Violations of Psychological Contract

1. Violations of Psychological Contract Training/Development Absence of training opportunities. Example, when a new computer system was installed, employees expected to go through formal training to use it. No training program was launched. Compensation Discrepancies between expected and actual pay, benefits, and bonuses. Example, Clark Griswold expected to receive a big Christmas bonus that he could use to build his new pool. So, he was very upset when the company decided to get rid of the bonus and substitute it with the Jelly of the Month Club.

2. Violations of the Psychological Contract Promotion Expected promotion not received. Example, an employee has been waiting for a position to open thinking that he or she is next in line. When the position does open, the employee is bypassed for a younger, less experienced prot�g�. Job Security Job security threatened or removed. Example, a company has a strong belief in a no layoff policy. However, when a recession hits, they let people go. Feedback Performance feedback inadequate. Example, annual performance reviews are not conducted as they should be.

3. Factors that Determine Employee�s Reactions to Violations Transactional vs. relational contract Transactional: short term, specific agreements, often focused on money, very self-interested. Relational: long term, ambiguous obligations, often including a social component (loyalty, affiliation) Violations of transactional contracts usually less severe due to their less personal nature. Example: Temporary employees at a company are passed over during the feedback phase of the annual performance evaluation. They feel less betrayed due the short-term, transactional nature of their employment.

4. Factors that Determine Employee�s Reactions to Violations Severity of Violation For minor violations, the employee may forgive the transgression. However, the more serious the violation (e.g., loss of job, public humiliation) the greater the chance of retaliation. Perceived Accountability - how voluntary was the transgression? Example, employees less likely to feel violated when they think company had no choice but to reduce the workforce. Procedural Justice - how is the violation handled. Example, employees more likely to feel violated when downsizing efforts are not announced with adequate notice.

5. Effects of Violations Moral outrage/ feelings of betrayal (relational) Transition from relational to transactional - increased psychological distance and less commitment. Five responses to violation: Voice � concern is expressed, frequently there is reluctance to use formal processes, �whistleblowers� may get reprisals from management Silence � compliance but not commitment Retreat � passivity, negligence, shirking Destruction � retaliation � theft, threats, sabotage, violence - in the most severe cases, the worker �goes postal.� Exit � quit or provoke the organization to fire them

6. Downsizing Downsizing is a common violation Terminated Personnel psychological and physical strain learned helplessness lowered self-esteem depression Surviving personnel reduced trust reduced commitment to organization stress due to increased workload guilt Negative effects not as bad as they once were; employees don�t expect lifelong employment.

7. Mergers & Acquisitions Merger = joining of 2 �equal� organizations. Acquisition = purchasing of one organization by another organization. Purchaser has more dominant role Parent vs. target Parent organization acquires target Important factors include parent�s culture and arrogance toward target. Impose new culture or allow transition? Can be interpersonal, cultural, managerial Outcomes Organizational culture change Employee Stress (sense of loss, grief can influence how react to change) Turnover (both voluntary and involuntary)

8. Antisocial Behavior Range of employee behaviors aimed at exacting revenge for perceived injustice (insults to violence) Process Perceived injustice: betrayal of psychological contract. Supervisors are often the targets of aggressive behavior by subordinates who receive negative performance evaluations. Escalation - injustice countered with a retaliatory act. Implication: role of communication Many conflicts can be avoided by discussing the initial injustice rather than escalating. Treat employees with dignity and respect and sensitivity, will then tolerate organizational justice violations that would normally cause retaliation.

9. Antisocial Behavior �Spiraling effect� refers to workplace incivility escalating into intense aggressive behavior. Thermodynamics of revenge based on the violation of psychological contract and organizational justice Event occurs and employee heats up Venting occurs when employee talks to friends to blow off steam, no intention of causing harm Dissipation occurs when employee gives harm-doer benefit of the doubt, searches for explanations of behavior Fatigue occurs when employee maintains negative feelings for extended periods, obsesses, want to get even with harm-doer Explosion occurs when employee active seeks to prove harm-doer wrong, mobilize opposition, engages in physical violence. �Going postal�

10. Workplace Violence Escalating nationwide, number of employees who killed their managers has doubled in last 10 years. �Disgruntled� is the term heard most. Key factors: Employee sees organization as violating psychological contract, accept no responsibility for their behavior, maladaptive personalities, experienced interpersonal conflict Aggression product of individual and situational factors: Density noise, heat, alcohol use

11. Workplace Violence Organizational strategies to deal with workplace violence: Preventative strategies � recognize issues before they arise Reactive strategies � emergency plans to help recognize and deal with situations when they occur. Rehabilitative strategies � help employees cope and recover from problems. Especially important to have interventions during organizational downsizing.

12. Attitudes in a Context Strong vs. Weak Situations In a weak situation, individual differences (attitudes) control peoples� behaviors. In strong situations, situational characteristics control behavior. Person-Organization Fit The match between the individual�s characteristics and the characteristics of the organization. Example, if an organization has a social climate and an employee is introverted the P-O fit is low. Outcomes: Job satisfaction OCBs Lowered Turnover