L14 - Org Psych - psychological contract Flashcards
What is the psychological contract?
An implied relationship between the employer and employee based on mutual contribution and assumptions
an unwritten and implied exchange - each party assumes the other party has made promises that haven’t been explicitly stated
an employee assuming job security or promotion in return for hard
work and loyalty (whether the employer believes this or not)
what is this an example of
a psychological contract
an implied contact
Does the employer and the employee need to agree for there to be a psychological contract?
No - it is all implied and therefore there could be different assumptions of what is expected of the other party
What are the 2 ways in which the psychological contract is used to explain employee behaviour?
(Muchinsky, 2016)
1) how reciprocal promises oblige employee behaviour (to do things for their employer)
2) how employees react when they believe promises made are broken
Rousseau and Parkes (1993) said that
_____ itself is perceived as a promise and an employee’s performance is perceived as a contribution
this is an example of:
employment
example of the psychological contract
Generally, the power is typically seen as being in the hands of the ______
employer
What impact does the employer having more power over the employee have over the terms of the psychological contract
The terms of the contract seem to be dictated by the employer
Employee has to accept what they get or they have to leave - limited things they can do if there is violations
When does the violation of the psychological contract happen?
when one party in a relationship perceives another as failing to fulfil promised obligations
e.g. lack of security or no promotion after working hard
“I perceived a promise that I had a good chance of promotion to manager in one year. While I received excellent performance ratings, I was not promoted after 12 months ..”
What is this an example of?
Violation of the psychological contract
Violations of the psychological contract by an employer may have what impact on the beliefs of the employee towards the organisation?
what they feel they are owed
what they feel they are obliged to give back
they are seen to undermine trust that led to the emergence of the relationship (integrity of employer is questioned)
What has violations of the psychological contract been shown to lead influence?
negatively influence employee’s trust, job satisfaction, intent to remain with the organization, commitment and performance
Research has shown that following a violation, psychological contracts tend to become more 1)_________ and less 2)_________
What does this mean?
- transactional
- relational
Focus is less on the relationship (emotional aspects of the work) with the company and more on just doing what you are paid to do (focus on monetary benefits of their work)
What are the 5 steps of action done by the employee that tend to follow a violation of the psychological contract by the employer (and if it is not rectified)?
- Employee voices concern over violation and seeks to re-instate the contract
- If unsuccessful, voice is followed by silence
- This is followed by retreat
- Then sabotage may occur
- Exit / dismissal
Why are employees generally reluctant to use a formal complaint?
Fear of retaliation or being seen as a troublemaker by the employer
confrontation is typically done outside of formal channels
Greenberg found what in regard to reactions that factory employees had when they received a reduction in pay?
one factories workers were told that they would be recieving a decrease in pay, but they were given the reason why and given an explanation
another had a deduction of pay but no reason
reason = accepted a decrease in pay without incident
no reason why = reacted with resentment, reaction and acts of theft
Greenburgs research suggests that _______ is very important to keep the relationship between employees and employers in tact and keep up job satisfaction and productivity
communication
What has been argued that more research needs to be done on, in regards to the psychological contract?
3 things
– How it is seen from the employer’ s side
– What happens when the contract is kept?
– If violated, to what extent can it be repaired?
Work/family conflict can also be called
Work-life balance