The kind of employee social contract assumed by Kibry and Drew. Introduction: There are two main types of the social contracts; the Old social contract and the New social contract. The Old social contract considers the workplace as a family and employees as family members. The management takes care of employee's interest first and employees show loyalty and commitment in return to the organization. The New social contract focuses more on trust rather than loyalty, employees are self-motivated and employees are more likely to move from one company to another because job decisions are based on cultural knowledge and specific skills.

Question

The Right Way with Employees? As a senior manager for a global player in automobile production and sales, Kirby Ellis had joined thousands of fellow employees in the excitement surrounding production of the company’s new hybrid vehicles. But barely two years into production, embarrassing component shortages, delivery delays, and a recall of the first models had a ripple effect, presenting the company with mounting concerns. In the confusion, many customers canceled orders and turned to competitors for purchase of the eco-friendly vehicles. Ellis’s company was facing a financial downturn. With three decades of service to the company, Kirby led a contingent of managers intent upon keeping together as much of the company and as many employees as possible. “We know there will be some necessary cuts,” Kirby admitted. “But this company has a long history of sticking by its people. Our first priority should be internal streamlining of how we do things and making sure we have the right…

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Question

Chapter 12, Problem 1CFCA

Summary Introduction

To determine:

The kind of employee social contract assumed by Kibry and Drew.

Introduction:

There are two main types of the social contracts; the Old social contract and the New social contract. The Old social contract considers the workplace as a family and employees as family members. The management takes care of employee's interest first and employees show loyalty and commitment in return to the organization.

The New social contract focuses more on trust rather than loyalty, employees are self-motivated and employees are more likely to move from one company to another because job decisions are based on cultural knowledge and specific skills.

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