Strategic change in organizations Creative and innovative HRM

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Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity, usually performed by the company's Chief Executive Officer (CEO) and executive team. It provides overall direction to the whole enterprise. An organization's strategy must be appropriate for its resources, circumstances, and objectives. The process involves matching the companies' strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organization's goals, policies, and action sequences (tactics) into a cohesive whole. To see how strategic management relates to other forms of management, see management.

Strategic Change Consulting:

"The main reason I selected you to lead my group through a strategic planning process was because I felt that you, more than other consulting firms I interviewed, had the greatest depth and breadth of experience in change management. I also felt that you, more than anyone else, could best relate and quickly build rapport with my group. The sessions that you facilitated helped us to develop a better strategic direction and formulate a mission statement. My request to you was to lead us through this process and I was very pleased with the results you helped us achieve."

    - Ronald G. Bennett, Past President,

      Hunt-Wesson Foodservice Company

1. Perform a Strategic Analysis: This stage begins with an analysis of the organization's external and internal environment. This analysis determines the organization's effectiveness and efficiency in meeting its present strategic objectives and fulfilling the mission of the organization. It involves getting key stakeholder wisdom into the room so that we move effectively to the next step, making choices about Strategic Direction.


Strategic Direction - Making Choices: This stage is about making choices about strategic direction. It answers the "what" question regarding what the organization hopes to become, who it is, what it can do. The Strategic Direction stage consists of developing and defining:

strategic vision

values and assumptions

environmental and industry characteristics

dominant and distinctive strengths/competencies.

goals and objectives

Within this context, the company makes strategic choices about its mission, goals, and objectives. It is the tension among these inputs that provide the opportunity for creativity on the one hand, and the setting of realistic strategies on the other.


Strategic Change Plan Design: This stage answers the "how" question. This step generates a carefully thought-out roadmap for how to move the organization from its current strategic orientation to the desired future position. It is both externally and internally focused, dealing not only with the content of the business but also provides guidelines for successful change within the organization by considering alliances, the nature of the organization's culture, and its readiness to support the desired changes.


Strategic Change Plan Implementation: This stage involves the actual implementation of the strategic plan. It provides a blueprint for traditional activities such as developing budgets and timetables and assigning responsibility for certain activities and results. This Implementation step also draws on an understanding of individual motivation, group dynamics, and organization change. The process continuously deals with such organizational issues such as alignment, adaptability, participation, and teamwork. It also includes measurements and review activities to assure that corrective steps are taken quickly when required and that necessary revisions are made in critical action programs, in timetables, and even in objectives.


Build trust and commitment required to effect change and get results

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Our Organizational Development consulting services expand your thinking about strategy and inspire you to take innovative steps that CREATE the FUTURE of yourself, your people and your organization.

For more information about our consulting processes, please contact directly Laura Hauser at Leadership Strategies International.

Understand the issues relating to strategic change in an organization

Strategic Communication

Create truly innovative and effective communication products that make your business goals real and the process fun and engaging. Get people on the same page through high-impact communications that drives the business forward through initiatives such as communicating a new business direction, creating enthusiasm for a marketing strategy, or unveiling a training program.

Internal TEAM communication: Create a message platform for communication to your team members. Design a story and well-thought out plan to mobilize short-term and long-term actions within your department. Intentionally create positive quick hits to gain credibility and generate enthusiasm.

Internal CUSTOMER communication: Create a communication campaign with a well-formed story and a concrete plan to guide lasting organization change. Engage and interface effectively with business units in a way that they want to implement the change. The communication campaign is designed in the backdrop of the corporate business direction.

Be able to lead stake holders in developing a strategy for change

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Leadership Development

"In the quest for strong leadership, many organizations turn to external resources. Yet powerful leadership exists inside every organization, because it exists inside every person. The challenge is to tap into that power. To consciously discover and develop leadership strengths from the inside-out." - Laura Hauser

We provide TRAINING AND CONSULTING support for people and their companies who are serious about growing themselves and their businesses. Through our assessment tools, consulting and design and training services we enable dynamic, high impact, and transformative experiences that get results fast.

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Based on your business initiatives, we work with you in the creation, development and implementation of the company's organizational development initiatives and training programs. We support you in the development and improvement of programs and practices to effectively manage the organizational talent and corresponding developmental needs. We participate with senior managers to establish strategic development programs to meet organizational objectives.

