Identifying Themes and Concerns For the Benefit of the Individual Business Manager - Assignment Example

IDENTIFYING THEMES AND CONCERNS FOR THE BENEFIT OF THE INDVIDUAL BUSINESS MANAGER Table of Contents Table of Contents 2 Introduction: 3 Impact of Sustainability on organisational performance: 3 Transformational leadership and organisational management: 5 Nature of change driven by external issues: 6 Managing external issues for enhancing organisational scope: 8 Conclusion: 9 References 11 Introduction: Business management is a process driven by changes that highlights the gaps, brings in improvements and enhances the scope of business (Drummond, Ensor & Ashford, 2012). Over the years, the evolution of the managerial practices has been mainly based on the internal needs and the influential external factors related to the business. Beginning from strategic decisions to the operational management abilities, every aspect of management has gone through several eras of change. Considering this notion, Freeman (2010) mentioned that the business management process in the contemporary scenario is focused on strengthening both internal and external aspects of the business. Concepts such as leadership are aligned with the organisational goals and sustainable practices are being brought in the business planning process for ensuring better results. Impact of Sustainability on organisational performance: Sustainability as defined by Jansson (2011) is the process of working in a manner by considering the future impact of the activities. Sustainable work practices ensure that the present needs are met without compromising the ability of the future generations to fulfil their needs. (Mishra, 2009) mentioned that in the contemporary scenario, the corporate houses are focusing on reducing the environmental and social impacts of their activities in order to ensure a better scope for business operations. However, Paley (2009) criticised that business firms are also getting affected by the environmental and sustainable issues which is hampering the growth and development process of the business. The diminishing stock of resources is also creating barriers for operational and production processes of the business houses. On the other hand, Boulton, Libert & Samek (2009) reflected the vast resource wastage taking place in the global scenario both in social and corporate segments. Furthermore, Dentchev (2009) also noticed that the over-utilisation and under-utilisation of resources are also among the top causes which influence the environmental sustainability. Considering the environmental factors affecting the business process the aspect of water usage will be studied in this segment. The importance of water does not need to be explained however the general ignorance among the global population regarding water usage is the primary factor leading to water wastage. Ander & Kapoor (2010) stated that going by the current rate, people of earth shall face water scarcity earlier then they face oil scarcity. One of the major consumers of water in the corporate sector is the energy industry. Every form of energy being produced is supported with water, the energy sector alone is responsible for 31.6% of the total water consumption by the corporate sector (Gary, Wood & Pillinger, 2012). According to the report of Ireland & Sexton (2010), the average water consumption by energy manufacturing firms have increased in the last two years by 3.9% which also signifies the growing consumption of energy. However, energy segment is still not the highest water consumer for industrial purposes because food industry consumers around 46% of water in its operational process (Gary, Wood & Pillinger, 2012). The concept of sustainable work practises in the business sector is now focusing on reducing wastage of water by improving their resource utilisation. Based on the concept of the capitalism mapping, it can be observed that the impact of corporate segment on the natural habitat is more in comparison to that of the influence of social on the natural resources. However, Ireland & Sexton (2010) stated that the activities of the corporate segment are governed by the demand in the market which is created by the social sphere and thus the society is equally responsible for sustainable development across the world. Apart from this, other factors such as growing population and diminishing economic stability also contribute towards the environmental threats. Transformational leadership and organisational management: Leadership processes being used in the business scenario are changing with the demands of the business sector. Also the growing diversity in the workforce of the firms is major reasons considered in developing the leadership framework of the business. According to the study of Levinthal & Ethiraj (2009), leadership processes have changed mainly because of the changes in the work structure of the business firms and the factors influencing them. Moreover, Barth & Wolff (2009) supported that leadership aspects are related to the nature of the work being conducted and the employment of leadership styles based on the process of work. For instance organisations indulged in direct production or manufacturing have a motivational and at the same time an authoritative leadership for managing disciplines in the operational processes. However, Aras & Crowther (2012) reflected that organisations are mostly concerned about enhancing employee loyalty and developing a productive workforce and thus the most common form of leadership being practiced in the corporate sector is the transformational leadership. Giampalmi (2010) defined that business expectations are directly based on the expectations of the leader. Based on this definition, the organisational growth is related with the vision of the leader. Now coming to the concept of transformational leaders, the primary characteristic of transformational leader is the ability to create a shared value among the employees so that the an. unified effort can be developed (Campbell, 2009). Transformational leadership can also be observed as a customised version of democratic leadership (Hartman & Werhane, 2009). Transformational leadership process also helps the business for creating a diversified focus which encompasses all the necessity factors needed for business development process. The study of Levinthal & Ethiraj (2009) reflected that transformational leadership focuses on creating a network among the employees and the managers of the business which helps them in managing the individual aspects of the business. Considering the relation of the transformational leadership with transformational leadership, Schmidheiny (2007) stated that transformational leaders make their decisions based on the inputs provided by the entire team or the group of followers. This allows the leader to examine different variables attached with the vision and the impact of the vision on different norms of the business. Big firms such as Sainsbury and Wal-Mart have established a strong framework of corporate social responsibility in their organisational framework and also have a common leadership style of transformational leadership. On the other hand, a transformational leader also has to consider the suggestions of the employee base and ensure the disciplinary factors which