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Week 1 - Module 1.2 Managing The Psychological Contract

This module provides an introduction to managing people and organizations. It outlines the course format and learning objectives. Students will learn about the psychological contract between employers and employees. The psychological contract is based on beliefs about reciprocal obligations, and can take different forms from short to long-term. Psychological safety is important for allowing difficult conversations and feedback without fear. Breaches of the psychological contract can occur if employees perceive they have received less than promised. This can lead to various responses from employees such as exit, voice, loyalty, or neglect.

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Michel Banvo
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65 views

Week 1 - Module 1.2 Managing The Psychological Contract

This module provides an introduction to managing people and organizations. It outlines the course format and learning objectives. Students will learn about the psychological contract between employers and employees. The psychological contract is based on beliefs about reciprocal obligations, and can take different forms from short to long-term. Psychological safety is important for allowing difficult conversations and feedback without fear. Breaches of the psychological contract can occur if employees perceive they have received less than promised. This can lead to various responses from employees such as exit, voice, loyalty, or neglect.

Uploaded by

Michel Banvo
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Module 1

Introduction to Managing
People and Organizations
MGMT5100
3

Road Map for Module 1


1.0 Welcome
• Online opportunity. Custom learning
experience. Need to stay connected!
1.1 Introduction to MGMT 5100
• Understand the class format
• Engage, take control of your learning.
1.2 Managing the psychological contract
• Building Trust
• Violations and breaches
• Employee responses
Module 1 Learning Objectives and MPO Challenge
At the end of this module students will be
able to: Managing People and Organizations
• Identify the course format, dates, Discussion of Challenges
deadlines, and key deliverables for the
course (CO1, C02)
What is the best organization you have
• Describe a challenge related to
managing people in organizations that is ever been a part of?
relevant to your career (CO1, CO2)
• Define the psychological contract and its
role in shaping the organizational
environment (CO2, CO3)
• Connect with the course instructor and
colleagues, through a personal story
(CO1)
Module 1.2
Managing the Psychological
Contract
BUSI 5100
6

Psychological
Contract and Success
in the Business World
7

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.

Top Employers.
• https://www.macleans.ca/tag/canadas-
top-100-employers/
8
Different Forms of Psychological Contract

Time Frame
Short-Term Long-Term

Transactional Balanced
Requirements High
Performance

Low Transitional Relational


Rousseau, 2000
Psychological Safety
• Psychological Safety is defined as a shared belief that the
team is safe for interpersonal risk taking.
– Makes tough feedback and difficult conversations possible.
– Helps combat groupthink.
– Image risks at work.
▪ Being labeled as ignorant
▪ Being labelled as incompetent
▪ Being seen as negative
▪ Being seen as disruptive.
The Benefits of Psychological Safety
• Encourages Speaking up
• Enables clarity of thought High
• Mitigates failure Comfort Learning
• Promotes innovation Zone Zone
• Removes obstacles

Psychological
• Increases accountability

Safety
Apathy Anxiety
Zone Zone
Low

Low Accountability High


11

MGMT 5100 Psyc Contract


12

Violations & Breaches


Breach: an employee’s cognition that he/she has received less than promised. When we perceive a breach
we assess the ability and intent of the of the other party.

Perception Able Unable

Willing Inadvertent Disruption

Unwilling Breach No Contract

Violation: An emotional state that may result from the perception of the psychological contract breach
• Contract makers
• Systems

When are you most likely to perceive a contract violation?


13

Responses
• Academy of Management Journal
– Rusbult et al. (1988)
Exit Voice

Responses
to Breach

Silence
Neglect
(loyalty)

BUSI 2101
End of Module 1.2
Thank you!

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