We collaborate on steering committees to develop, reinforce and maintain key organizational programs, facilitate performance management & accountability, leadership & career development, change management, and one-on-one performance coaching processes. We research new techniques and suggesting enhancements to existing training programs, contract with vendors for employee participation in outside training programs, develop a curriculum, participate in the delivery of the training, create individual development plans, and identify management and development critical success factors/competencies.

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Executive coaching is a process of growth and positive change that results in improved performance of individuals, teams and their organizations.

At Leadership Strategies International our unique executive coaching system--"Bridge to Success"--is designed to expand, strengthen and optimize your leadership capabilities. Our executive coaches expertly guide you across the "Bridge to Success."


The investment of time now in your individualized coaching program through Leadership Strategies International can last a lifetime. Although the strengths and challenges of each person are unique, our coaching programs yield the same results:

Increased leadership competency, confidence, and capability.

In business, this readily translates into productivity and profits.

Click here to read Laura Hauser's latest article, Evidence-Based Coaching, published in OD Practitioner.

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Jump Start:

Where are you now?

Gather information through surveys and interviews

Deepen awareness of your abilities and what motivates your behavior.

Examine the expectations of others regarding what it takes to be successful today and in the future.

Set Goals:

What do you want? How will you get it? What will you do differently?

Develop your action with your coach based on your personal assessment findings and desired "future" outcomes.

Align personal and professional goals.

Real-World Application:

What feedback, actions and support will get you what you want?

Coaching sessions are aimed at achieving your plan of action.

"Just-in-time" coaching support is available via phone and email as the need arises.

In the context of your real-world work situations, you learn specific skills and techniques as well as discover personal insights.

You will implement and apply your action plan in your daily life to enable you to reflect and analyze the knowledge you have gained. You truly put into practice and utilize this knowledge at a newer and more advanced level.

Measure Outcomes and Wins:

How have your goals been reached?

Fully evaluate what has been learned, applied and achieved.

Affirm leadership strengths and determine how to leverage those strengths to expand your success.

Create an action plan for leveraging your strengths and sustaining results.

The 3 Pillars:

Support System for Crossing the "Bridge to Success"

The amount of change a person can make is limited if any of the pillars are weakened.  For example, a person may want gain insights and awareness about the need to be more strategic, but may lack the motivation to learn and apply new behaviors that would impact the ability to be more strategic.   

Insight: The extent to which you understand what areas need to be developed in order to be more effective.

Motivation: The degree to which you are willing to invest the time and energy it takes to develop yourself.

Accountability: The extent to which there are internal and external mechanisms for paying attention to change and providing meaningful consequences.

Why Leadership Strategies International

Depth and breadth of experience

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Celebrating 15 years in business supporting leadership success!

Leadership and coaching in strategic change

In a time of uncertainty and change, how do you electrify your team's performance?

Teams and innovations

"Our team left energized and amazed that in one day we made a decision about a business issue we had struggled with for over a year. We quickly learned a model for team innovation and decision making, and applied it to a perplexing business issue. We want our employees to get trained and begin using this approach right away."

    -Director, Nestle' U.S.

Do you want to?

SOLVE problems faster?

SHORTEN the cycle time of idea generation to results by 70%?

REDUCE team conflicts?

REMOVE obstacles to innovation? INCREASE personal and team creativity?

LINK strategy, ideas and actions to produce new value?

Whether you need a training course, a consultant to coach your group on team innovation, or simply a product solution, we offer you:

Training Courses

This 8-hour Innovate with C.A.R.E. workshop is centered on the self-report instrument called the Team Dimensions Profile. Clarify roles, simplify processes, and maximize individual contributions for total team results. Learn how to get current teams on track and new teams moving quickly through this engaging workshop.

Business Improvement Consultation and Teambuilding

We offer you consultation and teambuilding resources that create strategic business improvements. Let us help your teams quickly learn a model for team innovation and decision making, and apply it to a perplexing business issue to get amazing results quickly.


If you have an explicit need, we have a product solution. Leadership Strategies International is your local Inscape Publishing distributor of profiles and products including the Team Dimensions Profile, the DISC, and many others. See our complete offerings of profiles and assessments.

Team-Based Change Management Tool

Get Results

The Team-Based Change Management (TBCM) tool is based on a decade of experience helping our clients achieve success through team-based management practices. We have used successfully the TBCM tool with our clients who face the challenge of working in a virtual team environment. Ask us about the impressive results.

