Business Environments and Working Conditions - Term Paper Example

Working Conditions of Modern Organizations ABSTRACT This report provides a practical guidance to business managements to improve their business environments and implement necessary business environment reforms. This will lead to financial and job security and stability for employees, increase economic growth, reduce poverty, improve the capacity of production, improve quality of goods and services, increase quality of service and product delivery thus, increasing an organization’s profitability and increase its market share. Table of Contents 1.0 Introduction to business environments and working conditions 4 2.0 Working conditions of modern organizations 4 2.1 Working environments influenced by market changes 5 2.2 Market changes 5 2.3 Background and history of modern working conditions 5 2.4 Modern working condition characteristics 6 3.0 Environmental scanning 6 3.1 Benefits of environmental scanning 6 3.2 Safety in the working environments 6 3.3 Solutions 7 3.4 Benefits of good working conditions 7 4.0 Financial and job security 7 4.1 Job insecurity 7 4.2 Financial insecurity 8 4.3 How organizations can offer financial and job security 8 4.4 Social cultural factors 8 4.5 solutions 8 4.6 Technological factors 9 4.7 solutions 9 5.0 Dealing with competition 9 5.1 Solutions 10 5.2 How to counter competition 10 5.3 Political and legal factors 10 5.4 Economical factors 10 5.5 Application of economical factors 11 6.0 Relationship with stakeholders 11 6.1 Effects of good relationships with stakeholders 11 6.2 Types of stakeholders 11 7.0 Lack of discrimination and freedom of association 11 7.1 Benefits of labour unions 12 7.2 Effects of discrimination 12 7.3 Environmental factors 12 8.0 Conclusions 12 9.0 Recommendations 13 10.0 References 14 1.0 Introduction to business environments and working conditions Organization’s environment refers to any internal and external factors, which influence the operations, production, marketing, distribution and service and product delivery of a product as presented by Barry, 2010. There are internal and external business environments. Internal environments consist of the management, shareholders, business owners, employees, organization’s infrastructures, and organization cultures. External environment consists of competitors, suppliers, and consumers (Barry, 2010). Business environments constitutes to working conditions. Working conditions refers to the environment at which one works on, consisting of space, policies in the environment, behaviour, ventilation, safety, security, ethics and values (Xin & Xinjian, 2010). The purpose of this report is to analyse the working conditions of modern organizations so that companies provide a good environment for its employees and businesses so that they become more successful and productive, with employees feeling comfortable and secure in their jobs. 2.0 Working conditions of modern organizations Modern organisations operate within unique characteristics compared to traditional/past organisations. Some reasons why these organisations operate in this manner includes: 2.1 Working environments influenced by market changes Modern working conditions are compounded by mobilization by labour unions, stiff competition, integration of technology, outsourcing businesses in finance, employee recruitment, and accounts and in customer care services, and exposing employees to security drills (Klaus-Michael, 2010). 2.2 Market changes Modern business environments are influenced by rapid market changes. These market changes are due to emergence of new competitors, development of new needs and wants by the markets, global economic and financial crises, and government influence on businesses and implementation of new technological tools, which means new upgraded products and services (Barry, 2010). Working environments that are healthy allow organizations to grow, employees grow personally and professionally, allow fair competition, allow investments, allows entrepreneurship, develops innovations, encourage freedom to associate, give paid overtimes and leaves and allows markets to develop effectively. 2.3 Background and history of modern working conditions The issue of working conditions can be traced back to the era of industrial revolution in early 19th century (Xin & Xinjian, 2010). The emergence of commercial and industrial process was coupled with increased rural to urban migration which posed the problems of insufficient housing, unemployment, safety, sanitation, cultural evolution and gaps between the rich and the poor was highest. There were uproars and rebellion by the working population who fought for fair wages, poverty eradication, safer working conditions, sanitation, standard working hours, discourage use of forced labour and a ban on child labour (Barry, 2010). 2.4 Modern working condition characteristics Modern working conditions as it is, is characterised by policies, laws, ethics, values, cultures and behaviour that see to it that worker’s rights are respected, they receive fair wages and they freely associate (Klaus-Michael, 2010). Moreover, have standard working hours with paid overtimes and leaves, are assured of safety, financial and job security when working and are not mistreated, discriminated against and employers not only care about the professional development of an employee but also their personal development. 3.0 Environmental scanning Environmental scanning therefore is necessary, to help analyse the position of the organization, compare the organization to its competitors and evaluate effective marketing strategies while offering good working conditions. Organizations can provide a good working environment for their employees and other stakeholders by efficiently analysing and dealing with factors that influence business environments. 3.1 Benefits of environmental scanning This provides an organization with an in depth knowledge of its strengths in the market, its weaknesses and how to work on them, opportunities that the organization can take advantage of and make use of and finally the threats that the organization faces presently and in the foreseeable future. 