Formal and Psychological Contracts

1
Formal and Psychological Contracts

• All organizations work on two different levels
• Overt conscious levels that  focuse on specific
  tasks, e.g., measurable goals, the formal stuff.
• More implicit (tacit) level of process
  emphasizing group maintenance, interpersonal
  dynamics, sentiments, and belief systems, the
  psychological stuff.

2
The Formal Contract

• Books to buy, due dates, deliverables, grading
  criteria, (curve or not), etc.
• The specific stuff we try to weigh and
  measure.
• Deals with concrete expectations and how they are
  met.
• We assume we can be objective about the formal
  contract.

3
The Psychological Contract

• Not the formal contract.
• Deals with psychological expectations and how
  they are met.
• Dynamic it unfolds, it changes as we work with
  it, e.g., how we treat each other, how you feel
  about course, your commitment or motivation to
  learn, my commitment or motivation to learn
  with you.
• Found in our relationships our behavior with each
  other, faculty-student and student to student,
  not in the syllabus, the books, exams we take,
  grade we get or give.

4
Psychological Contract and BMA505

• Psychological contract focuses on a dynamic
  relationship.
• Mutual expectations are at work.
• Both student and faculty contributions obligate
  the other party to reciprocate.
• Based upon trust and good faith.
• If violated, cant be easily rebuilt.

5
Faculty and Students Need Each Other

• Faculty need
• Good students.
• Prepared students.
• Effective study groups.
• Feedback and help
• Respect and affirmation.

• Students need
• Managerial leadership competencies
• Clear expectations.      
• Feedback and help
• Respect and affirmation.

6
Students Need Each Other

• Effective study groups
• Clear expectations.      
• Feedback and help
• Respect and affirmation

7
Self Fulfilling Prophecy

• Folks respond to others expectations of them.
• We respond to our expectations of each other.

8
Implications

• The psychological contract really matters
• Clearer psy and formal expectations less
  anxiety.
• Higher expectations higher performance.
• All parties need to minimize the dysfunctional
  consequences of shifting expectations.
• Begins and ends with sharing information and
  expectations.
• Its a continuous process and not a discrete
  event.

9
Getting Fit

• When the fit between the faculty and students is
  poor, both suffer. A Good Fit
• Benefits students by creating meaningful and
  satisfying learning experiences.
• Benefits faculty who get to work with challenging
  and energetic students and the MBA Program
  prospers.