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Graphic Facilitation

Do you want to:

Infuse enthusiasm and optimism into your meetings?

Align the thinking and actions of your groups?

Promote higher levels of creative and strategic thinking?

Inspire teams to move faster?

Build commitment?

Powerfully communicate organizational changes?

Stop yawning and start Wow-ing. Our dynamic graphic facilitation services literally get people on the "same page". Graphic facilitation engages people in a new way of thinking and acting. People naturally begin working as a team and quickly get amazing results. The incorporation of graphic facilitation into your change management meetings will focus people on big picture thinking, enhance group memory and win commitment. 

Imagine a 4' x 8' large-scale pieces of paper posted on the wall of your meeting. As we facilitate the important business topic of your group, our graphic recorder captures their thinking real time, drawing colorful words, images and icons. What emerges is a dynamic visual map of their thinking that allows them to quickly synthesize complex information, see linkages and experience breakthrough thinking.

The "look" of your "map" will depend on what you plan to accomplish during your meeting, anything from a very clean technical look to a dramatic look or somewhere in between. You decide. Your map would be unique, having its own look and feel.

The message continues to live visually back in people's offices and work teams.  Following the meeting, the maps are digitally reduced and distributed electronically. The maps can be reproduced in various sizes from its original size to an 11"x17" handout size. The reproductions serve as powerful communication tools back on the job.


Unit 6

Understand the importance of creative and innovative management in organizations

Creative and Innovative Management

Creativity and Innovation Management fills a crucial gap in management literature between the theory and practice of organizing imagination and innovation. It gives managers insights into introducing innovation within their organizations and accelerating the development of creative performance in their staff. The journal's central consideration is how to challenge and facilitate creative potential, and how then to imbed this into result orientated innovative business development.( by Petra de Weerd-Nederhof, Olaf Fisscher and Klaasjan Visscher)

Creativity can also be defined as problem identification and idea generation and innovation can be defined as idea selection, development and commercialization. From this simple definition, it is clear that certain cultural characteristics ought to be prevalent if creativity and innovation are to be maximized. And maximization of these ought to be a priority for senior leaders, as those organizations that take them seriously, tend to be leaders in their field, tend to maintain their leadership position longer and are quicker to bounce back when competitors leap frog.

There are many blocks that prevent expression of problems and hinder idea generation. Some solutions include:

a) An environment of psychological safety and freedom - accepting an individual as unconditioned worth; recognizing that the individual is capable of producing but that their value is not based on producing; understanding empathetically; understanding the individual from their point of feeling and view (Vernon, 1970).

b) Tolerance of failure - Accepting that many ideas will fail before one worthwhile one will surface and reach commercialization; recognizing that there are benefits to failure, such as competency expansion - Blade Runner was initially a commercial failure yet Ridley Scott went on to make some very successful movies. The Economist (2003) states that 3000 bright ideas result in 100 worthwhile projects, which are winnowed down to four development programmers. And four such development programmer are required to stand any chance of getting one winner.

Though senior leaders pay lip service to the above, the reality is often much different. Below are some easy and simple tests to gauge how well your organization is performing in practice.

a) Employee interviews. Are interviewees expected to conform to the prevalent norm of not contradicting the interviewer? If they do so, are they less likely to be selected? Interviewees who throw up many ideas and challenge existing methodologies at this stage are more likely to be expressive when they find problems in an organization and more likely to bring them to the attention of decision makers. They are also more likely to persuade others to do the same. Thought leaders are good drivers of change and prevent complacency - though as a result it is not unusual to find that they cause friction with senior leaders who for some reason or other may be resistant to change. Remember, today's thought leaders can easily become tomorrow's established bureaucracy.

b) Personality conflicts are quite normal within organizations. Some theories argue that all interactions on some level are conflict based. But are junior people penalized when they conflict with senior people? Even if the senior person is in the wrong, do they get their way for the sake of preserving the existing order, structure and processes? Is the junior person made to feel that his or her behavior needs to be monitored under threat of some sort of negative result or punishment? This is i) contradictory to an environment of psychological safety and freedom and results in suppression, not expression, of problem identification and idea generation and ii) a strong indicator that the culture is moving in the wrong direction.

c) Are senior leaders confident enough to leave themselves open to evaluation from all others in an organization? Status deference has many negatives including i) higher status individuals tend to dominate the session and reduce the participation of others, ii) people allow higher status individuals to do all the idea generation, iii) people place higher value on ideas produced by higher status individuals and iv) people have a greater tendency to allow higher status individuals to get away with bad ideas.

