Psychological Contract and Organizational Behaviour

5132 Words Apr 5th, 2008 21 Pages
Part A

Critically evaluate what impact the events in this scenario are likely to have on the attitudes and perceptions of your staff and critically discuss what actions you would take to manage these negative attitudes and perceptions.

Introduction
‘Throughout the 1990s, the psychological contract has emerged as an important construct to explain the changing nature of the employment relationship. Initial interest was fuelled by consequences of a more cost focused and competitive business Environment’ (Judy Pate, ‘The changing contours of the psychological contract’, Journal of European Industrial Training, Vol. 30 No. 1, 2006, pp. 32-47). Over the years researchers have analyzed and presented various views based on cultural
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This will result in lower performance and production. In addition it will further deteriorate the motivational aspect and work environment.
Fear of Downsizing- Employment Relationship
Job security and fear of loosing ones job is an important aspect of daily work life. Companies with higher turn over rates and their employees having less confidence in job sustainability tend to lead towards lower production and produce an environment which kills innovation and passion.
Cynicism
‘Employee cynicism has been defined as a negative attitude and involves a belief that their organization lacks integrity, employees display negative emotions towards the organization and a tendency for employees to be critical of their organization’ (Judy Pate, ‘The changing contours of the psychological contract’, Journal of European Industrial Training, Vol. 30 No. 1, 2006, p 5). Criticism is normally targeted towards the management and the organizational policies and procedures. If this employee behavior is continued in organization employees tend to criticize every action or step taken by the management with-ought realizing its long term effect and positive aspects.
Negative Work Ethics
Amanda Hamilton describes work ethics as set of beliefs and perceptions about wok (Amanda Hamilton, ‘Productivity and work Ethics’, Work Study Volume 47 • Number 3 • 1998 • pp. 79–86). Taking the above scenario in consideration it is evident that employees have started to display negative

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