Questions On Employment Contract And Psychological Contract

While the business strives to better their image mistakes can be made in the process of change and a good sense of understanding is also necessary.

Due to the recent economy situation and ever challenging business environment, for the whole of last year, the company recorded cost hike and sales decline. This has impacted the bottom line (profitability) of the company. The top management sees that urgent action plans need to be put in place for continuous survival of the company.

“Contracting by its very nature is a partnership and a way to facilitate change as a process rather than dictating I know what is best for you. A core value of social work is self-determination, and the client is the primary partner. Contracts specify the goals to be accomplished and the means to accomplish them, clarify the roles of the participants, and establish the conditions under which assistance is provided” (Cummins et al., 2012, p.225-226).

Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)

As the planning committee had addressed, these past few years have been a financial struggle. Clear indicators of this struggle are represented by our current financial profile. Our credit rating

This confluence of events has had financial impacts on the organization which have become untenable

The company has not made sufficient efforts in the diversification of their products as well as their client base. Despite the nature of their business having the potential and capacity of diversification, no significant efforts have been shown towards achieving the same. This might cost the company a significant level of income and revenue.

The firm was facing the problem of differentiating itself from the competitors who were already adapting to the market and making more sales and profits in the overall industry. This made the firm to change its strategies in order to be able to adapt to the already changing market in the traditional departmental store business.

A breach in psychological contract is essentially the organization’s inabilities and its setback in accomplishing its obligations towards the employees of the organization (Matthijs Bal, W. Jansen, S. Chiaburu, 2010). Due to the fact that a psychological contract breach is considered a set of unforeseen obligations and occasions that is likely to pose as a barrier between the employee and employer relationship, thereby producing contrary results in the workplace than that which is expected.

The main problems of the organization were that the company set strategies to achieve objectives that weren’t focused in the core business and set without considering how many resources and skills does the company would need to reach them, focusing their efforts in processes or products that didn’t add value to the company and decreasing the profits of the

Critically evaluate the utility of the psychological contract for understanding the contemporary employment relationship. (2500 Words)

In the case of Celebrity Cruise Lines, the company is undergoing similar challenges. To respond to these issues, the firm has been moving away from their core business model (i.e. medium sized ships and small markets). As time has gone by, executives have realized the need for competing more aggressively. This has caused the firm to increase the risks they are taking in order to receive a larger reward. To determine the challenges facing the company, we will analyze these issues and provide possible solutions. This is when the company will be more agile in adapting to these kinds of issues.

In business, companies normally experience internal and external pressures that may keep them from making various goals. For instance, a company may fail to repay its loans on time, or fail to pay its workers as required. It is also common for companies to make late deliveries of products to the

1. The most significant challenge to business success you see in this rapidly changing global economy;

All companies face crisis that’s why most of the companies and organizations hire intellectual people to be its public relation practitioner.