Be able to support creative and innovative management process for an organization

We have to manage the following things to able to support creative and innovative management process for an organization.

Teamwork and creativity

Suppose that every organization had within it four teams, each of which had a specific task. People on these teams would have other roles as well, but would work with others, using teamwork to fulfill a specific task.

The focus of each team would be distinct, and it is important that this distinctiveness is preserved. There should be no question of integrating the functions of the teams or of exchanging members. It is possible that over time a particular person could switch from one team to another. This switch would be deliberate and permanent and not just for the moment.

The rigidity of this team structure might surprise those who believe that creativity should be free and unstructured.

Team one is the 'values' team. The role of this team is to find and figure out values that matter. Values might arise from social observation. Values might be triggered by changes in technology.

Technology might even create negative values, and then there will be a need to get rid of the negative values.

Team two is the 'idea team'. The idea team takes the defined values from the value team and seeks to design an idea that would allow the values to be delivered in a practical way.

It is not just a matter of delivering the values, but of delivering them in a way that makes business sense. There has to be profitability and there has to be cost control.

Team three is the 'implementation' team. Implementation has to go into detail in a very specific way. It is not enough to say: 'there would be a way of doing this'. The specific way would have to be spelled out. How is it going to be done? Who is going to pay for it? What might the problems be?

Team four is the 'assessment' team. There has been a defined value. There has been an idea for delivering that value. There has been a specific suggestion as to how the idea might be implemented. The assessment team can now look at the whole picture. It should function in a positive and constructive sense. Where necessary, modifications might be suggested. The assessment team should contain creative people as well as number-crunchers.

The proposed teams - Value, Idea, Implementation, Assessment - work separately, but together: like the four legs of a horse or the four wheels of a car.

Another analogy might be the human digestive tract. Each part does its prescribed job and then passes matters on to the next section. The clearly defined function of each team clarifies the thinking and ensures that every aspect of an innovation is fully considered.

The value of collaboration

Co-creation is the business idea of the moment. Lately, wherever I go, the desire to get closer to customers, stakeholders, suppliers, etc is at the very center of everyone's strategic planning.

This was most emphatically driven home in the "Driving Strategic Innovation" program - itself a collaborative venture between my school, IMD, and MIT's Sloan School of Management - where close to 60 Chief Innovation Officers recently came together for a week to discuss the latest trends in innovation.

They came from all types of industries: from manufacturing to services, from government to the sciences; and from across the world. The surprise here was that in virtually every opportunity to describe or construct an effective innovation solution, these seasoned veterans of innovation immediately turned to some type of collaborative arrangement in order to enlarge their idea pool, control costs or ensure that projects met their promised delivery times.

Co-creating new offerings in association with value-chain partners, either upstream (suppliers), or downstream (customers, or customers' customers) was seen as the smarter way to ensure acceptance and commercial success of a good idea.

What is so remarkable about all of this is that not so long ago, these same professionals would most likely have only been concerned with the aspects of innovation that occurred within the boundaries of their organization; things that they could legitimately control. After all, that's the way innovation was done for most of recorded history.

For decades, business school teaching on innovation was concerned with building more effective "filters" to avoid pursuing ideas that would not lead to commercial success.

Today, however, it's almost the reverse. We can manage very nicely within our organization, but it's the outside that we need to work more effectively with - to literally bring the outside inside, so that we can shorten the time and distance between those who have the next good idea and those who can benefit from it.

Now, rather than being preoccupied with filtering ideas, we are hungry for ways to get more and better ideas. We can always filter later.

In a forthcoming book, entitled "The Idea Hunter" which be published next spring, my co-authors and I argue that the pace of change in today's world is such that in order to stay ahead, astute companies and individuals must recognize that the hunt for new ideas has to become continuous and relentless. They need to be cognizant that almost always the more ideas you can work with, the better.

In fact, if you take this to the next logical step, you arrive at the conclusion that: the more minds you can engage in the hunt for new ideas, the better. This has become part of my professional mantra: More ideas are always better than fewer; more minds are always better than fewer! Always, not sometimes! And, of course, the more different minds you can enlist, the higher the probability of finding a really different idea.

