The Role of Business Management Techniques in Increasing the Productivity and Efficiency of an Organisation
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This dissertation addresses the management techniques and styles and which technique will be helpful in what circumstances. The constant increase in productivity of an organisation depends upon the right choice of the management techniques. The main aim of the businesses is to function in the most effective and efficient manner. Most of the times, company’s owner takes the responsibility on his shoulder to make this happen. A part from owners, managers also delegates this responsibility. In any case, there are a list of different managing strategies that can be adopted in order to increase the efficiency and effectiveness of the organisation. Selecting and implementing the best strategy for the organisation can be difficult decision. The critical analysis of the CEO and managers of the organisation can definitely help them to choose the best strategy that can be helpful in increasing the productivity and efficiency of the organisation and to keep their customers happy and satisfied. Employees, partners, and customers should all be evaluated when the management finalise the techniques that proves to be the best for the business, because some management techniques motivate some employees but others might need a different form of motivation. For instance, incentives and training program might be helpful in order to motivate, educate and retain employees but for partnership, managers need to think of different or innovative management techniques which can bring a change or modification in the partnership functions in order to generate stronger partnership.
Table of Contents
Chapter 1: Introduction 4
1.1 Title of the research 4
1.2 Aim of the research 4
1.3 Research Objectives 4
1.4 Research Scope 5
1.5 Disclaimer 6
1.6 Proposed Research Methodology 6
1.7 Background of the Research 7
1.8 Structure of the Report 8
Chapter 2: Literature Review 10
2.1 Management Functions 10
2.2 Management Styles 16
Participative Management 16
2.3 Business Management Techniques 26
2.4 Productivity 28
Employee Productivity 30
Improving Productivity 33
Chapter 3: Research Methodology 38
3.0 Introduction 38
3.1 Research Methodology 38
3.1.1 Positivist Paradigms 39
3.1.2 Interpretivisit Paradigm 42
3.2 Primary Data 43
3.2.1 Primary Data Collection Methods 44
3.3 Secondary Data 44
3.4 Proposed Research Strategy 45
Chapter 4: Findings and analysis 46
Performance Management Systems 53
Preparation for a Performance Management System 54
During An Evaluation Meeting 55
New anti-discrimination legislation 58
Skills Shortages in Business and Finance 58
Undervalued Talent 59
The Myths of Age 59
Part of Employee Retention 60
Customer Awareness 61
Chapter 5: Conclusion 62
Chapter 1: Introduction
1.1 Title of the research
The title of this dissertation is “The Role of Business Management Techniques in Increasing the Productivity and Efficiency of an Organisation”.
1.2 Aim of the research
There are number of business management techniques which can be helpful in order to increase the productivity and efficiency of any organisation but to choose the best technique is one of the difficult decisions to execute. Therefore the aim of this research is to study different management techniques, their impact on the organisation and the right choice of those techniques when it comes to different levels of management, employees and the organisation partners, and how to keep the employees and the organisation satisfied.
1.3 Research Objectives
The primary aim of this research is to investigate, analyse ad review the role of business management techniques in increasing the productivity and efficiency of an organisation. This aim will be achieved by reviewing various business management techniques and their impact on the productivity, effectiveness and efficiency of an organisation. The primary aim will be accomplished by achieving several research objectives which are outlined below.
1. To analyse theoretical models of various management techniques and the implementation of these techniques in business.
2. To review the overall impact of business management techniques on the short term and long term performance of an organisation.
3. To review models of productivity, effectiveness and efficiency in the context of organisations.
4. To investigate how productivity of organisations can be measured and what steps can be taken to increase productivity.
5. To determine how management techniques are implemented by several retailing organisations in the United Kingdom.
6. To determine whether theoretical models of business management techniques are implemented effectively in organisations.
1.4 Research Scope
This research has a scope limited to the research methods explained in the third chapter of this research report and the research is performed to analyse the role of business management techniques in the productivity and efficiency of an organisation. Although the title of this research implies that the research is based on a broad concept but the scope has been narrowed down to analyse the role of business management techniques in the United Kingdom. The scope of this research has been further narrowed down to focus specifically on the retailing sector in the United Kingdom. The research focuses on three organisations belonging to the retailing sector of the United Kingdom which are Sainsbury, Asda and Tesco. The business management techniques implemented in these organisations are reviewed and a comparative analysis is carried out to evaluate the role and impact of these techniques on the productivity and efficiency in the organisations. The research also analyses how these companies implement and review business management techniques to increase the levels of productivity and efficiency from time to time.
The research has been conducted after acquiring proper permission and approval from the supervisor and all data and information contained in this research report is presented after thoroughly reviewing and considering all issues relevant to copyright and plagiarism. The researcher has written this report with an objective of not to be exhaustive and only the most relevant and reliable information has been included in the report. The respondents and research participants were only approached after receiving approval from the research supervisor and the researcher has taken extreme care to protect and safeguard the identities and personal information of all research participants. Any information and data acquired from research participants is presented in this report after receiving permission from the participants. Albeit the researcher has taken extreme care in performing the research and preparing the research report but this report should not be used for making important decisions. This report is distributed with the sole purpose of research and the report should not be resold, lent out, rented out and distributed for commercial gains without taking prior permission from the supervisor and researcher.
1.6 Proposed Research Methodology
Selecting the best research methodology for a research is one of the most important decision the researcher have to make, since the entire result of the report depends upon it. There are different methods of research that can be applied in a proper research to arrive at possible results. When it comes to research methods it can be said that there are two major approaches of research which are known as qualitative research and quantitative research. Since, theoretical models will be widely used in this research that is the reason why qualitative research approach will be utilised in this research. Data would be collected from different websites, books, journals, articles etc. Case study method would be utilised in this approach and through this approach the case studies of different organisations that are working in the retail sector would be utilised like ASDA, Tesco and Sainsbury.
1.7 Background of the Research
Peter F. Drucker long ago made the vital distinction between ‘efficient’ and ‘effective’, in his book, Management, as he implied that when an activity is performed in a swift and economical manner it is efficiency and if the right thing is being done correctly it is effectiveness. On the other hand, he also suggested that whenever a wrong thing is being done it is totally ineffective with respect to definition (Drucker). Rare sense plays a very important role as it can guide the employees and organisations towards the correct and specific objective whereby achievement will be quite effective. But if the wrong thing is being done then the efficiency of the organisation will be driven into the ground. Rare sense can enable an organisation to achieve success as it is the rarity which will lead to success.
However, if we talk about productivity, it implies yielding the desired results, creating strong strategies, creativity in ideas, achieving business goals and targets and coming up with the best and appropriate business solutions.
When a team lacks in efficiency and productivity, more chances are that the problem is not with their qualifications, experience or knowledge. The problem usually occurs because of the incorrect implementation of management technique and lack of motivation (Fuchsberg).
Now the question is how to increase the efficiency along with the productivity? And to answer this question, different management techniques came into the picture that can increase the efficiency and productivity.
Another question arises now, what method do we need to adopt? Is there a single strategy that can be used in order to facilitate everyone or different type of strategy must be implemented with respect to organisational hierarchy?
By the help of this research we will identify which management technique best fit in the organisation and how they can be implemented and how they are going to help increase the organisations productivity and efficiency.
1.8 Structure of the Report
The entire report is divided into 5 main chapters. A brief description of these chapters is given below:
Chapter 1: Introduction
This chapter gives a quick overview about aim and purpose of the research, why there’s a need of this research and what would be our analysis or outcomes of conducting this research. The back ground of the research is also included in first chapter i.e. what is efficiency, productivity etc.
Chapter 2: Literature Review
This chapter will give detail information about the research topic. Various materials from different modes like internet, different e-books and articles will be included in this chapter. Different researchers and their study would also be included in this chapter and in the light of their study; critical analysis would also be done.
Chapter 3: Research methodologies
This chapter would focus on different approaches of research methodologies. Primary, secondary data types and different models are analysed in this research. A final research strategy is also selected in this chapter through which the entire research will be carried on.
Chapter 4: Findings and analysis
This chapter will portray the actual results and findings of the research. Analysis and findings that are collected through different books, websites, and journal articles etc. will be included in this chapter.
Chapter 5: Conclusion
The conclusion or the final outcome of the research is the last chapter of the research report. The entire research, its study and findings would be concluded in this chapter. Certain recommendation would also be included in the last chapter of the dissertation which is the conclusion chapter.
Chapter 2: Literature Review
This chapter would focus on different theoretical terminologies and aspects that are directly related with the management of organisations.
2.1 Management Functions
The management function solely clarifies the job of the managers. The commonly mentioned management functions are planning, organizing, leading, and controlling, though some of them are classified as additional functions. The management functions define the management procedure as distinct from various business functions like accounting, finance, marketing, etc. Through these functions it is facilitated to obtain a practical means of categorizing information about management. Also a functional framework has been developed consisting of the most significant management transcripts present since the year 1950 (Stephen J. Carroll).
