Understanding and Managing Organisation (Term Paper Sample)

Understanding and Managing Organisations
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Understanding and Managing OrganisationsIntroduction
Any organization set by individuals must run according to the rules stipulated by the human resource department. Employees and employers at the top of leadership positions must understand the types of organizational structures used by their organizations. Since every person needs to understand their working environment, it works to their benefit because they do their job without follow-up. Understanding the organization enables the employee and employers to manage the company resources. By doing so, they realize the set objectives and goals. Each organization has different structures and values. Understanding them well helps to prevent problems. Besides, every person considered part of an organization must understand the rules, structures, and other people values.
1 What is a psychological contract? Critically analyze to what extent is it significant in the management and engagement of people within organizations?
The psychological contract is a varied and profound concept in an organization. It is open to different interpretation and theories by people. In a layman language, psychological contract is the relationship that exists between workers and their employers. It specifically concerns itself with the mutual expectation of inputs and the outcomes generated. Welling (2012) says that the psychological contract involve all actions that workers must do on behalf of employers and in return, what they expect from the employers. According to Dharmawarden (2014), the beliefs that concern obligations existing between people in an organization is seen as a psychological contract.In the competitive world, many companies focused to achieve the corporate goals, increase their profits and ensure that their stock share remain stable. In the 80s and 90s, many organizations saw corporate downsizing, mergers, and restructuring. The trend continues in today businesses. In fact, it is part of the natural ways of doing business with others. The trend has changed the relationship between employees and employers. In the early days, employment was seen as a long term contract. The employee was required to get the skills to do the job and rise through promotions. However, the world has seen several changes that workers get short term contracts if they show good skills and technical abilities. Many organizations hire workers when the need arises. However, the company releases them after completing the tasks assigned.Psychological contracts indicate fundamental questions on employment relations posed by people (Armstrong 2002). What can employee expect from their organizations and, what would someone expect reasonably as a contribution in return? Today, it remains difficult and impossible to ensure that the psychological contracts and employments are understood by every party. Armstrong (2002) says every employee expects to get treated fairly as a human, get to work in departments they have skills and get rewarded as per their contributions. To get these benefits, workers must display competencies to increase this growth and know the expectation required by employers. On the other part, employers want the worker to remain committed to the values set, remain loyal, compliant and finally, enhance the image of the company to suppliers and customers. A mutual misunderstanding cause frictions and leads to stress. In fact, it leads to recriminations and weak performances. In disastrous effects, this leads to termination of the contract. In summary to Armstrong arguments, psychological contracts do not contain all characteristics of a formal contract. It is not written down. It is blurred somewhere and cannot be enforced in a tribunal.Psychological contract is critical to every organization because it helps to engage people and the management. Roe and Schulk (2007) says the contract is unspoken and implicit. It antedates the formal relationships between organizations and the person working. The psychological contract helps individuals to deal with enormous expectations such as salary and workload. However, it can still manage fewer issues such as dignity at the institution, growth opportunities and a sense of feeling cared for by others. These expectations help determine relationships between employee and organizations.The concept of a psychological contract directs the attention to personal levels. It helps to focus on the workers formation of the expectations seen from the employer behaviors when working. With this contract, employees evaluate the organizational practices according to the contract. They predict the employees who take adverse actions on the company whenever a breach occurs.The psychological contract remains significant because it helps to govern continuous developments of the relationship when it comes to employment seen as evolving every day. Though this relationship continues to develop, its impact will not be understood by parties involved (Armstrong 2002). In addition, psychological contracts in an organization ensure employees put more efforts towards the company clients and work. Employees whose psychological contract is satisfied will commit more and support the organization to realize its goals. Matthijs (2001) argues that negative events such as a breach of the psychological contract cause affective reactions such as a feeling of anger and frustration. These two make the person uncommitted to the organization and lead to a wrong attitude. The adverse event affects this job attitudes and behaviors leading to failure of attaining the company goals.
Psychological contract with an organization makes people feel they have some perceived rights and controls in their place of work. Employees are more likely to commit themselves and utilize their skills and abilities to ensure they reach the performance results set. The psychological contracts recognize that an employee provides excellent compensation, benefits, flexibility in work balance and a career development opportunity. Psychological contract allows a continuous skill improvement, reasonable time with employers, efforts and results when need arises (Jackson and Mathis 2010).
2 To what extent is leadership different to management? Critically evaluate this statement using appropriate examples and theories?
In any institutions, there are people chosen to lead and achieve the set target. To many people, these leaders become as managers, and they are confusing. The term leadership and managements differs. However, they must go hand in hand. They remain totally different but linked and complimentary. Separating the two means, you will create problems that become hard to solve. When it comes to managements, they are charged with planning, coordination, and organizing. On the other hand, the leadership roles involve motivation and inspire others. The leader innovates while the manager administers. The leader remains original while the manager becomes a copy (Wall Street Journal 2014).Rousell (2011) argues that management focuses mainly on attaining results, analyzing failures and tasks. There are many management characteristics desirable for managers. In fact, the effective management must be good leaders. Management who have a leadership quality, it is argued that they l choose and limit the goals. In most cases, these control groups focus on creating the spirit. In doing this, they develop the committed constituents. Management leadership does this by seeking the advice and solutions to issues arising. The management must thus get the information and provide positive answers. It is thus important that management understand the power held by groups. Any manager will equip their constituents and make their subordinate stronger (Rousell 2011).Bertocci (2009) say it is difficult for one to separate leadership and leaders. Though their meanings are intertwined, when describing one, we automatically and mentally think of the other. It is thus difficult to talk about leadership without mentioning leaders. Leadership is in the term of a person who can show great leadership. Today, we see new leaders coming up on a daily basis. Therefore, as we come to leadership, the definitions of things that makes leadership changes. Leadership position must be held by people who can make good decisions. They continue to ponder on several things endlessly. The leadership of any organization sees the big picture. They easily make up their minds on any issue arising and the actions. Because the leadership knows that people want answers for, they come out with a good decision. One thing that separates leadership and management is the fact that they have a solid vision of getting the right thing done. Leadership position is held by people who know the requirements, and it is going to be accomplished (Bertocci ,2009).Schulz (2013) says that many people misunderstand leadership and management. For the role of good leaderships, they must be in a position to manage. It must also be seen in the art of management where they have to lead their subjects well. In many organizations, the bigger difference observed between management and leadership is that; management involves processes, and leadership is all about people in an organization. The management provides positive changes within an organization. The managers recognize the problems within a process, ensuring that these process issues are corrected and then, taking the j role of teaching others how to implement the new solutions of that process.
Aspects of leadership
There are four major issues seen in leadership. These include recruiting where they attract and retain some of the top brains that help the organization succeed. They also do the coaching. Coaching is done through teaching to self realize the answers. Through leadership, people get motivations...