The

1
Chapter 1 The Psychological Contract and Commitme
nt
2
Objectives

• Define the psychological contract
• Explain the importance of the psychological
  contract and what happens when it is violated
• Describe external influences that affect
  workplace expectations
• Explain the self-fulfilling prophecy and how
  managers can apply this concept
• Explain the pinch model

1 -1
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
3
Psychological Contract - Defined

• An individuals beliefs that they have been
  promised a future return for their contributions,
  creating an obligation to reciprocate
• Based in expectations

1 -4
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
4
Social Exchange Theory - Defined

• People enter into economic and social
  relationships utilizing a cost-benefit analysis
• People are most comfortable when the exchange is
  balanced or the benefits of the relationship are
  greater than the costs
• Psychological Contract

1 -5
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
5
Psychological Contracts

• Subjective-based on perceptions which means that
  the individual parties may not have the same
  interpretation of the contract
• Mental Models-our images, assumptions, and
  experiences which determine how we understand and
  interpret the world

6
Consequences of Broken Contracts

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

1 -9
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
7
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

1 -15
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
8
Self-Fulfilling Prophecy - Defined

• People perform in accordance with a raters
  expectations of them

1 -23
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner
9
The Pinch Model
1 -24
Organizational Behavior An Experiential Approach
8/E Joyce S. Osland, David A. Kolb, Irwin M.
Rubin and Marlene E. Turner