Leading and Managing People: Strategies for Organizational Performance

This report delves into the critical factors influencing the effective leadership and management of people within organizations, with a specific focus on the roles of flexible working arrangements and psychological contracts. It begins with an introduction outlining the importance of employee management for organizational success and proceeds to a literature review that explores flexible working and psychological contracts. The report then discusses how these concepts impact organizational performance, using HSBC as a case study to illustrate practical applications. Furthermore, the report provides recommendations based on change management models, concluding that both flexible working and psychological contracts are crucial for fostering employee commitment and productivity. The report highlights the significance of aligning organizational goals with employee needs to improve overall performance.

Running head: LEADING AND MANAGING PEOPLE
Leading and Managing People
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Table of Contents
Introduction:....................................................................................................................................3
Literature review..............................................................................................................................3
Task 1- Explaining flexible working and psychological contract...............................................3
Discussion........................................................................................................................................5
Task 2- Role of flexible working and psychological contract on the organization.....................5
Conclusion and recommendation....................................................................................................8
Task 3- Explaining change management model..........................................................................8
Reference List:.................................................................................................................................9
Appendix:......................................................................................................................................10

Introduction:
The employees of an organization play an important role in the way of running its
internal functionality in consistent manner. Therefore, they must be guided in a proper way,
which is the key of strengthening their level of productivity. In the uncertain business
environment, leading people in appropriate way is one of the most significant way of running
organizational process in a consistent manner (Boddy 2016). Fundamental aim of present report
is to explore the factors that can have a firm impact on managing and leading people. Critical
discussion on the role of psychological contract and flexible working schedule on an
organization will be carried out. In task 2, HSBC will be chosen in order to show how flexible
working and psychological contract supports in accelerating organizational performance.
Recommendation will also be provided in accordance with change management framework.
Literature review
Task 1- Explaining flexible working and psychological contract
The employees are the key factors in an organization. Therefore, it is imperative to raise
satisfaction. A strong level of satisfaction plays a major role in the way of keeping them
committed towards accomplishing organizational goals and objectives. As discussed by Taylor
(2017) there lies the significance of flexible working, which can have a firm impact on
amplifying the level of competent among them by strengthening their competency. Flexible
working is defined as the process of designing the working schedule in such a manner, which can
suit the needs and requirements of the staffs. This is the way, through the case study
organizational can be able to mitigate the issues related to irrelevant working schedule from the

staffs. It is the legal right of the employees to enjoy flexible working schedule which can have a
firm impact on leading the staffs towards proper direction (CIPD. 2018).
It is important for the case study organization to implement flexible working as one of the
most significant strategic management tool with the intention of accelerating performance level
of the staffs and make them much more competent towards challenging professional difficulties.
In this process, the staffs can choose their shift timing according to their requirements. For the
case of case study organization, implementation of flexible working is the major way of attaining
greater diversity, which is the key of ensuring brand attractiveness. In the contemporary business
scenario, flexible working is the greatest way of reinforcing morale and commitment among the
employees which is very much needed in order to attain success from business. However,
Marchington et al., (2016) argued by saying that flexible working lacks professional environment
in the workplace, which can hamper the efficiency of the staffs.
Emotional connectivity of the employees is one of the most significant factors in
improving commitment among them. Thus, it is important to maintain healthy relationship with
that of the staffs to ensure their psychological connectivity. This is basically shared expectations
as well as obligation, which is entirely based on trust and mutual understanding. Strong
psychological contract can act as an influential factor among the staff of case study organization
to perform their assigned tasks with utmost proficiency. Laurie (2013) commented that such
contract basically comprises of trust and mutual understanding in between the employers and
employees which can result in a collaborative environment in the workplace. Still, psychological
contract can ruin the agreement in between employers and employees, which is utterly a threat
towards running an organization in a consistent manner. Psychological contract, in its simplest

