Category: Management

The elimination decision is, beyond any doubt, one of the most ambiguous questions in the marketing field. Whereas, under particular circumstances, the necessity to delete a product from the offering range seems to be inevitable, the possible negative outcomes might prevent a manager from being decisive. As long as product elimination is an involuntary measure, the question arises regarding the factors that determine the appearance of this kind of necessity. Some specialists believe that the need to delete a product is a logical consequence of the unreasonable managing policy (Lehmann & Winer 2005). Meanwhile, an opposite point of view suggests that product elimination is a natural process that cannot be avoided even with the help of an efficient management strategy (Avlonitis 1987).

To begin with, one should note that the most typical reason for the product deleting is the lack of the customers demand for the relevant item. Thus, a particular product might become unclaimed due to a series of factors: the expired time limit, the competitive disadvantage in comparison to the newly appeared products, and the disappearance of the piece of reality it initially intended to serve. One of the most vivid examples of the following case is the decision of Coca-Cola to delete their product Coca-Cola Vanilla short after the latter was introduced in the market.

One can suppose that the company realized that the customers demand for the drink was significantly lower than they had expected; therefore, the delete of this item seemed to be the only way out. One can hardly claim that the relevant managing decision was unreasonable. On the contrary, one has a ground to assume that the managers unwillingness to make the elimination decision would have led to considerable financial losses for the firm.

Another case when the delete of the product does not represent the result of a poor managing strategy is the intention to introduce a new updated product. Some managers make a decision to delete the existing product so that it does not create extra competitive challenges for the new item that is about to appear in the market. In this situation, the elimination decision is rather risky, and its outcomes are often unpredictable.

The relevant strategy is particularly typical of popular catering companies. Hence, McDonalds tends to delete the existing items from the menu as soon as the new updated version of this product is worked out. The peculiarity of this management practice is that the product is deleted from the offering range notwithstanding the fact that there is a high customers demand for it. Such cases of the delete of products are another example that refutes the assumption that the relevant measure is determined by the faults of the management.

On the other side, the opinion that the product deletion is caused by an inefficient management practice is likewise justified. Thus, the lack of the customers demand might be the result of a poor management targeting and a faulty analytical prognosis. As long as the decision to delete a product from the offering range is still reasonable, the necessity to implement this measure signifies that some critical aspects have been overlooked at the planning stage. Thus, the example of a series of the unsuccessful Nokia products, such as Nokia 1209 and Nokia 1220, show that the company introduced the products that were initially disadvantaged from the customers point of view. In this case, the company had to delete the products short after their introduction and, consequently, bear financial losses due to the crucial mistakes of the management.

Furthermore, the need for the products elimination is often provoked by the managers inability to estimate the competitive capacity of the item in the global market adequately. Due to the globalization process that is rapidly gathering speed, managers have to be particularly careful while monitoring the competitors offer, its price, and quality characteristics. Hence, for instance, the launch of the Macintosh TV turned out to be a complete failure, and the Apple Company suffered significant losses. The principal reason for this breakdown was the poor management and its incapacity to assess the competitive environment of the current market. The company had to delete the product from its offerings as the TV they introduced was evidently losing the competitive race due to its high cost and the lack of distinguishing advantages.

Therefore, one might conclude that the problem of a product deletion is highly complex and controversial. Practice shows that the reasons that cause the need for taking the relevant measure are varied. Thus, on the one hand, product elimination might be a natural necessity determined by the altered environment of the current market. In this case, the timely decision of the management to delete a particular product from the companys offerings is likely to have a positive impact on its performance. Meanwhile, in some particular cases, product deletion is caused by the poor management that overlooked the opportunity to avoid taking this risky measure.

Management of services

Nowadays the question that effective management is the determining factor of a successful companys performance seems to be undoubted. Most of the modern companies face the problem of working out managing strategies for advancing their services and products. Therefore, the question arises whether the relevant policies should be different for services and products. Some specialists believe that the main principle of management are similar regardless of the time of items the company advances (Araujo & Spring 2006). In the meantime, some analysts argue that the management of services requires a more profound planning and targeting in comparison to the products advancing (Gounaris, Avlonitis & Papastathopoulou 2006).

On the face of it, it seems that the management of service and that of products are completely alike. First of all, in both cases, one has to deal with the development of an existing option. Thus, as long as the customers demand for a certain item is relatively high, every company still intends to perform some allowances in order to improve the existing service or product and push up sales in such a manner.

