Question: = = = = = = = = = Question 2 Psychological Contract = = = = You have an employee who has just had
Question Psychological Contract
You have an employee who has just had a home run after months of work Jane landed a three year contract with a new customer that will have a material impact on revenue in your area.
You know that recognition and rewards should be tied closely to the event you want to reward, but you really dont have any immediate options for recognizing the employee. Instead you meet with her and tell her:
Outstanding job Jane. We really needed this new customer and it puts us in the right place to meet our targets this year. If it was up to me I would see you get a pay bump right away; however, as you know our annual increase cycle was last month. I can promise you; however, that I will fight for you to get the raise you deserve next review period.
Analyze this through the lens of the psychological contract.
a What is the psychological contract that has been set? What are the employer's duties and how might this affect the employee's behavior and expectations over the next year?
b Fast forward to next year and its raise time. What do you see as the possible outcomes and reactions from Jane when she hears about her raise? In each case, what is the likely impact on Janes job satisfaction?
c What should the supervisor have said to Jane at the beginning of this scenario? Why explain in terms of the psychological contract.
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