The first component of management is planning which comprises of setting goals and defining an action plan for attaining these goals. Planning entails that planners or managers should be aware of the environmental settings faced by their company and predicts impending situations. It is also vital that planners or managers should be able to make good decisions.
Planning process consists of various stages. The process initiates with environmental skimming, which merely means that the planners or managers should be conscious of the serious possibilities faced by their companies in regards to current economic situations prevailing, their competitions, and their customer base (Dobson, Starkey and Richards). Planners or managers must then try to predict future circumstances. The planning function is based on these predictions.
The objectives of the organization should be decided by the planner or managers and a plan should be chalked out on how to achieve them. The vision and mission of the organization provides mostly the much needed information. The function of planning comprises of two core parts that are the formulation of core activities to achieve the objectives and then ensuring that the plan is being implemented (Hitt and Ireland). For example, for a new restaurant business, the planner or manager need to work upon various types of plans like the marketing plan, hiring plan and sales plan.
There are various kinds of plans and planning.
(a) Strategic Planning
Strategic planning comprises of scrutinizing competitive prospects and pressures, as well as the organizational strength and weaknesses, and then deciding on how to run the organisation so it can effectively and efficiently competent in market. Strategic planning is a lengthy procedure, mostly three years and above. Planning strategically usually comprises the whole company and devising of goals (David). The function of strategic planning is mostly built on the mission of the company, which is its core purpose of being. The function of strategic planning is mostly carried out by the top management of the company.
(b) Tactical Planning
Tactical planning is intermediary planning that is intended to create comparatively solid and precise methods to apply the strategic plan. Tactical planning is commonly done by mid-level managers. The tenure of tactical planning is usually one to three years.
(c) Operational Planning
Operational planning generally undertakes the responsibility of objectives and states methods to achieve them. Operational planning is short-range planning that is planned to create particular action plan that backs up the strategic and tactical plans (David). Operational planning generally has a short tenure that is from one week to one year.
Organizing is a management function that comprises of creating a structure in the company and then assigning human resources to confirm the achievement of goals. The company is organized within the proposed structure inside which the work is synchronized accordingly. The structure is typically portrayed with help of an organizational chart of the organizational hierarchy describing the authoritative positions in the organization explicitly (David). Decisions which are taken regarding the organizational structure are usually denoted as "organisational design" decisions.
Managers are answerable for administration of the organization that comprises of managing personnel and resources. If the human personnel are not allocated sufficient resources to complete their assigned work it means that the company is not organized efficiently. The lack of organization in a job place will create a perception in the employees that the manager is incompetent and lacking proper organizational capabilities. This will result in loss in that particular manager’s respect regarding his managerial capabilities in the eyes of his subordinates.
Nowadays various companies have tried to achieve equilibrium between the requirement for specialization of employee and the desire for employees to possess jobs that involve diversity and sovereignty. Principles like job improvement and employees coordination are kept in mind when designing a job description (Dess and Lumpkin).
Leading comprises of persuading people to achieve the goals of the organization. Leading will only be effective and efficient when manager is able to motivate and encourage his team of employees, connect with them by regularly giving feedback on their work, and using the authority upheld fairly and wisely. Managers who effectively lead compel the team of subordinates to work enthusiastically and put in the right amount of work to achieve the goals of the organization (David). When manager acts as a leader an ideal situation arises. Leading can be done effectively by managers when they identify the factors behind employee motivation and inspire them to achieve the organizational goals.
To become an effective leader a manager should for a start understand the personality traits, morals, behaviours and passions of the employees’ personnel. Thus, management functions are more understandable through the countless theories contributed by the subject matter of behavioural sciences. Research studies should be conducted regarding personality traits and job outlooks by managers to obtain significant information on how to lead employees efficiently.
Motivational theories and research studies offer significant information regarding methods to encourage employees to perform productively. Communication research studies offer guidance as to how managers can communicate effectively and convincingly (Hunger and Wheelen). Leadership research studies responds to queries like on how a manger can become an effective leader and what leadership styles works best in different situations.
Controlling mostly comprises of assuring that employee work performance do not deviate from set criterions. The function of controlling includes of three stages, which are creating performance criterions, matching actual performance against set criterions, and taking corrective measures when required. Performance criterions are usually recognized in financial terminology like revenue, costs, or profits, but can be also specified in other words, like units produced, number of faulty goods, or customer service level (Humby, Terry and Phillips).
Performance can be measured by various methods based on the principles of performance that comprises of financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. The controlling function is somewhat practiced by managers at all levels in the organizational hierarchy.
The administrative goal of controlling must not be mixed with control in the behavioural or scheming manner. This function does not include that managers must try to control or influence the employees’ personalities, values, attitudes, or emotions. Rather, the management function focuses on the role of manager in inculcating important steps to ensure that the employees’ job activities are constant and working to attain the goals of the organisation and departments.
Effective controlling needs the presence of action plans, as planning offers the important fulfilment to achieve criterions or goals (Hunger and Wheelen). Controlling also needs a clear understanding of how accountability for unconventionalities from criterions is dealt with. The budget and the performance audit are the two traditional controlling methods. Though controlling is frequently thought of in regards to financial measures, managers should accomplish production/operations procedures, delivery process of services, compliance with organizational rules, and various extra happenings inside the company.
The functions of management like planning, organizing, leading, and controlling are extensively evaluated to be the top methods of defining the job of the manager and also the finest method to classify gathered information regarding management studies. Though there have been significant alterations in the environmental society confronted by managers and the procedures implemented by managers to accomplish their duties, managers continue to implement these basic functions.
A manager is responsible to undertake various tasks. The tasks being planning, organizing, leading and controlling as four core tasks which should be implemented in management level. Management is a balance amongst various constituents and an effective manager should be capable enough to sustain the balance and retain employees’ motivation.
The information given above highlighted the rudimentary business management methods in increasing the efficiency and competence of an organisation.
2.2 Management Styles
A manager's style is dependent upon various factors like the situation, the circumstances, the requirements, desires and the characters of the employees in the organization, the culture and the organizational environment. Modification in organisational framework and culture has brought around a revolution in the management styles also that vary with time accordingly (Keller).
For example, previously, authoritarian management style was implemented in organisations which focused on control being the main function. Now the style has been replaced by the one focusing on employee fellowship and employee sovereignty. Managerial styles that emphasized on managers being technical specialists who directed, commanded, coordinated and controlled the employees’ work have now been resolved with those which focus on managers being instructors, supporters, guidance counsellor, organizers, and team leaders. (S. Robbins, 9)
The best effective management style is the one that comprises team structuring, relationship networking, training and development of employees and motivating people. There is a more focus on participative style of management and people management expertise. Theories of management have discovered proof that supports the merits of styles of management like participative management, Theory Y versus Theory X; Theory Z, Total Quality Management (TQM), Management by Walking Around, Management by Objectives, and employee empowerment. The styles of management mentioned are described below:
Participative management comprises information distribution amongst employees and involving them in making decisions. Employees are encouraged and facilitated to manage their department and to suggest new ideas and viewpoints and to take decisions to make rules and processes. This style of management is generally sponsored as the fast cure of low self-esteem and poor organizational productivity. Though, this approach is not appropriate and applicable in every company and at every hierarchical level.
Employees possessing robust talents and capabilities should partake in the organizational events. Employees should have the technical experience, communication abilities, and intellect to take decisions and converse those decisions efficiently and proficiently to the third party (Keller). The organizational culture should be helpful and should acknowledge employee participation though the employees should be cautious to participate in only the relevant subjects.
Representative participation acknowledges employees who are represented by a small team by contribute towards the organizational goals. Reallocating power inside the business is an objective of representative participation. The interests of the workers hold similarly that much of importance like the interests of management and stockholders.
In the book Essentials of Organizational Behaviour, written by Stephen P. Robbins it is debated that the two greatest prevalent kinds of representative participation are works councils and board representatives.
a. Works councils
A group of workers who have been chosen by their colleagues and who possess the power to be included in or checked by management when taking decisions related to employees.
b. Board representatives
These employees are who are part of the board of directors and represent welfare of workforce.
In participative management, representative participation is thought as bad option for improving performance and morale. As indicated by various proofs, the whole effect of representative participation is not so vast. The employees involved in representing workforce acquire greater advantage than to those are represented (Schilling).
1. Theory Y versus Theory X
In the book, The Human Side of Enterprise written by Douglas McGregor it describes Theory X. The Theory X states that people are lazy; they are not concerned with work, and manager’s duty is to coerce or compel the employees to put in effort. The Theory X presented by McGregor expresses three main norms that are:
(1) Many people do not prefer to work and create all the imaginable reasons to avoid doing it
(2) Most of the people need to be forced, compelled, controlled, guided, terrorized or penalized to complete their jobs in order to accomplish goals and objectives of the organization
(3) Generally, people like to be guided, to receive directions from top management or their colleagues; they are not eager to be held accountable for the work done by them, possess low motivation and low morale than others and concentrate greater on job protection instead of career goals.
