Schein 1978 actual terms remain implicit mutual

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Schein (1978): actual terms remain implicit; mutual expectations formed between employee and employer functions like a contract -> if one party fails to meet the expectations, serious consequences will follow (de-motivation, turnover, lack of advancement, or termination) 7 Downloaded by Shameer Babu Thonnan Thodi ([email protected]) lOMoARcPSD|4323350
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Donnerstag, 14. Dezember 2017 Key characteristics: - subjective and based on individual beliefs - unwritten and implicit set of expectations and mutual obligations between organizational members - negotiable and evolves throughout the employment relationship - when violated, it can have serious and damaging e ff ects - goes beyond the legal work contract - Underlying theories Equity theory - an individual’s disposition towards their psychological contract will remain positive as long as they feel that the treatment they receive is fair in comparison to others - Distributive Justice - Interactional Justice - Procedural Justice Exchange theory - how an individual invests or makes contributions in return for a particular reward or outcome - Valence (Wertigkeit) Expectancy theory - extent to which an individual’s expectations (reg. availability of valued outcomes) influence motivation and performance - A fair day’s work for a fair day’s pay - Content & process of contracting: Rosseau & Robinson (1994) „The psychological contract is more about beliefs in mutual obligations based on a reciprocal exchange“ Herriot and Pemberton (1995): Four stages of psychological contracting - Violation of psychological contract Employee expectations Employer expectations - reasonable job security - pay commensurate with performance - opportunities for learning and development - opportunities for promotion - supportive working climate - high performance levels - loyalty to organisation - commitment to organisational goals & values - creativity - ability to self-develop 8 Downloaded by Shameer Babu Thonnan Thodi ([email protected]) lOMoARcPSD|4323350
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Donnerstag, 14. Dezember 2017 Pate et al. (2003) - „a failure of the organization to fulfill one more obligations of an individual’s psychological contract“ Rosseau & Robinson (1994) - Reduction of trust by ‚wronged‘ party - Reduction of job and/ or organisational satisfaction - Employee’s desire to remain with the employer; subsequent increase in turnover - Depends on career orientation: those on a more transactional relationship will be less a ff ected by violations Guest et al. (1996) - Violation = consequence of repeated breaches (failure to keep its promises or its side of bargain), this triggers: - Emotional responses (frustration, anger, etc.) - Attitudinal responses (loss of motivation, cynicism, etc.) - Behavioural responses (reduced e ff ort, absenteeism, etc.) Line managers and contract violation - key role = initiating, maintaining, strengthening and enhancing psy. contract - violation possible if no adopting of consistent approach or behavior/actions (perceived) are not compliant with org. values and culture 9 Business environment Organisation’s wants and offers Organisation’s offers Organisation’s wants changed?
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  • Fall '19
  • Shameer Babu Thonnan Thodi

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