1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Employment Relationship and Career Dynamics C H A P T E R 18

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Dan Schmitt’s Career Dan Schmitt worked as operations manager at the Richmond Coliseum, temporary labor seller at Interim Services Inc., and marketing manager at the Richmond Athletic Club. These diverse job experiences came together when Schmitt launched RMC Events Inc., a Richmond, Virginia-based entertainment events security firm. D. Hoffmeyer/ Richmond Times-Dispatch

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Psychological Contract Defined Beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party. Inherently perceptual – both parties may have different interpretations of the psychological contract D. Hoffmeyer/ Richmond Times-Dispatch

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Transactional v. Relational Contracts Transactional Contracts Relational Contracts Time-frame Open-ended and indefinite Closed-ended and short-term Stability DynamicStatic PervasiveNarrow Scope More subjective Well-defined Tangibility Economic & socioemotional Economic Focus

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Three Types of Trust Identification Knowledge Highest level of trust Based on mutual understanding Medium level of trust Based on predictability Calculus Minimal level of trust Based on sanctions

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Job Security versus Employability Job Security Lifetime job securityLifetime job security Job are permanentJob are permanent Company manages careerCompany manages career Low emphasis on skill developmentLow emphasis on skill development Employability Limited job securityLimited job security Jobs are temporaryJobs are temporary Career self- managementCareer self- management High emphasis on skill developmentHigh emphasis on skill development

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e R. Kruyt, Vancouver Sun Adina Trowhill Smith, Free Agent As a ‘virtual assistant,’ Adina Trowhill Smith provides administrative support to people who are starting their own businesses or need extra help on quick notice. Smith has found more career fulfillment as a “free agent” than in her previous job as an employee with a computer firm.

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Contingent Work Defined Any job in which the individual does not have an explicit or implicit contract for long-term employment, or minimum hours of work can vary nonsystematically. R. Kruyt, Vancouver Sun

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Types of Contingent Workers FreeAgents TemporaryTemporaries (Transition to permanentworkforce) Desire for Permanent Employment Ability to Get Permanent Employment High Low Transients

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Reasons for Contingent Work Provides more flexibility  Contracting needed skills is faster than retraining Potentially reduces costs  Lower pay, fewer benefits, less union power Easier to contract services  Information technology supports free agents

11. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Contingent Work Force Issues Job satisfaction  Mixed evidence that free agents and temporary temporaries are more or less satisfied Job performance  Transactional psychological contract  Lower skills and experience  But may be higher for free agents

12. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Organizational Socialization Defined The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization.

13. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e InsiderInsider Changing roles and behaviorChanging roles and behavior Resolving conflictsResolving conflicts Stages of Socialization NewcomerNewcomer Testing expectationsTesting expectations OutsiderOutsider Gathering informationGathering information Forming psychological contractForming psychological contract Pre-Employment Stage Encounter Stage Role Management

14. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e IndividualAttractsOrganization IndividualSelectsOrganization OrganizationAttractsIndividual OrganizationSelectsIndividual Conflict A Conflict B Conflict CConflict D Pre-employment Socialization Conflicts

15. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Benefits of Realistic Job Previews Less turnover, higher job performance Less reality shock Vaccination effect Applicants self-select themselves Builds loyalty

16. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Holland’s Occupational Choice Theory Career success depends on fit between the person and work environment Holland identifies six “themes”  Represent work environment and personality traits/interests High Differentiation  Person is aligned with one theme, not mixed across two or more themes High consistency  Person’s preferences relate to similar themes (adjacent themes in Holland’s hexagon)

17. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Lateral Career Development Career success defined as challenging work, not number of steps up the hierarchy Reasons for lateral careers  Career ladder still clogged with baby boomers  More consistent with team-based organizations  More consistent with shift from job status to competencies

18. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Boundaryless Careers Idea that careers operate across company and industry boundaries, not just in one organization Reasons for boundaryless careers  Downsizing forced job changes  Employability psychological contract  Job hopping viewed more favorably

19. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Dealing with Boundaryless Careers Provide more career opportunities within the organization Try to build more loyalty Recognize that some job hopping is inevitable and desirable  keep track of former employees  welcome back boomerangers

20. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Andrew Wang’s Career Development Rather than jumping into a dotcom start-up, Andrew Wang is thinking about joining a company more aligned with his personal interests. “I’ve had this lifelong interest in cycling, so I'm now looking at the recreational industry for product-management positions,” says Wang, a recent MBA graduate. R. Harbison, © Christian Science Monitor

21. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Careers: Rules for the Road Ahead Understand your needs and values Understand your competencies Set career goals Maintain networks Get a mentor R. Harbison, © Christian Science Monitor

22. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e Employment Relationship and Career Dynamics C H A P T E R 18