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
Generational Histories
• The Silent Generation, born 1925-1942:
– Great Depression, World War II.
– Loyal to their organizations and a command-oriented
(hierarchical) leadership style.
• Baby Boomers: born 1943-1964:
–
–
–
–
high level of wealth in a booming economy
John F. Kennedy, Martin Luther King, Richard Nixon,
Vietnam, Watergate.
Have high levels of hope and idealism.
• Generation X: born 1965-1981 or 1965-1976:
–
–
–
–
children of dual career families, high divorce rates
Ronald Regan
Challenger disaster, the Gulf War
Are pragmatic (want to know the practical value) and cynical.
Baby Boomers
• Too many of them
– Entered a highly competitive environment
– Sacrificed to get ahead, keep a job
– Live to work
• Want pensions, health, and to be left alone
– Tired of change
– Want to be inspired not overly managed
Workplace Events Affecting Gen X
• Increased competition between organizations
– flattening hierarchies and teamwork
• change to informal workplace
• distrust of leadership
• reduced organizational loyalty
• rise in individual affluence and independence
• increased numbers of women in the workplace
Characteristics of Gen Xers
• financial well being is important.
• distrust hierarchy and preference more informal
arrangements.
– prefer to be judged on merit rather than status
– workplace participation and teamwork expected
• much less loyal to organizations than past
generations
Characteristics of Gen Xers
• see worklife as a replacement for the
social and civic community
• want balance in their lives (not all work)
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
• Historical events:
– Columbine and 911
– 24 hour media produces a more global perspective and an
expanded definition of diversity
• Characteristics
– Personal fulfillment is key
– Computer literacy and ease of communication/data collection
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
– Want transferable skills
• Offer an evolving workplace: expect new motivational
techniques; relationship-intensive environment; to be
part of the decision making process
Concerns about Gen Y
• Every performance is excellent. Input (effort) is
confused with output (achievement)
• Want to be treated as individuals and have
individual needs accommodated
– More confident in their own abilities
• 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
– Passion is replaced by standard of living (pay)
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
As a manager/employee…
1. Can you ensure that the psychological
contract is not broken? Why?
2. How would you ensure that a contract
with an employee remains - what would
you do before or at the pinch?
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.