Final answer:
The term for violations of trust between employers and employees refers to the undermining of the psychological contract. This can affect organizational culture and workplace satisfaction, highlighting the importance of procedural justice and positive managerial relationships to maintain trust and ensure business efficiency.
Step-by-step explanation:
When violations of trust occur between employers and employees, it means the terms of the psychological contract have been undermined. These incidents are often linked to perceptions of injustice or disrespect, affecting areas such as workplace culture, organizational psychology, and procedural justice.
The psychological contract represents the unwritten set of expectations between the two parties; breach of these expectations can lead to decreased motivation, dissatisfaction, and even workplace violence or departure.
For instance, when managers fail to properly communicate pay rates, employees may feel underappreciated, leading to a decrease in their performance or trust in the organization. A strong legal system that enforces contracts and protects property rights is essential to effective business operations and economic growth.
Companies and managers should work towards maintaining a positive organizational culture and uphold the psychological contract to ensure mutual trust and long-term success.
Ultimately, both employees and employers need to understand their rights and responsibilities and strive for a workplace environment that promotes procedural justice and meaningful work. This helps in fostering a mutual bond of trust that is beneficial for everyone involved and contributes to overall job satisfaction and productivity.