Managing the Psychological Contract Using the Personal Deal to Increase Performance

Managing the Psychological Contract To Ruth and Zack Managing the Psychological Contract Using the Personal Deal to Increase Business Performance MICHAEL WELLIN © Michael Wellin 2007 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher Published by Gower Publishing Limited Gower House Croft Road Aldershot Hampshire GU11 3HR England Ashgate Publishing Company Suite 420 101 Cherry Street Burlington, VT 05401-4405 USA Michael Wellin has asserted his moral right under the Copyright, Designs and Patents Act, 1988, to be identified as the author of this work British Library Cataloguing in Publication Data Wellin, Michael Managing the psychological contract : using the personal deal to increase performance Performance management Organizational commitment Communication in personnel management I Title 658.3’14 ISBN-13: 9780566087264 Library of Congress Cataloging-in-Publication Data Wellin, Michael Managing the psychological contract : using the personal deal to increase performance / by Michael Wellin p cm Includes index ISBN-13: 978-0-566-08726-4 Personnel management Performance technology Organizational behaviour psychology, Industrial I Title HF5549.W43194 2006 658.3’14 dc22 2006025036 Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Contents List of Figures List of Tables Acknowledgements Introduction and Why the Psychological Contract MaĴers Purpose of this book Why the psychological contract and personal deals maĴer Chapter summary Current Use of the Psychological Contract Background to the psychological contract How some business organisations describe their psychological contracts A different psychological contract Redefined view of the psychological contract Change and the psychological contract Shi s in the prevailing psychological contract over time Chapter summary Viewing the Psychological Contract as a Personal Deal ix xi xiii 15 17 17 19 25 27 28 30 33 35 Business deals and personal deals 35 All our relationships involve a personal deal 38 Expectations lie at the heart of the personal deal 39 A closer look at a personal deal 41 Visualising the personal deal 44 Personal deals at work 48 Difference between the personal deal at work and the psychological contract 53 Chapter summary 54 Making and Breaking Personal Deals Pre-employment steps in creating personal deals Recruitment steps in creating personal deals Creation of personal deals during new job socialisation Value of the personal deal in induction and socialisation Frequency of broken personal deals a er initial socialisation 57 57 58 60 64 68 vi M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T Impact of personal deal breach on employee aĴitudes Impact of personal deal breach on employee behaviour Chapter summary The Personal Deal Process The dynamic nature of personal deals Personal deals occur between each leader and their people How the deal operates in practice Using the personal deal to understand and manage ourselves and our people Using the model to understand Anna’s personal deal Predictions about the personal deal process Chapter summary Types of Personal Deal Relationship personal deals Emergence of transactional personal deals Business pressures for increased transactional personal deals Persistence of relationship personal deals Requirements for a personal deals framework Four types of personal deal Chapter summary How Three Companies Use the Psychological Contract Arup CMS Cameron McKenna Richer Sounds Parallels between the three companies’ psychological contracts Chapter summary Using the Personal Deal to Improve Leadership Effectiveness Nature of leadership Determining direction through objective seĴing How to use the personal deal to improve performance A leader’s one-to-one use of the personal deal to enhance performance Organisation-wide use of the personal deal to improve performance How the deal complements fundamental leadership 69 71 73 75 75 76 79 83 86 88 91 93 93 95 98 100 101 102 109 113 113 117 121 125 127 131 131 133 136 140 141 144 CONTENTS A radical alternative approach to leadership based on the personal deal Value of the personal deal for leadership Chapter summary vii 146 148 149 Using the Personal Deal to Change Organisation Culture 153 What is organisation culture? Effective approaches to culture change Business context of culture change in Royal Mail Sales Viewing culture as the prevailing personal deal Chapter summary 153 157 160 169 171 10 How Human Resource Practitioners Manage Personal Deals How HR shape personal deals Reshaping personal deals in an organisation Evolution of the human resource function from the welfare function Professional personnel management The human resource process Strategic human resource management Chapter summary 11 How to Shape Your Personal Deals Preconditions for discussing our personal deals Steps involved in having a personal deal discussion Personal deal training Chapter summary 12 Behavioural View of the Personal Deal Introducing transactional analysis