Challenges Faced by Australian Business Managers - Case Study Example

Name: Course: Tutor: Date: Management Assessment Introduction Management is a concept that applies in all businesses and organizations and involves the acts of bringing people together sop that they can fulfill the goals of the organization and the stated objectives in an efficient and effective manner. It is from the roles of management that the functions of a manager are defined. The most common functions of the manager include planning, controlling, organizing, and leading. These functions explain the roles of the management as different from those of accounting and finance, marketing and others departmental roles in an organization. These functions apply in all settings including in the government, in the military and in religious organizations. With the changing business environment, the functions of managers are becoming wide including roles such as downsizing, workplace diversity, restructuring, globalization, and quality. However, since most goals of the organization are focused on making profits, the managers concentrate more on the economic performance of the business and forget their other roles. This essay therefore looks at how the changing business environment is affecting the ability of managers t manage all the business activities and what they should do to adapt to the challenges that are facing. Challenges faced by Australian Business managers The main challenge that is being faced by the business managers in Australia is competition. Competition is being felt both locally and globally, and therefore businesses have to fond strategies to help them in dealing with this. However, most managers have focused on the economic performance of the business forgetting that it must be contributed to by many other factors such as workforce diversity and restructuring. The most important thing to do is for the managers to set an ideal and effective business environment that will enable them to carry out all these functions at the same time looking at the economic results of the business (McNeil, & Pedigo, 311). Creating an effective business culture The success or failure of a business is determined by the corporate culture, which also governs most of the activities in the business. With the changing global economic status, the poorly performing companies are therefore struggling to find ways in which they can improve their performance. The best solution to this problem is to ensure an appropriate corporate culture that incorporates all aspects of the current business environment. Australia has a very conducive business environment with a good population that can offer a wide market. However, in a achieving the right corporate culture, stability must exist. This means that the business must have stable trends, values, and ideas that will enable the business to stand in any form of business environment. These principles and values will always be offering guidelines in decision making in all situations. The stability will therefore enable the management of the business to tackle all problems that may arise in the business environment. A stable business will also be able to withstand the competitive environment in the global business economy (Zheng, Qu, & Yang, 161). Others aspects that constitute a stable business culture include downsizing, workplace diversity, restructuring, globalization and quality. These aspects playa very important role in the business and may enable the managers to adapt to the changing business environment as discussed below: In business, downsizing is the process of changing the structure of the company such that a portion of the company’s workforce is laid off. This is mainly done to maintain the profitability of the company at times when competition is very high and the demand for the products of the company is going down. It may also be done to eliminate a subsidiary that is considered to be not in line with the goals of the organization. This is a very important aspect in creation of an effective business culture since it will leave the organization those people whose functions are in line with its goals. Workplace diversity is also important in a business. This defines the diversity of the employees in terms of gender, race, ethnicity, age, and physical abilities. The Australian population is composed of several educated people who can offer a large pool of skilled labour. Having a diverse workforce that is well skilled enables a business to withstand the changes in business environment. This is because the workforce will be composed of people with different abilities, and of different ages that will be able to deal with the changing work environment and the changing nature of the customers. A diverse workforce will therefore enable the management to face the challenges of the changing business environment. However, a diverse workforce must be properly managed since it also has its disadvantages. Nevertheless, when it is properly managed, it results to increased production and it offers the business a competitive advantage. Business restructuring is the process that involves closely examining the processes involved in doing the business and identifying the changes that needs to be made. The manager should look at various aspects in his business and from this; one can discover what to do in order to save money. Restructuring can be done on the business policies and procedures to direct them in a more efficient and productive manner. The process of business restructuring is done when the business wants to improve its profitability and an expert must do this. It might also include destruction and rebuilding of some areas in the business that requires special managerial attention such as the human resource departments (Michael, & Jones, 83). Globalization is process by which economies in various businesses are being connected through a global network of communication, trade, and transportation. In business, it applies where there is integration of global economies through business that involves production of goods and services that can meet international competitiveness. Globalization can well be embraced in Australia since the country has a reliable transport and communication system that can support business activities at reasonable process. Managers who are interested in business globalization make global networks in all their aspects of production, marketing, capital and in the standards of their products. With the current changes in the business environment, it is important for businesses to globalize their activities since it gives them a global business advantage. To maintain globalization in an organization, the policies and rules must be open and based on international business systems such as financial and marketing. This will therefore allow free movement of goods and capital of international standards. Quality is another very important factor for the success of a business. Quality should be maintained in the goods that a business produces and in the services it offers. For the business to withstand the changing business environment, it must be producing goods of high standards that will be appealing to all types of customers. This will therefore raise the demand for the goods and services from that particular organization and hence its profitability. Role of management in ensuring an effective business culture In ensuring that the business culture promotes continued economic benefits, the most important thing for the manager to do is to ensure that his support reaches all areas in the organization. This means that he should offer support to all the employees in various departments in various means other than just giving verbal support. The employees must feel the involvement of the executives as they carry out their duties. This will enable the employees to direct all their activities to the main objectives set by the executives. Disregarding other aspects of organization such as workforce diversity and quality will reduce the efforts of the employees and this will reduce the economic benefits in the organization. With the changing business environment and increased competition in Australia, it is important for the managers to work closely with the employees and give them adequate support. The other important thing for the manager is to facilitate training of the employees. In Australia, majority of businesses are service industries and competition is very high in this sector. Giving customer services requires application of knowledge on how to deal with the customers and give them the best. Training is very important since it will keep the employees updated on what is expected of them and how to deal with upcoming customer needs. This is also important because for the organization to increase its profitability, it must have a working team that can handle different kinds of customers. Training can also be used in teaching new behaviors whose necessity has been identified as the business environment changes. The management should concentrate on identifying the changes that are taking place in the business environment and then deciding on the behavior change that can be instilled among the employees to cope with the changes. This will also empower the employees and enable them to respond to changes (Daniel, 201). Another thing that the management should do in ensuring an effective culture is to maintain proper communication in the organization. Keeping the lines of communication open helps in sharing of ideas and promotes efficient decision-making. Every member in the business organization will be free to communicate his or her ideas and this contributes to improved business performance. Communication will also enable the management to remain aware of the problems that exist in the organization, which may be reducing the economic results of the organization. Conclusion Business managers in Australia need to change their focus from only the economic results but also to other aspects that promote performance of the organization. They must set a business culture that will enable them to deal with the many challenges of the changing business environment and to enable them deal with all the business aspects. This may be achieved by offering training to the employees to empower them and to ensure effective communication among all members of the organization. Giving balanced support to the employees will also motivate them in the organization’s activities. This will enable the manager to have a balanced focus on all the aspects of the organization. Works cited Zheng, Wei; Qu, Qing; and Yang, Baiyin. Toward a Theory of Organizational Cultural Evolution: Human Resource Development Review, 2009; 8(2): 151 - 173. Daniel, Denison. Toward a Theory of Organizational Culture and Effectiveness: Organization Science, 2005: Vol. 6, (2):204-223. McNeil, Margret. and Pedigo Kerry. Western Australian Managers Tell Their Stories: Ethical Challenges in International Business Operations. Journal of Business Ethics, 2006, Volume 30, Number 4, 305-317. Michael, Stephen. and Jones, Halsey. Organizational management: concepts and practice. New York: Intext Educational Publishers, 2003. Read More