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    Psychological Contract

    Uploaded by

    Dwaraganath Raja

    Copyright:

    © All Rights Reserved
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    Psychological Contract

    Uploaded by

    Dwaraganath Raja
    6 views7 pages

    Original Title

    psychological_contract

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    Download as ppt, pdf, or txt
    6 views7 pages

    Psychological Contract

    Uploaded by

    Dwaraganath Raja

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Psychological Contract

    The Psychological Contract


    • “An individual’s implicit belief in mutual
    obligations (expectations) between that
    person and another party” (Rousseau,
    1989)
    – Based on employees’ and employers’
    perceptions of obligations
    • Unspoken
    • Continually shifting
    Types of Psychological Contracts

    • Transactional
    – Short time frames
    – Specific obligations (e.g., financial)
    • Relational
    – Longer time frames
    – Diffuse obligations
    • Socio-emotional based (e.g., commitment,
    affiliation)
    Fulfilling/Violating Psychological
    Contracts
    • Fulfilling psychological contracts is associated with increased
    trust and cooperation (e.g., Conway & Briner, 2002).
    • Violating psychological contracts is associated with increased
    anger, frustration, and intentions to quit (Robinson &
    Rousseau, 1994).
    – Typical violations
    • Training
    • Compensation
    • Promotion
    • Job Security
    • People

    • When violated, contracts become more transactional and less


    relational
    Managing Psychological Contracts
    Planned
    SHARING INFORMATION termination
    Renegotiation
    under duress AND
    (new contract) NEGOTIATING

    Return to ROLE CLARITY


    Resentful the way things AND
    termination used to be COMMITMENT
    (misunderstanding) Planned
    renegotiation

    STABILITY
    Crunch
    Choice point Ignore

    Pinch
    Resentment, Choice point
    anxiety

    Ambiguity, DISRUPTION
    uncertainty OF
    SHARED EXPECTATIONS
    Why is this Useful to Know?
    • Changing nature of the workplace:
    – More part-time and temporary contracts
    – Flexible job descriptions
    – Doing more with less (downsizing)
    – Constantly changing service standards
    – Constantly changing technology
    – Changing attitudes about work.
    Application
    • Contract Content • Increasing Employee
    – Traditional Contract Commitment
    • Security for commitment – 3 dimensions of commitment
    • Affective
    – New Contract? • Normative
    • Fair pay • Continuance
    • Fair treatment
    • Opportunity to develop – Increasing commitment
    • Herzberg’s Theory
    – Younger generations? • Clear mission, vision, and values
    • Work-outside balance • Fairness
    • Excitement • Communication (Listening)
    • Community • Management style
    • Higher purpose • Managing expectations

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