Sample essay on role of management in a business organization

Vision and structure

The vision of the company is to be the leading global manufacturer and distributor of medical equipment. The organizational structure of the company is such that the topmost person is the President responsible for the whole company. The second in the rank is Vice President responsible for operations. Under Vice President, there are managers heading the units of purchasing, warehouse, engineering, IT, Human Resources, Finance, and Marketing. Each manager oversee a number of departments with departmental heads.

Role of management in effective deployment of human resources

The management understand that the performance of the company is partly contributed by how best the human resources activities (such as employee deployment) are linked with the company’s strategic goals and objectives. As such it carry out effective deployment of human resources in all the departments. To successfully deploy staff, the management considers a number of things. Firstly, it analyze staffing of the departments to find out if there are any shortage or excess of staff. In case there is shortage, the management finds out staff who have the necessary skills and experience to fill the gap. Such employees can be found within an organization. In such a case, it will just involve transfer of staff from one department to another. However, the management might find that there is staff shortage in a certain department and that there no other employees with the necessary skills and experience within. In such a case, the management will consider obtaining employees from outside. They will then advertise for the positions, invite candidates for interview and select the number required. The new employees undergo a training before they are deployed to serve in the respective departments where there is shortage of staff. The management also tries as much as possible to also align employee development goals with the strategic objectives of the company.

Organization of the work force and its effect on business performance

The company have an organization structure which indicates who reports to who or who is charge of particular departments. Besides the organization structure, staff from all departments have been organized into teams. The idea of organizing staff in teams has been observed to be one way of increasing staff performance and consequently company performance. For example, performance expectations for each employee and department are well-established. Those in charge of the various departments ensure that goals are consistently met effectively and efficiently. They work together as a team to achieve targets set for each department. Every team has a team leader who leads them.

Role of strategic and tactical direction

Strategic and tactical strategies are usually employed to improve business performance. Usually, the company’s lower management and staff develop tactical plans which involve what should be done in the short term; usually a year or less. Tactical plans involves what is currently taking place in the organization in departments such as marketing, plant facilities, production, finance, marketing, and human resources. On the other hand, the higher level management are usually concerned with strategic direction of the company where the emphasis is to forecast and plan for the company’s future direction. While strategic direction is about long term future plans, it is the tactical direction that plays a key role in achieving the desired strategic direction. Tactical plans involve the specific actions that are required to be done, the steps for achieving the, what needs to be used, and personnel involved.

Consequences of effective management on business outcomes and employee satisfaction

Management of company’s affairs are many including finances, people, operations, and marketing among others. The company’s overall performance depend on how well these units are managed. Research has shown that effective management has been associated with improved business performance. One aspect of management is the management of people; the employees who work for the company. There could be a competitor or competitors offering the same products and services. However, one company with a well-managed employees might make the big difference between it and its competitor. Previous research has shown that there is positive relationship between employee satisfaction and business performance. One of the most important things is therefore to make sure there is a good human resource strategy in place. Research has also shown there is a positive relationship between employee satisfaction and business outcomes such cost reduction, profit, revenues, profit margin, sales, return on assets, and sales growth. Achieving employee satisfaction requires effective utilization of all spheres of people management practices including hiring, performance appraisal, training, development, and compensation. People management practices are drafted to attract, motivate, compensate, retain, and develop employees. Employee satisfaction is achieved effectively employing good management practices. Satisfied employees are willing to work in the interest of the company more than their own interests.

Consequences of ineffective management on business on business outcomes and employee satisfaction

While research on effective management has shown a positive relationship between business outcomes and employee satisfaction, it can be concluded that ineffective management results in a negative relationship between business outcomes and employee satisfaction. The impact of ineffective management would be poor employee satisfaction and weak business performance. Dissatisfied employees might opt to leave the company resulting in a high turnover. The company can also record losses or small profits, dipping sales, increasing costs, low revenues. If nothing is done, the company would eventually close business.

Recommendations for improving business outcomes

There are a number of ways through which the company can employ to improve business outcomes including organizational culture and strategic human resource management. Investigations by Kotrba et al (2012) revealed that organizational culture plays a key role in organizational performance. For example, they pointed out that companies whose organizational culture emphasize adaptability and consistency record higher performance. These findings are consistent with results obtained by Prajogo and McDermott (2011) who examined the role of culture on performance. Their findings suggests a positive relationship between a company’s organizational culture and process innovation, product quality, product innovation, and process quality. This results imply that the company can improve its business outcomes by developing a strong organizational culture. Certain human resource practices such as compensation, supervision, and job training has been found to be effective in enhancing job satisfaction of the employees (Tooksoon, 2011). Research has also shown that job satisfaction has a positive relationship with organizational performance (Edmans, 2012). Edmans found out that a firms who has high values records high level of job satisfaction. Such employees are committed and are willing to serve more in their organizations. The company can therefore ensure that there is a good human resources practice strategy such as compensation, supervision, and train to reduce cases of employee turnover which is brought about by dissatisfied employees.

References

Edmans, A. (2012). The link between job satisfaction and firm value, with implications for corporate social responsibility. The Academy of Management Perspectives, 26(4), 1-19.
Kotrba, L. M., Gillespie, M. A., Schmidt, A. M., Smerek, R. E., Ritchie, S. A., & Denison, D. R. (2012). Do consistent corporate cultures have better business performance? Exploring the interaction effects. Human relations, 65(2), 241-262.
Prajogo, D. I., & McDermott, C. M. (2011). The relationship between multidimensional organizational culture and performance. International Journal of Operations & Production Management, 31(7), 712-735.
Tooksoon, H. M. P. (2011). Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover. Journal of Economic and Behaviors Studies, 2, 41-49.