Role of Organizational Behavior at Ernest and Young Company - Case Study Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2014 Background Founded in 1989 through the merging of Ernest, Whinney and Arthur Young & Co, Ernest and young company is an organization that is globally integrated with professional services and that offers tax transaction and advisory services such as consulting and IT audits. It is based in London, UK with 709 offices in about 140 countries while 70 offices are in the United States. The company, which has employed over 152,000 people globally, has been performing well in the market with an instance of this being evident in 2011 where its global revenues totaled $22.9. Ernest and young company business strategy revolves around using its skills to contribute positively to the society. The company combines its energy and enthusiasm with the professional skills to make a difference in the society.Education and entrepreneurship are similarly core responsibilities given that they are beneficial to the society especially where matters of job creation and social unity are put into perspective (Atrridge et al., 2013). Through such, the environment, which is actually significant as it is where the company carries out its operations, is able to experience the required growth. Noteworthy is the fact that within the company, the heart and soul of the corporate responsibility are the employees. They strive to make a difference in their communities and build leadership skills that are valuable in their way. The framework of the company responsibility includes the workplace comprising of the employees, alumni’s, retirees and recruits. The marketplace presents another framework comprising of the clients, legislatures and the government suppliers. Research, analysis and discussion of sustainability related strategies and issues Role of organizational behavior at the company The organizational behavior of Ernest and young company can best be described as that which is resilient. Organization resilience involves the adoption of strategies that deal with forces in the environment likely to increase velocity, volatility and visibility in the company (Leflar & Siegel, 2013). Increased uncertainties, the emerging global markets, scarcity of resources as well as dependence on complex systems are what describe volatility. Velocity enables customers to quickly change their choices of purchasing. Ernest and young company respond to this by being adaptive, innovative and responding to threats that occur in the market. Visibility is another aspect in the company; it is driven by explorations from social media and social activism. This has lead to an increase in the vulnerability of brands to perceptions that are an alternative and a loss of reputations. The activities of organization resilience by Ernest and Young Company enable it to survive and exploit opportunities presented by threats that are unforeseen and disruptive by forces that increase visibility, volatility and velocity. This activity also avoids performance and protection bias nesses. It goes beyond traditional plans that address cultural and behavioral dimensions of sound communal risk taking. These activities support agendas of productivity within the organization. In 2010 the company performed a research on resilience with the government of Australia, there by a report written in 2013 known as organization resilience: the relationship with corporate risk related strategies. The attributes in the organization included resilient leadership, culture, networks and change readiness. Resilient leadership is the results used by management for consultative, decisive and quick decision making during disruptive circumstances. Culture supports learning from failures, inspires vigilance and creates a vigilant organization. The strong networks build are based on trust hence help the organization when there are threats to disrupt its activities. Change readiness also shows how people are prepared to protect the interests of the organization. Based on research by Mohammed (2013), these activities compliment the traditional strategies hence providing capabilities regarding threats and opportunities that are foreseen as well as unforeseen. The company provides advices on the services that assist various organizations achieve their goals on organization resilience. Human resource management practices at the company The human resource management practiced in the company offers a total picture perspective, integrating global mobility, the effectiveness in the workplace, talents and reward. When it comes to mobility services, there are those services offered that help make mobility services strategic. The mobility services include global mobility tax and advisory, global immigration, assignment services, international social securities and business traveler services. The mobile workforce ensures that the company clients manage well any complex issues including compliance, reporting as well as any other risks inherent. Another management practice within human resource is related to talents and rewards. The talent and reward initiatives address issues that are associated with strategies of reward, maintaining effective workforce and talent programs. The organization’s strategy to reach its potential focuses on improving performance while sustaining the improvement. The areas optimized by the company include remuneration, pensions and benefits management. A significant part of human resource management within the company relates to improving the performance of the human resources. The company, through different ways, improves its performance by developing and implementing various human resource programs, which take into consideration various strategies involving service delivery, payrolls, and risks (Idowu et al, 2013). Role of international business at the company The significance of international business can not be underrated at any given moment within companies, including Ernest and Young Company. International business at the