It refers to the process through which an individual takes control of another person or activity. In the context of business, management is generally considered as the act of setting a strategy for an organisation so as to align the behaviour of employees towards accomplishment of goals and objectives of company (Berry and Sam, 2013). It includes aspects like financial, human and technological resources which have to be handled in a systematic manner.
Background to organisational issues
Contemporary issues in business are the various challenges faced by the personnel working in an organisation. Such issues are likely to arise in every field of work in the modern world due to diverse workforce, cross-cultural issues or inefficient working of staff. These challenges often act as barriers to performance and function as a hurdle for those closely involved in the operations and management of entity (Bellini and et. al., 2013). As per the case study, it can be seen that Jose and Enya face a number of issues, especially in relation to their approaches of management and handling of employees of the organisation. Also, it has been observed that they Jose and Enya have contradictory views upon management of operations and human resources along with profitability ratio. Here, it is required by the managers to effectively deal with these hindrances so that they do not hamper the performance of employees and ensure the sustainability of business in international market. Management is following various approaches and strategies to tackle the contemporary challenges effectively.
The problems identified are the contrary approaches of owner and the HR manager. Also, the ineffective and inefficient performance of employees is identified due to which warehouse is not able to make delivery on time.
Scope of Project
The contemporary issues that arise in an organisation need to be handled in an effective manner by the management so that they do not cause harm to the performance of business. In relation to this project, the scope is wide as the various methodologies and strategies adopted by Jose and Enya has been covered along with the Nudge theory of change management so as to incorporate any change that seems necessary to deal with the challenges. Also, the effect of these strategies upon the warehouse management and scope of company to deal with the international processes and the diverse practices and beliefs of workforce has been discussed. These strategies and models, if executed well, along with removing the diversities in views of Enya and Jose can bring improvement in the warehouse system and enhance the overall profitability.
General literature relating to management & its historical roots
Management is related to the aspect of handling persons and things in an effective and efficient manner. It is basically concerned with the practices adopted by management to orderly manage and deal with the employees, processes, methods, techniques and strategies adopted by organisation so as to sustain in market in long run. Also, it deals with the various aspects of behavioural pattern of workforce such that it can be aligned towards the realisation of organisational goal. The practice of management has been adopted by people since years. Organised methods and processes involving planning, organising, evaluating, monitoring and controlling has been utilised by individuals for thousands of years (Oteros-Rozas and et. al., 2014).
Green HR or Resource Based View (Enya/Jose)
Contemporary issues have arisen in the warehouse because of ineffective and inefficient practices of employees of the organisation. This becomes a challenge for the management as these cause hindrance in performance of workforce due to which the operational efficiency of organisation is affected. As a result of this, warehouse becomes incapable to deliver timely orders in international market which poses threat to its brand image and position in industry. AD per the case study, it can be said that Jose Fernandez is planning to design and develop a warehouse system at international level. This system would provide the facility of delivering products to consumers overnight or within a span of 2 days from the receipt of order. For the effective execution of this warehouse system, it is essential that management adopt such practices and processes which can ensure the timely receipt and delivery of orders along with maintaining the quality of products delivered.
To deal with this, Enya has proposed Green HRM practices. Green human resource management can be referred to as the fair practices adopted by the management for the overall enhancement of productivity of employees (Liepiņa, Lapiņa and Mazais, 2014). This method involves optimum utilisation and management of human resources such that these individuals develop a feeling of being to the organisation and work for the timely delivery of orders. Green HRM includes practices like training, development, induction, welfare programmes, reward and compensation etc. Such activities can help in increasing the capability and increase the interest of personnel towards the warehouse system, thus creating a healthy working environment. This practice can be well executed along with Milliken's Model of communication which proposes that it is essential for managers to gain an insight into the various employees’ influences as well as their feedback regarding different scenarios. Also, this ensures satisfaction among the workforce as they are given a chance to express their views.
In contrast to this, Jose intends to implement Whittington's Model of profit maximisation. Jose being a practical person assumes that it is imperative to look at the financial side of business and adopt such practices that are in accordance with generation of income as well as profitability. Besides this, he focuses upon implementation of Wittington's Model which emphasizes that it is necessary that the financial side of the business is well taken care of as each business is run for the motive of profit maximisation. Jose proposes that for the warehouse to run effectively in international market, it need to align the behaviour of employees towards increasing profits.
