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Psychological Contract

Psychological Contract. • A relationship between employer and employee • Set of mutual expectations (often unstated) • Relationship continues when "contributions" are met by both employer and employee: Employee : performance Employer : pay, benefits.

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Psychological Contract

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  1. Psychological Contract • A relationship between employer and employee • Set of mutual expectations (often unstated) • Relationship continues when "contributions" are met by both employer and employee: • Employee: performance • Employer: pay, benefits

  2. Psychological Contract: Two Forms • Relational - • long term mutual commitment • trust over time • temporary imbalances of contribution even out over time • Transactional • short-term exchange of benefits and services. • value is in usefulness of what exchanged rather than the relationship. • A shift from relational to transactional contract: • short term • performance based http://www.youtube.com/watch?v=rJB0CzlzSwY

  3. Implications of Contract Shift • Changes in your own relationship to the organization, your own perception of the changing contract • Changes in the organization’s commitment and view of the contract • Shift in loyalty From: loyalty based on length of service To: loyalty based on performance • Need for ongoing change and development

  4. Key Questions • Why has the contract been changing? • What is the new workplace like? • What are the demands? • What skills are needed to work productively and manage career / professional development?

  5. Changing Work Context • Baby boom • Flatter organizations • Pace of change and organizational life • Dual careers • Mergers and break-ups • Downsizing • Impact of changing technology on work processes • More diverse workforce • More information • Globalization of economy • Outsourcing

  6. The Shamrock Organization (Charles Handy, The Age of Unreason ) • The first leaf: - core workers - professionals, technicians, managers - have organizational knowledge • The second leaf: - contractors - specialized knowledge and services - not part of core technology and competence of the organization • The third leaf: - flexible or contingent workforce - part-time and temporary workers - fast growing sector of work population

  7. How Is Work Changing ? • Working in teams • Need for relationship building skills • Ambiguity of work environment • Greater demand for knowledge skills, subject matter experts • Contingent work force: contract and part-time employees • Need for creativity and adaptability

  8. Protean Career Protean = “versatile” or “capable of assuming many forms” • From linear and vertical paths to more flexible, varied options and career patterns. • From concept of a path to an individualized, idiosyncratic "fingerprint." • From contract with organization to contract with self • Free agency; decoupling from organizations. • Overlap and balance of work / life. • A larger "career space."

  9. Escher

  10. Internal vs. External Career • External or Objective Career is the unfolding sequence of: - jobs - work histories - social roles - organizational patterns of work • Internal or Subjective Career focuses on the individuals experience of change including: - meaning - values - competence - perceptions of success - satisfaction  • A distinction between the development of a career and the individual "having the career."

  11. Developmental Demands • Skills for self-awareness • Continuous learning and adaptability • Career self-management and ownership • Fluidity of self that recognizes complexity and ambiguity • Understanding that flexibility is not necessarily indecision or randomness. • Greater and more differentiated concept of self formed by various "sub-identities" (worker, parent, spouse), but..... • Threat of "social saturation" where many roles obscure an "authentic self"

  12. Course Focus • Personal change and development • Organizational responses • Respecting the inevitability of change • Importance of managing career expectations • Adult development + organizational behavior

  13. Individual Factors Motivation Development Cycles Learning Styles Work Preferences Values Skills/Competencies Success Expectations Organizational Factors Development Cultures Management Role Career Systems Course Flow Interaction Change & Transition Career Patterns Generational Influences Work / Life Balance Career Management Strategies

  14. Introductions • Name • Attraction to course • Educational path • Work background • “Career Development” ?? • Key questions

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