Impact of Psychological Contract on Employment Relations & Employee Motivation

The psychological contract is an abstract term that ‘pundits’ like to coin while vaguely referring to the relationship between employers and employees (Clutterbuck, 2005). Although the concept of psychological contract is widely researched in recent years, this concept can be traced back to the work of Argyris (1962, cites in DelCampo, 2007). Rousseau (1995) specifies ‘Psychological Contract’ as the views and opinions of the employees, which is shaped by the organization, towards the expressions of the mutual agreement between employees and their organization. Continue reading

Leadership Styles: Pros and Cons (Final Part)

Coaching Leadership Style

This is a suitable style of leadership for organizations where leaders are constantly confronting with challenges from the volatile business environment as a result of substantial business development and in need of an effective approach to handle the situations (CIPD, 2009). Continue reading

Leadership Styles: Pros & Cons (Part 2)

Participative/Democratic Leadership Style

The assumption behind participative leadership (also known as democratic leadership) is that employees will assume a significant role in achieving the organizational objectives where leader’s role will be the creation of a conducive environment in which organizational objectives can be accomplished. In participative leadership style, a greater emphasis is given on employee participation and group work where employees enjoy the autonomy in producing and assessing the courses of action (Husband, 1975). Continue reading

Leadership Styles: Pros & Cons (Part 1)

Leadership is a process of influencing a group people to accomplish a common goal. In organizational context, a leader is one who has substantial influences on the employees concerning how they behave, act, and perform in an organizational setting. Global leadership is a form where leader possess knowledge of global businesses in terms of social, cultural, economic, legal, technological and political aspects and familiarize themselves with the effects of these issues of globalization. Global leadership occurs a leader holds and keeps a global mindset (Bhushan and Rai, 2004). Continue reading

Importance of Leadership for Organizational Success

Business organizations are, in no doubt, continually facing new challenges in this present first paced rapidly changing hostile business environment (Basu, 2001). A number of issues triggered business environment to change at a tremendous pace, which involved economic development, shifting political standpoints, changes in people’s perceptions, needs & wants, technological advancement, vigorous business environment, extreme competition, changes in business strategies, changes in leadership and management styles and so on (Maheshawri, 1997). As a result, businesses are forced to change their Continue reading

Theories of Motivation & A Critical Analysis

A common statement among managers in organizations is that a happy employee is productive one (Moorman 1993). A good amount of research activities on organizational behaviour studies have been carried out to figure out and comprehend different methods and ways for motivating people so as to capitalize on productivity, thus achieving organizational objectives. Motivation is a core concept, which helps to understand why people behave the way they do in an organization (Freedheim et al. 2003). Despite being difficult to define and describe this subjective concept, many academics have defined it based on their personal view, field, traditions and cultures, as mentioned by Murphy and Alexander (2000). Continue reading

Importance of Motivation for Organization, Business and Management

Motivation can be defined as an inner desire to make an effort (Dowling and Sayles cited in Freedheim et al. 2003). It is also the capacity to generate behavior or performance (Freedheim et al. 2003). This psychological dynamic process is an outcome of the interaction between the individual and the context that surrounds him/ her and changes as his/her personal needs change (Latham and Pinder 2005; Freedheim et al. 2003). Continue reading