Flashcards in Employee Relations Deck (35):
Social Exchange Theory
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.
Emotional attachment towards organisation.
Develops from work experiences, personality and organisation characteristics.
Stays due to high cost of leaving.
Develops from alternatives and interests
Obligated loyalty despite personal dissatisfaction
Develops from socialisation and investments of organisation
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.
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.
Key components of psych contracts
Development from beliefs to
Unilateral perspective of psych contracts
An individual’s beliefs, shaped by the organisation, regarding the terms of their exchange agreement with their organisation
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
Employment contract features
Written, definitive, long term, inflexible and legislative with infrequent violation
Psych contract features
Unwritten, loose, changing, flexible and interpretive with frequent violations
Three aspects of implicit employment relationships
Breaches have serious consequences.
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.
Form - Transactional nature
Low emotional attachment
Form - Relational nature
Support, training opportunities
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.
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)
Content of exchanges from organisation and individual.
What is actually on offer?
The terms and conditions.
Content - what do the employees offer
Commitment to goals
Trust in employer
HOWEVER modern day it means longer hours, more skills, tolerance of change and taking on responsibility.
Content - what does the organisation offer
Modern day it looks like:
High pay, rewards, a job
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)
Cognitive and emotional processes involved in contract formation and change.
Perceived equity and justice
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
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
Contract states - breached
Other party to the contract has failed to fulfil obligations.
Considered to occur on a regular basis for employment relationship
Contract states - violated
Organisation wilfully went back on a promise.
Intense emotional reaction.
The emotional component of a contract.
Contract breach findings
Employee trust (Robinson, 1996)
Commitment (Coyle-Shapiro, 2000)
Performance (Bal et al., 2010)
Absenteeisn (Deery et al., 2006)
Counterproductivity (Chao et al., 2011)
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.
Rational, calculative with a focus on economic gains (emerges from economic relationship)
Emotional in nature
Consists of relational bonds between parties and respect for each other.
Emerges from social exchange relationsip
Which trust comes first?
(Lewicki & Bunker, 1996).
Cognitive trust (economic relationship) must come beforeaffective trust
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
Breaches of contract and affective trust
Can indicate a lack of respect and concern in well-being
Breaches of contract and cognitive trust
Can indicate a lack of reliability and dependability