Mppm
Chapter 2
1. Discuss the impacts of positive psychological contract to an organization
Strongly linked to higher commitment to the organisation
Higher employee satisfaction
Better employment relations
Good HRM practices
Produces a high- involvement climate
Definition of Psychological Contract
“The perceptions of both parties to the employment relationship, organisation and individual, of the reciprocal promises and obligations implied in that relationship”
The state of the psychological contract is concerned with whether the promises and obligations have been met, whether they are fair and their implications for trust.
THE PSYCHOLOGICAL CONTRACT
Generally accepted as an individual’s subjective beliefs, shaped by the organisation, regarding the terms of an exchange relationship between the individual employee and the organisation
The set of reciprocal expectations between an individual employee and organisation
Contains a combination of beliefs held by individuals and their employers about what they expect of one another.
It is concerned with assumptions, expectations, promises and mutual obligation
It is implicit
It develops over time as experience accumulates, employment conditions change and employees re-evaluate their expectations.
For the past five years, employees of Design Fabrications have been allowed to leave work early every Wednesday afternoon, either to attend the local football match or to avoid the ensuing traffic jams. This arrangement has always been ‘understood’ and never written down, so that it’s become an unwritten custom.
IMPACT OF PSYCHOLOGICAL CONTRACT
Can cause mutual misunderstanding and lead to reduced motivation or poor performance when expectations are not met by either party.
These disappointments can, however be alleviated if management play a role of managing expectations, which means clarifying what employees should achieve, the competencies they should possess and the values they should uphold.
2. Understanding
1. Discuss the impacts of positive psychological contract to an organization
Strongly linked to higher commitment to the organisation
Higher employee satisfaction
Better employment relations
Good HRM practices
Produces a high- involvement climate
Definition of Psychological Contract
“The perceptions of both parties to the employment relationship, organisation and individual, of the reciprocal promises and obligations implied in that relationship”
The state of the psychological contract is concerned with whether the promises and obligations have been met, whether they are fair and their implications for trust.
THE PSYCHOLOGICAL CONTRACT
Generally accepted as an individual’s subjective beliefs, shaped by the organisation, regarding the terms of an exchange relationship between the individual employee and the organisation
The set of reciprocal expectations between an individual employee and organisation
Contains a combination of beliefs held by individuals and their employers about what they expect of one another.
It is concerned with assumptions, expectations, promises and mutual obligation
It is implicit
It develops over time as experience accumulates, employment conditions change and employees re-evaluate their expectations.
For the past five years, employees of Design Fabrications have been allowed to leave work early every Wednesday afternoon, either to attend the local football match or to avoid the ensuing traffic jams. This arrangement has always been ‘understood’ and never written down, so that it’s become an unwritten custom.
IMPACT OF PSYCHOLOGICAL CONTRACT
Can cause mutual misunderstanding and lead to reduced motivation or poor performance when expectations are not met by either party.
These disappointments can, however be alleviated if management play a role of managing expectations, which means clarifying what employees should achieve, the competencies they should possess and the values they should uphold.
2. Understanding