3.2 Safety in the working environments Unsafe working conditions include lack of safety instructions for workers, lack of safety gears, use of unsafe machines and unsafe technology, working without adequate training, lack of proper emergency response mechanisms, and unhygienic working areas (Barry, 2010). This leads to employees falling sick, being injured, getting lifetime disorders like disabilities and succumbing to death (Klaus-Michael, 2010). 3.3 Solutions Organizations should ensure workers understand the need for safety when working, equip them with safety gears, install emergency response services like smoke, fire alarms and accessible escape exits, clean and ventilate working areas, and give employees reasonable working hours. 3.4 Benefits of good working conditions Good working conditions allows an organization in modern day to effectively retain performing, experienced and skilled employees, counter competition, measure its strengths and weakness and evaluate possible opportunities and risks that the organization can encounter presently or in the future (Klaus-Michael, 2010). An organization that invest in conducive working conditions is not affected by regular absenteeism of employees due to sicknesses which leads to low productivity, has minimal financial risk caused by fires and accidents and enjoys benefits of having good working conditions. 4.0 Financial and job security Majority of employees globally are faced by job and financial security. New advancement of markets, market trends and marketing strategies require new skills and knowledge, which they do not have. This makes them unmotivated and uncertain of their future. 4.1 Job insecurity Moreover, job insecurities are caused by employees feeling that technology will take over their jobs (Tzafestas, 2010). In Africa for example, there has been increasing uproars and riots by casual workers in tea farms, who feel new tea plucking machines will put them out of work, which will cut short the source of their earnings. 4.2 Financial insecurity Financial insecurity is when an employee feels that benefits earned are not relative to labour put in. Moreover, the employee is unable to sufficiently satisfy their needs and wants and get enough resources to save for a rainy day (Barry, 2010). Financial and job insecurities causes employees to be unproductive, unmotivated and increase employee turnover as they join other firms that offer better remunerations and give surety of the future like having retirement benefits, promotions by merit among other elements that promote job and financial security. 4.3 How organizations can offer financial and job security Organizations can offer financial stability by offering fair wages, offer promotions by merit, allow employees to join saving schemes and offer them long term employment contracts (Klaus-Michael, 2010). Additionally, employees should be given room for growth by integrating them in decision-making processes, encourage work place learning, allowing them to be innovative, appreciate and reward work well done. 4.4 Social cultural factors An organization‘s working environment is influenced by social cultural factors (Feeney & Rainey, 2010). These factors include what the attitudes are of the organization and the community around it on moral values and ethics, environmentalism, free trade, individualism, capitalism, education, religion, employee empowerment, respect for human rights, cultures and capitalism. 4.5 solutions An organization that holds different cultures and attitudes contrary to that of stakeholders does not experience cohesion, experience reduced productivity and decreased market share (Feeney & Rainey, 2010). Modern organizations should align its culture, values, behaviour and work process with what stakeholders believe in, and should not only be profit oriented but improve the overall welfare for all. 4.6 Technological factors Technology has helped produce new products, increased capacity for production, eased distribution and transfer of data, products and services from one point to another (Barry, 2010). Network based technologies helps organizations eliminate time, distance and geographical constraints which create barriers to operations and running of business. Technology influences the rapid changes in innovations and production. An organization can use technology to increase its viability, create new products, and stimulate existing markets. However, technology can cause health problems, cut jobs and cause moral and social decay (Klaus-Michael, 2010). 4.7 solutions Organizations should efficiently train their employees on how to use the technology and ensure that technology is not a threat to job and financial security of employees (Klaus-Michael, 2010). Moreover, ensure the use safe technology that does not transmit fumes and rays that can cause skin infections, cancers and respiratory complications (Feeney & Rainey, 2010). 5.0 Dealing with competition In the quest to be market leaders, modern organizations have resulted to making employees work for excessive hours, cut off employees to cover costs incurred in marketing, promotions and advertising and other times conducting merges. All these makes employees feel stressed, experience burnouts, and join other organizations that are less demanding (Tzafestas, 2010). 5.1 Solutions Modern organizations should therefore, engage in competition strategies that do not negatively affect the employee (Barry, 2010). Employers should ensure employees work on standard hours, have paid overtimes, have paid annual leaves, and are accessible to paid sick leaves. 5.2 How to counter competition Among popular ways of countering competition are advertising more, improving the quality of goods and services, reducing prices, and cutting costs like using cheap raw materials (Klaus-Michael, 2010). Modern firms counter competition by creating new business models, developing new products, investing in new technology, developing innovative business processes, product differentiation and improving on their consumer value propositions packages. 