Culture and International Management
For an entity to conduct its operations at international level, it is necessary that the organisation takes into account various aspects of cross national boundaries. These areas include political laws and regulations, culture, traditions and nature of people in the country. Amongst all these aspects, the most essential element is culture. Culture can be referred to as the set of beliefs, practices, norms, traditions and values followed by individuals or groups in a particular country (Vom Brocke and et. al., 2014). When a business carries out business at global level, it needs to keep in consideration the diversities in culture of the countries and workforce. As Jose Fernandez is planning to carry out the operations of warehouse system internationally, it is required that he understands the need to develop an understanding of the cultural and national differences. Furthermore, he needs to take measures so as to reconcile these differences and maintain a healthy environment where the individual or national diversities do not hamper the performance of business.
It is vital that Jose develops an understanding of cross-cultural and international management. As the concept of globalisation is spreading rapidly, managers need to have a holistic understanding of the practices and culture followed by people in the countries where they wish to operate so that they can deliver products according to their preferences and requirements. Consideration of workforce diversity across different parts of globe is crucial for the effective management of business at global level. Thus, by gaining knowledge about the various aspects of culture and nation so as to analyse the needs and requirements of consumers, Jose can effectively run the warehouse system in international market. This will ensure timely delivery of all the orders placed by customers.
Ethical organisational development
Ethics is a branch of philosophy that deals with making decisions about what is right and what is wrong as a practice. Business ethics is mainly concerned with adoption of such methods, practices and techniques that result in social welfare and do not pose harm to environment. Ethics play a vital role in ascertaining the sustainability of business in long run. A business mainly functions for the purpose of growth and expansion. Thus, it becomes necessary that entity adopts such processes which ensure the widespread acceptability from public. This will result in strengthening the corporate image and position of business. In today's globalised world, it is required by managers to understand the importance of adopting ethical practices so that it can easily and effectively carry out the operations without any major interference from government or local communities (Baker and Faulkner, 2017). There are various ethical challenges that are faced by managers or practitioners while performing their work in international marketplace.
According to the case study, it can be said that it is imperative that Jose realises the need of adoption of ethical methods and thus, implement them effectively in the warehouse. It is required by Jose to take care of the methods being utilised by the employees in workforce and to supervise it continuously so that no individual indulges in any unfair practice (Grant, 2016). By ensuring this, Jose can look upon the growth and expansion of business along with getting support from public. It can be said that stressing upon such practices can help the business and workforce in timely completion of orders placed by customers. Also, it is required by Jose to engage in ethical practices while dealing with the human resource of warehouse. This will result in gaining satisfaction of employees. Consequently, they will be aligned towards the accomplishment of organisational goals.
Changes take place at a rapid pace in an entity. Thus, it becomes imperative that organisation takes into account these changes and ascertains the behavioural pattern of employees in response to this. Also, it is required that managers adopt measures and techniques for the effective execution of change while ensuring that employees do not resist the same. Furthermore, it is necessary that managers changes at all levels and functions of management like IT, operations, HR, marketing, finance etc. Also, it is required that the change is facilitated with the help of a specified model. Change can be in terms of the position of people, process, management or business associates (Habidin and et. al., 2015). Entity can achieve the long term business goal by communicating the need of change to employees. It is essential that workforce has the knowledge of interrelation between change and vision of company. For successful implementation of change, a set framework with systematic steps is necessary so that it can be effectively executed in the business environment. The process of formulation of change along with monitoring and controlling its affect on the employees of entity can be termed as change management.
Change management process is effective in increasing the satisfaction of employees by communicating the need of change to workforce. In relation to the case study, Jose is developing a warehouse at international level. He has observed the negative effects of bad image of company on the overall business environment along with the corporate name and position in marketplace. To prevent the same thing in case of his warehouse, Jose has adopted Kotter's 8 Step Change Model to facilitate certain necessary changes in the overall conduct so that organisation can effectively function at global level.
