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14 Cards in this Set

  • Front
  • Back

Psychological contract (PC)

An individual's beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization(org). (Rooted in social exchange theory)

The importance of PC

They link individuals to orgs, reflect the trust that is a fundamental feature of the employment relationship, and motivate individuals to fulfill their obligations -- if they believe the other party will do the same.

What happens when PC is violated.

People respond emotionally with moral outrage, shock, indignation, betrayal, resentment, and anger. Violated contracts also result in decreased employee satisfaction, performance, commitment, discretionary behavior to help the organization, and intentions to remain with the org.

Commitment (PPT)

*Emotional attachment to the org..


*Identification with the org.


*Strong beliefs in, and acceptance of the org's goals and values.


*A willingness to exert considerable effort on behalf of the org.


*A strong desire to remain in the org.


*Only 20% across the globe are fully engaged.

The benefits of committed employees.

Committed employees have higher performance, greater ability to adapt to unforeseen circumstances, higher attendance, longer job tenure, and more organizational citizenship behavior.

What employees can do to foster commitment.

Employees can foster commitment by clarifying and communicating the organization's mission, guaranteeing organizational justice, creating a sense of community, and supporting employee development.

Describe external influences that affect workplace expectations.

External influences, such as adapting to a global economy, economic and employment conditions, demographics, and societal change, affect workplace expectations and PCs.

Explain the self-fulfilling prophecy and how managers can apply this concept.

The phenomenon of the self-fulfilling prophecy occurs when people perform in accordance with a rater's expectations of them. Managers with high expectations of employees are more likely to have their expectations met.

Explain the pinch model.

The pinch model illustrates how to manage the psychological contract and avoid major disruptions by heeding early warning signs that expectations have changed and need to be reconsidered.

The Pinch Model (PPT)

Given change and variability in expectations, it is crucial to identify and share mutual expectations in an ongoing fashion.

Stages of Pinch Model (PPT)

1. Share info and negotiate expectations.


2. Clarify roles and establish joint commitments.


3. The Pinch: Discuss and renegotiate expectations.


-Disruption of shared expectations?


-Heightened ambiguity and uncertainty?


-Return to the way things used to be?


-Resentful terminations?

Common sources of contract violations.

*"Over-promising" about the job during recruitment; unfulfilled promises.


*Managers saying one thing and doing another.


*Failure to provide support for employees.


*Mixed messages from management.


*Changing performance expectations.


*Little communication, few interactions.

What do today's employees want? (PPT)

*Wide-open flexibility: Flex-time, work-at-home options.


*Broader programs: Family friendly programs expanded, environmentally friendly offices, fitness centers on-site.


*Vacation time: More than long weekends to more weeks!

The current "Twentysomethings"--Millenials--are being labeled as having high expectations: (PPT)

*The entitlement generation


*High expectations for salary and job


*Flexibility but with little loyalty


*High levels of idealism and altruism


*Computer, internet, hi-tech literate


*Heavily committed to "fun" and teams