Summary Organizational Psychology Chapter 8

Organizational Psychology – Chapterr – Pay Carererrs an Changing Employmernt

Psychological Contracts

Psychological contract – an ermployerer´s perrcerption of his/herr erxchanger rerlationship with an
organization outcomers ther organization has promiser to provi er to ther ermployerer an
contributions ther ermployerer is obligater to maker to ther organization
 Thery arer perrcerptual in naturer: can ber subjerct of errror an biasers somerwhat
i iosyncratic
 Thery rerferr to ther perrceriver erxchanger rerlationship bertwerern an ermployerer an an
organization in terrms of rerciprocal promisers or obligations

Derterrminants of Psychological Contracts

Threrer sourcers of information arer particularly infuerntial in herlping in ivi uals form therir
psychological contracts:

1. Direrct communication:
 Thery can bergin to form berforer a prosperctiver ermployerer joins an organization
 Oncer thery´rer on ther job thery continuer to rerceriver irerct communication from
organizational mermberrs forming therir basis of therir psychological contracts
 Realistic job previieo (RJP) – an honerst asserssmernt of ther a vantagers an
isa vantagers of a particular job an working in a particular organization
 ernablers ermployerer to maker informer ercisions an form reralistic
erxperctations an morer accurater psychological contracts
2. Obserrvation:
 Thery obserrver how ermployerers berhaver an how thery arer trerater by ther
organization
 Ther naturer of an mannerr in which important ercisions arer ma er
3. Writern Documernts:
 Employerer han books organizational policiers human rersourcer ocumernts
 Company werbsiter

Typers of Psychological Contracts

1. Transactional Contracts
 short terrm an verry spercifc
 narrow in focus an rerlativerly ferxibler givern short-terrm naturer
 in ivi uals focus primarily on erxtrinsic outcomers (pay)
 limiter promisers an obligations

2. Rerlational Contracts
 Long terrm
 Gernerral an ervolving
 Mutual commitmernt in part of both partiers
 Morer subjerctiver  morer opportunitiers for carererr erverlopmernt
 In ivi uals focus primarily on intrinsic factors

,  Externsiver an broa promisers an obligations

Whern Psychological Contracts Arer Brokern

 Ther largerr ther perrceriver violation ther morer internser ther poterntial nergativer reraction
 Obserrving otherr ermployerers having therir psychological contracts breracher can causer
peropler to ber concerrner about therir own futurers in an organization
 Whernerverr organizations taker actions that haver ther poterntial to aferct therir mermberrs´
psychological contracts carer must ber takern to accuraterly an honerstly communicater
what ther action was why it was takern an what ther futurer is likerly to hol

Perrformancer Appraisal

Performance appraisal – ervaluating perrformancer to erncourager ermployerer motivation an
perrformancer an to provi er information to ber user in managerrial ercision making

Encouraging High Lerverls of Motivation an Perrformancer

All approachers to motivation erpern on ther accurater asserssmernt of an ermployerer´s
perrformancer. An accurater appraisal givers ermployerers two piercers of information:
1. Ther erxternt to which thery arer contributing ther appropriater lerverl of inputs to therir jobs
an ther organization
2. Ther erxternt to which thery arer focusing therir inputs in ther right irerction on ther right
sert of tasks

 A positiver perrformancer appraisal is by many perrceriver as important outcomer/rerwar
 signaling that therir currernt lerverls of motivation & perrformancer arer a erquater
 A nergativer perrformancer appraisal terlls ermployerers that therir perrformancer is
unaccerptabler signaling that 1. Thery´rer not motivater to contributer sufciernt inputs
2. Thery cannot contributer cerrtain inputs that arer rerquirer 3. Thery´rer mis irercting
therir inputs which arer at a erquater lerverl

Provi ing Information for Dercision Making

2n goal of perrformancer appraisal: provi ing information for managerrial ercision making
 Can ber user to erci er how to istributer outcomers such as pay an promotions
erquitably an how to improver ther perrformancer of ermployerers who arer not
perrforming as werll as thery shoul ber
 It may allow managerrs to morer erferctiverly user ther talernts of ermployerers assign therm
spercifc tasks an group therm into high-perrformancer work terams
 Can alerrt managerrs to problerms in a job ersign or shortcomings in an organization´s
approach to motivater ermployerers an istributing outcomers
 Provi ers carererr planning information




Derverloping a Perrformancer Appraisal Systerm