Convenience

the Organization
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Pay
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Job security
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Benefits
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Career opportunities
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Status
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Promotion opportunities
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F I G U R E 9 . 1
The Psychological Contract
Psychological contracts are the basic assumptions that individuals have about their
relationships with their organization. Such contracts are defined in terms of
contributions by the individual relative to inducements from the organization.
person–job fit
The extent to which
the contributions
made by the
individual match the
inducements offered
by the organization
Chapter 9:
Basic Elements of Individual Behavior in Organizations
2 6 3
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The Nature of Individual Differences
Individual differences
are personal attributes that
vary from one person to another. Individual differ-
ences may be physical, psychological, or emotional.
Taken together, all the individual differences that
characterize any specific person serve to make that
individual unique from everyone else. Much of the
remainder of this chapter is devoted to individual
differences. Before proceeding, however, we must
also note the importance of the situation in assessing
the behavior of individuals.
Are specific differences that characterize a
given individual good or bad? Do they contribute
to or detract from performance? The answer, of
course, is that it depends on the circumstances.
One person may be very dissatisfied, withdrawn,
and negative in one job setting, but very satisfied,
outgoing, and positive in another. Working con-
ditions, coworkers, and leadership are all impor-
tant ingredients.
Thus, whenever an organization attempts to
assess or account for individual differences among
its employees, it must also be sure to consider the
situation in which behavior occurs. Individuals who
are satisfied or productive workers in one context
may prove to be dissatisfied or unproductive workers
in another context. Attempting to consider both
individual differences and contributions in relation
to inducements and contexts, then, is a major chal-
lenge for organizations as they attempt to establish
effective psychological contracts with their employ-
ees and achieve optimal fits between people and
jobs.
PERSONALITY AND INDIVIDUAL BEHAVIOR
Personality traits represent some of the most fundamental sets of individual differences
in organizations.
Personality
is the relatively stable set of psychological and behavioral
attributes that distinguish one person from another.
6
Managers should strive to under-
stand basic personality attributes and the ways they can affect people’s behavior in orga-
nizational situations, not to mention their perceptions of and attitudes toward the
organization.