According to this theory, displaying creativity and enthusiasm is the duty of the employee and if he fails to perform he is accountable for the failure (Drucker, The Practice of Management). Extrinsic rewards such as money, promotions, and tenure are some of the factors through which employees are motivated.
As per the Theory Y employee behaviour is different when they are dealt by their superiors differently. Theory Y considers employees are controlled by high-order needs. The Theory Y assumes:
(1) Most of the human being does prefer to work and it is as normal as playing;
(2) To attain goals, many people will use self-direction and self-discipline;
(3) To accomplish structural aims, benefits of satisfaction and self-actualization are acquired through work the worker puts in;
(4) The normal human being not only takes but also pursues obligation;
(5) Most of the workers are imaginative and creative in resolving administrative difficulties;
(6) The rational capabilities of the normal human being is only partly appreciated. If a worker does not perform effectively and is not contributing productively it is considered that the manager has failed. Managers are also accountable if workers are not inspired adequately (Hunger and Wheelen).
2. Theory Z
William Ouchi was the one who founded the Theory Z after studying management practices in the United States and Japan. Theory Z is the mixture of both the portion of U.S. and Japanese styles of management and is occasionally referred to as Japanese Management (Aaker).
As per this theory, the finest styles of management are the one which encompasses workers at all organizational levels. Certain specific features in Theory Z comprises of long-standing occupation, fewer career specializations, easy-going regulator, team decision taking, and apprehension for the employee enhancement over the occupational matters. This theory fulfils needs requirement at both the levels of lower and higher needs.
Lower level needs are fulfilled by paying special attention to welfare of employees. Middle level needs are fulfilled by assimilating group procedures in making decision and inspiring employees to accept responsibility and charge for the work and to actively participate in making decision fulfils higher-level needs. There’s an enhancement in the most of the firm’s productivity, as they are now providing more focus on collective decision-making and teamwork. Organizations are also involved in the personal problems of the employees, such as childcare, easy work timetables, and tele-working to enhance organizational productivity (Aaker).
3. Total Quality Management (TQM)
Total Quality Management (TQM) is a style of management that includes all roles of an organization to acquire a highly superior product. The main features are customer gratification, employees’ responsibility for high quality, and employee collaboration. As a unified technique, this theory involves every dimension of the company (Aaker and Mcloughlin, Strategic Market Management: Global Perspectives). The whole human personnel, from the employees like the line worker to the CEO, should be involved in a common obligation to develop the business quality.
TQM encourages employees to improve, nurture and acquire and to donate in expansions, so it exhibits a participative style of management. TQM also inspires a varying or an on-going procedure, and highlights the notions of continues enhancement or better quality (Deming, 49)
The pioneers of the quality movement were the Americans W. Edward Deming and Joseph M. Juran. They contributed mostly after World War II in Japan, and are accredited with the greatest improvement in the Japanese products quality by the 1970. Later in the era of 1980s both pioneers were extremely prominent in the quality management movement of the United States.
4. Management by Walking Around
Management by Walking Around (MBWA) is a traditional method implemented by righteous managers who are active listeners. Managers implementing this style gather information so that a puzzling situation does not create a greater issue. When managers listen intently to employees' propositions, demands and apprehensions will aid to evade likely predicaments. MBWA encourages managers by giving real-time information regarding procedures, techniques and rules that is frequently evaded in proper communication networks. Management acquires a perfect image by walking around of the state of self-esteem in the company and can help out if there is an issue.
A likely apprehension of MBWA is that the manager will foretell employees' choices. The manager should endure their character as instructor, counsellor and analyst. By empowering employees with decision-making duties, managers can be confident of the fastest possible responses and feedback (Drucker).
As per the views of Max Messmer, an error managers commit is to unintentionally create more responsibilities for employees. By proposing recommendations that should be assumed as tasks, managers can improve the work capacity and restrict growth.
Messmer describes a case of employee team working on a venture that involves a dealer of plastic moulding. When the manager comes, the team has studied three businesses and chosen the best one. The manager also identifies a good business, and commends that team fellows give this association a call. They will not feel happy in admitting that the choice has been made, and will call the company to please the manager.
5. Management by Objectives
Management by Objectives (MBO) is a widely spread process in the company where employees energetically participate in goals setting that are concrete, certifiable, and quantifiable. In 1954, in the book, The Practice of Management; Management theorist Peter Drucker founded this style.
MBO conveys a methodical process of promising that all workers and teams establish objectives that are in alignment with accomplishing the overall company’s objectives. Sme examples of businesses that implement MBO at various levels in organizational hierarchy are Xerox, Intel, and Du Pont. Overall administrative goals are converted into fixed goals for employees (S. P. Robbins).
Goals at each organizational level are fixed together by a "bottom up" technique and also a "top down" technique. So, if every person achieves the respective objectives, then each organization divisions will accomplish its objectives and the overall organizational goals too will be achieved (Schilling).
There are four stages included in the MBO process:
a. Goal formulation,
b. making decision by participation,
c. plan execution, and
d. Performance feedback and correction.
Senior managers collaborate with middle line managers and middle line managers collaborate with lower level managers to establish objectives for the respective departments. Every manager then collaborates with personnel of their department and assigns separate achievable work objectives (Dobson, Starkey and Richards). The participative decision-making stage allows managers and employees to jointly develop objectives, outline accountability for achieving the objectives, and establish the appraisal procedure.
Managers are allowed to device their policies and regulate their own work. This stage of MBO abuses each manager’s proficiency to profit the business and applauds and permits managers to continuously improve their expertise.
The last stage is to continuously offer criticism on job done and achievement of goals. By occasionally revising employees' objectives can be enhanced or better objectives can be developed. This stage matches the certified evaluation scheme because the incessant criticism through the year enables people to remain aware of their development.
Like any other styles of management, the organizational ethics must be advantageous for MBO to be successful. Senior management should be devoted and included in the MBO scheme for it to be productive. This style of the management is not without its problems. Managers regularly set the objectives of their departments too closely at the cost of the organizational tactical aims and objectives (Drucker, Management).
One more issue originates when managers are not supple in establishing goal development and assessment measures and employees fail to respond to problems quickly. Unfeasible anticipations regarding consequences are frequently an issue with MBO schemes also the unwillingness of management to apportion compensation according to the attainment of independent objectives.
6. Employee Empowerment
Employee empowerment is one of the styles of management that places the managers in the character of coach, counsellor, consultant, trainer, promoter, or organizer. Decision-making is being dedicated down to the lowest hierarchical level of the company. The method by which performance is evaluated and the method through which companies are organized are revolving.
Empowerment comprises entrusting the power of decision-making by perceiving the act to be reserved for a chore that is assessed to be important by both the manager and employee (Dobson, Starkey and Richards). The key reasons for applying an authorization scheme is to offer immediate answers to business issues; to offer probabilities for employees to develop and nurture and; to decrease administrative expenditures by permitting the manager to work on many schemes.
Employee authorization is typically productive when management has established perfectly achievable objectives and stated certain responsibility criterions. The achievement of employee authorization is based on the capability of management to deliver means like time and money; to offer help through authority; and to offer relevant and accurate information so employees can take intellectual decisions efficiently and effortlessly (Aaker and Mcloughlin).
Certain other parts that are imperious to the accomplishment of authorization schemes comprise: employees training so that they can develop and make comprehensive decisions that are approved by senior management as well as lower management, and hold themselves responsible for those choices
Employees are benefited from authorization as they have extra obligations in their occupations. Employee authorization increases the state of employee participation and thus creates a greater feeling of contentment and greater states of inspiration. There are probable issues with authorization schemes that frequently end up in adversarial consequences.
Sometimes inconsequential, insignificant and dull responsibilities are delegated by the managers to the employees and work on the complex, significant and essential assignments themselves. Authorization will not be productive unless the power and decision-making duties are observed extremely significant and important by the worker (Aaker and Mcloughlin).
One more issue arises when managers not only allocate insignificant responsibilities to the human personnel but also they assume that the worker will always look for their direction and refer them for consent. Managers should evaluate the capabilities and talents of the employees and decide if the business culture can maintain an authorization scheme before introducing it.
7. Self-Managed Work Team
Employee authorization leads to the development of self-managed work teams. This style of management delegate the power to take decisions like how to use money, whom to select and recruit, and what ventures to accept and to toil on. Self-managed work teams are generally encompassed of 10 to 15 individuals and need minimal regulation. Xerox, General Motors, PepsiCo, Hewlett-Packard, and M&M/Mars are some of the companies that have implemented self-managed work teams. As per the views of Stephen P. Robbins, out of every five companies there is a must that one of them exercise self-managed work teams (S. P. Robbins).