The following assumption is well proved by numerous examples of mobile companies that introduce various apps and add new options to the existing devices. Hence, for this very reason, IPhone tends to introduce the update version of every product once in a while. The IPhone 6 is consequently followed by IPhone 6S that is almost the copy of its precedent, but it still helps the company to maintain the customers loyalty. Likewise, many hotels upgrade the offered services. The management employs this measure on a regular basis even if they receive no evident signal of the clients dissatisfaction.

Another common trait of the service and products management is the importance of a brand that sells them. Thence, one of the primarily aims of every company is to contribute constantly to its images development regardless of the type of items they advance. The analysis of the example of the Blackberry Corporations case might make one presume that the exclusively high rates of their sales are largely determined by the successful brand development. As long as the products and the services on offer do not possess any significant distinguishing advantages the company contributes large amounts of money to the advancement of the brand itself, which, in its turn, assists Blackberry in the maintenance of their clientele.

Moreover, one of the key similarities between the management of services and that of products is the necessity to act in the framework of a severe competitive environment. As a result, it is not only the offered item management has to focus on but the monitoring of the rivals offerings as well. One might assume that, in the current era of globalization, the competitive challenges for services and products are relatively equal. Therefore, catering establishments now have to be particularly careful about the development of their products and the services. One might easily note how the delivery offers of a particular restaurant are considerably upgraded as soon as its competitor introduces a special offer. The menu of these restaurants is likewise renewed every season in order to keep up with the competition in the relevant market.

Nevertheless, one still has to take into account some critical peculiarities of the service and products management in order to work out an efficient strategy. Some specialists note that these distinguishing features are particularly crucial while dealing with the items elimination. Hence, Gounaris, Avlonitis, and Papastathopoulou suggest that the deletion of a service is a more problematic procedure than that of a product; as a consequence, it requires extra consideration. According to the analysts, most of the difficulties of a services elimination are determined by the impossibility of replacing a service immediately by a more developed counterpart like it can be performed in the case of a product management.

The researchers presume that the introduction of a new service might take the company a considerable time period before the offered option acquires the customers appreciation (Gounaris, Avloniti & Papastathopoulou 2006). As a result, the deletion of a service represents a riskier measure that the products elimination. This point of view is wide spread. Thus, some specialists explain this phenomenon by the fact the service advancement requires an introduction of a thoroughly worked-out concept. The necessity to create such a concept makes managers give their preferences to the product deletion instead of the services elimination (Araujo & Spring 2006).

Conclusion

The analysis of various company cases shows that the management of services and products represents a complex system that bases on the consistent marketing principles. Thus, both managing strategies need to consider the aspects of product and services updating, the brands improvement, and the current competitive environment. Meanwhile, one needs to be acquainted with the key peculiarities of the offered options in order to work out an efficient policy. Hence, there is an opinion that the service management is a more complex and problematic procedure than the advancement of a product.

References

Araujo, LM & Spring, M 2006, Services, Products and Institutional Structure of Production, Industrial Marketing Management, vol. 35, no. 7, pp. 797-805.

Avlonitis, GJ 1987, Linking different types of product elimination decisions to their performance outcome: Project Dropstrat, International Journal of Research in Marketing, vol. 4, no. 1, pp. 43-57.

Gounaris, S, Avlonitis, G & Papastathopoulou, P 2006, Uncovering the keys to successful service elimination: Project ServDrop, Journal of Services Marketing, vol. 20, no. 1, pp. 24-36.

Lehmann, DR & Winer, RS 2005, Product Management, McGraw-Hill, New York.

Organization design is a process of creating roles and designing reporting relationships in an organization. It is a guided process that integrates people and technology within the organization management and is aimed at improving the collective responsibility in the handling of duties thus ensuring success in achieving set objectives (Roberts, 2008). The management and other workers design the organization goals after which teams are created to ensure the set objectives are all achieved. The teams are required to follow systematic procedures and critically analyze the environmental factors that would hinder the accomplishment of the set goals.

