The Psychological Contract:Violations and Modifications
Alam KhanMGMT-6600
MTSU Spring 2012
University Professor of Organizational Behavior and Public Policy at Carnegie Melon University
Expert: Over a dozen books & 160 articles and monographs in management and psychology journals
Author: Denise M. Rousseau
WHAT is Contract Violation
Types of Responses
Violation isn’t the End of the Contract
WHEN is Violation Most Likely
When a Contract is Violated
Article discusses….
…I believe you have my stapler……..”Office Space”About some dissatisfied employees at work!! ….
Contract ViolationMental Model
Promises Acceptance Reliance
Perceptions Dissatisfaction
Lower Performance
Trust Erosion
High Turnover
… Failure to comply!
What is Contract Violation?
Example Theme: Relationship
Inadvertent Violation- Both parties at fault (an un-intentional mishap)
Disruption- Circumstances are such
(an External Factor involved)
Breach of Contract- One side refuses to (otherwise capable )
Types of Violations
Her study brings up scenarios like, “They promised me…….” “I discussed my disappointment…….” “I was assured that,………………” “They said the situation was……….” “I was given new assignments……….” “I was unhappy with……….”
- Contract violation erodes TRUST
The Psychological Contract
Types of Responses…
Voluntary termination Actions victims take Silence is a form
of Relationship… to remedy the Violation of non-response
When contract is violated…
Exit Voice Loyalty
Violation Isn’t the End of Contract…
According to Robinson and Rousseau study in 1994 ; When asked if their contract had been …
VIOLATED………………...YES………. 59%Ultimately FULFILLED….YES…..……73%
Response to Violation is a function of attributions made regarding the violators’ motives, the behavior of the violator and scope of losses.
Experience of Violation is greater…
LOSSES seem GREATEREVENT occurs in the CONTEXTVIOLATION appears to be VOLUNTEERYNO EVIDENCE of GOOD FAITH
Violation Isn’t the End of Contract…
- Situation where you thought there was a Contract Violation
- What was Your Reaction
What do you think…
Exit Voice Loyalty
Why
Results
Recommended