Managers should select a style of management that suits them, their divisions, their colleagues, their team fellows, their juniors, and lastly the company they work in the greatest. The circumstances managers face might entail the use of diverse styles of management dependent on a certain task, the management of employees, or the manager's disposition. Management style can ultimately decide the work outcome of employees and an organization’s development rest upon the management styles of the workers. Thus, to decide the utmost appropriate style of management, it is vital to initially evaluate earlier outcomes created as a consequence of a definite organization technique (Schilling).
Management levels need a certain amount of power and so managers might mostly discover themselves in leadership situations. Though, all leaders are not managers and all managers are not leaders. Managers who possess leadership expertise impact and inspire employees to achieve company objectives. It is thus important to remark that specific style of leadership develop as productive styles of management too.
2.3 Business Management Techniques
Every specific business styles of management have its portion of qualities, difficulties and problems.
A manager implements numerous diverse management practices to take responsibility of respective business divisions. The management procedure an individual implements can depict his character or it might be an outcome of personal understandings from his time as an employee. Every business management style possesses its portion of qualities and issues.
a. Autocratic Technique
An autocrat is a leader of limitless control and power. An autocratic management system is implemented by a manager who prefers to take all of the verdicts and have total power over his subordinates. They prefer to provide commands and have those adhered to promptly. Their method is to regulate employees to attain full efficacy and output (David). They are not concerned in heeding to worker’s opinions. An autocratic management system can affect most of the workers negatively, but it could be productive in a huge organization with amateurish employees, or when a company is facing an emergency situation and choices are required to be made promptly.
b. Paternalistic Technique
A paternalistic management practice is mostly focused on the societal part of the organization. They are worried regarding their employees feeling about the tasks assigned and added problems and will constantly deliberate their opinions when taking decisions (Kincki and Kreitner). They are ready to make ultimate decisions, but would like to refer with their subordinates frequently and do what is fine with all. A paternalistic management practice can decrease generally the decision making process, and might not be the suitable for a running situation.
c. Democratic Technique
A manager who implements a democratic management method attempts to implant faith in the workers. They allow them to take decisions and authorize them by giving power. They demonstrate decent conversing abilities and are accepting of new propositions and notions from the workers. A democratic style of management can end in unhurried decision making process and more errors because the employees entrusted with the duty of making decisions are not at all times capable enough to do it correctly (Kincki and Kreitner).
a. Hybrid Technique
A senior manager will identify that each worker is diverse and that a single particular management practice will not be effective for every person. He will create a mixture of the three management procedures that takes into account every employee's distinct learning method and character. This kind of management practice can be stimulating when collaborating with huge employee teams, but with tolerance and serenity, would eventually acquire the maximum out of everyone (Kincki and Kreitner).
An easier technique of viewing productivity in a company is to ponder it in relation to the productivity model depicted below.
Fundamentally, productivity is a measure to assess how efficiently an institute (or individual, business, nation) transforms various resources like human resource, supplies, machinery into final products of goods and services (Jackson).
This is generally stated in fractions of input resources to output resources. That is (input) price per (output) finished goods / service. It is not said to be an evaluation of how productive the transformation procedure is.
The Productivity Conceptual Model depicted underneath adopts the image of a 'productivity tree'. The roots signify the inputs to the scheme, the trunk the transformation procedure and the vegetation and fruits the schemes outputs.
Productivity is merely the quantity of output you acquire per unit of input. It is a cost benefit analysis of a process (Jackson). So for example the process with an input of 5 and output of 5, its productivity is less when compared to a process with input of 5 and an output of 10. Stating productivity with the help of an analogy it is just like the miles per gallon of fuel in your vehicle. It conveys how far a vehicle can be driven on a certain quantity of fuel. Here, the superior management’s perspective regarding productivity is going to be highlighted initially then from a more personal outlook it is going to be evaluated (Jackson).
Mathematically, the formula for productivity is output divided by work put (input). So O denotes output, I denote input then P denotes productivity. Hence the equation of productivity is mentioned as follows:
P = O/I = Output / Input
If an employee creates widgets, the boss will possibly evaluate the result (output) in relation to how many widgets were produced and input in relation to how much it costs. So, if the employee can produce 100 widgets hourly and it costs $15 hourly to produce it, the productivity is calculated to be 100/15 or 6.6 (Brooks). For example, now if a colleague who produces 75 widgets hourly but it charges the boss $10 hourly. Who the boss thinks is more productive?
The productivity is calculated as 75/10 = 7.5. So the colleague is really more productive in regards to the quantity of output the boss receives for a certain level of input.
This is amazingly significant to comprehend. If the boss needs to lay off an employee he will fire the worker with low productivity even if the colleague is producing 33% less widgets per hour. The boss is considering only the less cost factor and high productivity (Brooks).
When you work for someone, it is easier to emphasize on the output and not on the expenditure. You simply can over state your input by not considering the real productivity you produce. To help avoid impact of economic recession it is important to comprehend the viewpoint of the superior management regarding productivity.
Measurement of Productivity
Simply stated, measurement of productivity is the assessment of the output and input of a productive scheme. The purpose is to develop a schedule measuring quantifiably. The goal of productivity assessment is output enhancement, which comprises of a mixture of amplified efficiency and an improved usage of accessible assets (Brooks). Defining productivity in a shorter manner is simply the relationship between output and input, though what productivity actually is has been a bone of contention amongst many professionals’ opinions. It can be thus be stated that the productivity measurement seems simple only theoretically.
Practically, though, both assessment of outputs and inputs includes an accumulation issue, and this issue has placed measurement of productivity in the dimension of intricacy. Such as, the query of how to combine diverse goods that do not always have superiority includes the cloak to be detached from output measurement.
In a similar manner, the issue of how to combine the various kinds of inputs into a definite compound component rests a serious one in input measurement. To resolve output and input accumulation issues, chiefly when diverse inputs and outputs are joined, some writers recommend that inputs must be aggregated up in ‘fixed price’ monetary standards (David).
Similarly it should be implemented also for output measurement. The ambiguity in this method is that the resulting efficiency schedule would be economic output and not physical output, which would more mean more to people implementing efficiency procedures.
Focusing over on the input assessment issue is the query of how investment contribution is evaluated. Therefore, inclination is frequently stated for a particular feature about the assessment of efficiency, and it is not unusual to understand that focus is on manual labour contribution. Three motives are occasionally placed in front to validate the usage of labour contribution for aim of measuring fractional efficiency, which are:
(i) Labour is considered as the greatest significant aspect of productivity;
(ii) Labour is the easiest aspect of productivity that can be quantified;
(iii) Labour is the sole aspect of productivity that has power about the influence on output.
A quantity or schedule of collective production divided by the witnessed amount of a lone contribution hence became the first method of efficiency evaluation (Armstrong). This index-number tactic centred over the usage of solitary or fractional feature of output procedures has a single exclusive benefit: calculation easiness and practicality given that the essential cumulative labour contribution statistics are accessible. The utmost inadequacy of limited aspect of efficiency processes, chiefly labour efficiency processes is its incapability to classify the fundamental reasons responsible for perceived output evolution. For example, replacement of wealth for labour, the use of (labour) competent features of capital, the comprehension of economies of scale and the service of efficiently skilled workers would be showcased in a schedule of productivity per man per hour.
Evolving works on efficiency assessment shows that primary efficiency procedures rotated round the worth of combined productivity per man-hour of work contribution in spite of the issues related with gauging labour contribution. Currently, efficiency investigation has concentrated greater on total factor productivity (TFP) evaluations, where widespread collections of productivities and contributions are of importance (Dodd and Sundheim). It is useful to understand that productivity concept forms the foundation for examining the features that elucidate productivity level variations. It is acknowledged from existing texts that, the degree of productivity is influenced by three aspects:
(i) The level of technological equipment or the sort of manufacturing procedure implemented;
(ii) The amounts and kinds of asset resources used in the output manufacturing procedure;
(iii) and the proficiency with which those asset resources are used.
Advancement in productivity can be noticed by implementing the productivity model:
• Attaining additional productivity from the same input resources
• Attaining equal productivity from a lesser amount of input resources
• Attaining greater productivity for a little extra input resources
• Receiving little productivity from very few amount of input resources
There are six methods to expand the efficiency ratio of a company, which are:
• Develop rudimentary procedure by initiating research and development (long term)
• Develop and use a new production building, production tools and machinery (long term)
• Shorten product line and decrease variations (middle term)
• Develop current approaches and processes (short term)
• Develop the organization of work tasks and the usage of employees (short term)
• Enhance the whole efficiency of workers (short term)
If workers are correctly inspired, trained, given the correct data at the correct period, usage of easy efficiency enhancement processes and methods and are remunerated in a suitable manner (Brooks).
It is of common knowledge that human personnel are the central asset of any organization. The best top businesses are those with the finest manpower and the best workforces are those who perform to their maximum capacities. As per the facts and figures, many corporations exploit hardly twenty percent of the employees' talent. Performance administration is dire in allowing managers to not just stimulate employees and enhance productivity, but also to resolve meager performance problems.
