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Psychological contract presentation


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An introduction to psychological contracts and how they can hurt or improve your organisation. This explains that the PC is about the emotional rather than the contractual relationship.

Published in: Business, Career, Technology
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Psychological contract presentation

  1. 1. The Psychological Contract<br />What on earth is that?<br />
  2. 2. The Psychological Contract:<br /><ul><li>Term first used in the 1960’s
  3. 3. This is not another name for a contract of employment
  4. 4. It represents the emotional relationship between employee and employer
  5. 5. Focuses on What employee expects in return for their loyalty and commitment at work
  6. 6. Mostly it goes unnoticed
  7. 7. Only really comes to the fore when there is conflict at work and relations between employee and employer is strained</li></ul>Copyright New Dimensions 2011<br />
  8. 8. ‘…there is conflict at work and relations between employee and employer is strained…’<br />Copyright New Dimensions 2011<br />
  9. 9. A very current topic:<br /><ul><li>Currently the UK is experiencing significant job cuts in the public sector
  10. 10. The public sector tends to have very strong PC’s
  11. 11. Key to this has always been the strong sense of job security local government work has offered
  12. 12. The current redundancy round has blown a serious hole in this belief
  13. 13. This has diminished trust and badly impacted on PC’s
  14. 14. … but have employers noticed??? </li></ul>Copyright New Dimensions 2011<br />
  15. 15. Loss of job security has diminished employees trust and badly impacted on PC’s<br />Copyright New Dimensions 2011<br />
  16. 16. Loss of trust – so what?:<br /><ul><li>Reduced good will
  17. 17. Anti management rhetoric builds
  18. 18. Attitudes become entrenched
  19. 19. Conflicts become very bitter
  20. 20. … basically life becomes tough!</li></ul>Copyright New Dimensions 2011<br />
  21. 21. Loss of trust – so what (2)?:<br /><ul><li>It can make managing redundancies much more difficult and angst filled!
  22. 22. People recognise they have much to lose and can be motivated to ‘fight for their rights’
  23. 23. Disputes can become very involved and highly emotionally charged</li></ul>Copyright New Dimensions 2011<br />
  24. 24. What about the survivors?:<br /><ul><li>In downsizing / redundancy situations considerable effort is made to deal with individuals chosen for redundancy
  25. 25. Critically the feelings of those who ‘survive’ the process is often ignored; we just assume the will be happy to remain employed.
  26. 26. Not so!!!</li></ul>Copyright New Dimensions 2011<br />
  27. 27. Of course the survivors will be happy – <br />wont they?<br />Copyright New Dimensions 2011<br />
  28. 28. Unhappy survivors - so what?:<br /><ul><li>Feelings of guilt and loss can lead to poor morale and reduced efficiency
  29. 29. Survivors can often prove to be very resistant to change
  30. 30. Very disgruntled survivors may act as blockers to change and progress
  31. 31. Failure to address this issue may have a significant adverse impact on any change programme. </li></ul>Copyright New Dimensions 2011<br />
  32. 32. Post Change – employees can adopt a number of roles:<br />Copyright New Dimensions 2011<br />
  33. 33. Post Change roles - remember?:<br /><ul><li>Roles need not be static – you can act to move people’s attitude
  34. 34. Focus needs to be on moving people from the negative bottom quadrants to the positive top.
  35. 35. Oddly people’s positions can move best to the diagonal opposite
  36. 36. Start with your senior people first –don’t assume your managers are fully engaged!</li></ul>Copyright New Dimensions 2011<br />
  37. 37. Replace the old deal with a new deal?:<br /><ul><li>Post change survivors can feel displaced due to loss of office, colleagues and importantly key benefits such as job security.
  38. 38. Recognise the loss and rebuild moral and trust and where possible offer a new deal (replace job security with something new like enhanced marketability)
  39. 39. Whatever you do, do it before you implement any change programmes</li></ul>Copyright New Dimensions 2011<br />
  40. 40. Replace old deal <br />with a new deal:<br />Copyright New Dimensions 2011<br />
  41. 41. Is the Psychological Contract impacting on your change programme?<br />If you would like further help or support on any of these change issues please contact us on:<br />or follow us on-line at:<br />You may also find our other presentations helpful:<br />People Through Change -<br />Managing problem people at work -<br />Working SMARTer not HARDer -<br />Copyright New Dimensions 2011<br />