as a framework for understanding personal deal behaviour Transactions Behaviour underpins all our personal deals Methods for changing personal deals Chapter summary Index 173 173 175 176 177 177 186 192 195 197 200 210 212 215 215 219 221 230 233 237 This page intentionally left blank List of Figures 1.1 Aligning personal deal conversations up and down the organisation 14 3.1 Components of our personal deal with a restaurant 44 3.2 Components of the personal deal at work 52 5.1 Different perspectives of the personal deal and the psychological contract 78 5.2 How the deal works (A) 84 5.3 How the deal works (B) 85 6.1 Relationship and transactional personal deal continuum 97 6.2 Types of personal deal 107 6.3 Measuring the personal deal 109 8.1 The four key questions when discussing personal deals 138 9.1 Touchstone behaviours 163 9.2 Sample team deal 165 9.3 Personal deal perspective of organisation culture 170 10.1 Broken personal deal experience 185 10.2 How SHRM creates business value 189 10.3 Matching HR priorities to different personal deals 191 11.1 Concept of expectations 201 12.1 Parent, adult and child ego states at work 219 12.2 Transactions 220 12.3 Ulterior transactions 221 12.4 Master–servant personal deal 223 12.5 Rational problem solver personal deal 224 12.6 Benevolent instructor personal deal 226 12.7 Creative geniuses personal deal 228 12.8 Smooth controller personal deal 229 230 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T The advantage of the smooth controller personal deal is that if the individual is highly revered and clever it can be a very efficient method of leadership If the leader is wise and an effective decision maker, such as the widely respected Prime Minister Lee Kuan Yew of Singapore, then it can be a very efficient way of exercising power Lee is credited with leading Singapore from a third-world British colony into the independent financial and economical powerhouse it is today The downside of the smooth controllers personal deal is that if they are not so wise, or they require other input when making decisions, then it can be both unproductive and socially dysfunctional METHODS FOR CHANGING PERSONAL DEALS While there are many different possible types of personal deal types, the five described above are, I believe, very common in the organisations and teams I have worked with Obviously they not portray all possible personal deals that can occur From my experience however they are frequently found personal deal types and certainly ones I come across in organisations in different sectors and different sizes There is no such thing as a perfect personal deal – the right one is the one that the people involved feel is right Sometimes external observers might view a particular personal deal and believe it is dysfunctional – but for all sorts of reasons it may prove worthwhile to the individuals involved Equally we might observe other personal deals which we view as ideal and very positive, yet those directly involved and affected may consider them to be very far from optimum In this final section we will not aĴempt to evaluate types of personal deals Our goal is rather to provide some insights and options which you may want to consider to use to help discuss and perhaps change your own personal deals you are involved in which you find less positive than you would like The first option before seeking to change behaviour of your personal deal is to be aware of what is happening in the relationship by listening and reflecting on your and the other person’s behaviour What ego states are you in and what are you doing with and to one another? Are there certain repeated paĴerns which show the cycle of how the relationship evolves over a time period? Are you in parent, adult or child ego state? What kind of transactions you repeatedly use with one another? How successful is the relationship? B E H AV I O U R A L V I E W O F T H E P E R S O N A L D E A L 231 Once you are aware of what is happening in the relationship, the second step is to decide the changes you want to make in your personal deal behaviours Do you want to become more assertive (parent), you want the other person to be more understanding of you (nurturing parent) or you want to laugh more (child)? Before seeking to change your personal deal it’s important you are clear about the directions you would like it to move Clarity about how you might want the relationship to change is no guarantee that it will happen – but it is a great start for where you would like the relationship to go Now you know the personal deal behaviours you have with another person and how you would like them to change you can take any of five actions to seek to bring about the changes you desire A subtle action which may encourage the other person to change their behaviour is to ask questions which, if they answer, will get them to engage different ego state behaviours Some examples might be: • ‘I know you want me to produce the report by the end of tomorrow – but how will you use the report? Wouldn’t a mind map be sufficient instead?’ • ‘You have expressed your dissatisfaction with what I did – can you tell me how you would like this next piece of work done and who else does it the way you would like?’ • ‘You have told me to this work in a different way for clients, but how you know they will notice, and even if they do, can you tell me what difference it will make to them?’ • ‘This is the third time this week you have asked my opinion – instead of me telling you, how about you tell me what you think is the best way to deal with this, and why?’ Asking direct questions about the maĴers under discussion is an effective and direct way of geĴing someone to change their ego state behaviour, especially to shi them into adult ego state A more up-front way of encouraging someone to change their behaviour is to give feedback and tell them you would like them to behave differently You can describe how you see their behaviour and tell them what you want them to differently Possible examples might be: • ‘You have given me five separate instructions about how to handle this work, I believe I know what I am doing and would much prefer 232 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T it if you just le me to it You can then give me feedback when I have finished Is that OK?’ • ‘You keep asking for my advice about what to I would really appreciate it if you tried to work it out for yourself before you ask my advice Next time can I suggest that you work it out and then come and ask my view a er you have your own view? I would much prefer that.’ • ‘In the last 30 minutes you have told me at least three things that are wrong with my presentation Rather than interrupt me half way, I would find it more helpful if you kept all your comments and feedback until I have finished, and tell me then.’ • ‘You have given me lots of analysis about the data What’s missing for me is your clear recommendation about what should be done Can you please tell me now what your recommendation is?’ Not everyone wants or is open to direct feedback and up-front requests to things differently You need to judge if this is the most effective way – especially if you are asking your manager how they would things A different, but very powerful option to encourage people to change is to reflect back to them how you experience their emotional state towards you You might say things like: • ‘You seem quite commanding/directing towards me?’ • ‘A lot of the time I feel you are criticising me for what I have done.’ • ‘I experience you as very rational, how you feel about this?’ • ‘The way I see you is quite emotionally needy – wanting my approval/reassurance.’ This is quite a dynamic way of giving feedback Rather than just telling the person how you see them – you are providing feedback based on your personal experience – which makes it more likely they will be open to your comments and be willing to explore their behaviour openly with you It then gives you an opportunity of how you would prefer to experience them A completely different way of encouraging someone to change their behaviour style is to start a discussion about your mutual expectations about one another The steps for this were described in Chapter 11 earlier in some detail Engaging in a discussion about what you give each other and what you B E H AV I O U R A L V I E W O F T H E P E R S O N A L D E A L 233 would like from each other can be a great way of bringing the issues about behaviour into awareness between you For example, if you want the other person to less ‘telling to you’ you can say that what you expect is more freedom to get on with the job rather than being told how to it: ‘What can we both so that you can give me that greater freedom to get on with the job?’ As part of that discussion you might also learn about their thinking behind the way they behave towards you For example, they may feel that if they did not always tell you what to that you might forget Talking and sharing the reasons you behave in particular ways towards each other and the assumptions you make about each other is a way to clear the ground for more positive and productive relationships A final way of helping to change the behaviour in your personal deal is to simply change your behaviour from the one you have used in the past: instead of behaving compliantly in servant mode to a master you could just stop behaving like a servant, but more like a master yourself This may take them by surprise and cause them to change their behaviour towards you On the other hand there is a danger that your changed behaviour could result in uproar and conflict By saying ‘No I will not it that way, I am going to it my way’ could just cause some sparks By giving the other person less of what they want might on the other hand unfoot them – and cause them to completely change There are risks in this approach, so be aware of the possible outcomes if you decide to go for it There are no silver bullets for changing our paĴerns of behaviour with another person The methods outlined in this chapter, based on the context