A Mutual Relationship

The result of forming a mutual relationship surrounded by achieving validation strategic ineluctably and the comfort of soulfulness employee needs is gaining an increasing importance in straightaways business world. It is believed that taking care of the needs and satisf accomplishmention of the mortal employees is pivotal to achieving strategic goals and objectives of any organization.If an organization does not take bulky deal of care about the needs and wants of the employees, it wont be able to be winnerful and viable for the commodious period of time.Though, from the neat term perspective it may be expensive for the society to take the needs of each individual employee and keep them happy, but in the long term such a company is bound to be more(prenominal) successful than the one which does not care about the needs of its staff. For instance, it must(prenominal) be ensured that the workplace conditions are adequate enough to provide satisfaction to the employees. Organizations that see the value of their employees are prepared to bare the extra greet in return for the high military operation by the employees at completely levels. Where as, on the other hand, companies who do not value their employees a neat deal suffer from a high employee turnover and lower performance levels. (Callaway.L.P). However, it must be noted that not all the needs of employees clear be fulfilled especially when such needs are at the cost of companys strategic aims and objectives.There must be a labyrinthine sense among the fulfillment of employee needs and strategic needs of the company. This balance can be achieved by aligning the strategic needs of the company with that of individual employees to create common objectives. Organizations are continuously snap on aligning the individual employee needs and objectives with that of the organization. The process of aligning individual needs of employees and organizations strategic objectives is called goal cong ruence.The agency possibility is mostly commonly used by organizations for forming goal congruence between the individuals and overall strategic goals and objectives of the company. situation theory assumes employees of organization, including managers as agents acting within an organization each pursuing his own set of objectives. For instance, within a incident department of an organization, there are departmental objective. If achieving these departmental goals and objectives lead to the execution of the overall strategic objectives of the organization, then these is believed to be goal congruence between the two. (opm.gov).The relationship between an organization and employees is referred to as agency relationship, in which managers and employees act as agents for the owners of a company. The conflict in this relationship arises when the agents do not act in the best interests of their principles.The agency occupation arises due to the insularism of ownership and management o f the business. Mostly managers purse their own personal objectives bid giving themselves high salaries and perks, and taking a short term profitability perspective rather than focusing on the long term success of the business.This is particularly the case where they dont have any or very little stake in the equity shares of the company. However, this agency problem can be resolved by what is called an agency theory. Agency theory tries to bridge the gap between the objectives of organization and personal objectives and needs of employees and managers alike.