New Strategy Related to Cost-cutting - Assignment Example

Introduction Management can be defined as the organized group actions, which is important in the recent trends, because it helps to achieve the organizational goals in an effective manner. There can be several management issues in an organization such as quality standard issue, leadership issue and planning issue among others, which are needed to be addressed with the aim of ensuring sustainability of business operations (Pal, n.d.). This paper intends to explain about management issue i.e. “a middle level manager who is assisting in implementing new strategy related to cost-cutting for developing new technology in the place of personnel but the initiatives are meeting scepticism, resistance and outright hostility from the subordinates”, which can have a negative impact on the improvement in Brisbane branch of the organization. This paper analyses as well as provides recommendations for reducing quality standard issue of management and for improving the performance of the Brisbane branch along with the justification of the analysis. Managerial Issue and the Functions of Management In the Brisbane branch, managerial issue is one of the major management issues that have an adverse impact on the performance of the organization. The branch is identified to be facing managerial issue in relation to creativity of subordinates and lack of technical knowledge to enhance the quality of products as well as services. The management should support the subordinates, so that they can perform their work effectively and can improve the quality in terms of products and services, as in the present day context, customers focus on the quality of products and/or services (Newton, 2006). The management implementing the cost-cutting strategy relating to the replacement of personnel with technology has been identified to face complexities relating to resistance, skepticism and outright hostility from the end of the employees. If the management implements new strategy related to cost-cutting to improve the quality of products, then the management is able to meet the satisfaction level of the customers and accordingly may mitigate quality problem. In this regard, the branch facing resistance and skepticism have an adverse effect in sale figure and performance of the organization as a whole. The quality of products and/or services depends on consistency as well as durability of products and/or services (Willey, 2015). Contextually, it can be assessed that cost reduction is the function of the organization to ascertain that products are developed and services are offered on the basis of certain specifications to meet the requirements of the customers successfully (Pryor, Toombs, Anderson & White, n.d.). The major function of management is to make the right decision related to quality of products as well as services. Correspondingly, it can be evaluated that decision making theory is also related to quality standard. The decisions related to quality of products and/or services depend on the expectations and satisfaction level of the customers (Ahmed & Omotunde, 2012). Other functions of management can be planning, implementing the plan, motivating the customers and controlling. With the help of proper planning, management is able to enhance the quality as well as provide the best services to the customers (Swlearning, n.d.). Causes of Managerial Issue The roles of manager are one of the prime factors to support the subordinates in relation to their work to meet the demands as well as preferences of the customers. In the present day context, customers prefer good quality products as well as services at reasonable prices for enhanced satisfaction of the customers. Therefore, the management of the Brisbane branch needs to focus on the quality of the products and should enhance the quality of products by implementing advanced technology. In addition, the management is needed to be active towards adopting effective measures in accordance with which attitude as well as behavior of the employees can be managed in an effective manner for the organizational change relating to the replacement of personnel with technology (Manu, 2011). There are various reasons owing to which the management is recognized to face managerial issues in terms of scepticism and resistance of subordinates. Lack of proper resourcing along with Total Quality Management (TQM), the management is unable to maintain the quality of the products and manage employees effectively. The scope of the organization also plays a major role in terms of managing employees. Generally, the branch is unable to maintain the quality leading to quality problem for ineffective implementation of advanced technology due to lack of highly qualified employees (Franco, Newman, Murphy & Mariani, 1997). Another reason of managerial issue in the organization is owing to the fact that the organization focuses on the cost cutting rather than quality, because in the recent trends, people are more fashionable than earlier trends and they prefer specific designed products at reasonable price. Managerial issue is also identified to be raised owing to the fact that the employees are unable to work together to achieve organizational goals. Cost plays a vital role in increasing the sale of products and making profit to achieve the organizational goals (Mawson, 1993). Poor performance of the employees along with the inability of the employees to identify the problem in products as well as services has also raised quality issues. Lack of managerial decision can be one of the major causes of managerial issue, which the management has to improve (NAHQ, 2013). Analysis In the recent trends, people or customers are recognized to be more advanced and accordingly, they prefer good quality as well as reliable products at reasonable cost. From the management perspectives, managerial functions relating to determining the attitude and behavior of the employees during organizational change and accordingly, make the right decision to reduce the price of products and/or services. In addition, it can be analyzed that quality theory and decision making theory are essential theories for maintaining the quality of the products along with the enhancement of quality standard (Ahmed & Omotunde, 2012). Managers take decisions regarding managerial functions of the organization and therefore, the managers should have the decision making skills along with managerial skills to perform work effectively. Based on the decision making theory, the managers are able to take decisions regarding the entire operation of the business to improve the business process. It can also be analyzed that the management does not have a strong decision making skill and accordingly, the management is unable to apply proper decisions related to improving the quality of the products, which in turn facilitates in satisfying the demands of the customers (Richarme, 2005). Recommendations There are certain strategies through which the managerial issues for the implementation of new technology replacing personnel in terms of resistance and skepticism can be reduced and the performance of the organization can be improved. The strategies should be based on the reason of managerial issues. By reducing the cost problem, the management can able to meet the demands of the customers along with increase the profitability of the organization. The management should recognize the demands of the customers and accordingly, develop measures based on which products and/or services are needed to be developed with the aim of satisfying their needs. Correspondingly, developing products and/or services in accordance with the needs of the customers, the organization is able to ensure sustainability as well as competitiveness in the market by improving customer loyalty (Paryani, 2011). The management has been unable to make right decisions related to the improvement of cost and quality of the products due to lack of proper tools and advanced technology. In this context, the management should use the advanced tools and processes to make proper as well as right decisions with the aim of improving decision making skills and standard of products and services (SAS, 2015; Deming, 2008). Based on the Specific, Measurable, Action Oriented, Realistic and Relevant and Time Oriented (SMART) model, the management should specify the way through which the management can able to reduce the management or managerial issue and improve the quality of the products and services. Subsequently, the management should measure the decision in terms of quality of the products and services based on the perceptions of the customers. Management should be action oriented to achieve the objectives in relation to quality standard. The functions of the management should be realistic and relevant to the business objectives, so that the management can able to attain the organizational objectives by performing operations effectively. The management should ensure to complete the work within the time period for providing good quality products and best services to the customers. Based on the SMART objectives, the managerial issue can be reduced by managing employees for effective organizational change (Punj & Moore, 2007). Conclusion From the analysis of the causes of management issue relating to lack of initiatives of middle level managers to support subordinates for implementing advanced technology in the operations, the management should adopt measures to satisfy the demands of the customers and attain the organizational goals or objectives in terms of cost reduction. The major reasons of the managerial issues in the Brisbane branch are lack of decision making skills, innovation and managerial skills. In this respect, the management faces the problem to manage team members for working together and to make decisions regarding quality issues. It can be evaluated that the management is needed to adopt innovation for ensuring that quality products and services are offered to the customers. In addition, with the help of coordination amid employees, it is possible for the employees to perform their operations effectively and in accordance with organizational objectives with effective decision making skill. References Ahmed, T. M., & Omotunde, H. (2012). Theories and strategies of good decision making. International Journal of Scientific & Technology Research, 1(10), 51-54. Deming, E. W. (2008). Quality control and continuous improvement. Media, 97-110. Franco, M. L., Newman, J., Murphy, G., & Mariani, E. (1997). Achieving quality through problem solving and process improvement. Quality Assurance Methodology Refinement Series, 1-125. Manu, M. (2011). 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