1.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 18 Employment relationship and career dynamics

2.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2 Chapter learning objectives 1.Discuss the different types of psychological contract. 2.Identify three types of trust in organisational settings. 3.Discuss the employment trends of employability and casual work. 4.Discuss the two primary functions of organisational socialisation. 5.Describe the stages of organisational socialisation. 6.Explain how realistic job previews and socialisation agents assist the socialisation process. 7.Describe the main features of Holland’s theory of occupational choice. 8.Explain why lateral career development has become more common. 9.Explain why boundaryless careers have become more common. 10.List five strategies that assist personal career development.

3.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 3 Careening careers at Lend Lease Debbie McNamara (shown) and other Lend Lease employees experience ‘careening careers’, where they are constantly challenged with new projects and learning opportunities. Courtesy of Lend Lease

4.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 4 Psychological contract defined  Beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party  Inherently perceptual – both parties may have different interpretations of the psychological contract Courtesy of Lend Lease

5.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 5 Transactional vs relational contracts Transactional contracts Relational contracts Time-frame Open-ended and indefinite Closed-ended and short-term Stability DynamicStatic PervasiveNarrow Scope More subjective Well-defined Tangibility Economic & socioemotional Economic Focus

6.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 6 Three types of trust Identification Knowledge Highest level of trust Based on mutual understanding Medium level of trust Based on predictability Calculus Minimal level of trust Based on sanctions

7.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 7 Job security versus employability Job security Lifetime job securityLifetime job security Jobs are permanentJobs are permanent Company manages careerCompany manages career Low emphasis on skill developmentLow emphasis on skill development Employability Limited job securityLimited job security Jobs are temporaryJobs are temporary Career self- managementCareer self- management High emphasis on skill developmentHigh emphasis on skill development

8.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 8 Casual work defined Any job in which the individual does not have an explicit or implicit contract for long-term employment, or minimum hours of work can vary non- systematically.

9.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 9 Types of casual workers Freeagents Temporarytemporaries (Transition to permanentworkforce) Desire for permanent employment Ability to get permanent employment High Low Transients

10.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 10 Reasons for casual work  Provides more flexibility  contracting required skills is faster than retraining  Potentially reduces costs  lower pay, fewer benefits, less union power  Easier to contract services  information technology supports free agents

11.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 11 Casual workforce issues  Job satisfaction  mixed evidence that free agents and temporary temporaries are more or less satisfied  Job performance  transactional psychological contract  lower skills and experience  may be higher for free agents

12.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 12 Organisational socialisation defined The process by which individuals learn the values, expected behaviours and social knowledge necessary to assume their roles in the organisation.

13.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 13 InsiderInsider Changing roles and behaviourChanging roles and behaviour Resolving conflictsResolving conflicts Stages of socialisation NewcomerNewcomer Testing expectationsTesting expectations OutsiderOutsider Gathering informationGathering information Forming psychological contractForming psychological contract Pre-employment Stage Encounter stage Role management

14.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 14 Individualattractsorganisation Individualselectsorganisation Organisationattractsindividual Organisationselectsindividual Conflict A Conflict B Conflict CConflict D Pre-employment socialisation conflicts

15.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 15 Benefits of realistic job previews  Less turnover, higher job performance  Less reality shock  Vaccination effect  Applicants self-select themselves  Builds loyalty

16.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 16 Holland’s occupational choice theory  Career success depends on fit between the person and work environment  Holland identifies six ‘themes’  represent work environment and personality traits/interests  High differentiation  person is aligned with one theme, not mixed across two or more themes  High consistency  person’s preferences relate to similar themes (adjacent themes in Holland’s hexagon)

17.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 17 Lateral career development  Career success defined as challenging work, not number of steps up the hierarchy  Reasons for lateral careers  Career ladder still clogged with baby boomers  More consistent with team-based organisations  More consistent with shift from job status to competencies

18.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 18 Stephen Anderson’s boundaryless career Stephen Anderson, chief executive of Foodstuffs (SI) Ltd has followed a boundaryless career with more twists and turns than the roads surrounding Otago, New Zealand, where he was raised. © Otago Daily Times (NZ)

19.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 19 Boundaryless careers Careers operate across organisational and industry boundaries, not just within one company. Reasons for boundaryless careers  Downsizing forced job changes  Employability psychological contract  Job hopping viewed more favourably © Otago Daily Times (NZ)

20.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 20 Dealing with boundaryless careers  Provide more career opportunities within the organisation  Try to build more loyalty  Recognise that some job hopping is inevitable and desirable  keep track of former employees  welcome back those who leave © Otago Daily Times (NZ)

21.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 21 Careers: rules for the road ahead  Understand your needs and values  Understand your competencies  Set career goals  Maintain networks  Get a mentor

22.  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 18 Employment relationship and career dynamics