form is considered as the relationship in between the employers and employees, which can have
a firm impact on satisfying their mutual expectations.
In the contemporary business scenario, the higher authority of case study organization
can use psychological contract as a tool in order to protect the emotional wellbeing of the staffs
and thereby generate a sense of satisfaction among them. This is basically a set of promises,
which is being established by the employers with the intention of protecting the fundamental
right of the staffs. Comprehensive organizational cultural plays a major role in strengthening the
psychological contract between the employers and employees. This leads the staffs to show
respect towards the employers. Psychological contract is one of the most significant way,
through which the level of productivity among the staffs can be accelerated, which is the key of
attaining success from business. In the context of case study organization, healthy interaction in
between employers and employees is needed to be maintained, which is the major factors in
making such contract In addition to that, healthy communication in between them is also a vital
factor in building psychological contract within workplace. Still, according to the counter
argument of Purcell (2013) in psychological contract is being made, which can create a reluctant
attitude among the staffs, which can hamper organizational productivity. In addition to that,
different employees may have different needs and requirements. Therefore, in psychological
contract, it becomes difficult for the employers to align the requirements of all of the staffs
within single platform.

Discussion
Task 2- Role of flexible working and psychological contract on the organization
Flexible working is the major factor, which paves the way for staffs to maintain a balance
in between their personal and professional life. This is the way, through which excessive work
pressure among the staffs can be mitigated. With the assistance of flexible working hour, the
employees become able to hold control over their professional life, which is the key of
accelerating their productivity. Gary and Ray (2016) observed that as working in a flexible
schedule lowers work pressure among the staffs, this generates a sense of ownership overwork
among them. This is the way, through which they becomes able to perform their assigned task
with utmost proficiency.
The inclusion of flexibility, the employers become able to create a productive workplace,
which generates commitment among the staffs to work efficiently. This results in increased
satisfaction level among the employees, which can have a firm impact on strengthening their
performance. Langton et al. (2017) highlighted that satisfaction level among the staffs is also a
great way, through which the issues like employee turnover and absenteeism can be mitigated.
Flexible working hour is strongly associated with that of the work-family enrichment which is
highly required in order to foster balance in between personal and professional life, which is the
key of generating a sense of trust and loyalty among them.
Based on the discussion of Bolman and Deal (2017) it can be said that through flexible
working practices, the employees become able to choose convenient working pattern in
accordance with their requirements. One of the greatest advantages of flexible working is that, it
helps in increasing confidence level among the staffs, which is very much needed in order to
improve their performance level. By alleviating the working hour, the employees can lower the

work pressure as well as work life conflict. Workplace flexibility is being considered as one of
the greatest strategic management tool, through which the employees can retain a skilled
workforce. However, there are certain limitation of flexible working, which can make it difficult
for the staffs to attain desired outcome from business. Watson and Reissner (2014) argued on the
basis that flexible working sometimes results in inappropriateness in terms of determining the
roles and responsibilities among the staffs. This can affect the internal functionality of a firm. At
the same time, different working schedule of the staffs can also be a great constrain in the way of
creating collaborative workforce. Excessive working pressure among the staffs is the greatest
barriers towards attaining a productive workplace. There lies the significance of flexible, which
can have a firm impact on enabling the staffs to select working shift as per their own choice.
HSBC is taking special care towards improving productivity of the staffs. Recently, the firm has
introduced remote working facility in terms of helping the staffs to have control over their own
working schedule. Through this remote working policy, the company is offering the employees
with leisure and discounted retailing.
In the rapidly changing business environment, appropriate management of employees is
very much needed in terms of amplifying organizational productivity. There lies the significance
of psychological contract as it supports in building a sense of loyalty among the staffs, which is
extremely important in order to improve their performance level. In order to keep the staffs
committed towards accomplishing organizational goals, the higher authority of case study
organization must strengthen psychological contract with that of the staffs. This is the way,
through which job satisfaction among them can be achieved. Negative attitude among the staffs
is one of the major obstacles, which can be mitigated through psychological contract. Innovative
induction session is being carried out by HSBC in terms of helping the staffs to understand their

