Chaper 8

Psychological contract is an employee perception of his or her exchange relationship

with an organization: outcomes the organization has promised to provide and
contributions the employee is obligated to make.
Three sources of information are particularly influential in helping individuals form
their psychological contracts: direct communication from coworkers and
supervisors; observations of what actually transpires in the organization, including
how similar employees behave and are treated; and written documents.
Direct communication

During recruitment of prospective employees

On-the-job information from co-workers an supervisors

Observation

How employees behave and how they are treated by the organization
The nature of, and manner in which, important decision are made

Written documents

Employee handbooks, organizational policies, human resource documents

Company Web site

Realistic job preview (RJP) is an honest assessment of the advantages and

disadvantages of a particular job and working in a particular organization. They
allow employees to make more accurate psychological contracts.
Two types of psychological contracts
Transactional contract tend to be short term and very specific. They are narrow in
focus and relatively flexible given their short-term nature. If either party terminates
the relationship, a replacement can be formed. Extrinsic outcomes such as pay
Relational contract are longer term, more general, and evolve more gradually over
time. Extrinsic is important but intrinsic is too.
Performance appraisal evaluating performance to encourage employee motivation
and performance and to provide information to be used in managerial decision
making.
An accurate performance appraisal will give employees two things. (1) the extent to
which they are contributing the appropriate level of input to their jobs and the
organization and (2) the extent to which they are focusing their inputs in the right
direction on the right set of tasks.

Subjective measures are based on individuals perceptions and can be used for
appraisals based on traits, behaviors, and results. These are more biased.
Graphic rating scale is used based on performance appraisal.
BARs giving each point on a scale a meaning
BOS indicate frequency
Comparable worth the idea that jobs of equivalent value to an organization should
carry the same pay rates regardless of differences in the work and the personal
characteristics of the employee.
Career can be defined as the sum of work-related experiences throughout ones
lifetime
Group a set of two or more people who interact together to achieve certain goal
Formal work group a group established by management to help the organization
achieve its goals
Command group a formal group consisting of subordinates who report to the same
supervisor
Task force a group of people who work together to finish a task, usually disbands
after
Forming get to know each other
Storming conflict within group
Norming getting close and developing ties
Performing working towards goal
Adjourning group disbands
Social facilitation the effects that the presence of others has on performance,
enhancing the performance of easy tasks and impairing the performance of difficult
tasks
Chapter 10
Group norms informal rules of conduct
Idiosyncrasy credit able to violate norms without punishment (someone that has
been there long)
Deviant someone that violates the norm

Social loafing the tendency of individuals to exert less effort when they work I
ngroups than when they work alone.
Sucker effect a condition in which group members, not wishing to be considered
suckers, reduce their own efforts when they see social loafing.
Synery ( a type of process gain) arises when the combined efforts of group
members result in greater or improved performance and outcomes than if they
acted alone.