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OB notes.docx - lChapter 1: psychological contract Creating...

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lChapter 1: psychological contractCreating a great workplaceA great work place is a place where employees trust the people they work for, have pride inwhat they do and enjoy the people they work with.• Trust: credibility and believability, competence and integrity• Ways to be believable:o Sharing information broadlyo Accessibility to employees (usually have an open door policy)o Willingness to answer hard questionso Delivering on promiseso Showing recognition and appreciationo Demonstrating personal concernThe Knowledge Base• positive relationship with employees is a competitive advantagePsychological Contract: an individuals beliefs, shaped by the organization, regarding theterms and conditions of a reciprocal exchange agreement between individuals and theirorganization.• Mutual expectation that they have of one another• Outputs employers will see and rewards employees will get• Social Exchange Theory: argues that people enter into relationships in which not onlyeconomic but also social obligations play a role and that people are most comfortable whenthe exchange is balanced• focus on a dynamic relationship that defines the employees psychological involvementwith the employer• reflect EACH parties expectation of the other• Broken contracts are when someone fails to fill an obligation, trust and good faith aredestroyedo Difference between unwilling and unableo Emotional Reactions: Moral outrage, shock, indignation, betrayal, resentment, angero Decreased: job satisfaction, performance, commitment, attendance, discretionary effort,desire to continue with organization.Realistic Job Preview: a recruitment technique that gives accurate information about jobduties, and especially about the major sources of job satisfaction and dissatisfaction prior toorganizational entry.• More accurate view of the physiological contractlately for employees there has been a simultaneous loss of job security accompanied byincreasing demands for performance, flexibility and innovation. This has led to greater job-related stress and the dawning that employees are becoming “free-agents”.Commitment: emotional attachment to the organization; identification to the organization;involvement in the organization; strong belief in, and acceptance of the organizations beliefsand goals.Organizational citizenship behavior: discretionary contributions that are organizationallyrelated, but are neither explicitly required nor contractually rewarded by the organization.• Employees perform better when they have: long term relationships with the company,work in teams and when employersINVESTin employee careersIncivility: low-intensity deviant behavior that violates workplace norms for mutual respect; it
may not be intended to harm the target.

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Term
Spring
Professor
Smart
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