Principles of setting organization design

The organization design is based on the hierarchical principle. In this concept, organizations are managed through a bureaucratic system in which duties, authorities, and responsibilities are passed downwards. The organizations policies are passed from the top management to the subordinates under the guidance of departmental heads who supervise different activities at every level in the organization. The principle encourages specialization as workers are assigned responsibilities in areas where they own technical skills such as sales, accounting, and event production. Every employee within the organization reports to the higher authority in the hierarchy. However, the principal faces many challenges such as oppression of workers in lower ranks hence low morale in accomplishing the set goals. These factors arise due to putting different workers from different cultural backgrounds together to achieve common goals as the differences might hinder the organizational work ethics and workers commitment to achieving the set goals.

The design process

The process begins with strategy creation which involves the establishment of guidelines to accomplish the set organization goals. The management derives strategy from the organizations mission and vision as well as statements of purpose which defines the organizations philosophy of existence (Roberts, 2008). The strategy enhances unity within the organization by enabling stakeholders to work towards achieving the set organization goals. After this, workers are grouped and assigned responsibilities to accomplish within a specific period and ensuring that every objective is achieved.

Roles of organizational design

Organizational design plays a major role in achieving the set objectives of an organization. It helps the stakeholders to concentrate their efforts towards attaining the organizational objectives by specializing in activities they are well suited to and those that would ensure prosperity and customer loyalty. First, it promotes innovation within the organization. Innovation entails the successful introduction of new methods of carrying out activities within an organization that is meant to add value to the product already in the market (Mackernzie, 1986). It includes the synthesis of knowledge from the original concept to add relevant value to the new products of the organization. Due to greater specialization in various organizations, workers are assigned duties in departments they are well suited to due to their skills and experience. As a result, they can create new ideas that would ensure the achievement of the goals and objectives. Similarly, they can create new ideas on the best production methods, product branding systems, and even best methods to market their products. These inventions are brought about by changes in technology and are later put into operation under the guidance of the manager who ensures their full implementation for the sake of future prosperity according to the mission, vision, and direction (Burton, 2006). The inventions enable the organization to withstand the challenges brought about by stiff market competition that might make it lose brand loyalty.

Promotion of social responsibility

Business organizations are endowed with various responsibilities within the organization itself and society. Organization design ensures these responsibilities are achieved by assigning every stakeholder his/her duties to accomplish in an effort the meet the set goals and maximization of the organizations values. The design ensures that the organization maximizes the shareholders revenue by rising beyond the environmental barriers and ensuring workers are paid their dues promptly to motivate them towards achieving the organizations goals. In enhancing social responsibility, the design encourages the employment of the society members into the organization, improving public image through accepting consumer associations, charging acceptable prices on their products, and ensuring maximum use of resources to avoid wastage (Mackernzie, 1986). These strategies enable the organization to operate in a friendly environment in which both the society members and the organization enjoy using the products thus increase in sales of the organizations productivity.

Ensuring improved product quality

Organization design enables the business to make proper use of the Six Sigma technique. This technique ensures effective communication between customers, shareholders, and even employees. It ensures improved production methodology and aims at eliminating defects and inefficiency in production by indicating performance level that culminates in reliability and value addition to the services rendered to customers. Since the design ensures specialization according to skills possessed by workers, they can put much effort into areas such as production, sales, and finance among others (Roberts, 2008). As a result, departments associated with production and customer services can undertake research activities towards high-quality production of goods and services that ensure customer satisfaction. Similarly, they can undertake blending and branding of the organization products thus assuring the consumers of high-quality products and easy identification of products hence the organization can compete effectively in the market.

Improvement in the quality of management

A properly designed structure of workers responsibilities and well-defined reporting techniques are essential in improving the quality of management in an organization. Managers are considered the role models in any organization as workers tend to copy their commitments towards achieving the organizations goals (Burton, 2006). Organization design through specialization ensures that the duties of top management are not pegged on issues such outside the organization but rather on general supervisory of activities going on within an organization. As a result, the management has to establish proper evaluation and reward systems for workers who commit themselves most towards the achievement of organization goals. The rewarded workers get motivated and work harder towards retaining the reward that could be monetary or not. This promotes the spirit of hard work and full commitment to the organizations duties among workers as they compete against each other in meeting organizational goals. As a result, accountability, transparency, and loyalty to the organization are encouraged leading to profit maximization.

