Bundle: Management, Loose-Leaf Version, 13th + MindTap Management, 1 term (6 months) Printed Access Card
Bundle: Management, Loose-Leaf Version, 13th + MindTap Management, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337502160
Author: Richard L. Daft
Publisher: Cengage Learning
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Chapter 12, Problem 3CFCA
Summary Introduction

To determine:

Which approach is more likely to have a greater positive impact on performance.

Introduction:

There are two main types of the social contracts; the Old social contract and the New social contract. The Old social contract considers the workplace as a family and employees as family members. The management takes care of employee's interest first and employees show loyalty and commitment in return to the organization.

The New social contract focuses more on trust rather than loyalty, employees are self-motivated and employees are more likely to move from one company to another because job decisions are based on cultural knowledge and specific skills.

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