How Performance Management Increases Productivity
Managers who need to enhance level of motivation in the workforce should implement operative performance management practices. They should to take into account that every human being is motivated differently through the use of diverse tools and measures. While financial rewards might affect some individuals to perform better, other personnel might desire acknowledgement or appreciation for work done. Literature of various researches indicates that official acknowledgement is the sole major stimulus for many individuals. Employees like to be appreciated in front of an audience who may be their peers, family, or friends. This humble acknowledgement transforms straight to improved efficiency (Leimberg).
Catering to the issue of employee's poor job performance and methods to enhance the performance is a part of performance management. If an employee has been late occasional or his performance indicates a downward decrease, there are productive performance management procedures by which the superior can assist the employee to resolve main cause of the issue and to work towards personal development. Authorization of employees is an additional performance management practice that can improve efficiency levels. Many workers like being responsible for jobs and appreciates the fact that they are trusted by the senior management to be entrusted with a work task and to perform efficiently to complete the task (Crouch).
How Performance Management can decrease turnover
When the topic of performance management is floated, many organizations adhere to the fact that they can more regarding it. Regrettably, most organizations are of the view that compensating employees is sufficient to hold gifted human resources. This is barely the situation. Productive performance management at all hierarchical levels in an organization involve workers in evaluating how performances could be enhanced. For instance, appointing a specialist to carry out an unspecified investigation and centred on the investigation statistics, making workers focus groups to review alarming issues (Crouch). This enhances the value of the statistical data and also inspires workers to participate in the procedure.
Additionally, employees can be requested for contributing their opinions related to the procedure. Such involvement of workers is a vital aspect of performance management and personnel retention. The use of monetary benefits must comprise of all personnel who have finished definite assessment duration. This assists to highlight that personnel retention is vital to the company. One more productive performance management practice is to take into consideration the faithfulness to the organization or amount of duty as a measure of the motivational strategy.
By using a productive performance management scheme, an organization can help stimulate employee efficiency and diminish employee turnover (Crouch).
How to increase productivity of an employee
It is imaginable for an organization to have extra workers than its competition yet the organization have less production output leaving the management disappointed, because the wages of employees are too greater than its competition and still the employees are unproductive. Productivity analyses and situational analysis show that augmented employee inspiration and contentment can enhance employee productivity. Creative managers nowadays attain output improvements with human resource management procedures other than pay incentives.
Employee productivity can be enhanced by inspiring with providing good work environment and by altering remunerations to meet the requirements of workers (Crouch). Expenditures are progressive human resource management costs which are not greater than personnel turnover that is recruiting and training and development of new workers, unjustified pay increments, and poor yield. Benefit derived are improved efficiency; faithful, competent employees; superior work, and improved chancing of operating the business.
The crux of employee incentive and efficiency is the way in which they are accomplished. A direct relationship exists between productive management; that is, offering a working environment which facilitates to accomplish organizational and employee objectives; and contemporary human resource management are directly related (Crouch).
The management achievement is assessed by its ability and understanding in identifying and evaluating problems that relates to the workers and by the management’s capability to solve these apprehensions by collaborating with the workers.
Chapter 3: Research Methodology
A detailed analysis of methods to be implemented for study and assessment of data for research are examined and analysed in this chapter. The concept behind research methodology, its various models and tools used in research and its further explanatory details are about these paradigms, the association of positivist and interpretivisit with the qualitative and quantitative approach to research are highlighted in this chapter. The main emphasis on this chapter is given to various research methodology and its implications of its application in the research process, a likewise importance is given to research strategy applied by the researcher.
3.1 Research Methodology
The research methodology is understood as the process through which a person acquire knowledge by the assessment of past data of previous researches, books, articles and other sources in order to carry out personal research on specific topic. The main theme behind the research in a specified area is to enhance the knowledge of individual on facts of present or prove subject area or disciplined. The basis of research methodology is based on the interpretation of researches that were initially performed and the detailed clarification of the study, (Bryman and Bell, 2007).a fresh and innovative viewpoint are derived through the assessment and analysis of specified subject area.
An effective research is not carried out through the process of collection and interpretation of data. It requires a support that is attain through conclusive study of other researchers. An effectual data collection, analysis and results to be presented are required to carry on an effective research. Research is referred to the process which strives for the unidentified and explored new ideas. The process of data collection and interpretation through different methods in research methodology is needed to reach the conclusive position of the study.
3.1.1 Positivist Paradigms
The basis of positivist paradigm is raised on the quantitative data and is objective in nature. This paradigm supports the research relating to experimental, clinical and scientific practices. A clear picture of reality that is easily identified and measured is obtained through the implication of positivist paradigm. A very common use of positivist paradigm is for the scientific research quantitative research, (Adams, H., Raeside, & White, 2007).the element of quantitative techniques in positivist paradigm shows an objective viewpoint of the research rather than subjective view. The use of quantitative model of positivist paradigm is applied in medical science for the analysis and evaluation of the relation in various variables that relates to human health, infections and diseases.
22.214.171.124 Quantitative Approach
The combination of measurements and numerical data interprets and presents data by implementing the quantitative approach. The basis of the approach is on numerical and statistical data. Different statistical methods are applied on the arithmetical data that is gathered through various research areas and subjects matters. The most common application of quantitative approach is for the scientific use such as psychology to perform research tests hypotheses by obtaining data through various sources. The numerical and statistical data present the similarities and differences that are established on the basis of research conducted. If the research is conducted using statistical and arithmetical data which have previously been used should provide the same results as the one that have been achieved by the previous researcher, if the previously conducted research work is to be utilize any editing of data is not allowed. The data that is collected using quantitative approach of statistical analysis is completed using average or measures of central tendency, (Cassell and Symon, 2004). The application of statistical data that is collected from the population is applied using technique such as regression and correlation
126.96.36.199.1 Advantages and Limitations
Various advantages and disadvantage has been studied from the quantitative approach. The quantitative approach is flexible in nature as the time required to collect, evaluate and present the data is negligible and it allows the researcher to make any changes in variables that can be simply identified and measured. The objective nature of quantitative data assists the researcher to compare the numerical data with each other that might be difficult for the user as compare to subjective data. The limitation that is associated with this method is the quantitative approach is its over simplicity characteristics and its inability to provide required results that may be linked to general situation is real life scenario. Another limitation of quantitative approach is its objective nature because the statistical techniques would not be useful if they are applied to subjective data. The conclusion that is reached by implementing quantitative approach is only useful if it is utilize for specific research rather than general condition. The process might cause different variables to be ignored as it emphasis on specific variables, (Fisher, 2007).
188.8.131.52.2 Deductive Method
The conclusion under the deductive method of quantitative approach of research methodology is arrived by tapering the facts. Various principles and logical rules are used by the researcher to reach the conclusion under deductive method, (Easterby-Smith, Thrope, and Jackson, 2008). The researcher would obtain an accurate conclusion if the research is initiated from accurate principles. Under this deductive method, the research process starts from general premised logical principles and by ultimately arriving at specific conclusion in the disciplined or subject area.
The research under deductive approach is mostly based upon previously established hypotheses rather formulating the new approach. This approach is known as top down approach because its progress from the generalised pattern to the specific conclusion that are drawn, (Krueger, 1994). It is worthwhile; to note that the deductive method does not formulate new hypotheses nor it accepts of rejects the hypotheses that have been previously established by the researcher.
184.108.40.206.3 Inductive Method
The research under inductive method formulates its research based on newly established hypotheses on the researches that have been not worked on. When working on the research under inductive method a specific subject area is selected based on different assumptions, principles or facts that are employed to reach the conclusive stage. Researches that are conducted on the basis of inductive method assist the researcher on every step during the flow of researches elucidate each essential in order to avoid uncertainty.
The research under inductive method is conducted on the basis of newly formulated hypotheses rather initiating its research on the basis of conventional research hypotheses. This method is most appropriate or reliable to work on the subject areas where no clear research has been previously conducted due to vivid values or facts that are inappropriately interpreted, (Easterby-Smith, Thrope, and Jackson, 2008). The research is begun by choosing the appropriate research and data are gathered from previous researches, books, journals and other sources. The better research method is achieved under inductive method on the areas where previously less work has been performed and no specific knowledge is known to the people.
3.1.2 Interpretivisit Paradigm
This interpretivisit paradigm conducts researches based on subjective manner rather in objective manner. It uses qualitative method of evaluating the data rather than quantitative method. Interpretivisit paradigm is more beneficial on the areas such as social science and behavioural studies. It is form on the basis that reality can be partly calculated or experimented through attitudes, beliefs and behavioural patterns. These outline may be provide useful knowledge but it cannot be successful applied for quantitative research approach, (Saunders, Lewis and Thornhill, 2006). The characteristic such as its subjective nature of qualitative approach facilitates the researcher to reach the general conclusions. This paradigm studies and performs tests on human behaviour under different scenarios. The research conducted under interpretivisit paradigm is involves interviews, ethnography, questionnaires, participant observations, study of small illustrations and case studies.