Proper utilization of organizations assets

An organizations assets are for its own needs. These assets include business strategies, organization data, organizations confidential information, equipment, employee time, and vehicles among others. The strategic design ensures maximum utilization of these assets as well as frequent renovation to ensure continuity in organization activities (Burton, 2006). The management has the responsibility to protect the organizations assets from vandalism and ensures that the assets such as equipment and vehicles are used for valid organization purposes. Through the clear separation of duties and responsibilities, organization design enables workers to protect every asset in their departments as this reduces expenses on repair costs and channels the money to other duties.

Encouraging financial management and investment

For an organization to achieve its goals there must be financial stability. The finance department must keep records of expenses incurred within a given period of operation while implementing the organizations goals. The design promotes accountability over the use of organizational resources such as finance by ensuring that every department accounts for its expenses at the end of the financial period. Also, the design provides for the investment of extra capital in the stock market (Mackernzie, 1986). The remaining capitals are sold to the public in terms of shares during the Initial Public Offer (IPO) and are used to measure the countrys economic development. The design, therefore, allows for accountability in financial handling leading to expansion in a business capacity.

Organizational design is therefore the major determinant of the prosperity of any organization. This is because it incorporates skilled workers whose ideas are shared all over the organization and assigns individuals to implement the various policies created by them( Burton, 2006). The design also promotes the incorporation of technology into the management and production systems thus enabling companies to produce high-quality goods and services to satisfy customer needs hence prosperity of the organization.

References

Burton, R. (2006).Organizational design: a step-by-step approach.Cambridge: Cambridge University press.

Mackernzie, K. (1986).Organizational design: the organizational audit and analysis technology, Communication and information science. New York: Ablex Publishers Corporation.

Roberts, J. (2008).The Modern Firm: Organizational Design for Performance and Growth. United Kingdom: Oxford University Press.

Finance Systems

Relationship between a Financial System/ Function and Other Systems / Functions

The finance function represents the heart of every business. It is the ignition key for every business to thrive and prosper. In this case, it integrates all the other systems in the organization such, as the marketing function, information technology, and the management function as the major areas of business. An organization cannot run or achieve its objectives and the shareholders expectations without the finance department.

The financial function is a process where all the activities of any particular organization are explained in monetary terms. This in turn assists the organization generate reports that are useful to the shareholders, investors, and other interested parties. Financing assists in many things such as the purchase of equipment, leasing, paying out salaries and wages, sales, and marketing, among others (Nair & Rodrigues. 2013).

Relationship between the finance function and the production function

The production department produces goods. It requires raw material, labor, and fixed overheads in the production process. To pay for all these costs, the production department needs money, which has to come from the finance function. The finance function scrutinizes the budget of the production department and disburses the funds needed to fulfill the roles of the production function.

The correlation also applies in sales, as the producers supply the products. Both the finance and the production function should cooperate so that the business can ultimately grow.

The relationship between the financial function and the marketing function

It is the marketing department that must sell the maximum goods that satisfy the customers wants and needs. The marketing function does product development, promotion, and distribution activities. They, therefore, need some money to fund all these activities. The marketing managers thus create a budget; the finance managers have to approve before availing funds. The money will come from the finance department.

The relationship between the finance function and the personnel function

The employees of any particular organization are managed by the personnel function. Both departments depend on each other to meet the goals of the company. It is a requirement in any particular organization that employees be paid. The objective of any organization is to reduce the misuse of funds by paying just the right amount of salaries to the exact people. The departments should, therefore, work together to eliminate any instances of ghost workers. The employees are usually the human resource capital of any company. They, therefore, need to be trained, given incentive schemes and retirement benefits so to increase their morale.

The human resource function, the marketing function, the IT function and the finance function all depend on each other to achieve the objectives of any organization. The IT function in this modern era plays a very important role in financial modeling.

The finance function has a main duty which is to seek cheaper funds for any future investments. The investments should be able to generate a positive net present value, as a result, the organization will remain to be inexistent for the foreseeable future, and it will be able to meet all its debts and liabilities.

Systems of Accounts and Financial Statements Used to Control a Financial System

Financial statements are also known as financial reports. They are formal records that show the financial activities and the financial position of an organization. They are normally structured in a manner that is very presentable and easy to read and interpret. They include:

The statement of financial position

It is also referred to as the balance sheet. It normally reports the assets, the liabilities, and the owners equity in a given financial year.

