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Resizing The Organization 11

Resizing The Organization 11. This book seeks to provide executives with useful insights, tools, guidelines, principles, and lessons learned about organizational transition and change. | Resizing and the Psychological Contract 81 parties results because the exchange is defined by economic terms a close-ended time frame has been established and the scope of the obligations is very narrow. In contrast the relational component emphasizes a socioemotive interaction between the parties. Relational elements revolve around trust respect and commitment developing over time. A relational exchange exists when both parties expect that this relationship will continue on into the future in other words it is open-ended dynamic and pervasive Rousseau 1995 . Table 5.1 summarizes the types of promises that make up the relational and transactional components of the psychological contract. The conceptualization and measurement of the psychological contract has been the subject of recent debate Rousseau Tijori-wala 1998 . Most agree that it is multidimensional yet its components are discussed in a variety of ways. Some recent research has gone beyond the transactional and relational distinction and identified as many as seven separate contract dimensions Rousseau 1998 Robinson 1996 . Turnley and Feldman 1998 2000 have developed additional items that more fully address the extent to which employees feel they have a good employment relationship. These authors also use scales that capture a full range of potential responses to questions regarding psychological contract fulfillment. Table 5.1. Examples of the Relational and Transactional Components of the Psychological Contract. Relational Transactional Intrinsic Outcomes Extrinsic Outcomes Opportunities for promotion and advancement Continuing professional training Meaningful and challenging work Ajob that provides autonomy and control Participation in decision making Freedom to be creative Career guidance and mentoring Competitive salary Pay for performance Benefits for example health care retirement vacation Stock options Flexible work schedule Safe work environment 82 Resizing the Organization In other words instead .