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The Psychological Contract Theory

Decent Essays

Managing organizational change theory/techniques and psychological contract theory

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Introduction.
Organizational change management is a three word three word term that refers to a framework used to manage the effects brought through business processes, organizational structure changes or changes found in an organization. On the other hand, the psychological contract, developed by a scholar named Denise Rousseau, involves informal arrangements, mutual beliefs, common ground and perceptions between an employee and the employer. The theory behind it, according to Rousseau’s article (1998), defines the state of the relationship and defines detailed practility of the work to be done. This paper emphises on the importance of organizational change agents to understand the psychological contract theory, the barriers to organizational change and the methods and techniques involved in organizational change management
Organizational change theory.
It’s a fact in today’s fast-moving environment any business whose pace of change is slow is likely to be sorely disappointed. It’s therefore important for businesses to embrace change so as not to lose their competitive edge and fail to meet the loyal customers needs base. The main objective of …show more content…

According to him there are three types of lenses: strategic lenses, political lenses and the cultural lens. He notes how strategic lens are driven by bottom line goals putting little consideration into employee significance in exchange to task flow. On political lens, it defines elements of power and influence within the company’s hierarchy. The cultural lens, deals with the impact of organizational change management on policies that already shaped employee’s assumptions and have affected their future actions. (Kline,

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