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Term Paper: Relationship of Downsizing Career Perception & Psychological Contact
Term Paper: Relationship of Downsizing Career Perception & Psychological Contact
Term Paper: Relationship of Downsizing Career Perception & Psychological Contact
Of
Management Practice & Organization Behavior
On
Relationship of Downsizing
Career perception &
Psychological Contact
(LIM) Section.T1901
Reg.no.10900173
CONTENT
1. Acknowledgment
2. Introduction
4. Final Thoughts
• Personal survival strategy
• Out of the Crisis.
• Needy
6. Psychological Contact, Social & Ideology
employment contact
Its type.
• Transactional
• Relational
• Transitional
• Balanced
• Content
• Disruption
• Reneging
7. Bibliography
01
ACKNOWLEDGMENT
INTRODUCTION
I know more than a few people who have decided to opt out of a fast track
career for a job that's less stressful or for a job that's more fun.
Effects of Downsizing
Final Thoughts
Companies looking to improve profitability by reducing their headcount
should strongly consider the long term consequences before acting and
account for subsequent turnover to ensure the company is not left
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Shorthanded. Ultimately, downsizing may be a necessary decision, but
remember, the practices in place before downsizing, influence voluntary
turnover afterwards.
Layoff and downsizing often causes more stress than most people in your
life realize .In America, downsizing is expected to continue past the turn of
the century, and the downsizing "cure" has begun to hit Europe, Japan,
and even Russia. Sometimes, downsizing occurs because it is a proper
treatment, a response to the natural ebb and flow of the economy &
pressure to downsize.
Downsizing devastates social networks. When a person is laid off, an
entire personal network of internal and external relationships is lost as
well. It destroys informal bridges between departments, disrupts the
information grapevine, and severs ties with customers.
When General Motors reorganized a few years ago, it so ruined the
informal network that the company never recovered fully.
Additional reductions nip these relationships in the bud. Eventually, the
organization devolves into a sullen, resigned, demoralized crowd.
PERSONAL SURVIVAL STRATEGIES
Those who survive in the new business culture must learn how to work in
downsized organizations, how to tell when jobs are in jeopardy, and how
to secure new jobs. Organized groups such as forty plus are excellent
ways to get information, find jobs, swap leads, practice interview skills,
and get moral support. Join one now even if your position is not in
jeopardy and volunteer your services. You will make important
contributions to others and be able to build your own network in the
process.
Big companies often have openings in vital areas even when others are
cut. IBM is downsizing frantically, for example, but it is hiring in its RISC
(reduced instruction set computing) chips area. Build internal networks to
find out about such opportunities. Volunteer for committees, task forces,
and temporary assignments that put you in contact with other groups,
departments, or divisions.
06
The information highway offers exciting new opportunities to make
contacts, locate positions, and find good people for jobs. The Career
Center in America Online offers resume templates, a cover letter library,
Federal employment services, employer contacts, company profiles, job
listings, and more.
Often, the route to the ideal position is found through intermediate
positions that move you in the right direction. Establish a trajectory and
use such "halfway" houses. Consider internships or part-time work.
OUT OF THE CRISIS
Downsizing attacks the wrong problem. The real issue isn't number of
people. IBM cut 40,000jobs in 1993 and 35,000 in 1994, with the goal of
becoming half its peak size. Big Blue's real problem isn't bloat, however.
Rather, it's how traditional IBMs interact, work, think, and relate. The
corporation suffers from lack of imagination and innovation, caused by a
stiff bureaucracy and hidebound culture. That is why IBM formed a
strategic alliance with archrival Apple Computer — to get access to the
creativity it lacked. Even drastic cuts will not help if the company's culture
stays the same.
The way out of the crisis is to focus on creating new forms of organization
— the reformation of social networks, not their destruction. When
downsizing works, enlightened leaders devote great attention to human
resources and network rebuilding. They raise the organization out of the
ashes of downsizing, creating new social networks that empower and
boost performance.
Establish a clear strategic vision. Successful leaders create a clear vision
of the company of tomorrow and manage into that vision. With the right
vision, redeployment of resources, not downsizing, is the proper
treatment to achieve corporate success.
Establish network-building mechanisms, such as General Electric's Work-
Out, established by CEO Jack Welch. Modeled after the New England
town meeting, Work-Outs empower, eliminate unnecessary effort, and
rebuild relationships across levels and functions.
