Two Market-like Arrangements That Have Impacted My Workplace - Assignment Example

Resource Management Name Course Name and Code Instructor’s Name Date Introduction The liberalization of the labour market has expanded the use of market like mechanisms such as competition, pricing, dispersed decision making and work based incentives to enhance program outputs. As a result, this report seeks to describe two markets –like arrangements that have impacted on my workplace whether positively or negatively by analyzing its purposes, how it is intended to work and how it currently operates. In addition, evaluation of the impact of the two markets –like arrangements on quality and value of services provided and presenting a retrospective commentary. Two market-like arrangements that have impacted my workplace My workplace is an events management firm that facilitate events for its clients and ensures the clients who range from corporations, individuals and groups of people are effectively and efficiently satisfied with the type and quality of services provided. The two markets like arrangements that are apparent at my place of work are competition and work based incentives. 1. Competition According to Stephenson & Thurman (2007), competition in business is described as the efforts of more than one party functioning autonomously to acquire the best resources in order to attract and retain loyal customers both existing and potential ones by offering them favourable business terms. In my workplace, competition is the most evident market –like arrangement, which is meant to enhance the quality of services delivered to the clients. According to Abrams & Kleiner, (2003), competition is not only a mechanism for protecting the customer from the effects of monopolization but also it is an incentive for an organization’s growth. Its purposes There are varied purposes why businesses and organizations seek to be competitive ranging from the desire to acquire more in terms of profits, in order to attract the best investors, for brand recognition and brand equity. On the other hand, simply to be recognized as the best in the industry or the leader in the sector the organization or the business operates as suggested by Barrow (1996). For the events management firm, the main purpose of competition is to deliver the best services to the client and ensures the customer have value for their money and guarantee they have the best experience they can find and ensure they not only bring return business but also recommend the firm’s services to others. This will eventually enhance the firm’s customer base and market share. The other purpose of competition at the events management firm is to push the human resources contracted to be the best in doing whatever they have been assigned to do. More importantly, ensuring they offer the best of their skills and knowledge and ensure they register enhanced productivity and performance, which translates to quality customer services and enhanced business growth. Other than that, the event management firms uses competition for the purpose of establishing a good reputation for itself from the external environment which encompasses stakeholders such as the government, investors, customers, marketers, customers and suppliers (Stephenson & Thurman, 2007). Through competition, the events management company hopes to contract the best suppliers of various products and services ranging from sound equipments, tents, insurance, security among other products and services that the firm may require. By having the best supplier, the firm is therefore assured of the best quality products to deliver effective and satisfying programs and events for the clients and more importantly, the risks of late deliveries, missed deliveries and poor procurement services associated with low standard suppliers are prevented and adequately managed (Keddy, 2001). In regards to investors and customers, the events management firm strives to sustain its competitive advantage to ensure it attracts and retains investors and customers who are fundamental to the growth, sustainability and success of the firm (Ho & Chen-Chia, 2006). The other purpose of competition as utilized at the events management firm is to present itself as the best firm in the industry both at a local level and at a national level. In so doing attract the best employees in the industry, select and recruit them to fill the right job descriptions and job positions, at the right time and at the right price. This ensures the firm has the best human resources in terms of skills, knowledge and abilities who generate creativity, innovation, accountability, commitment and hard work all which are the core elements in developing sustainable competitiveness required to survive the turbulent and competitive market environments (Stephenson & Thurman, 2007). Having the best in the field and in the industry means that the events management firm is able to rise to any challenge thrown at them in relation to management of events despite the nature and scope of the events they are given and despite the circumstances under which they have to operate (Barrow, 1996). How it is intended to work and how it currently operates Competition at my workplace, which is the events management firm, is designed in such a way that it is prevalent on all levels, structures and systems of the firm. That is, competitiveness is integrated into the organizational culture of the events management firm where the products and services, the people, the processes, the promotions, the supply management systems and the aspect of pricing are designed to be competitive and enhance the firm’s competitiveness. For the products and services, they are presently produced using the best raw materials accessible. For example for flowers, the events management firm has sought the services of a reputable flower farm that has complied with international and local standards of supplies management, environmental management and more importantly occupational health and safety. This means that the type of flowers the firm delivers or uses at its events are best in terms of quality in all aspects. In addition, the firm seeks as earlier indicated the best suppliers recognized for their quality services to supply for them which ensures the products and services the firm offers are efficient, quality and effective and thus, satisfies all the needs, tastes, preferences of the customers and surpassing their expectations. By producing quality products consistently and continuously, the firm hopes to be the best in delivering quality in its industry and therefore, be the firm to compete against or the firm to be beat (Keddy, 2001). As