Chapter 1 The Psychological Contract and Commitment
Objectives Define the psychological contract Explain the importance of the psychological contract and what happens when it is violated Describe external influences that affect workplace expectations Explain the self-fulfilling prophecy and how managers can apply this concept Explain the pinch model Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -1
Psychological Contract - Defined An individual’s beliefs that they have been promised a future return for their contributions, creating an obligation to reciprocate Based in expectations Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -4
Social Exchange Theory - Defined People enter into economic and social relationships utilizing a cost-benefit analysis People are most comfortable when the exchange is balanced or the benefits of the relationship are greater than the costs Psychological Contract Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -5
…Psychological Contracts Subjective-based on perceptions which means that the individual parties may not have the same interpretation of the contract Mental Models-our images, assumptions, and experiences which determine how we understand and interpret the world
Consequences of Broken Contracts Outrage, shock, resentment, anger Decreased trust and good faith Decreased job satisfaction Decreased commitment Decreased productivity Decreased attendance Turnover Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -9
Business-Related Changes Impacting Psychological Contracts 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 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -15
Self-Fulfilling Prophecy - Defined People perform in accordance with a rater’s expectations of them Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -23
The Pinch Model Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 1 -24