mgt ch. 8 outline - Chapter 8 Outline I Psychological Contracts a Psychological contract an employees perception of his or her exchange relationship

Chapter 8 Outline I) Psychological Contracts a) Psychological contract: an employee’s perception of his or her exchange relationship with an organization, outcomes the organization has promised to provide to the employee, and contributions the employee is obligated to make the organization i) Can be subject to errors and biases b) Determinants of psychological contracts i) Direct communication (1) Realistic job preview: an honest assessment of the advantages and disadvantages of a particular job of working in an organization (a) These realistic job previews enable potential employees to make informed decisions about whether or not they would fit in well at a company ii) Observation iii) Written documents c) Types of Psychological Contracts i) Transactional contracts: tend to be short-term and very specific. Relatively flexible. Ex= contingent workers ii) Relational contracts: longer term, more general, and evolve gradually over time. The employee has a strong commitment to the organization. Ex= university professors with tenure d) When psychological contracts are broken, employees are more likely to feel dissatisfied at work, experience negative moods and emotions, and start looking for employment elsewhere II) Performance Appraisal a) Performance appraisal: evaluating performance to encourage employee motivation and performance and to provide information to be used in managerial decision making b) Encouraging High Levels of Motivation and Performance i)