The compact has three dimensions:
1. Formal
The contract and performance agreements the employer has made with the employee.
These will define an individual’s role within an organisation, remuneration and methods
of evaluation.
2. Psychological
This dimension contains the trust and dependence elements of the employer/employee
relationship. These will determine how hard the employee feels he/she has to work and
how rewarding the job is.
3. Social
This element addresses company values and culture, and how in-tune they are with
personal values.
Strebel argues that a transformational change programme will, by definition, change the
exact structure of personal compacts (since transformational change alters underlying
assumptions and values).
The means of overcoming resistance is by taking great care in the revision of the
compacts. This should occur in three phases. First, change leaders should draw
attention to the need for change, forewarning staff. Second, they should consult
employees about their views on how personal compacts might be revised. Third, they
make change official by formalising agreements.
The overarching need is to make explicit links between employee commitments and the
new strategy. In order to effect change, senior management must realise that specific
attention to personal compacts is required.