220.127.116.11 Qualitative Approach to Research
The qualitative approach to research is used to conduct on the basis of potency, concentration and affluence that relates to the happening or issue by understanding the real life incidents and behavioural pattern, which relates to the areas such as social sciences, finance, economics and behavioural studies, (Wellace and Wray, 2006). The emphasis under qualitative approach is based on the abilities and coordination between the researcher and participants associated in the process. On the other hand, the quantitative approach emphasis on the analysis and interpretation of data during research process. The factors such as personal beliefs, knowledge, abilities and views of the researcher play an important role regarding the outcome of research. The research performed under quantitative approach cannot be applied in the area such as finance, economics, social sciences and other subject areas where arithmetical and statistical data are not accessible; in such case qualitative approach is used.
18.104.22.168.1 Advantages and Limitations
The qualitative approach also has its advantages and disadvantages. Qualitative approach tends to be more flexible as it can be as it can be sort according to the circumstances. The continuous participant that is seen in this research process results in better conclusion. As this approach consists of more open ended questions in the questionnaire and interviews, the research participants reaches to better stated answers that assist the researcher in the process, (Miles and Huberman, 1994).
The basic limitation that is linked with this approach is the preference the researcher gives to the participants on the subject areas. Another drawback is limited possibility and importance is that is given upon the subjectivity because the use of same sort of samples for different areas gives different conclusion and the research process under this approach requires extensive time period.
3.2 Primary Data
The primary data is the collection of data that is used for the current research work and have no relevance to the past performance. The primary data has its various advantages as it is gather to facilitate in the current research process and hence it is more relevant, (Krueger 1994). As the primary data is collected due to the personal involvement of the researcher its findings are more accurate and are adequate to execute the research process. However, the criticism that is linked to the application of primary data is the extensive amount of time that is needed to data collection. Another drawback of primary data is the fact that it is not cost effective as it incurs cost for designing of questionnaire, travelling and transportation and telecommunication expenses for the collection of primary data.
3.2.1 Primary Data Collection Methods
There are different techniques that are used for primary data collection during the research process. The commonly used primary data techniques are survey research and observations. The survey research has two main essentials: interviews and questionnaires. Questionnaire is most often send through postal services, e-mail or questionnaire posted on the blog, website or one-to-one interview conducted or through telephone. The other method observation includes the researcher’s personal observation in evaluating the cause and outcome of the interrelation of variables. The most effective observation of data collection relates to focus group discussion using personal observation.
3.3 Secondary Data
The secondary source of data roots from the primary research that has been initially carried out. Secondary source of data attracts most researchers for its cost and time effectiveness during the process as its biggest advantage. As with the other sources and model of researches secondary data has its drawback, as it lacks credibility of data collected, (Adams, H., Raeside, and White 2007). The another drawback linked with secondary data is to obtain the most relevant and recent data from sources such as university and public libraries, government sources which have greater extend of past record on various research areas. Directories and catalogues are another set of sources for data collection.
3.4 Proposed Research Strategy
The research strategy shows an important aspect of conducting research which reflects the entire research process. This would facilitate the researcher in understanding the methods that would use to gather data based on either primary or secondary sources. The research strategy to be applied will further evaluate the fact the research is either processed on the basis of formulating new hypotheses under inductive approach or to utilize the already formulated hypotheses. This strategy would help to determine whether the required data is needed to be collected through secondary data.
This research process is more of an explanatory type as it requires research for critical issues like job satisfaction to be used during research process. Therefore it deems appropriate that mixed research approach would be used for data collection and it is understood that it would require the combination of quantitative and qualitative approach in the entire process. This research strategy involves the collection of data from both primary and secondary sources to evaluate the variable results. The source of secondary data involves data collected from books, articles, journals etc. these sources relates to the past scenario of Sainsbury and they are linked with motivational aspect and job satisfaction.
The core methodology that would be utilised in this research would be focused on secondary data and that is the reason why secondary data is collected from different sources that books, journals, websites etc. A case study approach is actually selected for the collection of data and case studies of different retail organisations of United Kingdom will be selected in this regard.
Chapter 4: Findings and analysis
As implied by the name this chapter is linked with the scenario of findings and analysis of the research. A case study approach is followed in this chapter and that is the reason why three retail organisations of United Kingdom and their managerial aspects are discussed in detail.
Tesco is the leading private company in retail sector organization in UK. Operating with largest market share, this company has employed more than 36,000 employees worldwide. Its total sale comprises of 86% from UK ranging from retail outlets of small local Tesco Express sites to large Tesco Extras and superstores. Tesco has its network spread over to 12 countries beside UK, which includes China, Japan and Turkey and has been successful in opening number of new stores in United States. This international exposure of opening new stores worldwide is the constituent of Tesco’s strategy for diversification of business and its growth. With continuous efforts Tesco has built an image as a market leader is UK supermarket sector but it simultaneously aims to local needs (Humby, Terry, & Phillips, 2008). In Thailand, by adopting the local culture the company gratitude its customer who are accustomed of shopping in wet markets. Following this approach Tesco has adopted this manner of business in its Bangkok store rather than providing them with pre-packaged goods as they did in UK stores.
With continuous growth in its business Tesco requires people across wide range of skilled personnel for store-based and non-store based jobs:
• For stores Tesco requires checkout staff, stock handlers, supervisors and specialists such as pharmacists and bakers
• For its distribution department Tesco requires personnel for stock managing and logistics
• The head office presents them with infrastructure that enables Tesco to run the business efficiently with combine efforts from human resources, legal services, property management, marketing, and accounting and information technology.
A continuous effort by the management of employing right number of people at jobs according to their talents is done through well-structured program of recruitment and selecting the best applicants for both managerial and operational roles (Moses, 1997).
Tesco management has the historical record of utilizing the technology at its best. They were the first to implement the epos system in its operation, giving them an edge over other the competitors in retail industry particularly ones related to supermarket through superior IT advancement in their business operation (Humby, Terry, & Phillips, 2008).
The key elements that build up a strong the Tesco Strategic Management are Tesco Managers and Tesco Management Trainings. With the superior knowledge of business models Tesco slowly filled the cracks of Wal-Mart equivalent. With the innovative idea of the management, its loyalty card helps the team to understand the needs of each of its customers; something which Wal-Mart failed to incorporate in its large system. The new opening of a range of formats to mirror customer circumstances is another incentive over the chain of Wal-Mart stores. The another edge that Tesco holds over Wal-Mart is the rapid, reflexive, replenishment supply chain which serves all its formats, including home shopping. The walk-through supply chain is now awe for many. With its continuous efforts Tesco now supply each of its customers according to their needs, location and low costs (Humby, Terry, & Phillips, 2008). It may not be thought as extravagate the fact that Tesco is now the Toyota of grocery business, by striving to provide its customer the best with continuous improvement. Tesco didn’t attempted to keep its strategy a secret; and is allowable for its competitors to follow their example.
Another crack that has been exposed in a successful business model is, BMW, a known technology-driven finest carmaker declared that it needed combine efforts with another motor company to develop hybrid engines alone even though Honda has been successful doing it. And after the vast development of third generation hybrid car production by Toyota, BMW joined forces with Daimler-Benz and General Motors for hybrid cars after claiming for years that diesels and hydrogen were the source for step ahead. Toyota strategic development of premium hybrid cars is more demandable by consumers as compare to the precedent production and stuffing car technology that is not preferable by many now.
In every industry the business models of the mass production and mass consumption era are broken or had scraped. The 'hub and spoke' airlines which were depended on supplying traffic through big hub airports are fraught in order to compete with 'point-to-point' airlines. Due to outsourcing strategy of customer support many banks and telecoms firms are losing their customer. The ‘low cost’ sourcing of goods from China have aroused different questions from retailers and manufacturers, due to awareness created among the customers about competitive strategy in clothing and footwear.
The Dell’s ability of ‘build to order’ has been undermined by the maturing computer technology as the esteemed company is unable to compete with corresponding products that is available at local computer store at the same day. These changes can be seen at every field of business, as people serving rate at general hospitals for diagnosis and treatment or waiting by your car to get it fix at a car dealers have reduced with the passage of time (Humby, Terry, & Phillips, 2008).
It is about time that changes in business models have to be amended by studying the previous business failures. This is seen as many firms have started rethinking about their strategies that were previously implemented by not only emphasizing on lean management not only for streamline processes but as an effective strategy for turning the tables towards competitors and providing improved deals to consumers as well as its employees.
The process of rethinking business models is applied in an organizations by considering the factors such as what products should be manufactured in the future at low cost and where the manufacturing process should be located. On the other hand, lean thinkers begins by understanding who their customers are, what are their needs relating to each products and services and in what was will the customers served at its best.
With the combined combination of hardware, software and the knowledge relating to the process of each documents, makes it into a computer (Aaker & Mcloughlin, 2010). And it involves extensive time period like production, relating to obtaining, installing, upgrading and replacing all the previous process which involves consumer’s time and patience.