mentioned above, the firm has integrated competition in its people who are its human resources. They not only attract the best, they retain them by offering them safe and secure working environments and remunerating them at very competitive rates which ensures valuable employees easily leaves the competitors to join the firm while at the same time, the firm is able to safeguard against losing its valuable workforce to its competitors. Modern business environments are characterized by changing market environment coupled with changing political, social, technological, environmental, legal, financial and economical factors and therefore for the events management firm, quality human resource ensures the firm are flexible, adaptable to changes, and thus successful in the short term and in the long term (OECD, 1993). Currently, the firm has integrated competition in its distribution and supply systems by contracting competitive and quality suppliers, which ensures customers do not experience delays or dissatisfaction in terms of services, and products they are supplied for, for their events. In so doing, the firm ensures that customers are fully satisfied and they therefore cannot seek out the competitors, which will result in the firm losing its competitive edge and reducing its volume of sales and market share. Pricing is the most fundamental factor, which defines the competitiveness of a firm and distinguishes it from the other competitors as suggested by Nagle & Holden, (2002). Pricing dictates whether the client seeks a firm’s products and services or not. In an attempt to ensure competition works for its advantage, the firm is presently taking great tasks in incorporating different pricing strategies to ensure it offers cost effective prices for its customers, which offers the clients their value for money while ensuring the firm acquires a substantial amount in terms of profits. Among the most commonly used pricing strategies includes market oriented pricing which entails setting the price depending on research and assessment gathered from the target market, premium pricing, psychological pricing and value based pricing (Gregson, 2008). 2. Work based Incentives According to Greewald & Khan (2007), as the desire to be the best and to capture the largest market shares has intensified and the scramble for the global consumer increases, organizations and institutions have acknowledged and realized the fundamental role the human resources plays in an organization. This has resulted in organizations using varied strategies to attract and retain the best human resources, which includes the use of work-based incentives. Its purposes According to Coombs, (2008), work based incentives are described are schemes that are utilized for promoting particular type of behaviour and actions from employees over a specified time. Work based incentives at the events management firm for which I work for are used for the purpose of fostering enhanced morale for the employees and compelling the human resources to effectively and efficiently utilize their skills, knowledge and abilities. The other purpose for the work-based incentives used at the events management firm is to enhance the skills and knowledge the labour force has in regards to their line of specialization. In addition, the work-based incentives are purposed to help the workforce to meet their professional and personal goals. At the events management firm, the work-based incentives are not only financial in nature such as bonuses, paid overtimes and increment for remunerations that employees have but also includes incentives such as health insurance schemes cover. Others include stock options, paid leaves and holidays and more importantly, employees are given partial scholarships for employees seeking to advance their skills and knowledge regarding their line of work. The work-based incentives have allowed the firm to pressure its workforce to meet targets, improve on their performance, actively engages the employee to be more competitive which contributes to overall firm’s competitiveness and foster enhanced individual and team morale (Smell, 2012). In addition, the work-based incentives have been used at the firm for preventing any possible employee turnover since the work-based incentives are in essence competitive to ensure they are the best option compared to what are offered by the competitors. How it is intended to work and how it currently operates The work based incentives are intended to ensure each employee is accountable and committed in carrying out their assigned roles and duties since the incentives are only allocated and offered employees who have attained the set targets or those who have shown significant improvements in their performance towards achieving the set business goals and objectives (Coombs, 2008). For the non-financial work based incentives that are primarily the partial education scholarships, they are intended to motivate the employees to work harder, to achieve more, to exploit their potential to their fullest and ensure the labour forces who acquire them meet both their professional and personal goals in getting better skills. This enhances their potential to get job promotions or attract increment to their salaries, which allows them to meet their personal needs ranging from basic amenities such as food, clothing, housing, and other family and personal expenses. All the work based incentives both financial and non financial are intended to make the entire workforce feel valued and important to the firm and make the employees feel the company is responsible in sharing some of the benefits and gains generated by the employees’ outputs. Through the work-based invectives, the firm expects to convince the employees that they are working with the best and ensure none of the best candidates venture into the competitor’s camp. Presently, every employee at the events management firm can access any of the work-based incentives based on the milestones and targets they have been set to achieve and once they achieve them, they acquire the incentives automatically. The low employee turnovers, the enhanced employee motivation and commitment and the enhanced overall performance and the endeavour to achieve witnessed among majority of the labour forces can be attributed to the impact of the work-based incentives used by the firm. Currently, the firm alternates between financial work based incentives and non financial work based incentives to ensure both the physical needs and psychological and affective needs of the employees are adequately addressed since not all employees are motivated by money and not all of them are motivated by non-financial