Implicit in all of this is an acceptance that I will now have to make tougher calls on not pursing quite a few of the good ideas out of the many that I can get, but getting them is more important than worrying about how to filter them. Collaboration will become a way of life, rather than an occasional strategic "experiment."

Only a few weeks ago, I had a chance to try this first-hand. IMD was working with a global-leading fast moving consumer goods company that was concerned about issues of brand-building. They wanted to generate "Wow!Brands" - those which excite consumers and create a viral "buzz" in the marketplace and have a sustaining capability to do this repeatedly.

Apple, Red Bull and Football Club Barcelona are three examples of such brands because they are exciting, energizing and each has created a tribal allegiance among their customers, supporters and fans.

The challenge for our client company was applying lessons from such brands. The "Wow! factor" is more an emotional, visceral, reaction rather than an intellectual construct. And this, in turn, suggests that to try to "teach" people about "Wowness" - to instruct them in a classical teaching classroom format - would be far less effective, maybe even futile, than to invite the target audience (the participants) into the planning of this program from the very start, so that they could help define, from each of their distinctive local perspectives (they came from throughout the world), what "wowness" means to them and why.

In a sense, we were all teaching each other, simultaneously, and co-creating the course as we did. This changed everything. My principle role, as a "professor" was no longer to "broadcast the truth" but to provide frameworks and vocabulary by which each participant could interpret their local experience into part of what became a shared global story about what it took to create a Wow!Brand.

The results were extraordinary. The week was energizing, everyone was completely engaged and we all learned from each other. Without co-creation, the results would have been far less impressive, and far less effective in contributing to the strategic aspirations of our client firm.

Among the biggest lessons we learned were:

Wow!Brands dream bigger than the others, but if you rely only upon "corporate insiders" for your dreams, you will have a very small set.

The Wow!Brands have all used regular customers to share their dreams in order to create the future.

Most firms "push" to customers, rather than inviting the customers to "pull" - Wow!Brands enjoy the "power of pull" from their fully-engaged co-creating customers.

Someone in any organization needs to be responsible for making co-creation happen; it just doesn't happen on it's own.

Co-creation requires sufficient managerial self-confidence to allow others (outsiders) to help plot the organization's future. This can be somewhat frightening, because you are giving up total control of the innovation process.

Finally, there is more than one "lost generation" of decision-makers in today's large organizations - successful managers who are so unfamiliar with social networking technologies that they are not even aware of what is going on in the world around them, and as a result they run the risk of making the wrong strategic choices.

My biggest personal take-away from the "Wow!Brand" week was that, as always, getting more minds engaged in sharing the burden of creating new ideas, both made it easier to find these new ideas, but also the resulting ideas were much more interesting than if I had tried to do it myself, or with a small team.

The big challenge, of course, is "trust": giving-up absolute control over the end-results, and trusting others to contribute their best to a group effort. The participants, in fact, spoke of "fear" when it came to sharing idea-leadership with value-chain partners, but, in the end, we all agreed that the power of the final results, were worth far more than the security of controlling who participated, when and how.

Co-creation will become the way of the future in describing all innovative activity and that collaboration - which has become one of IMD's new values - will characterize how we go about all of what we do. Remember: More ideas are always better than fewer; more minds are always better than fewer! Collaboration makes this possible!

Creativity can be a block to the top

Creativity might be a trait many CEOs say is essential for senior leadership, but it seems that widely-held perceptions of "creative people" and "effective leaders" often clash. Creative people are viewed as risky and unpredictable, while leaders are expected to reduce uncertainty and uphold the norms of the group.

"Our three studies show that when people voice creative ideas, they are viewed by others as having less leadership potential," said Jack Goncalo, assistant professor of organizational behavior in Cornell's ILR School.

In other words, he added, creative people are getting filtered out on their way to the top. While people claim they want creativity, when given the opportunity, they actually preserve the status quo by sticking with unoriginal thinkers.

As Edward de Bono pointed out here on management Issues earlier this year, the problem leaders have with creativity is two-fold. If you yourself have done very well with the existing modes of thinking, why should you encourage others to learn further modes? But if you live in innocent ignorance of the other modes of thinking, how can you be anything but complacent about thinking?

