What Experiences Effectively Ended the Loyalty and Commitment-Based Contract That

question 1

Multiple Choice

What experiences effectively ended the loyalty and commitment-based contract that employees had developed with employers?

• A) Employers took steps to cut costs through workforce reduction as the demands for global competitiveness increased.
• B) Employers began to say that employees were not that valuable to the company's success.
• C) Employees' desire for job security changed, and they no longer had a psychological need for security.
• D) Employers began to offer work-life balance perks to lure talented workers away from their current employers, and loyalty suffered.
• E) Employers felt that employees were not living up to the conditions of their psychological contracts.

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Definitions:

Motivating Factors

Elements or drivers that influence individuals' behavior and can increase their enthusiasm and commitment towards achieving personal or organizational goals.

Recognition

The process of formally acknowledging a particular status, achievement, or compliance with standards, often used in professional contexts.

Working Conditions

The environment in which an employee works, including aspects such as safety, hours, and physical demands.

Extrinsic Reward

Rewards or incentives given for performing a task that come from an external source, such as money, prizes, or recognition.