of TA, have the potential of changing and improving our personal deals There is no one best way – but try some of these described and see what happens Before persevering with any approach a er using it once – listen and watch how the other person responds Then if a tactic proves unhelpful, you may want to use an alternative CHAPTER SUMMARY • Transactional analysis of all the behaviour frameworks can be easily adapted to understand the behaviours and type of relationship involved in our personal deals It is particularly appropriate because 234 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T it views behaviour and interaction between people as a series of transactions • TA uses three ego states – parent (taught), adult (thought) and child (feelings) – to describe the different types of behaviour between people Each ego state is characterised by distinct verbal and nonverbal behaviour which can be easily observed Each of us can display all three behaviours, but we each have our own preferences for each ego state • Communication is viewed by TA as a series of lines between the ego states in one person and the ego states in the other There are three types of communications: parallel transactions enable communication to continue; when crossed transactions occur communication becomes difficult; ulterior transactions are for sending emotional code rather than saying things directly • There are five personal deal types: master–servant, rational problem solver, benevolent instructor, creative geniuses and smooth controller – The master–servant personal deal involves one person mainly being in critical parent ego state who assumes they are in charge, while the other is mainly in adapted child and obediently complies – The rational problem solver personal deal involves both people in the adult ego state problem solving, sharing data, using logic and reason to get things done While it is very reasoned, it can become boring – Benevolent instructor personal deals o en occur between senior and more junior professionals and cra smen: the senior person displays nurturing parent towards the junior who is in adapted child – Creative geniuses personal deals involves child to child behaviour and involving bouncing and building ideas between each other It challenges convention and produces highly creative ideas – Smooth controller personal deals operate at two levels At one level they appear highly reasoned, but at a deeper level they involve subtle critical parent control by one person of another’s adapted child ego state B E H AV I O U R A L V I E W O F T H E P E R S O N A L D E A L • 235 There are a number of different ways of changing our personal deal behaviour with another person The starting point is to be aware which type you are using and then decide the behaviour you would like to change to Options which you can try include: – Use a different ego state; – direct feedback to the other person about their behaviour; – assertively ask the person to change their personal deal behaviour; – reflect the implicit feelings you are aware of in their behaviour; – have an open discussion and renegotiate your personal deal; – just change your behaviour in response to theirs This page intentionally left blank Index Publications are indicated by italic headings Tables and figures are indicated by bold page numbers A activity as component of relationship, 38 adapted child, 218 adhocracy phase of psychological contract, 31 adult ego state, 217–8, 219 alignment of expectations, 11–14, 14 Anna (personal deal example), 80–2, 86–8, 87 Apple, 157 Argyris, C., 18 Arup background to, 113–14 challenges from use of psychological contract, 116–17 insularity as challenge in, 117 Key Speech, 114–15, 156 performance management in, 116–17 use of psychological contract, 115, 115–16 assessment centres, 188 awareness as component of relationship, 38 B behaviour understanding and predicting using personal deals, 6–8 at work, ways of describing, 102–3 benevolent instructor personal deal, 225–7, 226 Berne, Eric, 215 breaches of personal deal amount and frequency of, 68–9 impact on employee aĴitudes, 69–71 impact on employee behaviour, 71–2 and people leaving an organisation, 184–6, 185 Briner, R., 76 British Airways strike, 6–7 Brockbank, W., 178 Buckingham, M., 48 bureaucratic phase of psychological contract, 31 business changes, 30 deals compared to personal deals, 35–8 examples of psychological contract, 19–24, 20, 21 performance, 125–7 pressures affecting personal deals, 98–100 C Cameron, K., 61, 102 change and the psychological contract and changes in society, 29–30 due to business pressures, 30, 98–100 employee expectations, 29 evolutionary stages, 30–3, 32 change v stability dimension, 102–9 Chartered Institute of Personnel Development (CIPD), 32–3 child ego state, 218–9, 219 China, 98–9 client service strategy of CMS Cameron McKenna, 117–18 climate change, 99 CMS Cameron McKenna background to, 117 client service strategy, 117–18 development of performance culture, 120–1 use of psychological contract, 118–20, 119 