roles and responsibilities. This kind of working relationship enable the employers to satisfy the
needs and requirements of the staffs. Still, it is being argued that, there are certain issues of
psychological contract, which can limit appropriate management of the staffs. Jeffrey (1998)
contended on the ground that no relevant method is being followed in making such relationship,
which generates doubt regarding the accountability of the contract. At the same time, violation of
psychological contract can result in broken promises, which generates negative perception
among human resources. This is basically a basically a complicated concept, which cannot align
organizational commitment as well as job satisfaction. Still, Huczynski and Buchanan (2017)
observed that open communication is one of the major advantages of psychological contract,
which can have a firm impact on generating sense of trust among them.
Conclusion and recommendation
Task 3- Explaining change management model
Based on the discussion, it can be concluded by saying that, both psychological contract
and flexible working are the crucial factors in terms of keeping the employees committed. While
psychological contract supports in protecting the emotional well-being of the staffs, flexible
practices in workplace enables them to maintain a balance in between their personal and
professional life. According to Kotter’s theory of change management, the employees of an
organization plays a major role in running the internal functionality of a firm in an effective
manner. Thus, it is imperative to integrate a sense of strategic vision among them. There lies the
significance of psychological contract, which can make it easy for the employers to pour
organizational mission and vision among the staffs by maintaining healthy relationship with
them. With the assistance of emotional contract, any kind of conflicting tendency among the
staffs can be mitigated, which is the key of building collaborative environment in the workplace.

In order to strengthen sense of commitment and responsibility among the staffs, it is
recommended for the employer to introduce flexible working schedule. This is the way, through
which excessive work pressure among the staffs can be lowered. Through this way, emotional
well-being of the human resources can be protected.

Reference List:
Boddy, D., 2016 Management: An Introduction. Pearson Education, Limited.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
CIPD. (2018). Flexible Working Practices | Factsheets | CIPD. [online] Available at:
https://www.cipd.co.uk/knowledge/fundamentals/relations/flexible-working/factsheet [Accessed
27 Oct. 2018].
Gary. R and Ray, F. 2016. Leading, managing and developing people. CIPD Publishing.
Huczynski. A., and Buchanan. David A. 2017. Organizational Behaviour: An Introductory Text.
Prentice Hall.
Jeffrey. P., 1998. The human equation: building profits by putting people first. McGraw-Hill
Higher Education.
Langton. N., Robbins. P Stephen and Judge. Timothy A. 2017. Organizational Behaviour.
Pearson Education.
Laurie J. Mullins. 2016. Management and Organisational Behaviour. Prentice Hall.
Marchington, M., Wilkinson, A., Donnelly, R., and Kynighou., A., 2016. Human resource
management at work. Kogan Page Publishers.
Purcell, J. 2013. Understanding the people and performance link: unlocking the black box. CIPD
Publishing.
Watson. G., and Reissner. S. 2014. Developing skills for business leadership. CIPD Publishing.

Appendix:
HSBC is one of the famous multinational banking and financial service holding
company, based in UK. It is the being considered as the 7th largest bank across the globe and
serving more than 35 million of customer. The business of the bank comprises of commercial
banking, retail banking and wealth management along with global private banking. The network
of HSBC covers more than 65 nations throughout the world. There are around 3500 offices
across the world. The fundamental aim of HSBC bank is to offer the customers with effective
financial services and thereby promote growth of the bank. One of the major aspects of this bank
is that, it is being operated by almost 200,000 shareholders. The bank has been founded during
1865, the international network of which covers almost 90% of the entire global trade
(HSBC.com. 2018). The company holds a strong range of policies and procedures for the
protecting the welfare of the employees and thus make them to be more committed towards
organizational goals and objectives. During 2017, annual revenue of the bank was US$2.374
trillion.

Reference:
HSBC.com. 2018. About HSBC | HSBC Holdings plc. [online] Available at:
https://www.hsbc.com/about-hsbc [Accessed 13 Nov. 2018].