By following the each production and consumption process, the management comes across those links (through consumer report) that has been either broken or exasperating. Furthermore, the process which has been outsourced results in gap from consumer contacts as there is no other way to obtain feedback from consumer which would assist the management for redesigning the management strategy.
The solution to lean management is done through the process of mapping the processes from consumers through the underlying layers of distributors to production which goes back to raw materials exposing to astounding opportunities of removing the excess cost factors from each element of product, including consumer (Sparks & Fernie, 2004). This results in win-win-win opportunities for all parties. Thus this lean management provides great convenience to the management and customers and provides better customer services which in result enhance the quality of the product.
The process of critical success factor that relates to each product is the ability to initial its process from consumers by understanding provisions of customers demand and resolving their issues by providing them what, when and where they exactly wish from the product (Humby, Terry, & Phillips, 2008). The underlying facts does not relates to who manufacture the specific product but with who exactly responds to ongoing business consumer demands.
US have provided the greatest platform of industrious that ranges from supermarkets and fluorescent lighting to hamburgers and sticky tapes. The success of transatlantic flow will never stop but it would prove difficulty it automatically translating to success. The few renditions would be encouraging than baking soda toothpaste (Sparks & Fernie, 2004). After the week long extensive advertising of previously unknown brand in Britain, sales in Tesco of the Arm & Hammer Dental Care brand has quadrupled. It was successful in achieving 5% share in a highly crammed competitive market, which results in a bit panic in competitors that they felt need to add soda brands back to its range (Sparks & Fernie, 2004).
J Sainsbury Plc is a leading food retail business in UK and US market with its foot in financial services and property business. The Sainsbury group comprises of Sainsbury’s Supermarket and Sainsbury’s Bank in UK and by name of Shaw’s Supermarkets in US. The network of Sainsbury Supermarket was established in 1869 by John James and Mary Ann Sainsbury and in now Britain’s pioneer food retailing chain (Zentes, Morschett, & Klein, 2007). Sainsbury Supermarket has provided work to over 145,000 people, including Savacentre. Of these personnel, 60% employees work part-time and 40% works as full-time. Of total 60% employees in Sainsbury workforce are women. The Sainsbury well-established supermarket offers over 23,000 products out of which 40% products relates to Sainsbury’s own brand. Besides offering a range of quality food and grocery products, Sainsbury offers baked bread facility, delicatessen, meat and fish counters, pharmacies, coffee shops, restaurants and petrol stations on its premises (Reynolds & Cuthberston, 2003). Sainsbury has a record of serving over 11 million customers a week and as at June 2002 had 463 stores throughout UK.
In an organization, the team efforts and its outstanding performance is the organization’s performance. Hence, it is dynamic outcome enhances the performances from everyone. Each individual in the group is more complex than other in the component.
The responsibility of the manager is to motivate each individual and the team as a whole to improve the organizational performance. As the source to team motivation stems through personal enthusiasm of the manager, how the work is allocated and controlled, a clear visualization of the goal and plan to achieve it. Each organization manager sets its personal behavior as an example in the organizational for creating a climate of progress and chance to accept the change for betterment. Motivation factor for each individual is achieved through personal empathy and what it is called the ‘unwritten contract’ from individual and organization manager as a two way communication. The important element for the motivation is the design of individual’s allotted work with specified challenges and different types of works that directs to various innovative products due to specialization (Dobson, Starkey, & Richards, 2004). As to obtain personal and career development an agreed set of objectives is required that can be done through challenging work, professional standards, feedback and coaching.
This paper discusses about performance management and its evaluation which includes supervision of top management of Sainsbury for its employees and for the organization supplier as a whole for its wide range of goods and products. The long established chain of Sainsbury supermarkets of J Sainsbury Plc since its establishment in 1869 strives to fulfill company’s mission of providing first class choices of food products for its consumer through value for money, excellent services and quality that is expected by every customers. The company has a total of 145,000 people in its 535 stores, serving over 11 million customers each week (Dobson, Starkey, & Richards, 2004). The most important theory that is needed to understand are the ones surrounding performance management.
Performance Management Systems
Just like most organization, Sainsbury has its formal performance management system, which varies according to great purpose, depth, style and degree of bureaucracy. This performance management varies according to the benefits it brings to the organization as well as the level of attraction it gains from its workforce. Question as to what are the purpose of my organization’s management system would be answered as assistance it provides to the management for the determination of pay rise, or promotional benefits to be entitled to one. In these circumstances the key trait to efficient performance management will be fairness. To obtain the knowledge as how the pay system work in your organization so that staff could be trained accordingly. As no pay system is totally objective it is essential to provide thorough understanding about the subjective element (Dobson, Starkey, & Richards, 2004). An effective performance measure helps to measure against the objectives. This will help the team to understand the reasoning why other members got the pay raise.
As according to another scenario the answer could be the development of staff. Performance management system is another scenario of a person continuous efforts to develop according to ones skill for the combine workforce in different sorts of situation and to make its contribution accordingly to the period of software development (Reynolds & Cuthberston, 2003). For the performance management fairness is not considered as an element because the performance evaluation focuses on one person at a time. The other answer is the combination of above both characteristics.
The basic essential of performance management system is the development of staff and provide assistance about pay decision to according to ones performance. Even if the performance management relates to the pay or promotion it can be understood as a useful tool for development of staff. In an organization, staff believes that a performance management is the reason which for their pay level, whether it is linked with strategic factors (Zentes, Morschett, & Klein, 2007).
The difficulty that comes across during this process is when a manager inquires the employees what area of his work would he think is needed an improvement to increase its output; the employee would if believes that this discussion relates to his performance development he would readily discuss its issues. However, if the employee assumes that the motive behind this discussion is to evaluate its pay review he might attempt to hide his weaknesses. Hence, to overcome this problem it might be appropriate to link pay rewards with the proven development of one (Aaker & Mcloughlin, 2010). Because it does seems to be logical to give a pay raise to the employee if the performance has not improved compared to the previous year result. So in the future when the manager conduct the performance evaluation meeting, the employee would be more eager to discuss its weakness in order to resolve it through manager’s help and to avail the opportunity for pay raise at next evaluation period. This provides the clear objective about the employee team development.
Preparation for a Performance Management System
Hypothetically the most appropriate way to implement a system is to use the system for day-to-day practice of development management, by regular reviewing the objective that has been agreed by team members at after appropriate duration, and to mentor the employees accordingly (Dobson, Starkey, & Richards, 2004). The employee might try it useful to record its continuing relations that will assist for its performance evaluation. However, the employer would still need to evaluate the performance of prior period and for this the team member is need to be equipped. A planned meeting will allow the employee and manager to be prepared for the meeting in advance. And by reminding the team member prior the period about the motive behind the evaluation and the tools that will assist them to prepare for the meeting will provide better results (Dobson, Starkey, & Richards, 2004). If it happens to be the first evaluation meeting the employer would ease up the employee by discussing the weaknesses and provide remedy to the problems.
During An Evaluation Meeting
The past performance of an employee is reviewed to understand the future prospect by the manager. With a clear head, the weak points about the employee are raised in order to improve the weak points, progress opportunities or ceremonial notes. The approach is not to elevate the weak points of the employee but to give chance to the personnel to draw weak points out to perform personal assessment (Dobson, Starkey, & Richards, 2004).
This is performed by asking unbiased question from the employee and not burdening them regarding the questions about their own opinion about its performance on which they consider improvement is needed (Sparks & Fernie, 2004). As it is seen that most people are modest regarding their own performance, this would result in praises from the employer to the team members for the assistance they provide to its manager about the weak areas they might have overlooked during their evaluation. Many employees would be more eager to point out the areas they think is needed for improvement as compare to the understanding of the employer they might have considered important. This process facilitates in greater deal of improvement that is seen as it avoids any criticism by the colleagues regarding their assessment. The improvement that is needed in a team member will be identified by others if the person itself fails to understand, as it is persuasive to turn unbiased drawings into a form of obligatory affirmation. The employer, hence, could make such mistake that would result in demoralize its credibility as a legitimate listener and as a good manager (Reynolds & Cuthberston, 2003). This process involves two-way communication during the meeting. The team member may itself brings up a few weakness in its performance which when compared to the manager view point are more important, the manager might abandon its point by first attending to the team member. But in the due course the employer might itself never try to abandon his initial point because of the awkwardness he feels in discussing them. For example, during discussion the employer might say that it I’ve come across the areas that I think it is necessary for improvement. According to the view point of the employer these points would be significantly important but on the other hand the employee might not regard this as important or might not have genuinely considered this point. The second problem associated with this drawing out process is the fact that employer might overdo it. Mostly the team members are eager to know what is being thought of their performance in the eyes of employer. In this case, the manager would recall the facts told by employee even if it is simply an agreement. Listening is the most important essential in this process. But if the employer realizes that he is the one doing most of the talking and no contribution are obtained from the team member than it may be because the discussion is conducted wrongly (Reynolds & Cuthberston, 2003). The second step is the future point of reference, after drawing out the important areas of weakness the manager and employee should plan the future objectives that would measure the outcome as improvement.