According to the case study, there are various models used and proposed by management of warehouse. These are explained in brief below:-
Whittington's Model of profit maximisation
This model is basically used by management to ensure profit maximisation of business. Also, it offers the option of taking a more flexible and reflective approach to systems and processes. This model is basically made up of 4 elements namely, classical, evolutionary, systemic and processual (Wellington, 2015). This approach focuses upon keeping the cost low along with abiding by the rules of local community. Jose proposes this model as this is considered by him as the key to financial success of the entity.
Kotter’s 8 step change model
This is a change management model which is aimed at ensuring that the change is successfully executed in the organisation. It starts with communicating the need of change to employees. After that, the change is linked to the vision of company and communicated well to the workforce as to how the implementation of change would foster the growth of business entity. Any hurdle to the implementation of change is ascertained and then removed by taking necessary measures. This can be done by reviewing the organisational structure, performance and compensation criteria to see if they are aligned to the change (Gill and Singh, 2014). Another way of removing hurdles can be recognizing and rewarding the employees that tend to make the change happen. Also it is imperative that those individuals who resist the change as determined and made them understand the necessity of change in the organisation. Also, the short term success of change can be presented in front of the workforce to make them realise the significance of change in long run.
Milliken's model of communication
This model is used a way of communication to build networking between individuals in an entity. Also, it is often seen as a way to began interaction with the local community within which the organisation functions (Dilger, 2012). This can be seen as a successful step towards gaining the acceptance and satisfaction from the community in which warehouse operates, acting as a measure to enhance the overall corporate image and positi9on of business.
Results / Findings
From the above discussion and the case study, it has been found that there are various issues in the warehouse system run by Jose Fernandez internationally. Also, it has been evaluated that there are contradictory views of Jose and his HR Manager, Enya. While Jose focuses upon profit making and in particular, the financial success of the organisation, Enya consider the welfare and satisfaction of employees as the yardstick to growth and success of entity.
It can be said that Enya’s approach is more logical and feasible as she stresses upon the welfare of employees. The biggest asset of a company is human resource and thus, it becomes necessary that business takes proper care and manages this resource well so as to sustain in market for long time. Also, by employing Green HRM practices, employees can be motivated and they will develop a sense of belongingness to the entity (Evertson and Weinstein, 2013). Consequently, their productivity will increase as they will be willing to deliver best to their potential.
Findings to the models
This report explains relationship and different approaches of a warehouse owner Jose Fernandez and his HR manager, Enya Murray. Both of them have a different approach towards management of warehouse and formulation of various policies for growth and development. Jose Fernandez is a very practical person who finds out financial success of his business as his greatest achievement. Also he rates financial success greatest and above all other different aspects of business activities. For this type of approach, Whittington's model is suitably considered which lays emphasis on profit maximisation (Baruffaldi, Accorsi and Manzini, 2018). Whittington's model of profit maximisation is further divided into 4 broad levels namely classical, evolutionary, systematic and processual. Jose is highly impressed by this type of hustle model that works on prioritization of profit maximisation. This warehouse is a franchise based warehouse so it normally does its delivery during night hours or within 2 days from date of ordering. For Jose, it is great opportunity to capture market and therefore increase his profit rates. This view of Jose is based upon Whittington's model.
Furthermore, Jose does not work for welfare of his employees and feels practice of Green HRM practices is not practical in his point of view whereas Enya, his HR manager thinks about growth and welfare of his employees. She considers Green HRM practices as a vital part of any business concern as it helps in retaining existing employees and customers for a longer period of time. Also, it aims at boosting morale of employees and further help in overall growth of business organisation. It may be sometimes an expensive technique in its initial days as it does not focus on profit maximisation directly but in long run it helps to achieve goals and objectives on a timely basis (Alhyasat and Al-Dalahmeh, 2013).
For practising Green HRM, Enya suggests Milliken's model of communication but is confused whether this model will also serve profit maximisation purpose. This model is further classified into 5 categories that deal in effective communication namely voice, emotional states, cognitive states, behavioural outcomes and extra organisational relationships. Also there is a positive factor known as community engagement which aims at improving level of communication. Jose being a practical person follows top down approach of communication in his warehouse which makes it quite difficult for maintaining effective communication and assigning tasks to bottom level in his warehouse. To maintain effective communication, it is mandatory for Jose to implement new model of communication for example Milliken's model in this context. This change of communication process may even change his mindset and ideology thereby making him more creative in his approach (Faber, 2015). Milliken's approach, on the other hand, relates to Green HRM policies that are recommended and followed by Enya.