coaching, training in, 210–12 communication of psychological contract to employees, 23–4 communication skills, 198 Conway, N., 76 Covey, Stephen, creation of personal deals having the discussion, 208–9 open-mindedness, 199 238 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T organisational reputation, 57–8 preconditions for discussion, 197–200 preparation questions, 203–4 during recruitment, 58–60 seĴing the scene, 201, 201–3 steps in, 136–40, 138 taking responsibility for relationship, 199–200 toolkit, 204–8 training for, 210–12 truth telling, 199 see also personal deals; socialisation of new employees creative geniuses personal deal, 227–8, 228 critical parent, 216 crossed transactions, 220, 220–1 cultural and social diversity in personal deals framework, 102 D development of employee and psychological contract, 24 developmental personal deals, 105–6, 107, 187–8, 190, 191 diversity, employee, in personal deals framework, 102 Drucker, Peter, E Easyjet, 156, 157 Eden Project, 12–13 Eighth Habit, The (S Covey), 80/20 rule, 10 email as inappropriate communication medium, 198 emerging phase of psychological contract, 30–1 employee development and psychological contract, 24 employee diversity in personal deals framework, 101 employees changing expectations of, 29–30 effect on of breaches of personal deal, 69–72 expectations of at work, 48–50, 49, 52 increased expectations of, 185 and leaders, personal deals between, 76–9, 78 motivation of, 207 recruitment of, 58–60 socialisation of, 60–7, 207 employment changes in employees’ needs from, 29–30 relationships, changes in, 98–100 engagement and personal deals, 8–11 Ernst & Young, 20–2, 21 evolution of Human Resources, 176 evolutionary stages of psychological contract, 30–3 exchange theory, 88–9 expectations achievement of results, 65–6 alignment of, 11–14, 14 and business performance, 45–7 cards describing in personal deal toolkit, 205–7, 206 differences between and within organisations, 50–3 differences (restaurant example), 42–4 of employee at work, 48–50, 49, 52 by employees, changing, 29–30 fulfilment of, 45–8 managing, effect on staff turnover, 67 mutual, 17–19 by the organisation of the individual, 50–3, 51, 52 in personal deals, 37, 39–40 restaurant example, 41, 41–8, 42, 44 seĴing during socialisation of new employees, 64–7 by team member of leadership, 147 F feelings as component of relationship, 39 Fisons, 173–4 framework for personal deals, 101–2 fundamental leadership and personal deals, 144–6 G Gate Gourmet, 6–7 Ghandi, Mohandas K., (Mahatma), 147 God and the Jews, personal deal between, 93–4, 94 Greller, M., 27 GROW coaching model, 210 Guest, David, 188, 189 INDEX H Hamel, G., 30 Hitler, Adolf, 147 Huiskamp, R., 50 Human Resources and personal deals evolution of HR, 176 example from Fisons, 173–4 example of shaping and breaking deals, 175–6 people leaving the organisation, 184–6, 185 professional personnel management, 177, 188 promotion and succession process, 182–4 recruitment and selection, 178–80 training and development, 180–2 see also strategic human resource management I immigrant workers and transactional personal deal, 96–7, 97 In Search of Excellence (T Peters and R Waterman), 155 India, 99 induction see socialisation of new employees Institute of Personnel and Development, 127 insularity as challenge in Arup, 117 intuitive v rational dimension, 102–9 Investors in People (IiP), 143 239 between, 76–9, 78 role in socialisation of new employees, 62–4, 65–7, 66 leadership in Arup, 116 creation of personal deals, 136–40, 138 direction and change, 131–2 fundamental, and personal deals, 144–6 influencing skills, 132 introduction of personal deals to Parkside Housing Group, 141–4 objective seĴing, 133–6 relationships, 132 right and le brain engagement, 133 and team member’s expectations, 147 use of personal deal to enhance performance, 140–1 value of personal deal for, 148–9 logic, limitations of for organisation change, 158–9 M managers role in socialisation of new employees, 62–4, 65–7, 66 master-servant personal deal, 222–4, 223 mercenary personal deals, 103–4, 107, 190, 191 mining company example, 22–3 motivation of employees, 207 mutual expectations, 17–19 N J Jews and God, personal deal between, 93–4, 94 job creep, 90–1 job diversity in personal deals framework, 101 John Lewis, 25–6, 26 K Kissler, G., 32 Koch, Richard, 10 KoĴer, John, 157–8, 159–60 L leaders and employees, personal deals NASA Space Agency, 14 O objective seĴing, 133–6 open-mindedness, 199 organisation culture artefacts of, 156 change in, approaches to, 157–60 changing behaviour, 158 components of, 156–7 definition of, 153, 169 example of power of, 154–5 expressed values of, 156 impact on business performance, 155–6 limitations of logic for change, 157–9 240 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T personal deals as, 169–71 stages for change in, 159–60 teamwork as emphasis in, 170–1 underlying assumptions of, 156–7 see also Royal Mail Sales organisation diversity in personal deals framework, 101 Organisation Man, The (W Whyte), 31 