Asda is a British chain of supermarkets which deals with food, clothing, toys and general merchandise. It also deals in mobile telephone network, Asda Mobile. Its head office known as Asda House is in Leeds, West Yorkshire. Asda is a subsidiary of the well-established American retail chain Wal-Mart, the world largest retailer in 1999 and is the second largest chain of stores in UK, after Tesco by overhauling Sainsbury’s in 2003. Asda has been successful in attracting 17% of grocery shopper’s population by its ‘special offer’ promotional campaign (Fisher & Raman, 2010).
Asda’s promotional campaign has been based upon the pricing strategy, running under the slogan of Britain’s Lowest Priced Supermarkets, 13 years running. Being a wholly owned division of Wal-Mart, Asda enjoys the benefit of not presenting quarterly or half-yearly earning, instead they submits its books of account, each year in the month of October.
The top management structure of Asda comprise of Wal-Mart, the world’s biggest retailer, who brought the company in 1999 (Fisher & Raman, 2010). The management strategy of Asda includes high profile media marketing campaign and competitive pricing.
The growth and changes that was seen for many years in finance and industry was taken as a golden age for accountants, particularly for people that have people management skills. This gave chance to the rapid growth and commercialization of public sector during 19th century (Fisher & Raman, 2010). Accountants who have been displaced by industry during recession found jobs in public sectors from the employers eager for commercial exposure. The other incentives such as PFI would have resisted. This resulted in the ratio of unemployment steadily decreasing that lead to the period of ‘skill shortage’ that opened doors to immigrants particularly, in the field of Teaching and Nursing. The arrival of anti-age legislation in 2006 caused tapping back ‘grey hairs’ of progressive employers by the general and specific suggestions for the Finance Directors.
New anti-discrimination legislation
The EU Employment Directive on Equal Treatment introduced by UK Government requires the Member States to introduce legislation which prohibits direct and indirect discrimination at work on the basis of age, sexual orientation, religion and belief and disability. The conclusive passage bars age discrimination in employment and professional training in the UK.
This does not outline the potential consequence that results by ignoring the law but emphasis more on the potential benefits that are availed by the adoption of proactive approach in finance or to the organization at large (Dobson, Starkey, & Richards, 2004). Mostly in the progressive sector, leading and judicious organization are taking initiatives for getting ahead in the competitive environment and apprehending the unexploited prospective of the personnel who tends to work with new innovation as compare to parents, and facing the intimidating prospects of retirement age to be raised to 70 years.
Skills Shortages in Business and Finance
To obtain the answer of the question ‘what are the biggest challenges you face?’ for the 3rd edition a survey was conducted in 200 FDs from all sectors and many FTSE companies, the result obtain was ‘getting and keeping good people.’ The following are the factors that have led to this response?
In the recent time, after the development of corporate governance many sectors and industries are facing skill shortages in many organizational roles, especially for specialists such as IT and Finance. It is not the reason, that industry lacks accountant with inter-personal and communication skills (Levinson, Valas, & Wilson, 2004).
The difficulty caused is due to the slow response of the new legislation that has been implemented (through the comparative retort to disability legislation). There are real organizational a benefit that is associated to the fact which recognizes and attracts undervalues talents before they are created as bandwagon.
The under-represented groups have faced a greater level of ignorance and discrimination in the work force. The old myth associated with women was ‘women leave and have babies.’ The old manner of asking women about their martial or family plans has now been illicit as it is now been understood that women are more loyal compare to men regarding their responsibilities, especially when they are encouraged and supported to return to work after family (Levinson, Valas, & Wilson, 2004). (Unfortunately, the growth in female employment may be due to the fact of 25% inequality in average pay scales and in due time the pay scale may even be decreases to the level of men’s pay).
The Myths of Age
Many organizations can adopt the strategy for managing personnel for age. But the myths associated with the people such as: older people tend to get ill often and have less energy, even though thousands of people over 50s compete with each other in Marathons, Half Marathons, Triathlons, etc. the older people are better focused in their work and manage effectively as they listen and communicate better, it is been seen that they are more customer focused, committed and hard working (Bourlakis & Weightman, 2004). Unfortunately, older people works for short period of time and still they are more preferred due to their loyalty, hard working, respond to complaints with good management and they prefer security for progressive income. On the other hand, the young generations are fitter and tend to take more care for themselves but they unfortunately are more relaxed in their outlook to life, and tend to do irresponsible act relating to alcohol, diet, drugs, fitness, health and sexual promiscuity as compare to elders. A ratio of young people don’t want careers and job-hops for extra income, taking more off days and training cost.
Part of Employee Retention
The reasons such as job-hopping for better remuneration and poor employee relation results in about 15-20% in UK, however in some organization this staff turnover rates reaches the highest longitude of 200% p.a.
A reputable employer in North has published ‘Our intention is to create the best workplace for our employees’ in its employee’s values on it company website. The fact that high turnover in companies is faced due to the reasons that are included in exit interview are: over-worked, undervalued, underpaid, broken promises, poor communication, etc (Dobson, Starkey, & Richards, 2004).
Many people don’t leave their jobs for money. The reasons behind their resignations are because they are unhappy, undervalue or unsettled. The organization that develops an employee retention strategy based on valuing its employees faces lower staff turnover ratio. The place who understands values, attitudes and management styles contributing to and accessible to older employees, will enjoy lower staff retention ratio and the workplace environment would be more relaxed and this will improve the productivity of the company.
The retail organization in the last few years has undergone various changes as they are more aware about the needs of the customers. Women workforce comprises of 50% total workforce and takes part in all major spending decision in their household. Specifically in retail business people are more aware of their surroundings and are dominating in every aspect of life especially in the field of retail consumer goods, fashion and financial services. Besides understanding the practical values of recruiting personnel who are more knowledgeable about customer’s attitude and desire, customers, spontaneously become associated with the company if they are aware of organization’s values and behaviors (Zentes, Morschett, & Klein, 2007).
Chapter 5: Conclusion
In this modern world management is one of the important characteristic of organisations because the management strategies are changing day by day. Today organisations give most importance to human resource departments. Such organisations which give importance to the management strategies and plans it’s strategies in a different and unique way are successful in both the long and the short term. I n addition to this a number of motivational techniques should be used in order to make use of the human resources. Organisations which do not focus on its management planning and which do not utilizes its human resources are short term organizations. In past, the employees were merely treated as conservative workers and there was no concept of motivation toward job. There was a group which deals with the employees. The employees were treated as slaves and no friendly relation was established between the employees and the management. There was a conversational gap between the employees and the management. They were punished for their little mistakes and no reward was given for effective performance. As time has passed, the individuals have realized that by treating their employees in this way will not give benefit to the organization. Likewise marketing is another important tool for the success of an organization. Organizations firstly determine their target market and then plan their strategies accordingly to attract their customers. If such strategies are successful then it is beneficial for the organization. In the initial stage usually organizations focuses on price, promotion, production and placement. Once the attraction of the customers has been gained, much bigger strategies are designed. For this it is important to understand that what actually strategic development is? Strategies are the long term planning designed for the achievement of goals. During the early days, the word strategy was associated with the army but today it is also a marketing terminology. These marketing strategies are designed to motivate the consumer to buy a product or avail a service. This planning is done according to the target market that is what are the likes and dislikes of the customer. Not only is this but age group, status, religion, culture and language also kept in mind. Status plays an essential role in the price plan that is prices are settled according to the status of the target consumer and likewise knowing the religion and culture helps in producing the products which are not prohibited by their ancestors. Some organizations distribute free samples before launching the product in the market. It is also a good way of marketing but it depends on the budget of an organization. A good strategy maker is one who firstly views that how many competitors are present in the market and what benefits they are offering at what price then he plans to give such a benefit to its customers which is ideal and has not been given by its competitors. This is called competitive advantage. He then spends a suitable amount of money on marketing the product. Therefore it is true to say that management strategies are a key to success.
All in all it can be said that management strategies are the key to success for every organisations specially those organisations that are facing stiff competition. This research evaluated different retail organisations of United Kingdom which are ASDA, Tesco and Sainsbury. The entire three organisations are considered as the top organisations of United Kingdom. Through secondary research and analysis of the literature it can be said that management techniques that are applied by these organisations are the key success factors for these organisation. The proactive approach and time management of customers is done through different managerial processes that were discussed in this research. Organisations that do no t implement these researches can suffer in the long run and they can easily recognise the importance of these managerial strategies when they lack in the longer run. However, it should be noted that implementation of these strategies should be done properly and these strategies should not be taken as a fad or a fashion oriented statement. The efficiency and productivity can only be increased if effective management is done in organisations.
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