Also, Jose, in consideration with competitive businesses and industry, realises the need of bringing changes in warehouse so that business can easily operate at international level. For execution of change in warehouse, Jose has adopted Kotter’s 8 Step Model. By using this model , Jose aims at gaining satisfaction from employees by communicating the need of change and linking it with the vision of company. Jose is logical in approach and considers that change is an inevitable part of the organisation so that it can survive in marketplace for a long duration of time.
Findings to the literature
As per the case study, the findings are basically related to the contemporary issues in management that are therein mentioned in literature section. It has been found that Jose Fernandez runs franchisee of an organisation wherein the basic work is of a warehouse system that operates all across the globe. This warehouse system is responsible for taking orders from customers and then giving the delivery over night or within 2 days from receipt of order. The HR Manager of his warehouse system is Enya Murray. Jose believes that to measure the overall position and condition of company in market, it is imperative that financial success of business is taken into account as he regards it to be the most essential element for an entity. On the contrary, his HR manager, Enya stresses upon the use of Green HRM practices as these would result in gaining employee satisfaction along with getting their support for taking the business to international level and feeding the customers well. As per Jose, Enya’s HRM practices are impractical and would not yield any benefit to the organisation. For him, financial success is everything and thus, he relies upon resource-based practice. Also, Jose has to maintain a balance between the cross-cultural and national diversities lying in the workforce. Jose tends to practise a top-down communication process which is difficult for Gen Z employees to comply with. In such scenario, Jose may apply Milliken’s model of communication which can really be helpful for gaining employee satisfaction along with ethical development of the franchisee.
With the help of above mentioned report, it is being concluded that contemporary issues mainly comes in front of a company at the time of executing plans and procedures. It is required for manager of the company to mainly adopt right tools and then try to evolve techniques as well that may aid in reaching to desired goals and objectives in specific time frame. Away with this, it is being also computed that strategies related to building employee engagement and relationship of employers and employees should be managed through developing various training campaigns, plans and compensation related policies. With the help of this, performance level of organisations that are dealing at international level and of employees as well can easily be enhanced right on time. It is required for business firms to focus on changes, cultural barriers, eradication of unethical strategies which could create irregular disciplinary acts. Here, it has also been summarised that framework that can be developed by HR manager needs to give good returns on investments made by the company. This could aid in enhancing profit margins in specific time frame and at the same time can help staff in becoming more motivated towards their plans and procedures. Observation has also been carried out, through disciplinary actions taken by HR manager and other leaders to make a business firm to reduce chances of contemporary issues that are dealing at international business environment.
With the help of above mentioned report, it can be suggested that management can adopt practices and models like Whittington’s model for profit maximisation, Green HRM practices and Milliken's model of communication for effective management of business practices. Profit maximisation should be secondary priority for a company before that they must focus on maintaining satisfaction level of employees. They should implement effective model in order to develop effective communication bridge in organisation. They need to hear emphatically the issues and grievances of worker and try level best to resolve them. This will directly benefit development of company and enhance their profit level. It is well known that employees are greatest asset for any organisation in order to create more productive organisation structure.
Company should take effective measures to increase job performance in their workplace. This will automatically increase earning of organisation. By taking care of employees company can able to decrease chances of contemporary issues. They should provide effective training measures to their employees so to enhance their motivation level. Managers of company should adopt right tools and techniques and then formulate plans to evolve those techniques. This will benefit company to fulfil their pre determined goals and objective on time. Company should adopt numerous measures to establish strategies that are related to building employee engagements and maintain smooth relationship between employee and employers. Company should focus on changes, cultural barriers and removal of unethical strategies which generate irregular disciplinary act. By putting these points in concern manager can able to create more productive environment. Hence, by taking all these measures, manager can increase company growth and profit in a very effective manner.
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