The statement of comprehensive income

The statement of comprehensive income is also referred to as the income statement, statement of revenue and expenses, or the profit and loss account. It reports the income, the expenses, and the profits of a particular organization in a given financial year.

Statement of changes in equity

It is also referred to as the equity statement or the statement of retained earnings. It normally reports all the changes in equity in a given financial year.

Statement of cash flows

It normally reports the cash flows of an organization, in particular, the operating, investing, and financing activities.

In larger organizations, in a given financial year, the financial statements may be very complex and may include the notes to the accounts and the discussion of the management and the financial analysis to compare the trends in the growth of the organization.

The Information Contained in a Set of Accounts or the Financial Statements

I will use the financial statements from Al-Rajhi Bank of Saudi Arabia for the years ended 2014, 2015, and 2016 for exemplification. The bank was established in 1957 and has over 600 branches word wide. The Al-Rajhi Bank is known to be the leader of the Sharia Islamic law system and abides by it to the letter. It is because of this reason that the majority of the residents in Saudi prefer it. It was founded by four brothers, and about 75% of the shares are privately owned. In Quarter 3 of 2015, it recorded a 27.8% increase in profits. This is because the bank benefitted from lower operating expenses than they had projected.

Profitability ratios

The profitability ratios measure the performance of an organization. They normally focus on the companys return on assets and equity

Al Rajhi Bank has had its ROA increasing steadily for the years 2014, 2015, and 2016 by 2.33%, 2.29%, and 2.8% respectively. This is an indication that the bank is continuing to earn an increasing profit on each SAR of investment. Al Rajhi bank could be well managed, and that is why there is an increased ROA.

Al Rajhi Bank had its highest return on equity in 2014 at 17.03%. This could have been a result of financing themselves with equity and debt capital, increasing their profit margins, increasing their asset turnover distributing their idle cash, and lowering their tax rates. By 2015, the return on equity decreased to 16.11%; this could have been a result of decreased tax rates, decreased asset turnover, decreased profit margins, and financing themselves with more equity as compared to debt capital. In 2016 however, its return on equity steadily increased to 16.49%.

Liquidity ratios

Liquidity ratio is a companys ability to pay its short-term and current debts within less than one year.

Al Rajhi Bank recorded its highest financial leverage in 2014 at an average of 7.34. Its financial leverage dropped in 2015 to an average of 6.77. In 2016, the financial leverage dropped again to an average of 6.54. Al Rajhi Bank is keeping in mind the optimal capital structure and, makes sure that that they increase the value of the company.

Activity ratios

The Activity ratios are used to measure a companys ability to convert different accounts of its balance sheet in to cash or sales.

Al Rajhi Bank has also had a constant asset turnover of 0.04 for the last three years of 2014, 2015, and 2016. This high asset turnover could be as a result that the bank is continually using assets and limiting the purchases of inventory.

A Budget for an Area of Management Responsibility

A budget needs to be very realistic. As a manager, I need to understand my role in the budgetary system. Budgeting is both financial planning and a control tool. As part of the performance appraisal strategy, the organization should appraise the managers based on their ability to operate within the organizations budget. Budgets are normally of two types, the capital expenditure budget, and the operating budget.

The capital expenditure budget is prepared for the costs that are associated with plant and equipment that lasts for more than one year such as a scanning machine.

The operating budget is prepared to assist in the normal day to day running of the business. The operating budget consists of the sales budget and the expense budget.

The Operating Expense budget for Quarter 1 of 2016 in the Human Resource Department

Budgetary Control Systems Comparing the Actuals with the Planned expenditure

Corrective Measures to be Taken in Response to Budgetary Variations

• The overtime has gone above the stipulated budget by 3,500. This shows that you should start hiring and investigate what issue required that much overtime in the first quarter.
• All the fringe benefits went above the budget. The fringe benefits went up by 50, the refreshments went up by 20, and the employee appreciation went up by 150. Investigations need to be carried out to determine why the employees are being appreciated with a lot of money and whether the organization attains its objectives as a result.
• The airplane tickets had a variance of 250. Investigations should be made to determine whether the airline company hiked its prices and what caused the hike in prices and also, you need to determine if these trips are necessary and if the company can do without them.
• The recruiting fees are over the budget by 50. You do not need as many legal fees as budgeted and so, you may need to adjust your budget for the next quarter.
• The employee training costs are up by 100; the supplies are also up 50 by and the project materials 150. You will have to adjust the software licenses. Training of employees is necessary for an organization, and thus, training costs may have to be adjusted in the next quarter.

