Business Management Practice - Assignment Example

 Business Management Practice Table of Contents Introduction 2 Implementation of Appropriate Management Structure 3 Effective Methods of Managing Behavioural and Attitude of Workforce 5 Business Management Practices in Public Sector 6 Business Management Practices in Private Sector 7 Conceptual Relevance of Corporate Social Responsibility and Business Ethics 8 Overall Analysis of the CSR and Business Ethics in the Public and Private Sector in the UK 8 Few Instances of CSR and Business Ethics in the UK Public Sector 10 Few Instances of CSR and Business Ethics in the UK Private Sector 10 Conclusion 12 References 13 Introduction The management practices in organisations have always changed and evolved with time. The present day management practices that are followed in organisations have emerged from the classical theories on management. The classical management theories mostly focused on scientific and bureaucratic management. These theories stressed on efficiency and structure. Other theories stressed on human relations and behaviourism. These theories provided the framework of present day theories that stress on leadership, people and strategy (Porter & Et. Al., 2008). Successful business management requires the establishment of an efficient management structure and management of the workforce. A suitable management structure ensures smooth operations and helps the company in achieving goals. The diverse workforce in an organisation brings in varied culture behaviour and attitudes in the organisation. It is extremely important for an organisation to think beyond its motive of profit. CSR is extremely important from the perspective of both private and public sector organisations. Implementation of Appropriate Management Structure A management structure in an organisation helps the employees to achieve goals. It lays down the plan in which the operations of the business are carried out and clarifies the roles and activities of every member of the organisation. It also lays down the authority and the reporting structure. An effective management structure should ensure effective communication and motivation of employees. The management structure is developed on the basis of the task division, coordination between employees and control and information flow. It involves deciding the duties and responsibilities of every entity in the organisation. The implementation of an appropriate management structure requires designing a structure aligned with the goals of the organisation (Erven, n.d.). The chain of command should be clear as to who will report to whom and clear authority should be established. The chain of command should enable both upward and downward communication. Another concern while designing the management structure is delegation of authority. Organisations may either have a decentralised structure or a centralised structure. In decentralisation, authority is distributed throughout the organisation. In the centralised structure, authority lies in the hands of the top level manager. Several organisations today prefer a decentralised structure because it provides added autonomy to employees, motivates them and provides them job satisfaction. The span of control is also considered while deciding on the management structure. When the span of control is wide then it provides rise to a flat organisation structure and when it is narrow then it results in a tall organisation. In a flat organisation a lot of people report to a single person and in a tall organisation there are many different supervisors; and different groups of employees report to the different supervisors. The appropriate span of control depends on the similarity of the tasks, training, and uncertainty in the tasks, integration of the tasks, physical dispersion and degree of interaction. Span of control should be increased if a lot of employees are performing similar tasks. When employees perform differentiated tasks then narrow span of control is required (Erven, n.d.). Effective Methods of Managing Behavioural and Attitude of Workforce The workplace in the present day organisations have diverse workforce with varied backgrounds, behaviour and attitude. The employee’s emotions and behaviours have an impact on decision making, turnover, creativity, and team work and job performance. Managers need to possess high level of emotional intelligence with the aim to manage the emotions of the employees. The management needs to ensure that employees maintain a positive outlook in the workplace which enables them to perform better on their job. Managers must realise that each employee is unique and have distinctive attitude and behaviour. Thus, managers cannot have similar approach in dealing with all employees (Knowledge@Wharton, 2007). Organisations should ensure that the disposition of the employee matches the job. If an employee gets a job that suits his disposition then he is bound to perform well and this in turn leads to job satisfaction. Globalisation poses cultural challenges which again influences employee attitude. Companies should be aware of these cultural factors and their influence on employee attitude. This issue is tackled through employee attitude surveys. Researches reveal that when employees are asked to evaluate different aspects of their job, then they consider the nature of their job as most important. Managers need to ensure that work is interesting and challenging. Employee attitudes are measured by organisations using employee surveys, interviews and focus group interviews. Employee attitude surveys are of two types – Job Descriptive Index and Minnesota Satisfaction Questionnaire. JDI measures satisfaction in relation to promotion, pay, supervision, colleagues and nature of work. These measures have enabled the understanding of the employee behaviours and attitudes. Employee attitude surveys can be effectively used to improve the