Module 1

Introduction to Managing
People and Organizations
MGMT5100
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Road Map for Module 1

1.0 Welcome
• Online opportunity. Custom learning
experience. Need to stay connected!
1.1 Introduction to MGMT 5100
• Understand the class format
• Engage, take control of your learning.
1.2 Managing the psychological contract
• Building Trust
• Violations and breaches
• Employee responses
Module 1 Learning Objectives and MPO Challenge
At the end of this module students will be
able to: Managing People and Organizations
• Identify the course format, dates, Discussion of Challenges
deadlines, and key deliverables for the
course (CO1, C02)
What is the best organization you have
• Describe a challenge related to
managing people in organizations that is ever been a part of?
relevant to your career (CO1, CO2)
• Define the psychological contract and its
role in shaping the organizational
environment (CO2, CO3)
• Connect with the course instructor and
colleagues, through a personal story
(CO1)
Module 1.2
Managing the Psychological
Contract
BUSI 5100
6

Psychological
Contract and Success
in the Business World
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Psychological Contract
• An individual’s beliefs, shaped by the
organization, regarding the terms and
conditions of a reciprocal exchange
agreement between individuals and
their organization.

Top Employers.
• https://www.macleans.ca/tag/canadas-
top-100-employers/
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Different Forms of Psychological Contract

Time Frame
Short-Term Long-Term

Transactional Balanced
Requirements High
Performance

Low Transitional Relational

Rousseau, 2000
Psychological Safety
• Psychological Safety is defined as a shared belief that the
team is safe for interpersonal risk taking.
– Makes tough feedback and difficult conversations possible.
– Helps combat groupthink.
– Image risks at work.
▪ Being labeled as ignorant
▪ Being labelled as incompetent
▪ Being seen as negative
▪ Being seen as disruptive.
The Benefits of Psychological Safety
• Encourages Speaking up
• Enables clarity of thought High
• Mitigates failure Comfort Learning
• Promotes innovation Zone Zone
• Removes obstacles

Psychological
• Increases accountability

Safety
Apathy Anxiety
Zone Zone
Low

Low Accountability High

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MGMT 5100 Psyc Contract

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Violations & Breaches

Breach: an employee’s cognition that he/she has received less than promised. When we perceive a breach
we assess the ability and intent of the of the other party.

Perception Able Unable

Willing Inadvertent Disruption

Unwilling Breach No Contract

Violation: An emotional state that may result from the perception of the psychological contract breach
• Contract makers
• Systems

When are you most likely to perceive a contract violation?

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Responses
• Academy of Management Journal
– Rusbult et al. (1988)
Exit Voice

Responses
to Breach

Silence
Neglect
(loyalty)

BUSI 2101
End of Module 1.2
Thank you!