Chapter 1

Objectives

• Examine generational work expectations

• Define and understand the importance of the psychological contract

• Explain the pinch model

• Examine the influences that affect workplace expectations

• Work on a psychological contract with your professor

Why Generations Differ

• Each generation is a product of historical events that shape their values and views of the world

• Emotional memories shape feelings about institutions, authority, materialism, family and careers

Gen X’ers

• Vary their assignments

• Teach them new skills

• Teach them some manners

• Keep them in the loop

• Tie praise for a job well done to a concrete reward

• Keep it fun

Generation Y: The Echo Generation

• Are you any different from Generation X?

• What are you perceptions of what a career and work should be?

Generation Y: The Echo Generation

• 76 million Baby Boomers; 44 million Gen Xers; 80 million Gen Y

• Generation Y born approximately 1976-1995

• 24 hour media produces a more global perspective and an expanded definition of diversity

• Computer literacy and ease of communication/data collection

• Personal fulfillment is key

Observations about Gen Y

• Offer choices: expect state-of-the-art, cooperative scheduling , many choices with freedom to pursue them– Want work-life balance

• Offer training opportunities (all generations): expect coaching and rewarding

• Offer an evolving workplace: expect new motivational techniques; relationship-intensive environment

Concerns about Gen Y

• Every performance is excellent. Input (effort) is confused with output (achievement)

• Passion is replaced by standard of living (pay)

• Short-term time management is the priority. Getting to the next event has replaced getting the most out of the experience– Short-term career outlooks

What is the Psychological

Contract?

PSYCHOLOGICAL CONTRACT

An individual’s beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization.

Pinch Model for Managing Psychological Contracts

I. As a manager…1. Can you ensure that the psychological contract is not

broken? Why?2. What do employees do that you would consider a

breach of the contract? 3. What is most important to you to have in the contract?4. How would you ensure that a contract with an

employee remains - what would you do before or at the pinch?

II. As an employee…

1. Can you ensure that the psychological contract is not broken? Why?

2. What do employers do that you would consider a breach of the contract?

3. What is most important to you to have in the contract?4. How would you ensure that the contract with an

employer remains - what would you do before or at the pinch?

Summary

• Do employees and employers have the same perceptions?

• Can we use this information to ensure that we are a better employee/employer?

– The decision to join and the decision to participate.

Managing the Psychological Contract

Provide realistic job expectationsHave frequent discussions of expectations

Check employee understanding

Give feedbackBe sensitive to individual differencesCheck for changes in expectations

Environmental Changes Impacting Psychological Contracts

• Technological change• Rate of change in the

business environment• Global economy• Changing economic

conditions• Demands for

performance, flexibility and innovation

• Reengineering• Downsizing• Mergers and acquisitions

• Outsourcing and subcontracting of work

• Contingent and temporary employment for peripheral employees

• Uncertainty for workers

Workforce Changes Impacting Psychological Contracts

Demographics

Changing value trends

Nomadic nature of the workforce

Broken Contracts

• Outrage, shock, resentment, anger

• Decreased trust and good faith• Decreased job satisfaction• Decreased productivity• Decreased attendance• Turnover

Consequence

Contract Makers’ Violations

Sources ViolationsRecruiters Unfamiliar with actual job

OverpromiseManagers Say one thing, do another

Co-workers Failure to provide support

Mentors Little follow-through Few interactions

Top management Mixed messages

Sources ViolationsCompensation Changing criteria

Reward seniority, low job security

Benefits Changing coverage

Career paths Dependent on one’s manager Inconsistent application

Performance review Not done on time

Training Skills learned not tied to job

Documentation Stated procedures at odds with actualpractice

Systems Contract Violations

RESPONSES TO VIOLATION

Constructive Destructive

Active Voice Neglect/Destruction

Passive Loyalty/Silence Exit

Advantages of Committed Employees

Have the self-control required for teamwork, empowerment, and flatter organizations

Display organizational citizenship behavior that benefits the organization

Are “willing to help”

...Advantages of Committed Employees

Have better attendance records

Stay with the company longer

Work harder at their jobs

Adapt better to unforeseeable occurrences

Perform better