organisation’s performance (Saari & Judge, 2004). Business Management Practices in Public Sector Public sector organisations are characterised by high levels of bureaucracy. The concept of bureaucracy was provided by Max Weber. The public sector organisations primarily function on the principle of Weber’s Bureaucracy and scientific management theory of Frederick Taylor. Frederick Taylor’s theory stressed on efficiency and indulged in work processes that would enhance productivity. The human relation approach has not been adopted in the public sector organisations effectively. In public sector organisations, a formal structure of hierarchy exists. A lot of emphasis is placed on rules. The authority is also clearly defined and distributed in a stable way in a bureaucracy. Public sector organisations have great power and accountability is deeper and wider in the sense that they are accountable to the public at large. They have the responsibility to provide justification for their actions. The public organisations have a collective purpose and a collection of values are followed. The purpose of functioning of a public sector organisation may be of public interest. Their management practices and their accountability are not limited within the organisation rather they have a much broader society to whom they are answerable. The public sector has certain established tasks to follow and they strictly abide by rules and regulations. Impersonal relationship is maintained with the employees and a humanitarian approach is lacking in various public sector organisations. Public sector organisations have to balance the interests of the customers as well as the government. Public sector organisations are also bringing about changes in their management practices. They are moving towards a more participatory style of management (McKevitt & Lawton, 1994). Business Management Practices in Private Sector Business management practices in private sector focus on human relation approach. Private sector organisations believe that the psychological and the social factors determine employee productivity. Private sector organisations stress on motivation. Earlier theories stated that employees can be motivated only through external factors like higher remuneration is not applicable in the present day context. Motivation can be considered on the basis of Maslow’s theory on hierarchy of human needs and Herzberg’s two factor theory. Herzberg believed that the job itself could provide motivation. Private sector organisations have a decentralised management structure and hierarchy is reduced. Employees have the opportunity to express themselves and think critically and develop skills. They are provided greater opportunity for decision making. Employees are treated as a valuable human resource asset and not merely as a means of production. Management by objectives, total quality management, performance based organisations are certain approaches of present day private sector organisations. Private sector organisations can be referred to as democratic organisation whereby employees have greater power and the organisational structure is flatter (CAS, n.d.). Conceptual Relevance of Corporate Social Responsibility and Business Ethics Corporate social responsibility is an activity through which business can negotiate their position in the society. In the business world, ethics can be considered as a study of the morally appropriate decisions and behaviours. Though business ethics and corporate social responsibility is interlinked, there is no guarantee that CSR activities are of ethical behaviour. In development of the business ethics, there is a huge contribution of the culture and top management of the business as their combined influences have a significant impact on the organisational ethics and ethical behaviours. Regarding the CSR activities, it can be said that this activities enable the organisations to retain and hire the customers they want. Therefore, it has a huge contribution to the business performance (SAGE Publications, 2010). Overall Analysis of the CSR and Business Ethics in the Public and Private Sector in the UK Certain previous researches have supported the fact that the UK public sector is lacking in implementing corporate social responsibility. There are evidences that the UK public sector is inadvertently supporting the child labour. According to the Ethical Trading Initiative (ETI), which campaigns for ethical trade and rights of the workers worldwide, government of the UK is required to monitor the drivers of the ethical purchasing strictly across the entire public sector. The public spending of the UK on goods and services is £125 billion a year. It is evident that with this amount of procurement, the UK government has acquired the chance of influencing the labour practices. It has recently been found that the representatives of health bodies, trade unions, public sectors and businesses are joining the forces as they are seeking for government’s interference. Their own CSR efforts have been hampered because of the structure of the public sector procurement. The public sector union has recently incorporated 40 international development worker representatives and they are assigned a job of pushing the ethical procurement in their workplaces. In this note, views of the ETI Chairperson can be included. According to Martin Cooke, “current drive for efficiencies in public spending could provide more opportunities for ethical spending”. The above discussion one way denotes that this is the time when the public sector should enhance their CSR commitments level to match the private sector (Brown, 2010). The overall and current scenario of the corporate social responsibility and business ethics in private and public sectors in the UK is more or less prominent from the above discussion. The understanding with the concepts can be more concrete with the help of practical evidences. Therefore, it