Conflicts That Can Occur with Management Control Systems and How These Could Be Resolved or Minimized

• Conflicts between the different functions in an organization;

An organization normally has different functions working towards a common goal. A particular function may argue that their budget is better than the other functions and thus need a lot of funding to cater for the major variances, this may result in a conflict among the line managers. The line managers should, however, be advised that every functional unit in an organization is as important as the others and they must work together towards the common goal of the company.

• The conflict between the budgeted outcomes and the actual outcomes;

Some line managers prepare unrealistic budgets that do not provide room for any changes in the economy. Changes usually occur every day, and the line managers must understand that and prepare budgets that are very flexible to accommodate any changes. The changes are really important in every budget to keep up with the competitors and the constant changes in the tastes and preferences of the customers.

• The conflict between interdepartmental targets;

Many line managers may have budgets and targets that contradict each other, for instance, the sales department may want to increase their sales at a given margin by the end of the first quarter whereas, the production function may have a machine that has failed that cannot produce what the sales function expect. This results in a conflict. The line managers should understand that all the departments need to work together to achieve the common goals of the organization.

Sources of Finance

Define the Current and Potential Sources of Finance That Support Organizational Activities

Banks and financial institutions

Banks provide both long term and short term sources of finance. Banks lend organizations money in the form of loans or overdrafts. Loans may take repayment of up to three years while paying the bank a fixed sum of money plus any interest. However, before the banks and the financial institutions lend out a loan, they usually require security for the loan. Banks, on the other hand, provide short term finances in the forms of bank overdrafts, then bank overdrafts, however, may also have a limit and they are usually repaid as soon as possible.

The business retained profits

Every business usually keeps some money in their account that is recorded in the statement of changes in equity. The retained profits that an organization keeps are usually kept just in case an organization runs into debt. Dividends are also paid out from this retained profits. The retained profits may be plowed back into the company to serve as a source of finance.

The venture capitalists

These are external investors that usually want a higher return on their investments. They deal with companies that have a high growth ratio and that have a high rate of return on their investments. They aim to make very high profits.

The sale of the organizational assets

Organizations may sell some of the fixed assets such as land, machinery, or property to finance themselves.

Evaluate the Distribution of Finance in Support of Organizational Activities

The Human Resource Department

This department is responsible for hiring personnel and training them for their development. The employees, however, need to be paid and the finance function must do so,

The production department

This department produces goods that need to be sold by the marketing department. They, therefore, need to purchase the raw materials necessary to produce the output expected. The finance function must fund the procurement of these materials.

The marketing department

The marketing department needs to do a lot of advertising, research, and branding for the goods to be sold. All these require funds from the finance function. The funds received from the sales in the marketing function are recorded in the finance function.

The information technology department

In modern times, the IT department is the backbone of any organization. They are responsible for coming up with software for the other departments to use. It is the work of the finance department to fund all the outsourced IT services and software.

Evaluate the Monitoring and Control of Finance Employed in Support of Organizational Activities

Control techniques normally provide managers with the information that they need to measure performance. The information from the controls must be specifically for a specific management unit. Many corporations use financial reports to ensure that the information is consistent and accurate.

Budget controls

A budget is used for both planning and control. Budget development methods are Top-down budgeting; this is where the top managers prepare the budgets and hand it over to the bottom managers. Bottom-up budgeting, this is where the lower levels of management come up with the budget and send it to the top managers for approval. Zero-based budgeting, the line managers are responsible for coming up with a budget against the contribution of that particular department within the organization. Flexible budgeting, the budget is set in a way that can be altered to meet the needs of the changing economy.

Marketing controls

These include doing market research and gathering data regarding consumers changing needs and wants and their preferences. They include Test marketing- this is doing a test on a small group of people to assess the needs of a larger group of people. Marketing statistics involve data collection and analysis to gauge performance levels.

Human resource controls

They enable the management to enhance the performance of the workforce. The employees performance should meet the set standards. The controls here include performance appraisals, disciplinary measures, training, among others.

Computers and information controls

The control involves the use of electronic devices to gauge performance.

Reference

Nair, G. K., & Lewlyn, L. R. (2013). Dynamics of financial system: a system dynamics approach. International Journal of Economics and Financial Issues 3(1), 14-26.

