Last year, Mukluk, Inc., a small family-owned manufacturer of mud and snow boots was bought by a larger organization when the founder of the small firm decided to retire. With the change in management came many changes in policies, procedures and organizational culture. It used to be a "laid-back" and informal organization, where any line employee could talk personally with the founder. Now, rules are strict, production quotas are high, and line employees are grumbling that the supervisors are "slave drivers." What has changed about this organization that will make it prone to unionization?

Question

Quizplus · Accepted Answer

The change in policies, procedures, and organizational culture has broken the psychological contract between the employees and the organization. In the previous "laid-back" environment, employees may have felt a sense of loyalty and trust towards the organization without the need for formal employment agreements. However, with the new strict rules and high production quotas, employees may feel as though the organization has reneged on its informal commitments to them. This can lead to a feeling of distrust and disillusionment, making employees more likely to seek the protection of a unionized workforce.

Last Year, Mukluk, Inc