Business Organizational Problems - Essay Example

? Paper on Business Proposal Table of Contents Introduction 3 Business Organizational Problems 4 Opportunity 6 Recommendation 7 Conclusion 8 References 10 Introduction The study aims at discussing various organizational problems that are not easily identified or difficult to solve. Before focusing on problems in the organization, let us first understand what the purpose of management in organization and in what way it can assist the business organizations to function. The practice of coordinating people and the other resources in an organization to achieve the organizational goals is considered as management. Most of the organizations utilize financial, informational, material and human resource to run their business. In most of the cases it has been seen that were there is disorientation and mismanagement of human resource, problem occurs and other resources are also not properly utilized. In this study the focus would be on the difficult problems that business organizations encounter on daily basis. It has been noticed that these problems are usually those whose solutions are not so easily identifiable or they involve some form of controversy. Keeping in mind such issues, the study would begin with the discussion of the organization and its various day to day functions, the resources required for such functions, and the role of human resource in such situations. In order to describe the organization problems and discuss other significant aspects related to the functions and operations, a very famous Chinese home appliance company, Haier has been chosen. Though Haier has a stable position in the market and it is a very well-known brand, yet big organizations are bound to face difficult situations every day, which we are going to focus in this study (Haier lnc, 2012). Business Organizational Problems Companies and organizations around the world are continuously striving to examine and improve their ways of conducting business, so as to introduce multi-business model that would derive a good profit in the long run. The strategy implementation process is still the same in most of the organizations. It includes methods related to the implementation of organizational design, combining the organizational structure, control and strengthening the culture of the organization for smooth functioning of the multibusiness model concept in the organization for increasing the profitability. In order to assess the problem areas, it is very important to understand the organizational structure and the components that comprised of the framework of the organization, the shape of the organization, such as tall or short. This helps a lot in determining the problem areas in organization. Next we come to integration of different approaches, different structures, business or regulations within the organization. This is also important because it assists in determining when did the problem occur or might occur in near future. Then in case of re-engineering the organizational structure of functions we can notice that unidentified issues come up which even the management could not handle in the right manner (Ziegenfuss, 2001, p. 7-8). It has been noticed that organizational structure or financial issues are not always the root cause of the problems in the organization. Organizational culture is very important and it has been observed that every organization has its own unique set of culture, which differs from the other. Now based on the discussed reasons behind the organizational problems, we are going to understand the organizational problems of Haier, a famous Chinese home appliance. The first problem in Haier is regarding managing the human capital of the organization. In Haier even the exceptionally skilled employees are not rewarded adequately or motivated for his or her good work. Though the management considers it to be a part of their company policy, but it is proving itself as a bad employer among the human resource. Moreover, the approach of the company is to focus on individual efforts and performance, so there is no value of group or team efforts or performance. It’s a major drawback or organizational problem in Haier. Moreover, the internal systems of the organization typically follow the Chinese culture, which is not applicable for global business. Though it is globally present, but due to this reason it lags behind. This also depicts that diversity of culture in the organization is not preached or followed. Information that can be derived from the stated situation is that systems like hierarchy and bureaucracy also prevails within the organization. Another business problem which Haier faced was related to its global supply chain. The rapid growth of the company around the world has increased the complexity, disturbed the compatibility and infused instability in the organization. The company has its manufacturing plant in all over the world, in which about 19 are overseas and the rest are mainly located in China. Zero inventory policy and on time supply was becoming an issue for the company. The company has tie-up up different companies for different location, which proved to be a total mess and confusion for Haier. Different service level problems between different carriers made the matter worse. This was the result of inadequate planning. Expansion is a very important decision for any organization, and supply chain is an important arm of any manufacturing organizational structure. Expansion plans without proper provision for supply chain is the result of poor managerial decisions (BT Group plc, 2012). Opportunity Haier has a multitude of very talented employees in China and also abroad, as they recruit highly talented individuals in all the countries. Every employee focus solely on their core values and they generally do not deviate from their objectives. This signifies that Haier has a lot of opportunity to utilize its human resources in a much better manner. Every without proper motivation or correct appraisal system the employee have such excellent performance, and if a proper management framework is prepared for the human resource then, Haier can count itself among the top companies dealing in home appliances. It is a well-known fact that all the resources of a company are of no use if its human resource is not good or ill managed. Haier has an excellent pool of human resource, but they are ill managed and undervalued. Recommendation Employees of the organization are always considered as the cornerstone for conducting any successful business. They need to be paid well and provided good working conditions. Haier would surely benefit if it trains its employees in a systematic manner and motivate them for developing a multicultural customer base. Culture is very important in every organization, as it acts as an identity for a particular department or business unit, but the sole effect of the culture of the host country cannot be considered positive. It infuses biasness and corrupt practices. Diversity should be motivated and diverse cultural aspects should be mixed to create a unique organizational culture. Performance appraisal is equally necessary for the employees, as revenue generation for the company. Highly experienced and skilled employees also get demotivated when their hard work is not appreciated. A well-defined structure should be formulated for the employees, so that their hard-work is paid. Team work should be given more preference that just individualistic performance because organizations successfully function only with the group efforts. Lastly, the supply chain management should have a systematic framework so that the company is able to track its inventory and achieve its goal of zero inventory and timely supply of products in the right places around the world. Haier can go for outsourcing to manage its supply chain around the world efficient. In this way the cost can be reduced and a organized supply chain system would ensure delivery of goods on time. Conclusion Business organizational problems occur in everyday functions. They are general issues and efficient people are recruited in the organization to overcome these problems, but many a times it is seen that the management themselves create certain problems which solving certain issues, bring about some structural change, etc. This study is based on the business organizational problems which companies face in their daily operations. It has been noticed that very big companies, which earn high revenue or are very popular brands, face certain organizational issues which become very difficult for them to solve. This situation occurs because the internal situations are responsible for such situation. This is why the management does not understand their faults and keep on repeating the same mistake. In case of Haier, similar instances have taken place. The company focuses on recruiting high experienced and skilled workforce, but do not know how to motive and keep their valuable workforce or human capital happy. Similarly issues related to the supply chain are there because uneven expansion without proper supply chain management planning. Moreover certain faulty human resource practices in the company are also responsible for major setbacks. It would be recommended that there should be proper appraisal system for the skilled and efficient employees and outsourcing would be a good option to manage supply chain around the world effectively. References BT Group plc. (2012). Chinese Manufacturing Giant Chooses BT Network to Integrate its Global Supply Chain. Retrieved from: https://www.globalservices.bt.com/ie/en/casestudy/haier. Haier lnc. (2012). About Haier. Retrieved from: http://www.haier.com/in/header/201110/t20111027_83001.shtml. Ziegenfuss, J. T. (2001). Organization and Management Problem Solving: A Systems and Consulting Approach. California: SAGE Publication. Read More