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The Psychological Contract: Violations and Modifications

The Psychological Contract: Violations and Modifications. Alam Khan MGMT-6600 MTSU Spring 2012. Author: Denise M. Rousseau. University Professor of Organizational Behavior and Public Policy at Carnegie Melon University

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The Psychological Contract: Violations and Modifications

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  1. The Psychological Contract:Violations and Modifications Alam Khan MGMT-6600 MTSU Spring 2012

  2. Author: Denise M. Rousseau • University Professor of Organizational Behavior and Public Policy at Carnegie Melon University • Expert: Over a dozen books & 160 articles and monographs in management and psychology journals

  3. Article discusses….

  4. …I believe you have my stapler……..”Office Space”About some dissatisfied employees at work!! ….

  5. Contract Violation Mental Model Promises Acceptance Reliance Perceptions Dissatisfaction Lower Performance Trust Erosion High Turnover

  6. What is Contract Violation? … Failure to comply!

  7. Types of Violations Example Theme: Relationship Inadvertent Violation - Both parties at fault (an un-intentional mishap) Disruption - Circumstances are such (an External Factor involved) Breach of Contract - One side refuses to (otherwise capable )

  8. The Psychological Contract Her study brings up scenarios like, • “They promised me…….” • “I discussed my disappointment…….” • “I was assured that,………………” • “They said the situation was……….” • “I was given new assignments……….” • “I was unhappy with……….” - Contract violation erodes TRUST

  9. When contract is violated… Types of Responses… Voluntary termination Actions victims take Silence is a form of Relationship… to remedy the Violation of non-response Exit Voice Loyalty

  10. Violation Isn’t the End of Contract… According to Robinson and Rousseau study in 1994 ; When asked if their contract had been … VIOLATED………………...YES………. 59% Ultimately FULFILLED….YES…..……73% Response to Violation is a function of attributions made regarding the violators’ motives, the behavior of the violator and scope of losses. Experience of Violation is greater… LOSSES seem GREATER EVENT occurs in the CONTEXT VIOLATION appears to be VOLUNTEERY NO EVIDENCE of GOOD FAITH

  11. Violation Isn’t the End of Contract…

  12. What do you think… • Situation where you thought there was a Contract Violation • What was Your Reaction Exit Voice Loyalty Why Results

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