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. Can you ensure that the psychological contract is not
broken? Why?2. What do employees do that you would consider a
breach of the contract? 3. What is most important to you to have in the contract?4. 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. Can you ensure that the psychological contract is not broken? Why?
2. What do employers do that you would consider a breach of the contract?
3. What is most important to you to have in the contract?4. 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 expectationsHave frequent discussions of expectations
Check employee understanding
Give feedbackBe sensitive to individual differencesCheck 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
Changing value trends
Nomadic nature of the workforce
Broken Contracts
• Outrage, shock, resentment, anger
• Decreased trust and good faith• Decreased job satisfaction• Decreased productivity• Decreased attendance• Turnover
Consequence
Contract Makers’ Violations
Sources ViolationsRecruiters Unfamiliar with actual job
OverpromiseManagers Say one thing, do another
Co-workers Failure to provide support
Mentors Little follow-through Few interactions
Top management Mixed messages
Sources ViolationsCompensation Changing criteria
Reward seniority, low job security
Benefits Changing coverage
Career paths Dependent on one’s manager Inconsistent application
Performance review Not done on time
Training Skills learned not tied to job
Documentation Stated procedures at odds with actualpractice
Systems Contract Violations
RESPONSES TO VIOLATION
Constructive Destructive
Active 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