In troubled times, however, this complacency and tendency towards group-think can be fatal. Today's CEOs must navigate a sea of VUCA - volatility, uncertainty, complexity and ambiguity. Yet unoriginal thinkers - that means most CEOs - are always looking to reduce volatility and increase predictability. They lack the creativity to look at things in a different way and see problems as opportunities, skills that are more important now than ever before.

As Goncalo points out, this might help explain why many of the 1,500 leaders surveyed in 2010 by IBM's Institute for Business Value doubted their abilities to lead through complex times.

Perhaps promoted for their unspoken promises to preserve the status quo, Goncalo suggests, leaders are often expected to change the status quo when they arrive at the top - an uncanny mismatch that was previously unidentified and which leaves a leadership void at the very point at which new insights and approaches are so desperately required.


Be able to influence others to effect change in an organization

Effects of Leadership Change on Your Organization

The American Red Cross has gone through five leaders in eight years, prompting David Hoffman, CEO of DHR Recruiting to comment, "I don't know how an organization gains any type of momentum with such frequent leadership changes, because each one comes in with a new vision or strategy." Obviously, its better for a company to shed itself of a bad leader than to put its fate in the wrong person's hands just to maintain consistency of vision. But change in the CEO spot isn't always catastrophic.

Roger Wery, a director in consulting firm PRTM's operational strategy practice, suggests several factors help predict the effect of leadership change:

The industry. Fast-paced industries like retail, fashion and technology are more sensitive to C-suite churn.

The type of change previous management implemented. Frequent fundamental change hurts an organization. Companies with a strong culture can combat that. So does the quality of management under the C-suite.

Effectiveness of the board. According to Wery, "The more dysfunctional the board, the more unstable the CEO is. You want the board to be constructively skeptical, but you ultimately want a collegian board."

Over the past decade, CEO turnover's been on the rise (a 59 percent increase between 1995 and 2006) and it doesn't show signs of slowing down. A near-constant revolving door in the C-Suite is slowly becoming the norm - meaning organizations must be prepared to deal with leadership transition to minimize the damaging effects of change.

Related Reading:

Surviving Your New CEO

(Changed Priorities Ahead image courtesy of Redvers, cc 2.0)




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Be able to plan to overcome the barriers to implementation of creative and innovative management ideas in an organization

Satisfying Motivational Needs and Achieve Meaningful Work

In this new era, past employment experiences encompassing continuity and predictability has changed. In exchange, we see organizations which are moving aggressively towards more efficiency and competitive advantage. They are influenced greatly by inevitable forces of change such as deregulation, restructuring, globalisation and the desire for knowledge capital. From the employee's point of view, adapting is vital but there are mixed results to this adaptation, with potential problems such as work stress, illness, and underperformance. To counter such problems, focus should be placed on psychological well-being which helps to create a balance between personal and organizational life through self-identity, and self-esteem, leading to the sense of stability. In this report, we will look at the motivational need systems of individuals, followed by the importance of meaningful work, and also how these two factors when combined help create a healthy workplace, and finally the role of organization in promoting such environment.

Firstly, we look at motivational need systems. They are the basic driving forces that influence human behaviour and are adaptive with time. Two particular systems are the need for attachment/affiliation and also the need for exploration and assertion. In the former, there is an innate pleasure of sharing and affirmation, which promotes self worth and self esteem. In the latter, the ability to explore and choose what one likes to do will go a long way to encourage effectiveness and competency.

Furthermore, in order to find meaning in work, there should be a balance between the inner and outer reality. This will promote authenticity and constancy whereby the employee experiences heightened personal accomplishment and competence. With this sense of significance and orientation, the individual will develop a sense of self and identity. When coupled with the above two motivational need systems, it will allow individuals to feel a sense of purpose, sense of belonging, sense of self-determination, and of competence which motivates him/her to do even more. This creates trust and mutual respect between the individual and the organization, and empowers the employee to do their best. This promotes a healthy workplace which contributes to and reinforces adaptive functioning.

To conclude, we emphasize that organizations play an equally important role in creating well-functioning individuals in today's employment scene. A humane corporate culture can flourish in companies which are capable of inspirational leadership, providing excellent perks, and the sense of purposefulness to the employees. Policies which accomplish this include information sharing, flexible hours, removal of hierarchy, and profit sharing. This lays the groundwork for better mental health for the individual and the organization. Through meaningful work, the issue of potential breakdown of the psychological contract becomes inexistent, and this provides the individuals with the necessary psychological well-being to function well in today's employment scene.