are related with organisational management. Luken & Stares (2008) criticised that transformational leadership allows the employees to enter the decision making scene of an organisation which can often deviate the work process from the organisational goal. Also as all the employees are involved in the decision making process, it creates emotional values and sentiments regarding the process of decision making. These factors are not directly related with the growth of an organisation but can hamper the process of growth of the firms. Nature of change driven by external issues: The external issues of an organisation can be segmented in many levels based on their impact on the work structure and culture of a firm. In the words of Dev, Brown & Lee (2009), the impact of the external issues differ based on the level of work process being dealt with. For instance, economic factors such as recession will generate anxiety among the lower level employees regarding their job security whereas the top management will worry about the business growth and performance during the crisis. Similarly, social and environmental factors of a firm are mostly related with the lower level employees as they are more concerned about their individual performance rather than the business performance. The political influence will be the first major external issue being discussed in this segment. Political influence on the business processes differ based on the industry of a company and their nature of work. In the practical scenario, there is no such market as free market (Watson & Weaver, 2007) which brings in the concept of Government intervention in the business process of the firms. Changes in political structure of a company also imply changes in the taxation policies, corporate rules, social activities and spending power of the consumers (Roome & Bergin, 2010). Organisations have to ensure that all the government rules and regulations are being considered while framing their operational and strategic actions. Closely related to the political influence is the influence of the economic powers and norms. The economic condition of a nation in a manner frames the political process within its scope. The economic condition of a country reflects the ability of the consumer to accept the services and products being offered by the firm. Apart from this, global factors such as exchange rate fluctuations and the import and export taxes set by various countries are major influencers for any multinational business process. Another essential factor that changes the operational process of the business firms is the technological scenario of the world. Aras & Crowther (2012) noted that since the beginning of the 21st century, the rate of technological development and its influence on the business processes have increased rapidly. Technological influence in the business brought in many changes; aspects such as production and supply chain management are wholly performed with the help of the automated technological system. Factors such as information and knowledge management are not only being handled by Information and Communication Technology (ICT) but are also being developed and designed by ICT. The factors mentioned above are some of the most influencing external issues faced by the company. They initiate changes in the work style, managerial process and even in some cases the objectives of the business. The operational practices of organisations are often hampered by the mentioned issues because of their wide framework and inclusive nature. The external issues although brings in changes but are also required for assessing the business capabilities and the strategic advantages being held by a company. Managing external issues for enhancing organisational scope: The managing process of the business houses is developed based on the organisational objectives and the requirements of the firm. However, a manager also has to assess the impending factors on the business which can derail the process of management. Levinthal & Ethiraj (2009) stated that firms try to manage and control the external factors rather than developing contingency plans which increases the risks in the business operations of the firm. Aras & Crowther (2012) added that when organisations allow the external factors to get involved in the business management or the operational activities of the firm, it is difficult to reduce or manage their impact. Another point of view was presented by Ander & Kapoor (2010) who mentioned that the organisation have to assess the impacts and the nature of risks being posed by the external factors and develop their contingency plans accordingly. This is one of the most common processes being utilised in the corporate sector and also allows the business to be prepared. It was observed during the 2011 Tsunami in Japan that business firms were not able to cope up with the demand generated in the market because of the natural disaster (Hartman & Werhane, 2009). Most of the firms were not prepared to encounter such an event although the environmental and natural habitat of Japan has been consistently reflecting signs regarding the occurring of Tsunami (Gary, Wood & Pillinger, 2012). The failure of the corporate segment was best noticed during the recent global financial meltdown of 2007-08 which brought down the revenues of numerous firms and even forced some firms to close down their operations. However, Aras & Crowther (2012) optimistically stated that external issues should be taken as a guideline and a benchmark that reflects the ability of the business to react to any similar events in the future. Considering the management processes that are being set up in order to tackle the influence of the external influencing factors, different strategies are being developed based on the characteristics of the issues. For instance, technology has been involved in the business process considering their value addition in the quality and organisational features whereas political relations are being gradually formed on a valid platform reducing the power of both the parties to make undue influence. Conclusion: Nature of operating a business has changed over the years; new strategies are being implemented in order to achieve a better position in the industry in the long run. However, some issues being faced by the corporate firms are still the same such as the unstructured issues that consists of the environmental concerns of a business or the managerial activities of the business. These issues also enhance the influence of external factors on the business spruces and bring in changes in the style of management or the work culture of the companies. Overall it has been observed that the external factors cannot be controlled but the corporate sector can create contingencies for reducing the influence of these issues on their business processes and hence develop a sustainable practice. References Ander, R., & Kapoor, R. (2010). Value Creation in Innovation Ecosystems: How the structure of technological interdependence affects firm performance in new technology generation, Strategic management Journal, 31, 306-333. Aras, G., & Crowther, D. (2012). Business Strategy and Sustainability. (4th ed.). London: Palgrave Macmillan. Barth, R., & Wolff, F. (2009). 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