OB

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• Man 3240/Sop 3662
• Term A M/W 1100-1215
• Syllabus Fall 2003
• Professor Dr. Marian C. Schultz
• Journals
• Logos
• Roster
• Team Names

Organizational Behavior
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Psychological Contract
Chapter 1
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PSYCHOLOGICAL CONTRACT

• An individuals beliefs, shaped by the
  organization, regarding the terms and conditions
  of a reciprocal exchange agreement between
  individuals and their organization.

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Objectives

• Define and understand the importance of the
  psychological contract
• Explain the self-fulfilling prophecy
• Describe the external influences that affect
  workplace expectations
• Explain the pinch model
• Make a psychological contract

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OB

• Multidisciplinary
• Three Levels of Analysis Individual, Group, and
  Organizational
• Environmental Forces
• Performance Orientation
• Applied Orientation
• Change Orientation

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Environmental Changes Impacting Psychological
Contracts

• Technological change
• Rate of change in the business environment
• Global economy
• Changing economic conditions
• Uncertainty for workers
• Performance, flexibility and innovation

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Psychological Contracts

• Reengineering
• Downsizing
• Mergers and acquisitions
• Outsourcing and subcontracting of work
• Contingent and temporary employment for
  peripheral employees
• Fewer full-time jobs and core employees
• Relatively low union representation
• Less job security

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Model
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Broken Contracts

• Outrage, shock, resentment, anger
• Decreased trust and good faith
• Decreased job satisfaction
• Decreased productivity
• Decreased attendance
• Turnover

Cause
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Workforce Changes Impacting Psychological
Contracts
Demographics
Nomadic nature of the workforce
Changing complexion of the workforce
Changing value trends
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A Nomadic Work Force

• 13 different jobs for the average high school
  or college graduate
• 3.5 years on each job

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Projected Year 2020 Workforce

• 50 Women
• 68 White non-Hispanics
• 14 Hispanics
• 11 African Americans
• 6 Asians

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Self-Fulfilling Prophecy

• People perform in accordance with expectations
• People do what gets rewarded

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Mental Maps

• Our images, assumptions, and stories about
  every aspect of the world that determine what we
  see and how we act.

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Why Generations Differ

• Each generation is a product of historical events
  that shape their values and views of the world
• Emotional memories shape feelings about
  institutions, authority, materialism, family and
  careers

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Values
Who are we? How do we come across to others?
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• Our behaviors are absolutely correct for the time
  we grew up!
• Different is goodwe just have to work with it!

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Friends
Media
Education
Media
Family
Money
Military
Music
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Significant Emotional Event
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Manage Gen X

• Vary assignments
• Teach new skills
• Teach manners
• Keep in the loop
• Tie praise to a concrete reward
• Keep it fun

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Advantages of Committed Employees
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...Advantages of Commitment
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Earning Employee Commitment
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Earning Employee Commitment
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Earning Employee Commitment
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Earning Employee Commitment
Create a sense of community
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Earning Employee Commitment
Commit to actualizing/developing people
Provide first-year job challenge
Enrich and empower promote from within
Provide developmental activities
Provide employee security no guarantees
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