organisational change and the psychological contract, 2–3 P parallel transactions, 220, 220 parent ego state, 216–7, 219 parents, re-negotiation of personal deal with teenagers, 7–8 Parkside Housing Group, 72 background to, 141 evaluation of change programme, 143–4 introduction of personal deal, 141–3 organisation diagnosis, 141 performance culture, development of in CMS Cameron McKenna, 120–1 performance management in Arup, 116–17 discussions, 210–11 personal deal toolkit, 207 systems, 133–6 personal deals and alignment of expectations, 11–14 in all relationships, 38–9 benefits of, 202 benevolent instructor, 225–7, 226 breaches of, 68–72, 184–6, 185 breaking of with Gate Gourmet, 6–7 business pressures affecting, 98–100 combination of types, 107–9 compared to business deals, 35–8 compared to marriage, 195–6 creative geniuses, 227–8, 228 developmental, 105–6, 107, 187–8, 190, 191 difference to psychological contract, 53–4 dynamic nature of, 75–6, 86 emotional highs and lows in, 82–3 and engagement, 8–11 example of shaping and breaking, 175–6 expectations in, 37, 39–40 four components of, 44, 52, 84, 84–6, 85, 189–91, 191 framework for, 101–2 and fundamental leadership, 144–6 between God and the Jews, 93–4, 94 implicit perception of, 68 increased expectations of employees, 185 influence on of organisational reputation, 57–8 introduction to Parkside Housing Group, 141–4 job creep, 90–1 as long-term relationship, 93–5, 94 making more explicit, 66–7 master-servant, 222–4, 223 mercenary, 103–4, 107, 190, 191 methods for changing, 230–3 as organisation culture, 169–71, 170 organisational, portraying, 108–9, 109 origin of term, and people’s behaviour, 6–8 as psychological contract, 36 rational problem solver, 224, 224–5 re-negotiation with teenagers, 7–8 reciprocation, 88–90 relationship, 93–5, 94, 97, 97–8, 100–1, 104–5, 107, 190–1, 191 toolkit, 204–8 traditional, 103, 107, 189–90 training in, 210–12 types of, 102–9, 107 use of to enhance performance, 140–1 value of during socialisation of new employee, 64–7 value of for leadership effectiveness, 148–9 see also creation of personal deals; Human Resources and personal deals; psychological contract; transactional analysis personal engagement, 8–11 Personnel see Human Resources and personal deals personnel management, professional, 177, 188 Post Offices, 185 preparation questions for creation of personal deals, 203–4 INDEX Prêt Manger, 19, 19, 21–2, 156, 157 Prius motor car, 11–12, 13 professional personnel management, 177, 188 professional services firm, personal deals in, 107–8 promotion and succession process operation of the personal deal in, 182–4 personal deal toolkit, 207 psychological contract background and development of, 17–18 changes in, 30–3, 32 communication of to employees, 23–4 comparison between case study companies, 125–6 defined, 2, 17, 18 development of employee, 24 difference to personal deal at work, 53–4 employee outputs, 24 examples within businesses, 19–24, 20, 21, 25–6, 26 high performance, 125–7 and organisational change, 2–3 in organisations, 78, 78 origins of, 17–19 as ‘personal deal,’ 3, 36 redefined, 27–8 see also Arup; CMS Cameron McKenna; personal deals; Richer Sounds psychometric testing, 177 Q Quinn, R., 61, 102, 144 R rational v intuitive dimension, 102–9 reciprocation, 88–90 reciprocity as component of relationship, 39 recruitment of employees communication during process of, 59–60 organisational reputation, effect of, 57–8 provision of information, 58–9 raising unrealistic expectations, 59 role of personal deals, 178–80 241 relationship personal deals characteristics and examples of, 104–5, 107, 190–1, 191 continuum with transactional type, 97, 97–8 between God and the Jews, 94 historical examples, 93–5 persistence of, 100–1 role of HR in organisations with, 191 relationships activity in, 38 awareness in, 38 employment, changes in, 98–100 feelings in, 39 four components in, 38–9 leadership, 132 long-term, personal deals as, 93–5, 94 personal deals, 38–9, 190–1, 191 reciprocity in, 39 responsibility for creation of personal deals in, 199–200 reputation of the organisation and creation of personal deals, 57–8 responsibility for creation of personal deals, 199–200 restaurant example of expectations, 41, 41–8, 42, 44 Reuters, 157 Richer Sounds background to, 121 potential challenge from complacency, 124–5 use of psychological contract, 122–4, 123 work culture, 121–2 Rousseau, Denise, 2, 27–8, 30–1, 48, 95 Royal Mail Sales, culture change in, 13 analysis of data from, 161–2 implementation of touchstones, 164–7 need for, 160–1 reasons for success of, 167–9 team deals, 164–7, 165, 168–9 testing of touchstones, 163–4 touchstones, 162–3, 163 touchstones as reason for success, 168 use of ‘champions,’ 165–6 S scene seĴing for creation of personal deals, 201, 201–3 242 M A N A G I N G T H E P S Y C H O LO G I C A L C O N T R A C T Schalk, R., 50 Schein, E., 19, 25, 28–9, 48, 153 scientific management, 177 self-awareness, 198 SMART objectives, 134 Smit, Tim, 12 social and cultural diversity in personal deals