has been intended to encompass CSR and business ethics practices in certain organisations in the UK. Few Instances of CSR and Business Ethics in the UK Public Sector The Higher Education Funding Council for England (HEFCE) is a participant of the UK public sector. It is associated with distributing public money for research purposes and teaching in Colleges and universities. Being a public sector organisation and having a range of key stakeholders, this organisation aims to act in a socially responsible way. In the context of CSR, the organisation takes into account the impact of their activities on environment, economy and society. The CSR activities of this organisation not only encompass the operations of their offices but also the influence that the organisation have on the sector by its policies and services (HEFCE, 2010). Another firm is the ‘Deloitte’. Under this brand several professionals have worked independently across the world to impart consulting, financial advisory, audit, tax services and audit to the selected clients. This organisation considers its responsibility towards the society as the integral part of their business. In the Czech Republic, the organisation provides stable physical, professionals and financial assistance to several public and charity projects (Deloitte, 2010). Few Instances of CSR and Business Ethics in the UK Private Sector To demonstrate the recent scenario of the CSR and business ethics practice in the private sector in the UK, especially coffee shop industry has been targeted. Starbucks has been found to be the strongest player in this industry in terms of the environmental reporting. In spite of this they provided no UK breakdown regarding its Carbon footprint. Another player of this industry is Caffe Nero, which does not publish any CSR report. Moreover, it has been found that the company does not serve their customers in a better manner as it does not response to the queries of their customers. In the meantime, Costa, another major player of the UK coffee shop industry, has not been able to maintain transparency of the data sustainability as it published in its holding company’s CSR report. The records say that over the industry, there are very few mentions of recycling, carbon footprint and wastes (Greenbang, 2010). Conclusion Effective business management practices adopted by organisations ensure their success and achievement of organisational goals. All organisations need to adopt a management structure that will support their operations and help them to fulfil their goals. Setting up the management structure involves defining authority, reporting structure, chain of command and span of control to ensure smooth flow of information and communication. Managing the behaviour and attitude of the workforce involve providing them with an environment that helps them to bring out their best potential. The business management practices in public sector are mostly guided by bureaucracy. Private sector organisations have large different management style in comparison to the public sector. The public sector has been criticised for their relatively less CSR activities. However, they are now indulging in various social initiatives. In contrast, the private sector has been well known for their CSR activities. They believe that their responsiveness towards social responsibility will ensure their long term success. References Brown, 2010. Why Can't We Have CSR In The Public Sector? News. [Online] Available at: http://www.justmeans.com/Why-can-t-we-have-CSR-in-public-sector/40342.html [Accessed December 30, 2010]. CAS, No Date. Organisation: Structure and Process. Chapter 4. [Online] Available at: http://people.cas.sc.edu/tyer/Gint_370/Gint%20370%20Chapter%204.htm [Accessed December 30, 2010]. Deloitte, 2010. We Enjoy Being an Outstanding Corporate Citizen. Charity Work. [Online] Available at: http://www.deloitte.com/view/en_CZ/cz/about/csr/ [Accessed December 30, 2010]. Erven, B. L., No Date. Organisational Structure. Organisational Structure of the Family Business. [Online] Available at: http://aede.osu.edu/resources/docs/pdf/D3E57989-B26F-4D12-B7054694F29BA82C.pdf [Accessed December 30, 2010]. Greenbang, 2010. In UK, Starbucks Ranks Tops, Though Still Not Great, In CSR. Press/Media. [Online] Available at: http://www.greenbang.com/in-uk-starbucks-ranks-tops-though-still-not-great-in-csr_14466.html [Accessed December 30, 2010]. HEFCE, 2010. Corporate Social Responsibility. About Us. [Online] Available at: http://www.hefce.ac.uk/aboutus/environ/ [Accessed December 30, 2010]. Knowledge@Wharton, 2007. Emotions as Valuable Data. Managing Emotions in the Workplace: Do Positive and Negative Attitudes Drive Performance? [Online] Available at: http://knowledge.wharton.upenn.edu/article.cfm?articleid=1708 [Accessed December 30, 2010]. Mckevitt, D. & Lawton, A., 1994. Public Sector Management: Theory, Critique and Practice. Sage. Porter, M. E. & Et. Al., 2008. Introduction: History and Evolution of Modern Management. Comparative Management Philosophies. [Online] Available at: http://www.cbe.wwu.edu/dunn/rprnts.comparativemgmt.pdf [Accessed December 30, 2010]. SAGE Publication, No Date. Corporate Social Responsibility and Ethics. Lecture 1. [Online] Available at: http://docs.google.com/viewer?a=v&q=cache:4zc-rN6qGlkJ:www.uk.sagepub.com/parker/CHAPTER%252015/Chapter%252015%2520Lecture%25201%2520CSR%2520%26%2520Ethics.ppt+business+ethics+and+corporate+social+responsibility+ppt&hl=en&gl=in&pid=bl&srcid=ADGEESjDaV8Ro7N6EUF9wzZMtWaGkrPqlW8SVh0dzbMvledmxf1gxK3lSM8PRg9nmWcfoSai1qLa6B6pS73wP_gIMvVFLra_gOddUlMXpWgy5xgvyaqic8eoUg8Vtc3Agi9UNjJfva6S&sig=AHIEtbQlEPCV1aSiigmTeF3qK3PpN8cj7w [Accessed December 30, 2010]. Saari, L. M. & Judge, T. A., 2004. Gap 1—the Causes of Employee Attitudes. Employee Attitudes and Job Satisfaction. [Online] Available at: http://www.utm.edu/staff/mikem/documents/jobsatisfaction.pdf [Accessed December 30, 2010]. Read More