An introduction to psychological contracts and how they can hurt or improve your organisation. This explains that the PC is about the emotional rather than the contractual relationship.

1. The Psychological Contract What on earth is that?

3. This is not another name for a contract of employment

4. It represents the emotional relationship between employee and employer

5. Focuses on What employee expects in return for their loyalty and commitment at work

6. Mostly it goes unnoticed

7. Only really comes to the fore when there is conflict at work and relations between employee and employer is strainedCopyright New Dimensions 2011

8. ‘…there is conflict at work and relations between employee and employer is strained…’ Copyright New Dimensions 2011

10. The public sector tends to have very strong PC’s

11. Key to this has always been the strong sense of job security local government work has offered

12. The current redundancy round has blown a serious hole in this belief

13. This has diminished trust and badly impacted on PC’s

14. … but have employers noticed??? Copyright New Dimensions 2011

15. Loss of job security has diminished employees trust and badly impacted on PC’s Copyright New Dimensions 2011

17. Anti management rhetoric builds

18. Attitudes become entrenched

19. Conflicts become very bitter

20. … basically life becomes tough!Copyright New Dimensions 2011

22. People recognise they have much to lose and can be motivated to ‘fight for their rights’

23. Disputes can become very involved and highly emotionally chargedCopyright New Dimensions 2011

25. Critically the feelings of those who ‘survive’ the process is often ignored; we just assume the will be happy to remain employed.

26. Not so!!!Copyright New Dimensions 2011

27. Of course the survivors will be happy – wont they? Copyright New Dimensions 2011

29. Survivors can often prove to be very resistant to change

30. Very disgruntled survivors may act as blockers to change and progress

31. Failure to address this issue may have a significant adverse impact on any change programme. Copyright New Dimensions 2011

32. Post Change – employees can adopt a number of roles: Copyright New Dimensions 2011

34. Focus needs to be on moving people from the negative bottom quadrants to the positive top.

35. Oddly people’s positions can move best to the diagonal opposite

36. Start with your senior people first –don’t assume your managers are fully engaged!Copyright New Dimensions 2011

38. Recognise the loss and rebuild moral and trust and where possible offer a new deal (replace job security with something new like enhanced marketability)

39. Whatever you do, do it before you implement any change programmesCopyright New Dimensions 2011

40. Replace old deal with a new deal: Copyright New Dimensions 2011

41. Is the Psychological Contract impacting on your change programme? If you would like further help or support on any of these change issues please contact us on: info@newdimensions-sw.co.uk or follow us on-line at: www.newdimensions-sw.co.uk You may also find our other presentations helpful: People Through Change - http://ow.ly/5QnOj Managing problem people at work - http://ow.ly/5QnC1 Working SMARTer not HARDer - http://ow.ly/5QnYX Copyright New Dimensions 2011