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Organizational Behavior: Psychological Contract

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Textbook: Organizational Behavior, 4th Edition. Emerging Realities for the Workplace Revolution.
By: Steven L. McShane and Mary Ann Von Glinow

Jack Santoni works on the field production crew at Gusher Drilling Company. When he joined the company five years ago, the supervisor who hired him said Jack could use the company's old pick-up truck on weekends. Now, the company plans to sell the truck and won't replace it, leaving Jack without a vehicle on the weekends. Discuss the implications of this action on Jack's psychological contract with Gusher Drilling Company.

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This solution discusses the psychological contract between Jack Santoni and Gusher Drilling Company.

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After Jack was hired, an oral contract was created between his supervisor and himself regarding the use of the company's truck during weekend hours. Jack came to rely on this oral contract. The company is now selling the truck Jack has been using, which leaves Jack without a vehicle during the weekend. When the oral contract was formed, it created a psychological contract. We ...

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