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Leading & Managing Holistically >Part 5 >Chapter 14 >The Individual–Organization Relationship

[Solution] The Individual–Organization Relationship

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Author: Emily Carter

Certain psychological concepts apply to nearly all humans in organizations, while other psychological dimensions vary widely among individuals. An understanding of both the shared human experience and the uniqueness of individuals affects the effectiveness of managers and the people within the organization.

The Psychological Contract

The psychological contract is an individual's set of expectations about what they will contribute to the organization and what the organization will provide in return. Because the psychological contract is constructed by (and exists in) each employee's mind, it may or may not correspond to the viewpoints of others.

  • The employee expects to make contributions to the organization that meet its needs.
  • In return, the employee expects the organization to provide inducements, which may be tangible or intangible.

Select the term that best completes the following sentence.

A manager would rate a subordinate's high if the employee's contributions corresponded well with the rewards offered by the organization.

View Explanation

Perfect person–job fit would be achieved if the inducements offered by the organization exactly matched up with the contributions of the employee. Organizations strive for high person–job fit in order to ensure a highly productive workforce.

Agreeableness, self-efficacy, and self-awareness are all individual personality traits. They may play a role in how well a person fits a given job.

Identify each aspect as either an individual's contribution or an organization's inducement:

Promotions

Time

Benefits

View Explanation

Organizations fulfill their half of the psychological contract by offering employees inducements, such as promotions.

One half of the psychological contract involves the contributions that the employee makes to the organization, such as time.

Rewards that the organization gives the employee, such as benefits, are inducements.

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