incentive packages and vice versa (Coombs, 2008). Impact of Competition and Work based incentives on quality and value of services provided by the workplace Competition is a fundamental variable in facilitating business growth and in the contemporary business environments where the customer is more sophisticated. They have changing needs and expectations and who are always in search of quality, having a competitive edge defines the success or failure of an organization in effectively and sufficiently meeting these needs and expectations and delivering the sought after quality the first time and all the time (Pressman, 2006). At my workplace, competition has ensured the firm attracts the best employee, it procures the best suppliers, it generates a favourable reputation that appeals to investors and the customers and it has ensured the types of products and services delivered for customers are unique, quality, cost effective, costly to substitute and ensures customers are totally satisfied. In relation to work-based incentives, they enhance the morale, commitment and accountability of employees, which translates to better services to customers. Retrospective Commentary Writing this report and analyzing my workplace as the basis to understanding the impacts of liberalization of the labour market which has allowed and intensified the used of market like mechanisms has opened my eyes to new things particularly on the impact such market like mechanisms have on business and particularly on business processes, systems and operations. From a far, I had little or no understanding the fundamental role that competition plays in a business environment such as at the events management firm, where I work. Interestingly, a closer analysis on the variable of competition has revealed that virtually every process, system, mechanism, structure, unit, function and role in the events management firm, which I believe applies in all growing and successful businesses are all underpinned under the mantle of competition. As demonstrated in the report, competition has been integrated into the organizational culture of my workplace which is the case that applies to all modern businesses where the ability to be and to remain competitive dictates the viability and feasibility of an organization. I have realized which I am glad is not too late that the unwillingness to compete and being involved in competition in relation to business is unwillingness to succeed since customers are always on the look out for a place or business where they can get and access products and services that are better, superior and quality. Which often at times are available at businesses and organizations that are constantly identifying, developing and implementing strategies and actions of plan that enhance their competitiveness as echoed by Keddy (2001). A note worth mentioning which has impacted on me in regards to the variable of competition. My analysis has shown that competition is a critical aspect of a modern free market economy where organizations endeavour to offer the highest quality services and commodities at the most cost effective prices with the view of winning the loyalty, support, trust and confidence of the customer. Adding to the insights, I have gained from this unit and particularly carrying out this task is that competition should never be pegged on pricing alone such that the only way a business competes against another is through the use of price wars and price cuts as supported by Nagle & Holden, (2002). This strategy of competing against each other is a not only costly for both competitors but it is unsustainable in the end. I have discovered that incorporating competition in all aspects of an organization be it in its units, roles and responsibilities, and in the people of an organization. Be it in its work processes and systems, in its products and services, in its supply management systems and distribution networks, in its pricing and in its promotion efforts, all enriches the sustainable competitiveness of a firm (Abrams & Kleiner, 2003). By integrating competition in all aspects of a business, an organization strategically places and positions itself in such a way to attract and retain the best, the unique, the valuable and the rare in terms of resources and addresses the varied needs, expectations, tastes and preferences of both the internal and external environment. The internal environment entails the management, the shareholders, the labour force, and the external environment, which encompasses the investors, suppliers, the government, the marketers, and more importantly the customer as suggested by Pressman (2006). Another important lesson that I have acquired by engaging in this exercise, which I would have unconsciously ignored, is the importance of integrating both financial and non-financial incentives as a means to empower employees, to motivate them and as a way of developing them to achieve their personal and professional goals. As I discovered while doing this tasks is that not every employee is motivated by the prospect of earning more or gaining more money (Smell, 2012). There are those who derive satisfaction, self worth and are generally motivated by other incentives, which are not financial in nature such as merely having a safe and secure working environment or simply having flexible working hours, which allows them to have ample time to not only work but also spend with family and get involved in personal activities. Therefore, it is important when one designs a work-based incentive to ensure that the incentives are aligned to the needs of the employee in order to ensure that they are going to fulfil a need in the employee’s life as supported by Coombs, (2008). When an employee feels that an incentive does not make sense to them or put in other words does not benefit it, they are more likely not to generate the desired actions and behaviours and thus, the incentive will fail to achieve the anticipated result. References Abrams, R., & Kleiner, E. (2003). The Successful Business Plan: Secrets & Strategies. London: The Planning Shop. Barrow, C.W. (1996). The strategy of selective excellence: Redesigning higher education for global competition in a post-industrial society. Higher Education, 41, Kluwer Academic Publishers, Netherlands, pp. 447-469. Coombs, A. (2008). A caution on reward programs.  In Queue. Greewald, B. & Khan, J. (2007). Competition Demystified: A Radically Simplified Approach to Business Strategy. New Jersey: Penguin Group USA. Gregson, A. (2008). Pricing Strategies for Small Business. Sidney: Self Counsel Press. Ho, L. & Chen-Chia C. (2006). 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