The sustainability of organizations depends on various factors that shape different aspects such as the motivation of employees, their commitment to business goals, attitudes of clients, productivity, and so forth. It is possible to consider the so-called 8 Ss model that can illustrate the attributes that are important for successful enterprises. Much attention should be paid to such factors as strategy, systems, structure, staff, shared values, skills, style, as well as spirituality. To a great extent, the components of this model can be useful for improving the sustainability of a business. This framework should be considered by various stakeholders, such as HR managers and senior executives. These are the main details that should be discussed in greater detail.

At first, it is important to mention such a notion as a strategy or long-term and high-level goals that an organization should achieve. These objectives should be clear and appealing to various stakeholders, such as senior executives, frontline managers, and employees. Additionally, much attention should be paid to the role of structure. This element is supposed to describe the methods in which tasks are allocated among different employees. For instance, an organization can be divided into units, departments, or divisions that can be engaged in various economies. Moreover, the term structure is supposed to depict the power relations among employees and managers.

For instance, in some companies, employees have more opportunities to taking independent decisions. Yet, very often, workers are deprived of this opportunity. Thus, the key task of managers is to make sure that the organizational structure best fits the needs and objectives of a business. It is also necessary to examine the role of systems, which can be regarded as the set of procedures and rules that facilitate the interactions among various stakeholders. In this case, one can speak about performance appraisal methods, training programs, or cost-accounting procedures. Systems can significantly increase the efficiency of the enterprise and strengthen the commitment of employees.

Much attention should also be paid to shared values, which are important for the commitment of employees and their improved performance. Among these shared values, one can distinguish integrity, attention to quality, and responsibility. Furthermore, the workers should understand that the improved performance of the company can benefit them as well. Moreover, they need to share the vision of managers. It is also critical to examine the managerial style. This term can be often applied to describe the relations between people who occupy different positions in the workplace hierarchy. In some cases, managers can act in an autocratic manner and impose their decisions on the workers. In contrast, other executives may be more willing to consider the opinions of workers and empower them. This is one of the details that should be taken into account. Overall, it is important to select the most appropriate style that best corresponds to the needs of a particular organization.

Another component of the 8 Ss model is usually known as staff. In this context, this term incorporates several elements, such as the motivation of workers, their beliefs, and attitudes. It is necessary to understand the attitudes of employees because, in this way, one can better pinpoint the origins of the problems that a company may face. This issue should be taken into account by HR managers who must gain in-depth insights into the behavior of employees and their main motives.

Furthermore, researchers also focus on skills or the competencies of the employees as well as the organization, in general. Managers should continuously work on the development of peoples skills because, in this way, one can significantly increase the resilience of a company to various stressors such as the changes in demand or the threats posed by new competitors. Therefore, one should help workers achieve professional growth because it can be vital for the sustainability of the company in the long term. This issue should also be the main priority for HR managers who need to develop appropriate training programs for workers. This element of the 8 Ss model should be vital for professionals who are responsible for the recruitment of employees.

The last component of the 8 Ss model is spirituality. This concept should not be interpreted only from a religious perspective. More likely, this term can be defined as the willingness of the management to consider the inner world of employees, their emotional needs, and aspirations (Tourish & Tourish 2010, p. 211). In the past, this element has often been disregarded by managers. Nevertheless, the findings of researchers suggest that companies try to focus more on this issue because the spirituality of leaders is important for gaining the trust of employees (Tourish & Tourish 2010). Additionally, spiritual leaders are able to change the values of workers and make them more committed to organizational goals. This is why this component of the 8 Ss model should not be overlooked.

On the whole, this discussion indicates that the study that 8 Ss model can be useful for identifying the factors that can influence the performance of any organization. While analyzing the functioning of an enterprise, one should consider each of these elements because they are useful for evaluating the strengths and weaknesses of this business. Moreover, this model is important for developing long-term policies for the company. These are the main points that can be made.

Reference

Tourish, D & Tourish, N 2010, Spirituality at Work, and its Implications for Leadership and Followership: A Post-structuralist Perspective Leadership, Leadership, vol. 6. no. 10, pp. 207-226.

An Outline

The following was the teams plan for the study of Supply Chain Management in the business situation at Alton International (S) Pte Ltd, Singapore Operations.