company leads to technical training that develops skills crucial in business relationships, including teaming and collaboration. There are a range of opportunities within Ernest and young company. Whether it’s the assurance, advisory services, transactions or tax, there is more exposure to various businesses across the sectors (Shenkar, 2008). The assurance services of Ernest and Young Company gives confidence to the company’s investors, confidence that is propelled by informed decision making and trustworthiness. International business also enables the firm to give its workers a chance to exploit opportunities where they are able to get different qualifications since they are able to work with different clients across the border. The company actually stimulates the environment to ensure that the workers work with various clients and across a variety of industries. International business at the company ensures that the financial picture of the business is reflected properly and that the financial markets protected. This is because they have a range of clients that need to thrive in the global environment. External audit at EY (Ernest and Young) ensures that the integrity of business is globally preserved. They provide valid financial statements, information on the critical areas of businesses and, through the principles of accounting, enable clients to independently comply with the principles of accounting. International business also improves the performance of Ernst and young company. The clients of the company look for ways to improve as well as sustain the improvement of the company through emphasizing on matters regarding finance, supply chain, customers, performance technology, and strategic directions. International business similarly ensures that the company is able to meet the tax complex demands, planning and any other controversies. This enables the company to stay within the law and acquire an in-depth knowledge regarding the business of the clients through the tax professionals. Role of technology management at the company Technology management plays an important role in the growth of Ernest and Young Company. The first role of technology is to better manage risks. The company does this by mobilizing its clients to come up with ways of managing scarce resources, ways of making decisions that are better, and how to reduce the exposure of the organization to events that are negative. The areas of concern are risk transformation, actuarial, internal controls and internal audit (Young, 2013). The next role is to asses, manage and transform risks of technology to realize better business performances. In order to measure the technological risk, how efficient the IT infrastructure is, and create improvements, much focus is put on IT audit, assurance and control. The IT risk management tends to concern security, privacy and trade continuity. EY ensures that one is equipped with knowledge in these areas therefore solving clients’ problems easily and effectively (Ernest et al, 2013). The technology team assists with network, the help desk and other services at the data center. They also provide support to the work stations and IT products. With all this the IT management team provides clients at Ernest and Young Company with services of high quality. Effective and efficient technology sourcing as well as IT organizational models that are smart help the company in maximizing the Return on Capital of the investments made (Ramin & Reiman, 2013). Also, the firm finds technology useful in providing effective strategies relating to clients and the company supervisors as, through current technology, there is increased accessibility, flexibility and effectiveness. Analysis of entrepreneurship and innovation at the company Entrepreneurship at EY facilitates growth in the company. Entrepreneurship acts as an agent of change through the development of new products and services. It facilitates implementation of more production methods while creating new models in the business. Through entrepreneurship the company has been able to create employment to people, support the community and build a prosperous society. The EY G20 entrepreneurship Barometer of 2013 has been designed to help countries watch on their progress and performance. The G20 nations are able to combine their strengths, opportunities and capacity to develop their entrepreneurial environment. According to EY G20 Entrepreneurship barometer the analysis on the entrepreneurship ecosystems across the countries is set based on five pillars. They include Access to funds, the culture of entrepreneurship, tax and regulation, education based on training and coordinated support. The entrepreneurial culture of EY is founded on a variety of tenets, with the most important one being that strong entrepreneurial culture provides a seedbed for improvement. These cultures foment innovation in ideas, technologies, products and services. They also offer ways for putting ideas in use. Rapid growth markets are actually the key players in fostering the strong entrepreneurial culture. In the variety of branches, India and china are the most impressive since 90% of the respondents view culture to be conducive to entrepreneurship (Yoshida, 2009) According to the G20 Young entrepreneurship summit (2010), in as much as entrepreneurship seems to have transformed the lives of people, a small number of young people perceive entrepreneurship as a career. Strong entrepreneurship favors Ernst &Young with diversity and opportunities to learn. Innovative culture in the company has enabled creativity to be experimented. It has transformed the technicalities associated with input from workforce and the skilled researchers into a tangible output hence enabling the products to be brought into the market without any failures. New and innovative products developed within the company improve the image of the company. Innovation, aside from affecting the perception of entrepreneurial activities, also affects policies that provide long term growth to the company’s