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This world would be the logical culmination of the downsizing movement,
but also would be a bleak and harsh reality. It can be avoided only if
courageous business leaders recognize the negative, dysfunctional
consequences of downsizing, and then face and remedy the corporation's
real problems. The business heroes of the past decade came from finance.
The heroes needed today are those who champion human resources,
creating the conditions that stimulate and tap human potential, rather
than destroy
In Conclude
Given the mixed evidence regarding the long-term benefits of downsizing,
further empirical studies are needed to assess if and when downsizing is
beneficial. The current quantitative and qualitative studies seem to
indicate this overarching conclusion: for staff reductions to be effective,
long-term and structured planning must be in place. Because good staff
morale is critical, an effective downsizing plan will provide resources for
dismissed staff and remaining staff. By helping staff to adjust to the
changes, HSOs may realize some of the expected benefits of this process.
PERCEPTION
When you say Perception, like the first impression to the person it's a bad
or it's a good, always looked the outside personality of the person,
But always remember look also the inside attitude of these person.
Spoiled/Entitled
08
Reality: To an extent, the folks in this generation do have a sense of
entitlement & these parents stunted their children's growth by proactively
removing all obstacles and potentially negative experience.
Generation Y workers must realize that their bosses are not going to be
like their parents, and that part of growing as an employee is learning
from past mistakes and accepting constructive criticism.
Perception: Lazy
Reality: Technology has allowed this generation to multitask and find
shortcuts in achieving tasks. Texting, instant messaging, social
networking, and Web surfing have all made Generation Y workers more
competent, efficient, and productive (if not sometimes overwhelmed). The
key for employers is to accept that there may be multiple ways for
workers to accomplish their tasks.
Perception: Poor Work Ethic
Reality: Generation Y is the first generation to expect -- from day one --
employers to realize there is more to life than work. They have a strong
work ethic -- just not in a 9-5 sort of way. Generation Y wants work to be
fun and flexible because the line between work and life is seamless. The
key for employers is offering flexible work schedules, adjusting the belief
that workers need to "put in the hours at the desk" to be effective, and
developing a work culture that is pleasant and positive.
Perception: Little Respect for Authority Reality: While some people
refer to this cohort of people as Generation Why for a reason, it is not so
much an issue of a lack of respect for authority as much as it is that this
group has been raised by their parents to question everything and raise
questions when they don't understand something. The key for employers
is realizing that asking questions can often lead to answers and solutions
that are actually more efficient and effective .
Perception: Too Self-Centered and Individualistic
Reality: This iPod Generation (named such because iPod commercials
focus on individuality while selling the product to every Gen Y) works well
09
in groups and teams -- especially with people their own age -- but they
also have been taught the value of individuality and independent thinking.
They see themselves as unique individuals -- not tied to any specific labels.
And unlike any previous generation, these workers do not plan to let their
jobs define who they are.
The key for employers is finding the right mix of individual and team
projects that allow these workers to grow professionally.
Perception: Overinflated/Unrealistic Expectations
Reality: While this generation may be more anxious than others to rise
quickly to the top, it's less about unrealistic expectations than it is about
being better prepared for work than previous generations -- with perhaps
a touch of the need for instant gratification thrown in. This generation
also has no interest whatsoever in working in a cubicle -- not because it is
beneath them, but because they feel advances in technology should let
them be able to choose to work from home, Starbucks, or anywhere there
is a Wi-Fi connection.
The key for employers is to redesign and rebuild some of the old career
ladders that were destroyed with the flattening of organizations and
greatly expand telecommuting and remote working arrangements. Gen Y
workers need to see a progressive promotion path or they will move on to
the next employer.
Perception: Not Committed to Work
Reality: This generation is the most educated workforce ever, and partly
because of this level of education, Generation Y workers believe their work
should have meaning. These folks quote from Office Space and have a
mistrust of management. More than ever, these workers are seeking
greater fulfillment and are only willing to work hard at jobs that provide
it.
Perception: No Loyalty to Employers
Reality: Because of more work experiences and greater education, Gen Y
workers are simply more mobile, making it easier to move from one
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employer to another if they are unhappy with the work. They were also
raised during a period of great downsizing and rightsizing, and many
witnessed the grief and frustration their parents felt when being laid off --
and they do not want to experience that emotion. These are also some of
the reasons why many Gen Y workers are diligently planning to start
their own businesses.
Perception: Lacking in Social Skills
Reality: Generation Y are some of the most social of any generational
cohort; it's just that they communicate and socialize much differently
from the rest of us.
