People in Organizations Understanding the basic nature of the individual-organization interface helps us appreciate the nature of individual differences. These differences, in turn, play a critical role in determining various important workplace behaviors of special relevance to managers.

The Psychological Contract Psychological Contract –A psychological contract is a person’s set of expectations regarding what he or she will contribute to the organization and what the organization, in turn, will provide to the individual.

The Psychological Contract - Effort - Ability - Loyalty - Skills - Time - Competencies - Pay - Job Security - Benefits - Career Opportunities - Status - Promotion Opportunities Contributions from the Individual Inducements from the Organization

The Person-Job Fit Person-Job Fit –The extent to which the contributions made by the individual match the inducements offered by the organization.

Model for Managing Psychological Contracts Sharing Information And Negotiating Expectations Role Clarity And Commitment Stability Pinch (choice point) Disruption of Shared Expectations ambiguity uncertainty resentment anxiety Crunch (choice point) planned renegotiation planned termination resentful termination return to the way things used to be renegotiation under duress

Individual Differences –Personal attributes that vary from one person to another. –Individual differences include personality, attitudes, perception, and creativity.