Chapter 1

Objectives Examine generational work expectations Define and understand the importance of the psychological contract Explain the pinch model Examine the influences that affect workplace expectations Work on a psychological contract with your professor

Why Generations Differ 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

Generational Histories The Silent Generation, born : –Great Depression, World War II. –Loyal to their organizations and a command-oriented (hierarchical) leadership style. Baby Boomers: born : –high level of wealth in a booming economy –John F. Kennedy, Martin Luther King, Richard Nixon, –Vietnam, Watergate. –Have high levels of hope and idealism. Generation X: born or : –children of dual career families, high divorce rates –Ronald Regan –Challenger disaster, the Gulf War –Are pragmatic (want to know the practical value) and cynical.

Baby Boomers Too many of them –Entered a highly competitive environment –Sacrificed to get ahead, keep a job –Live to work Want pensions, health, and to be left alone –Tired of change –Want to be inspired not overly managed

Workplace Events Affecting Gen X Increased competition between organizations –flattening hierarchies and teamwork change to informal workplace distrust of leadership reduced organizational loyalty rise in individual affluence and independence increased numbers of women in the workplace

Characteristics of Gen Xers financial well being is important. distrust hierarchy and preference more informal arrangements. –prefer to be judged on merit rather than status –workplace participation and teamwork expected much less loyal to organizations than past generations

Characteristics of Gen Xers see worklife as a replacement for the social and civic community want balance in their lives (not all work)

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 Keep it fun

Generation Y: The Echo Generation Are you any different from Generation X? What are you perceptions of what a career and work should be?

Generation Y: The Echo Generation 76 million Baby Boomers; 44 million Gen Xers; 80 million Gen Y Generation Y born approximately Historical events: –Columbine and 911 –24 hour media produces a more global perspective and an expanded definition of diversity Characteristics –Personal fulfillment is key –Computer literacy and ease of communication/data collection

Observations about Gen Y Offer choices: expect state-of-the-art, cooperative scheduling, many choices with freedom to pursue them –Want work-life balance Offer training opportunities (all generations): expect coaching and rewarding –Want transferable skills Offer an evolving workplace: expect new motivational techniques; relationship-intensive environment; to be part of the decision making process

Concerns about Gen Y Every performance is excellent. Input (effort) is confused with output (achievement) Want to be treated as individuals and have individual needs accommodated –More confident in their own abilities Short-term time management is the priority. Getting to the next event has replaced getting the most out of the experience –Short-term career outlooks –Passion is replaced by standard of living (pay)

What is the Psychological Contract?

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.

Pinch Model for Managing Psychological Contracts

As a manager/employee… 1.Can you ensure that the psychological contract is not broken? Why? 2.How would you ensure that a contract with an employee remains - what would you do before or at the pinch?

I. As a manager… 1.Can you ensure that the psychological contract is not broken? Why? 2.What do employees do that you would consider a breach of the contract? 3.What is most important to you to have in the contract? 4.How would you ensure that a contract with an employee remains - what would you do before or at the pinch? II. As an employee… 1.Can you ensure that the psychological contract is not broken? Why? 2.What do employers do that you would consider a breach of the contract? 3.What is most important to you to have in the contract? 4.How would you ensure that the contract with an employer remains - what would you do before or at the pinch?

Summary Do employees and employers have the same perceptions? Can we use this information to ensure that we are a better employee/employer? –The decision to join and the decision to participate.