Major Alterations of Management and Organization Free-Samples

Question: Identify and Explain in detail two pressures on Organisations and Managers in the current Business Environment and how Managers can alleviate these Pressures. Answer: Introduction The business environment is one of the most dynamic factors affecting organizations. In fact, the diverse changes regarding the concept of business greatly contribute to major alterations of management and organization. Advancements in contemporary business society have led to huge advantages for companies. However, these are also accompanied by immense pressures. This essay aims to identify two main pressures that affect organizations in the current business environment. Suggestions on how management can effectively respond to the discussed pressures will also be highlighted. The two points that make up the subject of discussion include; the changing role of business in the society, and the dynamics of organizational structures. Pressures on Organizations and Managers in the Current Business Environment The changing role of business in the society Jones and Felps (2013) discuss the concept of the stakeholder theory. Traditionally, the role of business organizations in the society was to maximize the wealth of its owners. Arguably, this role was considered as a massive contribution to social welfare. The ideology was supported by the fact that the existence of business was good for social welfare through profit maximization of wealth, production of much needed goods and services, and the creation of jobs which translates to supporting livelihoods. However, this is not the case in contemporary society (Jones Felps, 2013). The role of business has changed as the preferences of consumers continue to change. According to Harrison and Wicks (2013), the performance metrics for organizations are no longer confined to economic performance. Businesses are now tasked with creating so much more value for their stakeholders. One of the main demands that go beyond economic performance is corporate social responsibility (CSR). Goel and Ramanathan (2014) define CSR as an integral part of organizational ethics and operations. CSR now governs both organizational strategies and brand images in the eyes of the consumers. Consequently, management is pressured towards satisfying the rising demands for social responsibility in all business operation. Wakefield (2016) brings into focus some of the most recent social responsibility concerns plaguing some of the largest manufacturing companies. Sony, Apple and Samsung face charges of child labor claims in addition to unfavorable working conditions for their workers (Wakefield, 2016). These among claims of environment degradation through pollution because of improper waste management put pressure on contemporary businesses. In essence, contrary to the traditional stakeholder theory, the main role of business organizations is to protect the environment they work in. co rporate social responsibility has become a viable performance metric. Consequently, organizational management has to devise ways to cope with the changed. The first of which is to alter the process and concept of strategy development. Considering that consumers now measure success by weighing a companys impact on the environment, companies have to make their strategies green-oriented. Such strategies involve minimizing the companys carbon footprint, protecting the rights of their employees and exercising consumer advocacy. Customer advocacy is a business approach that does what is best for the consumer. It works on the assumption that satisfied customers translate to higher repeat sales and improved brand within the society. The utilization of customer advocacy is a tool that management can use to create a relationship with the consumer base (Urban, 2004). Organizational structures The rise of a globalized economy has led to a range of changes within the business environment. Companies have reached across the world to tap into new markets. The development of mergers and joint ventures is now a common occurrence; opening doors to high profit margins and a wider variety of markets, and business opportunities. However, little is said about the increased pressures experienced by management of international corporations. Among the contemporary management theories, the bureaucratic theory advocates the development of a hierarchical organizational structure with a well defined line of authority (Kessler, 2013). This is the most common form of organizational structure; even in international corporations. The development of international teams presents communications constraints, not to mention the effects of culture shocks and conflicts. In addition, working in an international scale requires outsourcing some business functions to increase efficiency. Consequently, the basic organizational structure suggested by the bureaucratic theory has become so much more complex in recent times. Organizations and management experience pressures that arise from handling large volumes of employees who have different cultures, perceptions and languages. Shahrina, Sivapalan, Bhattacharyya, Wan Ahmad, Abdullah (2014) investigate the link between communication climate and efficiency within organizations. An unfavorable communication climate hinders both vertical and horizontal communication within organizations. Therefore, managers should seek to create a good communication climate as a way to strengthen the functions of organizational structures. In addition, management should also cultivate an organizational culture to bridge the gap resulting from differing employee cultures. An effective organizational culture reduces the effects of culture shock because it is present in all subsidiaries and branches of the company regardless of location. Despite these efforts, the existence of international teams is bound to bring about conflict. Therefore, management and organizations should invest in Standard Operating Protocols (SOPs) for reference where conflict occurs. Efficient conflict management is essential for movement of information up and down the hierarchy of authority. The rise of technology is also an undeniable growth factor within the current business sector. Multi-national corporations should invest in the latest and most efficient technologies to improve communication channels across borders. Hence, strategic flexibility to ensure high adaptability to changing technology and production demands is necessary for organizational success. Conclusion Change is said to be the only permanent factor in the world. The business environment has been subject to change; leading to the alteration of major business strategies, functions and structures. The rise of a global economy gave way to two major pressing issues of organizations and management. The first of this is the alteration of the business role in the society. The rising concern for environmental degradation has led to increased demands on organizations to be socially responsible. Consequently, the role of organizations has extended beyond the traditional profit maximization role. As discussed, companies now have to respect human rights by providing proper working environments, as well as avoiding social vices such as child labor. The other major issue pressuring organizations in contemporary society is the alteration of the organizational structure. Before globalizations companies often worked within their national borders. However, the rise of a multi-national business culture has complicated the standard business structure. The development of international teams across continents attracts cultural and language barriers that could hinder communication; further, the now popular concept of outsourcing business functions demands better management of the organizational supply chain. In response, managements should invest heavily in developing a common organizational culture to unify their diverse workforces. Further, organizations should also cultivate a good communication climate to encourage the flow of information. The importance of proper conflict management strategies can also not be undermined. Finally, the utilization of technology is imperative for communication efficiency in vast and diverse internation al teams. In conclusion, so many things have changed in recent times. It is the duty of organizations and management to exercise flexibility as an instrument to adapt and handle the changes. Most of the traditional theories of management have either been replaced or altered to accommodate new business ideologies. The same applies for organizations; businesses ought to be on the lookout for new threats and opportunities. It is only through proper environment analysis, and effective planning that the business sector can keep up with the changing times. References Goel, M., Ramanathan, P. E. (2014). Business ethics and corporate social responsibilityis there a dividing line? Procedia Economics and Finance, 49-59. Harrison, J. S., Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business ethics quarterly, 97-124. Jones, T. M., Felps, W. (2013). Shareholder wealth maximization and social welfare: A utilitarian critique. Business Ethics Quarterly, 207-238. Kessler, E. H. (2013). Encyclopedia of Management Theory. Thousand Oaks, CA.: SAGE Publications. Shahrina, N., Sivapalan, S., Bhattacharyya, E., Wan Ahmad, H. H., Abdullah, A. (2014). Organizational Communication Climate and Conflict Management: Communications Management in an Oil and Gas Company. Procedia - Social and Behavioral Sciences, 1046-1058. Urban, G. L. (2004). "The emerging era of customer advocacy. MIT Sloan Management Review, 77. Wakefield, J. (2016, January 19). Apple, Samsung and Sony face child labour claims. Retrieved from BBC News : https://www.bbc.com/news/technology-35311456