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