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Chapter 1 The Psychological Contract and Commitment PowerPoint PPT Presentation


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Chapter 1 The Psychological Contract and Commitment. Objectives. Define the psychological contract and discuss the obligations of the contract currently in place Explain the importance of the psychological contract and what happens when it is violated

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Chapter 1 The Psychological Contract and Commitment

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Chapter 1

The

Psychological

Contract

and

Commitment


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Objectives

  • Define the psychological contract and discuss the obligations of the contract currently in place

  • Explain the importance of the psychological contract and what happens when it is violated

  • Explain the benefits of committed employees and what employers can do to foster commitment

1 -1

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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…Objectives

  • Describe external influences that affect workplace expectations

  • Explain the self-fulfilling prophecy and how managers can apply this concept

  • Explain the pinch model

  • Make a psychological contract with your professor

1 -2

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Mental maps defined l.jpg

Mental Maps - Defined

Our images, assumptions, and stories about every aspect of the world, which determine what we see and how we act.

1 -3

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Psychological contract defined l.jpg

Psychological Contract - Defined

An individual’s beliefs, shaped

by the organization, regarding

the terms and conditions of a

reciprocal exchange

agreement between individuals

and their organization

1 -4

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Social Exchange Theory - Defined

  • People enter into relationships in which not only economic, but also social obligations play a role

  • People are most comfortable when the exchange is balanced

    Psychological Contract

1 -5

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Importance of Psychological Contracts

  • Link individuals to organizations

  • Reflect the trust that is a fundamental feature of the employment relationship

  • Motivate individuals to fulfill their obligations (if they believe the other party will do the same)

1 -6

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Psychological Contracts

Dynamic relationship

defining employees’

psychological

involvement with

employer

Reflects perceptions of

expectations

Interpretations may not

be similar

Employee Contracts

Formal contract that specifies agreements such as hours and type of work in return for compensation and benefits

Psychological Vs. Employee Contract

1 -7

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Inadvertent

Disruption

Breach of

contract

Able and willing (divergent

interpretations made in good

faith)

Willing but unable (inability

to fulfill contract)

Able but unwilling (reneging)

Sources of Experienced Violation

1 -8

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Consequences of Broken Contracts

  • Outrage, shock, resentment, anger

  • Decreased trust and good faith

  • Decreased job satisfaction

  • Decreased productivity

  • Decreased attendance

  • Turnover

Causes

1 -9

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Realistic Job Previews - Defined

RJPs are a recruitment technique that

give accurate information about job

duties, and especially about the major

sources of job satisfaction and

dissatisfaction prior to

organizational entry

1 -10

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Employee commitment defined l.jpg

Employee Commitment - Defined

  • Emotional attachment to, involvement in, and identification with organization

  • Strong belief in and acceptance of organization’s goals and values

  • Willingness to exert considerable effort on behalf of organization

  • Strong desire to remain in organization

1 -11

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Advantages of Committed Employees

  • Higher performance

  • Higher job satisfaction

  • Adapt better to unforeseen circumstances

  • Better attendance records

  • Stay with the company longer

  • More organizational citizenship behavior

1 -12

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Organizational citizenship defined l.jpg

Organizational Citizenship - Defined

OCB refers to discretionary contributions that are organizationally related, but are neither explicitly required nor contractually rewarded by the organization, yet contribute to its effective functioning

1 -13

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Workplace incivility defined l.jpg

Workplace Incivility - Defined

Low intensity deviant behavior that violates

workplace norms for mutual respect; it may

or may not be intended to harm the target

  • Work effort

  • Productivity

  • Motivation

  • Creativity

  • Helping behaviors

  • OCB

Causes

decreased

1 -14

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Technological change

Rate of change in the business environment

Global economy

Changing economic conditions

Uncertainty for workers

Demands for performance, flexibility and innovation

Reengineering

Downsizing

Mergers & acquisitions

Business-Related Changes Impacting Psychological Contracts

1 -15

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Job-Related Changes Impacting Psychological Contracts

  • Outsourcing, off-shoring, subcontracting of work

  • Contingent and temporary employment for peripheral employees

  • Fewer full-time jobs and core employees

  • Relatively low union representation

  • Less job security

1 -16

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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External Factors that Impact Psychological Contracts

  • Demographics

  • Swings in employment

  • Nomadic nature of the workforce

  • Changing complexion of the workforce

  • Changing value trends

1 -17

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Projected Year 2012 Workforce

47%Women

65%White non-Hispanics

15%Hispanics

12%African Americans

6%Asians

1 -18

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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A Nomadic Work Force

  • 13 different jobs in the career of the average high school or college graduate

  • 10.2 different jobs from ages 18-38

  • Only a third (31%) of workers

    25 and up have worked 10 years

    with the same employer

1 -19

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Value Changes Affecting the Workplace

  • Shifting breadwinner and parenting roles

    What else?

1 -20

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Generations at Work

  • Baby Boomers (1946-1964) - self-fulfillment at work; fought against hierarchical authority; demand a voice in work decisions; work is central to lives; significant loyalty to corporate employers

  • Gen X (1965-1976) - Work less central and family; nonwork activities more important; identity less tied to work; less expectations of organizations and career stability

  • Gen Y (1976-2001) – prefer fun environment and teamwork; flexible work hours; looking for work with significance; idealistic

1 -21

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Cultural Differences in Psychological Contracts

  • Promises

    • Intention can equal follow through

    • Uncertainty/fate can reduce binding aspect

  • Zone of negotiability

    • Variation in type of employee conditions open for negotiation

  • Group identity

    • How “we” and “they” are defined influences trust/promise making

1 -22

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


Self fulfilling prophecy defined l.jpg

People perform in accordance with a rater’s expectations of them

Self-Fulfilling Prophecy - Defined

1 -23

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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The Pinch Model

1 -24

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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What’s Your Decision?

Which decision have you made about your workplace? About this course?

  • Join

  • Participate

    How do you get employees to participate?

1 -25

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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Responses to Violation

1 -26

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner


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