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Flashcards in Employee Relations Deck (35):
1

Social Exchange Theory

Blau (1964)

People are reward seeking and help each other when the benefits outweigh the costs.

Social exchanges regulated by perceptions of fairness, reciprocity and justice.

People will want to stay in a relationship and help an organisation when they perceive they are getting something out of it too and are not being exploited.

2

Affective commitment

Emotional attachment towards organisation.

Develops from work experiences, personality and organisation characteristics.

3

Continuance commitment

Stays due to high cost of leaving.

Develops from alternatives and interests

4

Normative commitment

Obligated loyalty despite personal dissatisfaction

Develops from socialisation and investments of organisation

5

Three component conceptualisation of organisational commitment

Meyer and Allen (2001)

Commitment to an organisation (staying in a workplace) is a psychological state with three separate components of commitment:

A desire (affective)
A need (continuance)
An obligation (normative)

Each component develops from other factors and all lead to turnover, absenteeism and performance.

6

Psychological Contract idea

Individuals enter employment with a set of beliefs, expectations and obligations, which they anticipate being met by their employer.

The employer holds a reciprocal set of beliefs, expectations and obligations.

Leads to a binding but unspoken contract.

7

Key components of psych contracts

Key components:

Mutuality
Promises
Reciprocity
Development from beliefs to
schema

8

Unilateral perspective of psych contracts

An individual’s beliefs, shaped by the organisation, regarding the terms of their exchange agreement with their organisation

9

Bilateral perspective of psych contracts

Both the employee and the organisation hold a psychological contract

Reciprocal obligations and levels of agreement of the terms of the exchange

10

Employment contract features

Written, definitive, long term, inflexible and legislative with infrequent violation

11

Psych contract features

Unwritten, loose, changing, flexible and interpretive with frequent violations

12

Three aspects of implicit employment relationships

Form
Content
Process

Breaches have serious consequences.

13

Form

The way in which an employee interfaces with the organisation.

Depends on how contracts are managed (are they equal, just etc).

Either transactional or relational.

14

Form - Transactional nature

Short term
Money based
Low emotional attachment
Direct exchange
Identifiable competencies

15

Form - Relational nature

Long term
Emotional attachment
Support, training opportunities
Increased benefits

16

Problems with transactional and relational distinction (form)

Takes a traditional career perspective (modern careers differ).

Some items may fall within both types depending on context.


17

Transactional and relational distinction research (form)

Relational contracts negatively associated with intentions to leave organisation (O Leary-Kelly, 2000)

Longer term eimployment relations positively associated with affective commitment (Sels et al., 2004)

18

Content

Content of exchanges from organisation and individual.

What is actually on offer?

The terms and conditions.

19

Content - what do the employees offer

Traditionally:
Loyalty
Conformity
Commitment to goals
Trust in employer

HOWEVER modern day it means longer hours, more skills, tolerance of change and taking on responsibility.

20

Content - what does the organisation offer

Traditionally:
Employment security
Promotion
Training
Development

Modern day it looks like:
High pay, rewards, a job

21

Process

The product of the contractual process as perceived by the individual.

Captured in form and content.

Predicts effort, motivation, productivity and intention to stay (Dabos and Rousseau, 2004)

22

Intra-Individual Processes

Cognitive and emotional processes involved in contract formation and change.

Perceived trust
Perceived equity and justice
Cultural values

23

Contract states - Fulfilled

A perception that the terms, or promises, made within the contract have been appropriately met.

A match between what was expected and what actually occurred

24

Contract states - exceeded

A perception that your organisation have gone beyond the terms made within the contract.

Have fulfilled the contract beyond what you had expected

25

Contract states - breached

Other party to the contract has failed to fulfil obligations.

Considered to occur on a regular basis for employment relationship

26

Contract states - violated

Organisation wilfully went back on a promise.

Intense emotional reaction.

The emotional component of a contract.

27

Contract breach findings

Reduces:

Employee trust (Robinson, 1996)

Commitment (Coyle-Shapiro, 2000)

Performance (Bal et al., 2010)

Increases:

Absenteeisn (Deery et al., 2006)

Counterproductivity (Chao et al., 2011)

28

Contract violations research

Violations mediate the relationship between breach perceptions and level of commutment and trust.

If an employee perceives a relational contract then they increase their perception of violations.

If they have a high level of interest in work then they rationalise the violations and perceive them less.

29

Cognitive trust

(McAllister, 1995)

Rational, calculative with a focus on economic gains (emerges from economic relationship)

30

Affective trust

(McAllister, 1995)

Emotional in nature

Consists of relational bonds between parties and respect for each other.

Emerges from social exchange relationsip

31

Which trust comes first?

(Lewicki & Bunker, 1996).

Cognitive trust (economic relationship) must come beforeaffective trust

32

Atkinson (2007)

In order to develop a relational contract, you need first to develop a transactional contract

Trust is evident in both contract types, but is different in nature

Relational contracts = affective trust

Transactional contracts = cognitive trust

33

Breaches of contract and affective trust

Can indicate a lack of respect and concern in well-being

34

Breaches of contract and cognitive trust

Can indicate a lack of reliability and dependability

35

Breaches of trust findings

Encourages employees to withdraw and reduce commitment to an organisation (Robinson, 1996)