Chapter 14
Inducements like pay and career opportunities are
tangible rewards
For example: If a person accepts employment with an organization because he thinks he will earn an attractive salary and have an opportunity to advance, he will expect..
that those rewards will actually be forthcoming
In other words, psychological contracts are
the basic assumptions that individuals have about their relationships with their organization. Such contracts are defined in terms of contributions by the person relative to inducements from the organization
Person-job fit
the extent to which the contributions made by the individuals match the inducements offered by the organization
ON the other hand, if either party sees an imbalance and inequity in the contract,
they may initiated a change
if both the individual and the organization perceive that the psychological contract is FAIR AND EQUITABLE
they will be satisfied with the relationship and will likely continue it.
These contributions presumably satisfy
various needs and requirements of the organization. IN other words, because the organization may have hired the person because of her skills, it is reasonable for the organization to expect that she will subsequently display those skills in the performance of her job
a psychological contract is not what?
written on paper, nor are all of its terms explicitly negotiated
Psychological Contract
the overall set of expectations held by an individual with respect to what he or she will contribute to the organization and wha the organization will provide in return
5 traits of the "big 5"
1. agreeableness 2. conscientiousness 3. negative emotionality 4. extraversion 5. openness
example of psychological contract
This manager and subordinate are reviewing the subordinates goals for the upcoming year and what rewards are most likely to be provided if those goals are met. These agreements are apart of the psychological contract.
"Big 5" personality traits
a popular personality framework based on 5 key traits, representing an increasingly accepted framework for understanding personality traits in an an organizational setting.
Whenever an organization tries to assess or account for individual differences among its employees, it must also be sure to consider the situation in which
behavior occurs
Attempting to consider both individual differences and contributions in relation to inducements and contexts, is a major
challenge for organizations as they try to establish effective psychological contracts with their employees and achieve optimal fits between people and jobs
Person job fit in theory
each employee has a specific set of needs that he wants fulfilled and a set of job related behaviors and abilities to contribute. So if the organization can take perfect advantage of those behaviors and abilities and exactly fulfill his needs, it will have achieved a perfect person job-fit
negative emotionality
extend to which a person is poised, calm ,resilient and secure
highly agreeable people will be able to develop
good working relationships with coworkers, subordinates, higher-level managers
More conscientious people tend to be
higher performers than less conscientious people across a variety of different jobs they will also take their jobs more seriously and will approach the performance of their jobs in highly responsible fashions
The organization must ensure that it is getting value from its employees. At the same time, it must be sure that it is providing employees with appropriate inducements. For example..
if the organization is underpaying its employees for their contributions, they may perform poorly or leave for better jobs elsewhere. On the other hand, if they are being overpaid relative to their contributions, the organization is incurring unnecessary costs.
inducements like job security and status are
intangible rewards
Are specific differences that characterize a given person good or bad? do they contribute to or detract from performance?
it depends on the circumstances; one person may be dissatisfied, withdrawn, and negative in one job setting, but very satisfied, outgoing, and positive in another. Working conditions, coworkers, and leadership are all important ingredients.
Taken all of the individual differences together, all of them that characterize any specific person serve to
make that person unique from everyone else
Basic challenge faced by the organization is to
manage psychological contracts
Just like contributions available from the individual must satisfy the needs of an organization, the inducements offered by the organization
must serve the needs of the individual
less agreeable people
not have good working relationships
Individual Differences
personal attributes that vary from one person to another
Reasons for poor person job fit
1. Imperfect organizational selection procedures 2. Change in both people and organizations over time 3. New technologies require new employee skills 4. Unique individuals and unique jobs
people who tend to take on too many tasks and projects and or to procrastinate, as a result are more
1. disorganized 2. careless 3.irresoponsible 4. less thorough and self disciplined
Contributions from the individual:
1. effort 2. liability 3. loyalty 4. skills 5. time 6. competencies
people who focus on relatively fewer tasks and projects are likely be be
1. organized. 2.systematic 3. careful 4. thorough 5. responsible 6. self disciplined as they work to complete those tasks and projects
Negative results of agreeableness
1. others being irritable 2. short tempered 3. uncooperative 4. gently antagonistic toward other people
Inducements from the organization:
1. pay 2. job security 3. benefits 4. career opportunities 5. status 6. promotion opportunities
individual differences may be
1. physical 2. psychological 3. emotional
agreeableness causes some people to be
1.gentle 2. cooperative 3. forgiving 4. understanding 5. goodnatured in their dealings with others
Researchers have identified
5 fundamental personality traits that are relevant to organizations
agreeableness
refers to a persons ability to get along with others.
conscientiousness
refers to the number of things a person can effectively work on at one time
Personality
relatively stable set of psychological attributes that distingue one person from another
Example: A worker may request a pay raise or promotion, decrease her contributed effort, or look for a better job elsewhere. The organization can also initiate change by
requesting that hath worker improve his skills through training, transfer him to another job, or terminate his employment all together
agreeableness will also extend to relationships with
customers, suppliers, and other key organization constituents