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Resizing The Organization 34

Resizing The Organization 34. This book seeks to provide executives with useful insights, tools, guidelines, principles, and lessons learned about organizational transition and change. | The Hidden Costs and Benefits of Organizational Resizing Activities 311 among a large number of employees that organizations are reneging on their promises and the terms of their psychological contracts are being violated De Meuse et al. 2001 McLean Parks Kidder 1994 Morrison Robinson 1997 Sims 1994 . This sense of violation which carries a strong emotional component leads to a range of feelings and reactions ranging from initial disappointment frustration and distress to outright anger resentment and bitterness of betrayal by the organization Morrison Robinson 1997 . As a result employee trust toward the organization is undermined job and organizational satisfaction plummet and intention to remain even among valued members wanes causing people to reduce their efforts withhold contributions or exit the organization Rousseau 1995 Robinson Morrison 1995 Robinson Rousseau 1994 . Especially in extreme cases of violation research has shown that the underlying sense of betrayal can induce employees to seek revenge or retaliation against their employer Buono Bowditch 1989 Greenberg 1990 . While explicit violations of the psychological contract can readily lead to such volatile reactions there also are more insidious realities that reflect basic chang-es in the nature of the employeremployee relationship. As companies increasingly focus on corporate goals that reflect short-term realities such as daily stock prices and quarterly profit margins organizational members too focus more and more on their immediate job needs and career possibilities De Meuse et al. 2001 Hymowitz 2001 Noer 1997 . The result is an organizational world in which employees come to believe that it no longer matters if they are good corporate citizens looking out for their own self-interest rather than focusing on broader organizational needs and realities. Once such communal agreements are undermined employee morale dedication and loyalty can rapidly decline. Yet these employee attributes are the very