5.3 Political and legal factors An organization that does not comply with minimum wage laws, infringe on patent law, violates taxation laws, and disregard government policies, does not offer conducive working environment for its workers (Feeney & Rainey, 2010). Political instability and political interference on matters of business influence how an organization runs. The solution therefore, is for organizations to comply with implemented legislation and policies to avoid closure. 5.4 Economical factors Increased economical pressures face modern business environments (Barry, 2010). Analysing Gross Domestic Product, unemployment levels, investor and consumer confidence, trade balance, currency exchange rates, inflation and deflation rates, market and consumer trends and balance of payments, can eliminate these economical pressures. 5.5 Application of economical factors This allow businesses to know when or when not to invest, make informed choices, know how to implement organizational change and understand how to help employees to reach their highest potential while minimizing costs and maximizing profits (Klaus-Michael, 2010). This leads to improved living standards of living for workers, better pays and empowering them economically. 6.0 Relationship with stakeholders Conducive working environment entails that organizations develop and sustain good relationships with stakeholders (Feeney & Rainey, 2010). Stakeholders must be on board when organizations are making decisions, effecting change, creating and launching new products. 6.1 Effects of good relationships with stakeholders Having good relationships with stakeholder guarantees stable, quality, quantity of labour is supplied and available, reduce employee turnover, reduce delivery delays and ensure prices set are not only affordable to consumers but gives the organization a profit. 6.2 Types of stakeholders Stakeholders include suppliers, shareholders, employees, labour unions, opinion leaders and partners. 7.0 Lack of discrimination and freedom of association Conducive working environment can be termed to be free of prejudice and discrimination, and employees are allowed to freely associate with any labour union they want to (Barry, 2010). Traditionally, organizations would refuse to employ workers who were members of labour unions. Modern firms however, as proposed by governmental legislations, have recognized the need for employees to join labour unions (Klaus-Michael, 2010). Workers in labour unions have added advantage over ununionized employees. 7.1 Benefits of labour unions Labour unions negotiate for better wages, better working conditions and respect for fundamental human rights of their employee members from their employers. 7.2 Effects of discrimination High performing, experienced and skilled employees are more likely to seek employment from firms that are reputed to offer equal employment opportunities, promote people by merit and do not encourage nepotism and discrimination (Barry, 2010). Prejudice and discrimination of employees can be done based on the colour of their skins, employee’s race, nationality, sexual orientation, gender, religious affiliation, disabilities, ethnicity, tribe among others. 7.3 Environmental factors Due to increased concern and mobilization on environmental conservation and the need for ethics in modern days, more and more firms are using production processes, distribution and delivery of services and products that help conserve the environment (Klaus-Michael, 2010). Ecological factors influence the perception of employees and consumers about an organization and its products thus affecting their buying habits. Modern firms are using green technology in production processes, recycle, and use safe emission of its wastes (Tzafestas, 2010). Working environments free of water, air and land pollution initiates high performance, corporate responsibility and increase overall wellbeing. 8.0 Conclusions Modern organizations offer safe working conditions like installation of emergency response services like smoke, fire alarms and accessible escape exits, clean and ventilate working areas, give employees reasonable working hours, offer financial and job security that leads to highly motivated and performing employees. Organizations that offer good working conditions realize increased economic growth, reduce poverty, improve the capacity of production, improve quality of goods and services, increase quality of service and product delivery thus, motivate their employees and increase its profitability market share. Developing good relationships with stakeholders, increases conduciveness of the working environment. Employees work harder and share their creative ideas if they feel appreciated and needed. This can be done by giving them financial stability like offering saving schemes, promoting by merit, increasing their salaries when firms realize profits, rewarding employees who are performers, improving sanitation, giving them surety of job by offering them health benefits and retirement benefits. 9.0 Recommendations Organizations can ensure; 1. Safety in working areas by use of safe technology 2. Avoid use of forced and child labour 3. Avoid excessive working hours, give paid overtimes and reward work well done 4. Avoid discrimination, and employees are allowed to freely associate 5. Organizations to offer fair wages, financial and job security 10.0 References 2010. Striking a legal balance between compliance and business needs. People Management, p. 30-31. Barry, R. 2010. Think global but act local. New Zealand Company Vehicle & Executive Cars, p. 60-66 Feeney, M. & Rainey, H. 2010. Personnel flexibility and red tape in public d non profit originations: Distinctions due to institutional and political accountability. Journal of Public Administration Research, vol. 20, no. 4, pp. 801-82 Klaus-Michael, M. 2010. Corporate social responsibility: Is it rewarded by the corporate bond market? A critical note. Journal of Business Ethics, vol. 96, no. 1, p. 117-134 Tzafestas, S. 2010. Modern automation systems in practice. Human and Nature Minding Automation, vol. 41, pp. 193-229. Available at http://0-www.springerlink.com.library.vu.edu.au/content/m6189842v2mm7r36/ Xin, Z. & Xinjian, S. 2010. Research on the problems and strategic choices for the development of modern service industry in Nanning City. Available at http://0-ieeexplore.ieee.org.library.vu.edu.au/stamp/stamp.jsp?arnumber=5577158&tag=1 Read More