The Psychological Contract. Objectives Define and understand the importance of the psychological...
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Transcript of The Psychological Contract. Objectives Define and understand the importance of the psychological...
The Psychological Contract
Objectives
Define and understand the importance of the psychological contract
Examine the influences that affect workplace expectations
Examine generational work expectations Work on a psychological contract with your
professor
PSYCHOLOGICAL CONTRACT
The psychological contract is individual beliefs or perceptions regarding the terms of exchange between the individual and organization.
PSYCHOLOGICAL CONTRACT
The perceptual and dynamic nature of the contract makes it common that a violation will occur
Types of Violations
Inadvertent –divergent interpretations
Disruption –impossible to fulfill the contract, despite willingness to do so
Breach of Contract – One side refuses to fulfill the contract
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
Broken Contracts
Outrage, shock, resentment, anger Decreased trust and good faith Decreased job satisfaction Decreased productivity Decreased attendance Decreased commitment Turnover
Consequence
RESPONSES TO VIOLATIONS
Personality Characteristics
– Equity Sensitives – monitor exchange relationships carefully and are more likely to perceive an imbalance in the relationship
– Beneficients – are more willing to let others come out ahead in the exchange relationship
RESPONSES TO VIOLATIONS
Constructive Destructive
Active Voice Exit/Destruction
Passive Loyalty/Silence Neglect/Silence
Exit
When attempts to fix the situation have failed When the relationship is transactional When another job is available When the relationship has been brief When other people are also exiting
Voice
When a positive relationship and trust exists When there are methods for voice When other people use voice When people believe they can influence the
other party.
Others
Silence: When there is strong loyalty to the company
Neglect or Destruction: When there are no other options available to express dissatisfaction
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
Psychological Contract Reading
Aren’t there two parties in an employment relationship? Antecedents and consequences of organization – employee agreement on contract obligations and
violations
By
A Tekleab & S. Taylor
Journal of Organizational Behavior, 2003
Purpose
Assessed employee tenure in determining the level of agreement of reciprocal obligations between parties
Evaluated the consequences of perceived violations of the psychological contract on employee-related outcomes
Comparison of manager/employee responses
Responses to violations
– Employees reported significantly lower levels of their own violations than did the manager
– Both parties tended to agree on organizational violations
– Both parties react negatively to violations
Comparison of manager/employee responses
Perceptions of obligations:
– Early in the manager/employee relationship employees had high expectations of their obligations to the organization while managers had low expectations of employee obligations
– As tenure of the employee increases perceptions of the employee obligations converge. Employee perceptions decreased and manger’s perceptions increased
– Perceptions of the organization’s obligations are not significantly different at any point in time. Parties agree on organization’s obligations
Employee/Manager perceptions of Employee Obligations
Employee perceptions
Manager perceptions
Time
Employee/Manager perceptions of Organization’s Obligations
Employee perceptions
Manager perceptions
Time
Responses to violations
Found the driving force for employee job satisfaction and their intent to leave was organizational contract violations
Found that manager’s judgment of employee performance was negatively impacted by perceptions of employee violations
The Generationswho they are; how they think
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
The Silent Generation (1922-1945)
The depression, WWII, Holocaust The most traditional – working fathers, at
home mothers, traditional work ethic Highly disciplined, hard working, much
sacrifice, loyal to their employer (employer loyal to them).
A source of much tacit information
Baby Boomers (1946-1964)
Product of the end of war baby boom and a consistent increase in birth rates until 1964
A time of affluence, opportunity Self-absorbed, free love, social issues, civil rights Educated, competitive, focused on personal
accomplishment– 1. lots of jobs, able to drop out and come back; 2. less jobs;
3. disadvantaged, high competition, going no-where fast (boiled frogs)
Want pensions, health care and to be left alone
Generation X (1965-1976)
Both parents working (latchkey kids), saw parents laid off, high divorce rate
Not loyal to a company, pessimistic Independent and resilient Want immediate feedback and work to be fun Want transferable skills, most stressed out
group
The Echo Generation/Generation Y (1977-2000)
Babies of the Boomers who gave their children everything and rewarded them for anything
Sense of entitlement, mostly interested in what will be given to them
Self confident, multitaskers, want to be guided (have goals set for them), hard workers, technologically savvy
want money, challenging work that matters, learning opportunities, harder to please, require more direction
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; to be part of the decision making process
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
How are the generations affecting work
Numbers!! Lack of employees to fill current jobs
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 ?
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?