed as quickly as possible in a way that does not affect the psychological or written contract. They are experiencing problems with different types of absences, particularly short-term and unauthorized ones. Absences must be monitored so strictly because a large amount of absences will have a negative financial impact on the company. Detail...... half of the document......: http://www.cipd.co.uk/hr-resources/factsheets/absence-measurement-management.aspx. Last accessed 20 April 2014.• CIPD staff. (2012). The role of line managers in human resources. Available: http://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx. Last accessed 24 April 2014.• 1.BLACK, C. and FROST, D. (2011) Health at work: an independent review of sickness absence. Cm 8205. London: Department for Work and Pensions. Available: http://www.dwp.gov.uk/docs/health-at-work.pdf. Last accessed April 28, 2014.• Taylor, Baldry, Bain & Ellis. (2003). A unique working environment: electronic health, illness and absence management in UK call centres. Work, employment and society. 17 (3), 435-458• James P, Cunningham I and Dibben P. (2002). The management of absences and the problems of maintaining one's job and returning to work. Management and human resources magazine. 12 (2), 82-94.