1. Chapter 1
The
Psychological
Contract
and
Commitment

2. Objectives Define the psychological contract
Explain the importance of the psychological contract and what happens when it is violated
Describe external influences that affect workplace expectations
Explain the self-fulfilling prophecy and how managers can apply this concept
Explain the pinch model
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -1

3. Psychological Contract - Defined
An individual’s beliefs that they have been promised a future return for their contributions, creating an obligation to reciprocate
Based in expectations
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -4

4. Social Exchange Theory - Defined
People enter into economic and social relationships utilizing a cost-benefit analysis
People are most comfortable when the exchange is balanced or the benefits of the relationship are greater than the costs
Psychological Contract
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -5

5. …Psychological Contracts
Subjective-based on perceptions which means that the individual parties may not have the same interpretation of the contract
Mental Models-our images, assumptions, and experiences which determine how we understand and interpret the world

6. Consequences of Broken Contracts
Outrage, shock, resentment, anger
Decreased trust and good faith
Decreased job satisfaction
Decreased commitment
Decreased productivity
Decreased attendance
Turnover
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -9

7. Business-Related Changes Impacting Psychological Contracts
Technological change
Rate of change in the business environment
Global economy
Changing economic conditions
Uncertainty for workers
Demands for performance, flexibility and innovation
Reengineering
Downsizing
Mergers & acquisitions
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -15

8. Self-Fulfilling Prophecy - Defined
People perform in accordance with a rater’s expectations of them
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -23

9. The Pinch Model
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
1 -24