A Mutual Relationship

The issue of forming a mutual blood between achieving organization strategic postulate and the happiness of individual employee unavoidably is gaining an increasing importance in todays business world. It is believed that fetching deal out of the needs and satisfaction of the individual employees is pivotal to achieving strategic goals and objectives of any organization.If an organization does not support great deal of care about the needs and wants of the employees, it wont be able to be successful and viable for the long period of time.Though, from the short bourn perspective it may be pricy for the company to satisfy the needs of each individual employee and keep them happy, but in the long boundary such a company is bound to be more successful than the one which does not care about the needs of its staff. For instance, it must be ensured that the workplace conditions are adequate enough to provide satisfaction to the employees.Organizations that see the value of their e mployees are prepared to bare the extra cost in return for the lofty performance by the employees at all levels. Where as, on the other hand, companies who do not value their employees a great 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 can be fulfilled especially when such needs are at the cost of companys strategic aims and objectives.There must be a remainder between the fulfillment of employee needs and strategic needs of the company. This balance can be achieved by line up the strategic needs of the company with that of individual employees to create common objectives. Organizations are continuously cerebrate 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 congruousness.The office staff theory is mostly commonly used by orga nizations for forming goal congruence between the individuals and overall strategic goals and objectives of the company.Agency theory assumes employees of organization, including managers as agents acting within an organization each engage his own set of objectives. For instance, within a particular department of an organization, there are departmental objective. If achieving these departmental goals and objectives lead to the achievement 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 problem arises due to the withdrawal of ownership and management of the business. Mostly managers purse their own personal objectives like 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 dwarfish 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.