entrepreneurship. The ideas include R&D activities where a lot of research was done to allow efficiency and quality to take place (Ernest et. al. 2009). Future strategies the management should engage in The first strategy is to take a new approach to talent and talent management. Scarcity of talent is proving to be an obstacle to growth in most companies, including this company. When successful management of talent is imposed, then there will be good performance and enhanced productivity, as highlighted by Wouters (2014). For talent management to be successful, it goes beyond recruiting, retaining and maintaining high performing workforce hence there is need to ensure that the process of talent management aligns with the culture, goals and values of the company. By bringing talent management and the company’s strategies into line, there is certainty that employees are recruited, retained, developed and rewarded in a way that supports the objective of the company. In aligning and integrating the talent managing and business, the company needs to look at its workforce and see if it can evaluate and fulfill the elements of the corporate strategy or what needs to be done in circumstances where it cannot fulfill the elements of corporate strategies (Glynne & Woodside, 2012). Support of the company’s strategies and the talent management needs an effective human resource function. It encourages the management to work together toward the strategic objectives of the business. Another reason as to why talent is the future strategy for the company is that future companies lack a robust succession plan that can identify the next leaders. Surveys by EY show that the current businesses are on the blink of crisis from leaders. Most companies are satisfied with the leaders they have. However when it comes to future generation, the gap between the two groups keeps widening. Encouraging talent in the company is important since it creates talented leaders in the company. This improves the company’s performance since the talented leaders address the aspects of development (Greiner & Poulfelt, 2010). The second important future management strategy by the company relates to expanding into new markets. This is because the economy is expanding rapidly and the company is expanding towards neighboring companies that are even more developed. The economic outlook is blurring in most markets and business prospects diminishing. As a result there is slow growth rate, increased competition, significant operational complexity and a shortage when it comes to talent in the markets. As highlighted by Wankel (2008), there have been significant financial trends that almost betray possibility of worse economic situations where integration emerges to play a significant role. Thus, according to Wankel (2008), challenges can be identified, challenges which businesses can tackle with new responses relying on flexibility, unconventional thinking and speed. According to Kasemsap (2014), one size fits all is not a good strategy for addressing any challenges. As highlighted by Ijioui & Ceyp (2008), anaging beyond markets that are divergent and fast moving requires laser like focus on excellence, on execution, and on operations. Such a company must therefore develop business models that are flexible and able to respond towards new opportunities and threats. Efforts must be made to ensure that there is a strong talent that provides them with skills and abilities to succeed in the face of changing conditions. The last management strategy is finding new ways to innovate. This is because innovation is key to the success of the business. It generates ideas that are new relating to the products and services. There is need for the company to make innovation a strategic priority in order to grow. Innovation is more than just providing new products and services to the business since knowing more of what surrounds what is being done and how that is being done remains pertinent. This could be through innovating in functions that grow the business. There is need to make innovation a culture of the business by using approaches that best fit the business so that employees can be recruited in the best way possible and be maintain properly. Finding a structure approach that is measurable, structured and that which can be managed through innovation is also key. The methods develop innovative ways that are able to develop ideas and exploit them (Ernest, 2013). Conclusion From the analysis it is evident that Ernst and Young Company came into existence after acquisition in the year 1989 providing employment to several people globally. The company stands out among the successful companies as it encourages innovation apart from the fact that the human resource management team encourages employees by rewarding them. On the other hand, the technological products in the company play a significant role as they are used to manage risk, better the company’s performance and maximize the return on investments of the company. Similarly, as highlighted in the analysis, the role of international business is to ensure that the financial business of the company is reflected in the financial markets, they also ensure that the performance of the company is improved. In order for future performance to be optimized, the company ought to put some factors into consideration including embracing talent, encouraging innovation and expanding the market. When such strategies are implemented by Ernest and Young’s management team, then definitely the company will grow. Bibliography Ernst & Young,2013, Ernst & Young Tax Guide 2014, Hoboken: Wiley. Ernst & Young and American Institute of Certified Public Accountants, 2009, The guide to investigating business fraud, New York: American Institute of Certified Public Accountants, Inc. Attridge, M., Herlihy, P. A., & Maiden, R. P., 2013, The Integration of Employee Assistance, Work/Life, and Wellness Services, Hoboken : Taylor and Francis. Ernst & Young and Bernstein, P. 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