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Organizational Behavior and Psychological Contracts Presentation
- 1. Organizational Behavior and Psychological Contracts 4, Dec 2020 Presented by Aakriti, Francezca, Jackson and Tariq
- 2. Table of contents • Definitions • Content • Correlation • Characteristics • Types of Psychological contracts • Challenges • Conclusions • Practical recommendations
- 3. Have you experienced that? Have you ever quitted a job because of the change of expectation, while it was not well addressed by the employer? https://www.menti.com/rrd7hgvrb9
- 5. Organizational Behavior Organizational behavior addresses the conception of the behavior of human beings in organizational settings. This includes individual as well as group behavior. The aim of this field of study is to improve organizational performance and efficiency
- 6. What is Psychological Contract? The psychological contract, as an implied concept that is promise based before associating with an organization, is defined by reciprocal expectations of employees and organizations. Its apparentness mostly emerges in case of a breach of this unwritten contract. Moreover, the psychological contract can be seen as an assurance of mutual utility, due to fulfilment of the respective expectations of both parties.
- 7. The priorities and ambitions of an employer… Being the best Results Rapid growth Team Work Expertise Efficient Commitment
- 8. Promotion Financial recognition Environment Aspirations and values Roles and responsibilities From the employee perspective
- 9. How Psychological Contract is related to Organization Behavior Correlation: • As the Psychological Contract refers to the relationship between an employer and its employees, and specifically concerns mutual expectations of inputs and outcomes. • In terms of Organizational Behavior; Psychological Contract is not a tool neither a process. The Psychological Contract is a model and a philosophy which can guide us in the way we structure and manage organization Behaviour, and deal with employees within them. Source: Academy of Strategic Management Journal - Volume 18, Issue 1, 2019 - Bhawna Chahar, Manipal University Jaipur
- 10. Correlation VC PC Venn Diagram VC PC Visible Contract: the usual written employment contractual obligations on both sides to work safely and appropriately in return for a rate of pay or salary, usually holidays also, plus other employee rights of notice and duty of care. Psychological Contract: which is Implicit, hidden, unspoken, unwritten, exerts a large influence on behaviour, feelings and attitudes. Resources: BusinessBalss - 2010 Employee Employer
- 11. How Psychological Contract is related to Organization Behavior • Positive correlation among the various components of Psychological Contract and Organizational Behavior of employees of higher educational institutes. • It was found that psychological contract is a strong predictor of organizational behavior. The strong positive relationship between psychological contract and organizational behavior calls management to ensure the fulfillment of psychological contract as to gain competitiveness. • From the organizational behavior perspective, the psychological contract provides opportunities to advance our understanding about work related needs which is essential for building strong human capital in the organization. Source: Academy of Strategic Management Journal - Volume 18, Issue 1, 2019 - Bhawna Chahar, Manipal University Jaipur
- 12. How Psychological Contract is related to Organization Behavior • It is suggested that management styles that fulfills employee intrinsic needs such as opportunities for personal development, proper management support, developing proper work environment should be incorporated for enhanced organizational behavior. • The outcomes will be of great value to management and well as Human Resource Practitioner for designing appropriate strategies for strong emotion bonding between employer and employee and will be helpful in strengthening behavior of employees. Source: Academy of Strategic Management Journal - Volume 18, Issue 1, 2019 - Bhawna Chahar, Manipal University Jaipur
- 13. How Psychological Contract is related to Organization Behavior Employee's feelings and attitudes act on two levels: • Employee feelings and attitudes are strongly influenced by their treatment at work (an aspect of the Psychological Contract) • Employee feelings and attitudes strongly influence how they see themselves and their relationship with the employer, and their behaviour towards the employer (also an aspect of the Psychological Contract). Source: Academy of Strategic Management Journal - Volume 18, Issue 1, 2019 - Bhawna Chahar, Manipal University Jaipur
- 14. RECLUITMENT • The parties discuss the formal aspects of the labor relationship • There are gaps in the understanding because no one articulates their expectations SELECTION • Employee can fill those gaps by talking to his colleagues, reading the publications of the company and receiving feedback. • The psychological contract will be formed from all this information MAINTENANCE • Requires each party to meet or exceed its obligations STEPS OF CREATING PSYCHOLOGICAL CONTRACTS
- 15. Types of Psychological contracts TRANSACTIONAL TRANSITIONAL RELATIONAL BALANCED Duration of employment relation Performance & Behavior “Psychological Contract Inventory Technical Report .” Rousseau (1995,p.98)
- 16. What happens if my expectations were not met?
- 17. Challenging issues associated with the changing psychological contract Recent economic conditions have resulted in reducing middle management position Middle managers have become the group whose psychological contract has been most severely violated Middle managers feel that they work harder and under tighter controls but without receiving compensation for the increased job pressure. Managers always felt that their psychological contract had been violated in these areas: ‧Responsibility and power ‧Input into decision making ‧Job security ‧Opportunities for advancement Middle management Source: Heather Maguire : The changing psychological contract: challenges and implications for HRM, organisations and employees
- 18. Employee reaction Organization reaction Violation of psychological contract Contract maintenance ----------------------------- Refusal to maintain contract Contract maintenance ----------------------------- Refusal to revise contract Voice Silence, Retreat, or Destruction Exit Source: Shore & Tetrick ‘s schematic representation of the representation of the response to violation of the psychological contract Managing Employee Response Challenging issues associated with the changing psychological contract
- 19. CONCLUSIONS
- 20. Conclusions Psychological Contract is a model and a philosophy which can guide us in the way we structure and manage organization behaviour, and deal with employees within them The world is moving at a more rapid pace by the day, but one factor in workplace is always remain unchanged- Employee wants to maintain a good relationship and to be appreciated by the employer. Psychological contracts help to predict what kind of reward the employee will get from investing time and effort in the organisation (Sparrow & Hiltrop 1997). Middle (Line) managers are the primary contract makers for employees.
- 21. RECOMMENDATIONS
- 22. Recommendations Should be more proactive in managing psychological contracts to reduce potential negative effectives of contract breach. Can make more effort to establish mutual trust and continuous open communications with employees. Can provide honest explanations for unfulfilled obligations. What can we (as the middle managers) do in our future career? Can develop more explicit policies and more transparency regarding rewards systems, benefits and promotions, with support from HR function.
- 23. THANK YOU
- 24. Appendix