Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 1 ©2001 by Prentice Hall, Inc. Chapter 1

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 2 ©2001 by Prentice Hall, Inc. Objectives Define and understand the importance of the psychological contract Explain the self-fulfilling prophecy Describe the external influences that affect workplace expectations Explain the pinch model Make a psychological contract with your professor List the characteristics of the field of OB

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 3 ©2001 by Prentice Hall, Inc. Characteristics of OB Multidisciplinary Nature Three Levels of Analysis: Individual, Group, and Organizational Acknowledgement of Environmental Forces Grounded in the Scientific Method Performance Orientation Applied Orientation Change Orientation

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 4 ©2001 by Prentice Hall, Inc. Mental Maps Our images, assumptions, and stories about every aspect of the world that determine what we see and how we act.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 5 ©2001 by Prentice Hall, Inc. PSYCHOLOGICAL CONTRACT An individual’s beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 6 ©2001 by Prentice Hall, Inc. Environmental 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 and acquisitions Outsourcing and subcontracting of work Contingent and temporary employment for peripheral employees

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 7 ©2001 by Prentice Hall, Inc. Environmental Changes Impacting Psychological Contracts Fewer full-time jobs and core employees Relatively low union representation Less job security

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 8 ©2001 by Prentice Hall, Inc. Workforce Changes Impacting Psychological Contracts Demographics Switch from high- to low-unemployment Nomadic nature of the workforce Changing complexion of the workforce Changing value trends

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 9 ©2001 by Prentice Hall, Inc. A Nomadic Work Force -13 different jobs for the average high school or college graduate –3.5 years on each job

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 10 ©2001 by Prentice Hall, Inc. Projected Year 2020 Workforce 50%Women 68%White non-Hispanics 14%Hispanics 11%African Americans 6%Asians

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 11 ©2001 by Prentice Hall, Inc. Self-Fulfilling Prophecy People perform in accordance with a rater’s expectations of them

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 12 ©2001 by Prentice Hall, Inc. Model for Managing Psychological Contracts

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 13 ©2001 by Prentice Hall, Inc. Broken Contracts Outrage, shock, resentment, anger Decreased trust and good faith Decreased job satisfaction Decreased productivity Decreased attendance Turnover Cause

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 14 ©2001 by Prentice Hall, Inc. Contract Makers’ Violations

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 15 ©2001 by Prentice Hall, Inc. Systems Contract Violations

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 16 ©2001 by Prentice Hall, Inc. Sources of Experienced Violation Inadvertent Able and willing (divergent interpretations made in good faith) Willing but unable (inability to fulfill contract) Disruption Able but unwilling (reneging) Breach of contract

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 17 ©2001 by Prentice Hall, Inc. RESPONSES TO VIOLATION

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 18 ©2001 by Prentice Hall, Inc. Why Generations Differ 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

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 19 ©2001 by Prentice Hall, Inc. How to Manage Gen X’ers Vary their assignments Teach them new skills Teach them some manners Keep them in the loop Tie praise for a job well done to a concrete reward Keep it fun

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 20 ©2001 by Prentice Hall, Inc. Advantages of Committed Employees Have the self-control required for teamwork, empowerment, and flatter organizations Display organizational citizenship behavior that benefits the organization Are “willing to help”

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 21 ©2001 by Prentice Hall, Inc....Advantages of Committed Employees Have better attendance records Stay with the company longer Work harder at their jobs Adapt better to unforeseeable occurrences Perform better

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 22 ©2001 by Prentice Hall, Inc. Earning Employee Commitment Commit to people-first values: Put it in writing Hire right-kind managers Walk the talk

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 23 ©2001 by Prentice Hall, Inc. Earning Employee Commitment Clarify and communicate your mission: Clarify the mission and ideology Make it charismatic Use value-based hiring practices Stress values-based orientation and training Build the tradition

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 24 ©2001 by Prentice Hall, Inc. Earning Employee Commitment Guarantee organizational justice: Have a comprehensive grievance procedure Provide for extensive two-way communications

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 25 ©2001 by Prentice Hall, Inc. Earning Employee Commitment Create a sense of community: Build value-based homogeneity Share and share alike Emphasize barn-raising, cross-utilization, and teamwork Get together

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 26 ©2001 by Prentice Hall, Inc. Earning Employee Commitment Support employee development: Commit to actualizing/developing people Provide first-year job challenge Enrich and empower; promote from within Provide developmental activities Provide employee security without guarantees