The Nature of the Employee-Organization Relationship - Term Paper Example

One of the consequences of this shift in responsibility is increased job insecurity, which resulted in a decline in feelings of organizational commitment (Knudsen, Aaron, Martin, & Roman, 2003). Job insecurity has also changed the psychological contract and influenced the employment relationship. Loughlin and Barling (2001) made the case that the notion of a 'job for life has been replaced with a 'survival of the fittest as downsizing has forced employees to become more employable.

As a result, younger workers who have seen their parents being laid off will be more demanding and less willing to make sacrifices for the sake of their jobs. Organizations may assume that certain rules of the old employee-organization relationship still apply, leading them to make missteps in communication, recognition, and reward. Likewise, individual employees may assume that their employer knows what motivates them, when in fact the employer may not know or may be operating under outdated assumptions.

In short, psychological contracts and the employment relationship are changing. Review of Literature The Promise The psychological state of an individual can inherently influence his or her behavior as much as the physical state. Because we do not operate in a vacuum, it is important to understand that our behavior and attitudes are subject to alteration because of outside influences. When these external factors project behaviors that one may categorize as controversial, one psychological dimension can quickly become dislodged.

Generally, our relationships lead us to believe that a promise is a promise. Our interactions with those we trust teach us to expect that these promises will be fulfilled. When the promises are maintained, the psychological state remains intact. On the other hand, if deceitful behavior, broken promises, and misconceptions of truth are demonstrated, the individual may ultimately feel vulnerable, betrayed, and unhappy. Rousseau (1995) highlights two kinds of promises; warranties and communications of future intent.

She further sub-categorizes these promises into four distinctive types. Idle promises are usually not taken literally by the receiver. Credible promises are defined as believable promises as perceived by the receiver. Unattended promises are those that unintentionally fall through and relied upon promises are those promises that the recipient places value upon and expects to happen. Although promises are subject to limitations, it is still necessary to understand the mechanism behind them. This makes it all the more important to advance research on the psychological aspects of the employee-employer relationship.

Organizational behavior researchers frequently study the relationship between individuals, groups, and the effect their behavior has on the organization. One of the most recent concepts included in the literature revolves around the psychological contract. It is important to examine this contract because the foundation of the contract is based on promises. The promises within the contract offer direction for both the employee and the employer. The Evolution of the Psychological Contract The decline in unionization throughout the country has reduced the number of employees affected by formal, written contracts of employment (Rousseau, 1990).