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Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment.

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Page 1: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Wabel Bahanshal

Study of organizations

Class instructor: Dr. Thomas Tang

Chapter 2:

The Psychological Contract and Commitment.

Page 2: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Employee Engagement: Beyond the Fad Into The Executive Suite

By Dr. Theresa M. Welbourne

Page 3: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Theresa M. Welbourne Research Professor of

Management and Organization. Center for Effective

Organizations, Marshall School of Business, University of Southern California.

President, CEO, and founder, eePulse, Inc.

Page 4: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

About the Author’s Education: University of Colorado, Boulder, Ph.D. -

Business Administration, May, 1992.

Major: Human Resource Management, concentration in Compensation.

Minor: Research Methods.

Page 5: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

What is Employee Engagement?

Page 6: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Continued:The idea of employee engagement was developed by Kahn (1990) in his work on summer camp employees and also employees at an architecture firm. He defined employee engagement as the “harnessing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances” (Kahn, 1990, p.694).

Page 7: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Employee Engagement Existence. Employee Engagement exists when the

employee feels:

Physically Intellectually Emotionally… attached to their work (Kahn,1990)

Page 8: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

History of Employee Engagement Prior to the 1980s, employers expected loyalty

to the organization, and in exchange for that commitment, they offered lifetime employment.

However, in the 1980s things have changed. With increased global competition, employers needed to be more flexible in their deployment of employees. Plants were closed and then reopened in countries where wages were lower.

Page 9: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Continued: Therefore, Employees learned the hard

way (through layoffs) that loyalty was no longer rewarded.

High-quality talent employees left organizations, and productivity suffered. Skilled employees were not willing to put in overtime and extra effort.

Page 10: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Continued:

This situation created the need for something new, and at least one of the initiatives was employee engagement.

Page 11: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Facts: Leadership and management teems are

the ones responsible of getting the employees engaged at work.

Research show Only 14 percent to 30 percent of employees are engaged at work.

Page 12: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Change Behavior, Not Attitudes “The only way to improve employee

engagement across multiple organizations is to know what it looks like; the behaviors must be specified. Behaviors, to date, are the missing link in employee engagement. Thus, to fill that void, I suggest a role-based performance model as an option for providing a definition of the behaviors of employee engagement.” Theresa Welbourne.

Page 13: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

The model defines five key roles that employees occupy at work: Core job-holder role. Entrepreneur or innovator role. Team member role. Career role. Organizational member role.

Role-based performance Model By Theresa Welbourne

Page 14: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Figure 1Role-Based Performance Model by Dr. Theresa Welbourne

Page 15: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Continued “The core ideas behind use of the model

are that firms win in the market when they develop human resources in a way that is not easily replicated by their competition.”

Page 16: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment
Page 17: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Leader Energy and Engagement Leaders themselves have to be engaged;

they need to work and succeed in both their core job and non-core job roles.

Leaders need to clearly articulate how each role helps support the business strategy and plan.

Leaders have to create an environment where the non-core job roles are valued, and they must remove barriers to employees' working in the non-core job roles.

Page 18: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Continued: Those last three conditions are not easy

for leaders to meet.

“When leaders and managers are feeling distracted and overworked, their employees are doing much worse.”

Page 19: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Leadership Pulse Surveys: Leaders Engagement.A study has been conducted, and data has been collected. Surveys has also been sent to more than 4000 executives.

The surveys show lower energy levels among leaders at work.

Page 20: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Suggestions for Success Conduct a business analysis to determine what roles

are really valued in their organization.

Determine what leadership education is necessary to create a culture where both core job and non-core job roles are valued and rewarded.

Examine in detail what structural impediments may exist to spending time in the non-core roles.

Engage employees in the right roles at the right time.

Page 21: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Engagement Levels Worldwide

Page 22: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Key Implications and Recommendations

To reap the rewards that a more engaged organization promises, your entire workforce needs to be accountable for their piece of the engagement equation every day. The 2011 Employee Engagement Report clarifies those roles and responsibilities

Individuals: Ownership, clarity and action. Individuals need to know what they want — and what the organization needs — and then take action to achieve both.

Managers: Coaching, relationships and dialogue. Managers must understand each individual’s talents, interests, and needs. Then match those with the organization’s objectives — while at the same time creating personal, trusting relationships. Furthermore, they need to discuss engagement often.

Executives: Trust, communication and culture. Executives have to demonstrate consistency in words and actions, communicate a lot, and align all business practices and behaviors throughout the organization to drive results and engagement.

Page 23: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Here are the key benefits of employee engagement:

• Better performance. Engaged employees work smarter, not

harder. They keep looking for ways to improve performance and

they keep finding them. This means more sales, lower costs,

better quality and innovative products.

• Better communication. Engaged employees communicate –

they share information with colleagues, they pass on ideas,

suggestions and advice and they speak up for the organisation.

This leads to better performance, greater innovation and happier

customers.

• Greater customer satisfaction. Engaged employees go out of

their way to meet customers’ needs.

Page 24: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

The End

Any Questions?

Page 25: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Related Article (1): How can leaders achieve high employee

engagement?By Authors:Xu, Jessica, JRA (NZ) Ltd, Auckland, New ZealandThomas, Helena Cooper, Department of Psychology, University of Auckland, Auckland, New Zealand

Leadership & Organization Development Journal, Vol 32(4), 2011. pp. 399-416.

Page 26: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Related Article (2):

Employee Engagement in the Public Sector: A Review of Literature

http://scotland.gov.uk/Publications/2007/05/09111348/5

Page 27: Wabel Bahanshal Study of organizations Class instructor: Dr. Thomas Tang Chapter 2: The Psychological Contract and Commitment

Related Article (3) Employee Engagement A review of

current thinking: By Gemma Robertson-Smith and Carl Markwick.