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Chapter 1 The Psychological Contract and Commitment

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

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Chapter 1 The Psychological Contract and Commitment

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  1. Chapter 1 The Psychological Contract and Commitment

  2. 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 1 -1 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  3. 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 1 -4 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  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 1 -5 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  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

  6. Consequences of Broken Contracts • Outrage, shock, resentment, anger • Decreased trust and good faith • Decreased job satisfaction • Decreased commitment • Decreased productivity • Decreased attendance • Turnover 1 -9 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  7. 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 Business-Related Changes Impacting Psychological Contracts 1 -15 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  8. People perform in accordance with a rater’s expectations of them Self-Fulfilling Prophecy - Defined 1 -23 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

  9. The Pinch Model 1 -24 Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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