The key for employers is to realize and accept that people communicate
differently and to embrace the new techniques while also teaching the Gen
Y workers that business sometimes still needs to use traditional methods
of communication.
Perception: Needy
Reality: Okay. The reality here is that Millennial are indeed pretty needy.
Again, though, it's not really their fault as their parents basically trained
them that mom or dad is just a phone call away. In fact, there are stories
of Generation Y job-seekers taking a parent along for the job interview or
to help negotiate the job offer.
Theoretical Implications
Perceptions that downsizing is financially effective, inevitable, liberating
for laid-off employees and not a source of implied contract breach may
make downsizing seem acceptable, and even natural, to the perceiver &
has potential to enhance the acceptability of organizational downsizing..
Practical Implications
11
In addition to the theoretical implications summarized above, our results
have some implications for practice that are worth noting. However,
future research on the relationship between business ideologies and
perceptions of downsizing might permit some managers to extend that
informal conditioning into formal ideological indoctrination programs.
Limitations
One limitation of this study is its cross-sectional nature, which renders
firm empirical conclusions about causal order among the variables
difficult. Clearly researchers should attempt to supplement self-report
methods where possible, but it also seems reasonable to argue that
constructs such as ideological beliefs about business and perceptions of
organizational downsizing can only be measured by self-reports.
In Conclude
We began this paper by developing a theory about the effects of layoff
agency on perceptions of organizational downsizing. Thus if we wish to
understand how administrative practices like downsizing spread and
become institutionalized in modern society, we may have to pay more
attention to the past experiences and the cognitions of the managers,
employees, and external observers who ultimately grant legitimacy to
these practices and become agents of their diffusion.
PSYCHOLOGY
Great importance is being attached to the concept of the psychological
contract. However, the concept does not sit easily within the `traditional'
perspective on employment relations with its primarily institutional-level
focus. Nevertheless, the concept, depending on how it is defined, has great
12
potential to fill an emerging gap in employment relations: that of
individual-level analysis. This gap becomes apparent when a broader,
more `contemporary' perspective on employment relations is considered.
This study investigated the main effects and the interaction effects of
psychological contract breach and hostile attribution style on employee
deviance. Psychological contract breach did not have a stronger effect on
organizational deviance than on interpersonal deviance. Hostile
attribution style had interactive effects on the relationships between
psychological contract breach and the two forms of employee deviance.
Specifically, the higher the hostile attribution style, the stronger the
positive relationship between psychological contract breach and employee
deviance.
The present research was designed to shed light on several facets relevant
to the definition of employment contracts and the implications of
employment contracts for organizational behavior Third, we present the
results of several studies that document the factor structure and internal
consistency of the scales and that examine convergence and divergence
with other measures. Finally, we highlight several implications that the
distinction between social and psychological contracts has for future
research and practice.
Social Contract
We define a social contract as the set of norms, assumptions, and beliefs
that society conceives as fair and appropriate for parties involved in
employment relationships. Thus, it defines the beliefs and norms
pertaining to reciprocity, job security, loyalty, good faith, and fair
dealings that should be maintained by employees and organizations in
general. Our definition is a narrowed view of the current variety of social
contract definitions. In the current work, we focus on individuals'
perceptions of the social contract that they perceive should exist between
employers and employees in today's organizations.
Psychological Contract
1
3
We define a psychological contract as the employment relationship
between an organization and an individual employee with regard to the
obligations that each party has to the other. In the current research, we
focus on the employee's perception of the psychological contract.
Employee beliefs about the psychological contract develop, in part, from
either explicit or implicit promises made by the employer at the time of
recruitment, as well as during continuing interactions between employee
and employer.
The psychological contract differs from the social contract in several other
ways. The psychological contract is developed at an individual level and
the social contract is developed at a societal level.
Conclusion
Considering the available research studies on employee retention and the
content and nature of psychological contract, the author tends to conclude
that psychological contract would be one of the major factors influencing
employee retention. In light of the above discussion, it would be pertinent
to conclude that a conscious development and management of
psychological contract in an organization would definitely contribute to
employee retention and reducing employee turnover.
Bibliography
• http://www.sciencedirect.com/science?
_ob=ArticleURL&_udi=B6WMN
• http://www.iipm.edu/iipm-old/managing-psychological-
contract.ht
• http://www.entrepreneur.com/tradejournals/article/159696526.ht
ml
• http://www.meetingsfocus.com/Magazines/ArticleDetails/tabid/13
6/Article
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