framework, 102 social contract, 18 social conversation, personal deals about, 64, 65 socialisation of new employees culture, 61 personal deal toolkit, 207 personal network building, 60–1 role of immediate manager, 62–4, 65–7, 66 shared evaluations, 61–2 task and role, 61 value of the personal deal during, 64–7 society, changes in, 29–30 stability v change dimension, 102–9 staff turnover, effect on of managing expectations, 67 Storey, J., 187 strategic human resource management and assessment centres, 188 contribution to business value, 186–7, 187, 188, 189 development personal deals, 187–8 and different types of personal deal, 189–91, 191 succession process personal deal toolkit, 207 succession process, operation of personal deal in, 182–4 Sunday Times 100 Best Companies to Work For, 58–9 applications of, 207–8 cards describing expectations, 205–7, 206 need for, 204–5 Toyota, 11–12, 13 traditional personal deals, 103, 107, 189–90, 191 training and development of employees for creation of personal deals, 210–12 and personal deals, 180–2 personal deals toolkit, 207 transactional analysis, adapted child, 218 adult ego state, 217–8, 219 background to, 215–6 benevolent instructor personal deal, 225–7, 226 child ego state, 218–9, 219 creative geniuses personal deals, 227–8, 228 critical parent, 216 master-servant personal deals, 222–4, 223 methods for changing personal deals, 230–3 parent ego state, 216–7, 219 rational problem solver personal deals, 224, 224–5 smooth controller personal deals, 228–30, 229 transactions, 219–21, 220, 221 transactional personal deal business pressures for, 98–100 emergence of, 95–8 expectations in, 96 and immigrant workers, 96–7, 97 truth telling, 199 turnover, staff, effect on of managing expectations, 67 T U teamwork as emphasis in organisation culture, 170–1 technology as cause of change, 99–100 teenagers, re-negotiation of personal deal with parents, 7–8 terrorism as cause of change, 99 time flexibility in personal deals framework, 102 toolkit, personal deal Ulrich, Dave, 126, 178 ulterior transactions, 221, 221 W waiter diner’s expectations of, 41, 41–2 expectations of diner, 42, 42 welfare workers, 176 Whyte, W., 31, 95 About the Author Michael Wellin is Director of Business Transformation Ltd, a niche consulting firm specialising in organisation change, team effectiveness and coaching He works primarily at board and partner level, delivering practical solutions which enable people and organisations to beĴer achieve their goals Michael has consulted to a wide range of organisations and sectors including companies such as Arup, Ernst & Young, Ford, Reuters and Royal Mail One of his principals which underpins Michael’s workis that all of us have enormous talent, and our challenge as we travel through life is to bring out more of that talent for our and others’ benefit Michael has over 20 years successful consulting experience and a hallmark of his work is the creation and application of innovative practical methods which help people and organisations to leverage their talent In his earlier work he was one of the first users of Belbin’s team roles and transactional analysis as vehicles for leadership and organisation change In the 1990s he created a framework of effective board behaviours, and a generic framework of business behaviours – Talent Inventory® Most recently he has pioneered techniques to help organisations use and improve their psychological contract, which culminated in the writing of his book Michael’s interest in the psychological contract was stimulated both by his experiences of working in diverse business organisations across different sectors as well as his extensive personal world travel Exposure to different cultures at national and organisation levels taught him that each culture has its own subtle conventions about acceptable behaviour Before taking up consulting Michael received a very good grounding in all aspects of human resources, working in the peronnel functions of large UK and international organisations, including Fisons, BOC, ICL and Continental Illinois National Bank Michael brings to his work as a business psychologist an understanding of people and their behaviour with a strong drive to achieve business results He studied social psychology at Sussex University, and then pursued his interest in business psychology by gaining an MSc in personnel management at City University Business School In 1992 he was elected Chartered Occupational Psychologist and Associate Fellow of the British Psychological Society Michael speaks at conferences and has wriĴen several articles on people issues in business His previous book, Behaviour Technology, advocated many of the people practices which are now common in organisations today He lives with his wife Ruth and son Zack in North London As well as his family he is passionate about things Indian and Nepali He loves trekking in high mountains, particularly the Himalayas, and also spends time with friends and cultivating a Japanese garden Michael can be contacted at: michael@michaelwellin.com