Chapter 1
Objectives
• Examine generational work expectations
• Define and understand the importance of the
psychological contract
• Explain the pinch model
• Examine the influences that affect workplace
expectations
• Work on a psychological contract with your
professor
Why Generations Differ
• Each generation is a product of historical
events that shape their values and views
of the world
• Emotional memories shape feelings about
institutions, authority, materialism, family
and careers
Gen X’ers
•
•
•
•
•
Vary their assignments
Teach them new skills
Teach them some manners
Keep them in the loop
Tie praise for a job well done to a concrete
reward
• Keep it fun
Generation Y: The Echo
Generation
• Are you any different from Generation X?
• What are you perceptions of what a career
and work should be?
Generation Y: The Echo
Generation
• 76 million Baby Boomers; 44 million Gen Xers; 80 million
Gen Y
• Generation Y born approximately
1976-1995
• 24 hour media produces a more global perspective and
an expanded definition of diversity
• Computer literacy and ease of communication/data
collection
• Personal fulfillment is key
Observations about Gen Y
• Offer choices: expect state-of-the-art,
cooperative scheduling , many choices with
freedom to pursue them
– Want work-life balance
• Offer training opportunities (all generations):
expect coaching and rewarding
• Offer an evolving workplace: expect new
motivational techniques; relationship-intensive
environment
Concerns about Gen Y
• Every performance is excellent. Input (effort) is
confused with output (achievement)
• Passion is replaced by standard of living (pay)
• Short-term time management is the priority.
Getting to the next event has replaced getting
the most out of the experience
– Short-term career outlooks
What is the
Psychological
Contract?
PSYCHOLOGICAL
CONTRACT
An individual’s beliefs,
shaped by the
organization, regarding
the terms and conditions
of a reciprocal exchange
agreement between
individuals and their
organization.
Pinch Model for Managing
Psychological Contracts
I. As a manager…
1.
2.
3.
4.
Can you ensure that the psychological contract is not
broken? Why?
What do employees do that you would consider a
breach of the contract?
What is most important to you to have in the contract?
How would you ensure that a contract with an
employee remains - what would you do before or at
the pinch?
II. As an employee…
1.
2.
3.
4.
Can you ensure that the psychological contract is not
broken? Why?
What do employers do that you would consider a
breach of the contract?
What is most important to you to have in the contract?
How would you ensure that the contract with an
employer remains - what would you do before or at the
pinch?
Summary
• Do employees and employers have the
same perceptions?
• Can we use this information to ensure that
we are a better employee/employer?
– The decision to join and the decision to
participate.
Managing the Psychological
Contract
Provide realistic job expectations
Have frequent discussions of expectations
Check employee understanding
Give feedback
Be sensitive to individual differences
Check for changes in expectations
Environmental Changes Impacting
Psychological Contracts
• Technological change
• Rate of change in the
business environment
• Global economy
• Changing economic
conditions
• Demands for
performance, flexibility
and innovation
• Reengineering
• Downsizing
• Mergers and acquisitions
• Outsourcing and
subcontracting of work
• Contingent and
temporary employment
for peripheral employees
• Uncertainty for workers
Workforce Changes Impacting
Psychological Contracts
Demographics
Nomadic nature of the workforce
Changing value trends
Broken Contracts
• Outrage, shock, resentment,
anger
• Decreased trust and good faith
• Decreased job satisfaction
Consequence • Decreased productivity
• Decreased attendance
• Turnover
Contract Makers’ Violations
Sources
Violations
Managers
 Unfamiliar with actual job
 Overpromise
 Say one thing, do another
Co-workers
 Failure to provide support
Mentors
 Little follow-through
 Few interactions
Top management
 Mixed messages
Recruiters
Systems Contract Violations
Sources
Violations
Compensation
 Changing criteria
 Reward seniority, low job security
Benefits
 Changing coverage
Career paths
 Dependent on one’s manager
 Inconsistent application
 Not done on time
Performance review
Training
Documentation
 Skills learned not tied to job
 Stated procedures at odds with actual
practice
RESPONSES TO VIOLATION
Active
Constructive
Destructive
Voice
Neglect/Destruction
Passive Loyalty/Silence
Exit
Advantages of Committed
Employees
Have the self-control required for teamwork,
empowerment, and flatter organizations
Display organizational citizenship behavior that
benefits the organization
Are “willing to help”
...Advantages of Committed
Employees
Have better attendance records
Stay with the company longer
Work harder at their jobs
Adapt better to unforeseeable occurrences
Perform better