Organizational behaviour an experimental approach

Chapter 1

The
Psychological
Contract
and
Commitment
 Define the psychological contract and discuss
the obligations of the contract currently in place

 Explain the importance of the psychological
contract and what happens when it is violated

 Explain the benefits of committed employees
and what employers can do to foster
commitment
Objectives
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -1
…Objectives
 Describe external influences that affect
workplace expectations
 Explain the self-fulfilling prophecy and how
managers can apply this concept
 Explain the pinch model
 Make a psychological contract with your
professor

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

1 -2
Mental Maps - Defined
Our images, assumptions,
and stories about every
aspect of the world, which
determine what we see
and how we act.
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Psychological Contract -
Defined
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 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -4
Social Exchange Theory -
Defined
 People enter into relationships in which not
only economic, but also social obligations
play a role
 People are most comfortable when the
exchange is balanced

Psychological Contract
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Importance of Psychological
Contracts
 Link individuals to organizations

 Reflect the trust that is a fundamental feature of
the employment relationship

 Motivate individuals to fulfill their obligations (if
they believe the other party will do the same)

Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -6
Psychological Vs. Employee
Contract
Psychological Contracts
 Dynamic relationship
defining employees’
psychological
involvement with
employer
 Reflects perceptions of
expectations
 Interpretations may not
be similar
Employee Contracts

 Formal contract that
specifies agreements
such as hours and
type of work in return
for compensation and
benefits
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -7
Sources of Experienced
Violation
 Inadvertent


 Disruption


 Breach of
contract
Able and willing (divergent
interpretations made in good
faith)

Willing but unable (inability
to fulfill contract)

Able but unwilling (reneging)

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

1 -8
Consequences of
Broken Contracts
 Outrage, shock, resentment,
anger
 Decreased trust and good faith
 Decreased job satisfaction
 Decreased productivity
 Decreased attendance
 Turnover
Causes
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -9
Realistic Job Previews -
Defined
RJPs are a recruitment technique that
give accurate information about job
duties, and especially about the major
sources of job satisfaction and
dissatisfaction prior to
organizational entry
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -10
Employee Commitment -
Defined
Emotional attachment to, involvement in, and
identification with organization
Strong belief in and acceptance of

organization’s goals and values
Willingness to exert considerable effort on
behalf of organization
Strong desire to remain in organization


Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Advantages of Committed
Employees
 Higher performance
 Higher job satisfaction
 Adapt better to unforeseen circumstances
 Better attendance records
 Stay with the company longer
 More organizational citizenship behavior
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -12
Organizational Citizenship -
Defined

OCB refers to discretionary contributions that
are organizationally related, but are neither
explicitly required nor contractually rewarded by
the organization, yet contribute to its effective
functioning
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

1 -13
Workplace Incivility - Defined

Work effort
Productivity
Motivation
Creativity
Helping behaviors
OCB
Causes
decreased
Low intensity deviant behavior that violates
workplace norms for mutual respect; it may
or may not be intended to harm the target

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


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

 Outsourcing, off-shoring, subcontracting
of work
 Contingent and temporary employment
for peripheral employees
 Fewer full-time jobs and core employees
 Relatively low union representation
 Less job security

Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -16
External Factors that Impact
Psychological Contracts
 Demographics
 Swings in employment
 Nomadic nature of the workforce

 Changing complexion of the workforce
 Changing value trends

Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Projected Year 2012
Workforce
 47% Women
 65% White non-Hispanics
 15% Hispanics
 12% African Americans
 6% Asians
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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A Nomadic Work Force
 13 different jobs in the career of the average
high school or college graduate

 10.2 different jobs from ages 18-38

 Only a third (31%) of workers
25 and up have worked 10 years
with the same employer
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -19
Value Changes Affecting the
Workplace

Shifting breadwinner and parenting
roles

What else?
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Generations at Work
 Baby Boomers (1946-1964) - self-fulfillment at work;
fought against hierarchical authority; demand a voice in
work decisions; work is central to lives; significant loyalty
to corporate employers

 Gen X (1965-1976) - Work less central and family;
nonwork activities more important; identity less tied to
work; less expectations of organizations and career
stability

 Gen Y (1976-2001) – prefer fun environment and
teamwork; flexible work hours; looking for work with
significance; idealistic
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -21
Cultural Differences in
Psychological Contracts
 Promises
 Intention can equal follow through
 Uncertainty/fate can reduce binding aspect

 Zone of negotiability
 Variation in type of employee conditions open
for negotiation

 Group identity
 How “we” and “they” are defined influences
trust/promise making

Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -22
Self-Fulfilling Prophecy -
Defined

People perform in accordance with a
rater’s expectations of them

Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -23
The Pinch Model
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -24