Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 1 ©2001 by Prentice Hall, Inc. Chapter 1 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 2 ©2001 by Prentice Hall, Inc. Objectives • Define and understand the importance of the psychological contract • Explain the self-fulfilling prophecy • Describe the external influences that affect workplace expectations • Explain the pinch model • Make a psychological contract with your professor • List the characteristics of the field of OB Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 3 ©2001 by Prentice Hall, Inc. Characteristics of OB • Multidisciplinary Nature • Three Levels of Analysis: Individual, Group, and Organizational • Acknowledgement of Environmental Forces • Grounded in the Scientific Method • Performance Orientation • Applied Orientation • Change Orientation Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 4 ©2001 by Prentice Hall, Inc. Mental Maps Our images, assumptions, and stories about every aspect of the world that determine what we see and how we act. Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 5 ©2001 by Prentice Hall, Inc. PSYCHOLOGICAL CONTRACT An individual’s beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization. Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 6 ©2001 by Prentice Hall, Inc. Environmental Changes Impacting Psychological Contracts • Technological change • Rate of change in the business environment • Global economy • Changing economic conditions • Uncertainty for workers • Demands for performance, flexibility and innovation • Reengineering • Downsizing • Mergers and acquisitions • Outsourcing and subcontracting of work • Contingent and temporary employment for peripheral employees Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 7 ©2001 by Prentice Hall, Inc. Environmental Changes Impacting Psychological Contracts • Fewer full-time jobs and core employees • Relatively low union representation • Less job security Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 8 ©2001 by Prentice Hall, Inc. Workforce Changes Impacting Psychological Contracts Demographics Switch from high- to low-unemployment Nomadic nature of the workforce Changing complexion of the workforce Changing value trends Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 9 ©2001 by Prentice Hall, Inc. A Nomadic Work Force -13 different jobs for the average high school or college graduate – 3.5 years on each job Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 10 ©2001 by Prentice Hall, Inc. Projected Year 2020 Workforce • 50% Women • 68% White non-Hispanics • 14% Hispanics • 11% African Americans • 6% Asians [...]... Each generation is a product of historical events that shape their values and views of the world • Emotional memories shape feelings about institutions, authority, materialism, family and careers Organizational Behavior: An 18 How to Manage Gen X’ers • • • • • Vary their assignments Teach them new skills Teach them some manners Keep them in the loop Tie praise for a job well done to a concrete reward... accordance with a rater’s expectations of them Organizational Behavior: An 11 Model for Managing Psychological Contracts Organizational Behavior: An 12 Broken Contracts Cause • Outrage, shock, resentment, anger • Decreased trust and good faith • Decreased job satisfaction • Decreased productivity • Decreased attendance • Turnover Organizational Behavior: An 13 Contract Makers’ Violations Sources Violations... 19 Advantages of Committed Employees Have the self-control required for teamwork, empowerment, and flatter organizations Display organizational citizenship behavior that benefits the organization Are “willing to help” Organizational Behavior: An 20 .Advantages of Committed Employees Have better attendance records Stay with the company longer Work harder at their jobs Adapt better to unforeseeable occurrences... Commit to people-first values: Put it in writing Hire right-kind managers Walk the talk Organizational Behavior: An 22 Earning Employee Commitment Clarify and communicate your mission: Clarify the mission and ideology Make it charismatic Use value-based hiring practices Stress values-based orientation and training Build the tradition Organizational Behavior: An 23 Earning Employee Commitment Guarantee... tied to job • Stated procedures at odds with actual practice 15 Sources of Experienced Violation Inadvertent Disruption Breach of contract Organizational Behavior: An Able and willing (divergent interpretations made in good faith) Willing but unable (inability to fulfill contract) Able but unwilling (reneging) 16 RESPONSES TO VIOLATION Constructive Active Destructive Voice Neglect/Destruction Passive... Makers’ Violations Sources Violations Recruiters Managers • Unfamiliar with actual job • Overpromise • Say one thing, do another Co-workers • Failure to provide support Mentors • Little follow-through • Few interactions Top management • Mixed messages Organizational Behavior: An 14 Systems Contract Violations Sources Violations Compensation • Changing criteria • Reward seniority, low job security Benefits... Organizational Behavior: An 24 Earning Employee Commitment Create a sense of community: Build value-based homogeneity Share and share alike Emphasize barn-raising, cross-utilization, and teamwork Get together Organizational Behavior: An 25 Earning Employee Commitment Support employee development: Commit to actualizing/developing people Provide first-year job challenge Enrich and empower; promote from within . the psychological contract • Explain the self-fulfilling prophecy • Describe the external influences that affect workplace expectations • Explain the pinch model • Make a psychological contract. Managing Psychological Contracts Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 13 ©2001 by Prentice Hall, Inc. Broken Contracts • Outrage,. Kolb, and Irwin M. Rubin 6 ©2001 by Prentice Hall, Inc. Environmental Changes Impacting Psychological Contracts • Technological change • Rate of change in the business environment • Global economy • Changing