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

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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

Reasons and Benefits for Incorporating Knowledge Management (KM) as a Change Strategy

The indispensability for organizational change is to direct the organization in a path where it can learn and use its capabilities to meet the expectations of its customers and other stakeholders (Moran and Brightman, 2001). It is implied that how effectively the organization is able to learn and exert knowledge in different states ensures the effectiveness of the organization (Laudon and Laudon, 2000). A number of forces are responsible for organizations to adopt Knowledge Management as a change strategy. Continue reading

Benefits of Incorporating Corporate Social Responsibility (CSR) in Business Organizations

One of the most prominent, widely discussed issues of today’s business management is Corporate Social Responsibility (CSR), which was a highly observable business fact that has been overlooked in the earlier stages (Crowther and Capaldi, eds. 2008). It has long been argued that businesses have no other responsibility apart from providing goods and services in return for maximizing profit and thereby have no societal commitment whatsoever (Friedman, 1962 and Hayek, 1969 cited in Marinetto, 1998). Continue reading

Good Practices in Performance Management

It is none other than employees whose effective performance directs the organization clearly ahead of others (Smith cited in Armstrong and Baron 2005). The efficacy of an organization is seen as the contributions made and the value added by its employees towards the achievement of its objectives, which is measured through reviewing the performance of the employees (Nankervis and Compton 2006). Lansbury (1988) points out that the evaluation of the performance of the employees helps the organization identifying their performance strengths and weaknesses and thereby achieving the organizational goal through taking actions to develop their work performance. So, in order to be a successful organization, Managing Performance well has become a pre-requisite (Boxall and Purcell 2003). Continue reading

The effect of Machine Bureaucracy on HR strategy and Its Practices

Part 3:

Machine Bureaucracy can be expressed as a large hierarchical, elaborated, rigid structure, which is highly centralized, rule bound and is operated in a simple, stable and predictable environmental contingency. This ensures that the tasks are simple, routine, and repetitive and of highly specialized nature, which are designed by the techno structure –the key part of the organization and require the employees at the operating level have minimal skills to perform the task assigned. Employees’ behavior is highly regulated in terms of job contents that are spelled out in every step of the process, which means that standardization of work process plays as the key coordinating mechanism that gives employees at the operating core very little discretion for judgment. The simplicity of work makes mutual adjustment ineffective and direct supervision of employees by first line managers is limited due to the elaborated size of the operating core and their role to play as contacts with technocrats, immediate superiors and subordinates. Continue reading

The effect of Simple Organizational Structure on HR strategy and Its Practices

Part 2:

The Simple Structure is the simplest form of structural configuration with small managerial hierarchy and low degree of departmentalization. Key part of this structure is strategic apex with operating core at the base and an insignificant middle line, which defines that the flow of authority is top down, the decision making process is centralized and the span of control is wide. In Simple Structure, behavior is least regulated, jobs are least specialized, and there is hardly any use of pre-planned procedure to determine what to do, when and how to do it, how training will be shaped and how liaison will be maintained (Mintzberg, 1979, 1983). Woodward (1965 cited in Mintzberg, 1983) describes that this structure can be visible as a single-purpose firm with no formal planning, little staff, organic relationships and the tasks of which are coordinated by the chief executive. Continue reading

The Implications of Organizational Structure on HR strategies and Its Practices

Part 1:

McCourt and Eldridge (2003:2) define Human Resources Management (HRM) as The way an organization manages its staff and helps them to develop. Bratton and Gold (2007) state HRM as a means of achieving organizational effectiveness through deploying employees’ talent by the use of idiosyncratic HR programs and practices while Thompson and Richardson (2000:58) point out that Human resources (HR) strategies are everywhere measured by HR policies and practices. To help achieve organizational efficacy, HR strategy coordinates and applies HR policies and practices, hence influences the behavior of people of the organization (Wang and Shyu, 2008). Jackson and Schuler (1995) provide an idea of how different organizational structures are shaped by HRM. Continue reading

Pro and Cons of Training Needs Analysis

Merits of Training Needs Analysis

Arthur et al. (2003) points towards the fact that the countless efforts of organizations staying competitive and being competent in the marketplace, increasing efficiency and improving employees skills, knowledge and attitudes call for learning and developing new knowledge, skills and changing attitudes, which can be done through effective training program and TNA is the approach that provides a firm support towards fulfilling those efforts. According to Bentley (2006), training needs analysis helps organizations construct sound training activities that add value to the training process and direct organizations towards the achievement of their strategic objectives. Ferdinand (1988) points out that TNA helps organization determining the needs that need to be highlighted in order to competitive and effectively respond to its business environment. 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