• Actual site visit
• Purchasing Department
• Sales and Marketing Department
• Human Resource Department
• Warehouse & distribution Department
• Customer Service Department
• Presentation of conclusion and recommendation

The concentration, naturally, was on the departments involved in SCM. Several gains, e.g., seeing theories of management being practiced and personal development as effective managers by exercise of classroom-learned management skills and inherent abilities, derived from systematic study of areas besides the focal area of SCM. The author sees major gains in the areas of 

• Adaptability
• Planning and Organization
• Time Management
• Teamwork and Assertiveness
• Creativity
• Analytical Skills
• Communication and Presentation

In fact, this learning experience began even before the teams work commenced, as this author will show.

Choice of the organization and planning the study

People who create and manage opportunities are rarely fazed by problems (Pat OReilly, 1998, p. 2.) The team intended to study R.S. Components, but the firm could not permit its identity and other details, essential for the study report, to be disclosed. The teams two weeks of preparatory work was almost an entire waste. Among few alternatives, the team shifted sights to Alton International (S) Pte Ltd, Singapore Operations (hereinafter referred to as Alton). Some of the work done for the previous subject company proved useful and the experience also helped to achieve the shift smoothly and quickly. The entire timetable was reconstructed and the teams activities were reorganized and re-planned to be accommodated in the remaining time, which called for some intelligent time management. It was also a lesson in adapting the plan to changed circumstances to achieve the objective of studying the implementation of theories of Supply Chain Management in practical world of complex business.

The visit

The visit began with the Executive Director of Alton, Mr. Steven Ngs overview of his companys history, aims and vision. His perfect understanding of his companys business, particularly of SCM impressed the author. In his lucid presentation, Mr. Ng emphasized Altons concern for Human Resources. To prosper in conditions of severe competition, an organization must be lean. Alton provides high-technology services in testing high-value equipment, which it also supplies, chiefly to the oil sector. Keeping Alton lean and having a wide range of businesses is a demanding task. Therefore, the team decided to briefly study Altons HRM practices before entering other areas. Here again, this author learned the value of adapting the decided course of action to benefit from unexpected opportunities.

HR Department

Peter F Drucker (1967, p. 154) enumerates one of the approaches for a manager to make a business effective as He can maximize resources so that those opportunities are found- if not created- that endow the high-quality resources with the greatest possible impact. In a lean organization employees are a precious resource. They must be encouraged to sharpen their existing skills to handle increasing volumes of existing business and acquire new skills to handle new businesses the organization must undertake to grow and prosper. Alton takes care to select, train, retrain and retain the staff at every level of the hierarchy. One of the special aspects of HRM at Alton is the formalization of the processes without losing the human face of the organization.

Altons HRM activities are selected and planned in view of HRM goals and objectives that are well-crafted to be in tune with the Corporate vision. The author found excellent camaraderie and task orientation among the employees at various levels and people stepping in to help out or filling in for others. HR Manager strives to bring the team and their families together time and again in informal ways for other-than-work, recreational activities. It shows that team building must be a continuous and not a one-time effort, even as a well-constructed house needs repairs and maintenance. The team spent just sufficient to broadly understand how thoughtful understanding of an organizations business and sincere implementation of theory in practice of HRM can make a positive difference. The author particularly learned the following-

• The critical importance of creating a lean mindset and organizing related management activities accordingly.
• Leaderships role in initiating and maintaining communication between all individual employees across the hierarchy to develop healthy interpersonal relations.
• Creating a nurturing environment in which everyone values the individual.

Use of Technology

Limiting the number and cost of employees is facilitated by the use of numerous software solutions in various business activities. For this, of course, employees need to be trained and encouraged to learn other software systems. The author realized the need to achieve an optimum balance between size and cost of staff and the choice and cost of technology so that sufficient numbers of trained staff for each technology are at hand and the system does not remain idle when regular staff is not available.

Creative use of technology

Technology, when used creatively, yields greater benefits than it promises. Therefore, the team naturally suggested that Alton can use their computer networks for the staff to share their knowledge and to distribute the success stories of achievers among the staff to serve as encouragement for others and incentive to achievers.

Skills used and developed

• Used adaptability to re-prioritize.
• Keen observation to spot the opportunity to use available technology resources to upgrade staffs technology skills.
• To suggest with his colleagues more creative uses of computer networks.

Sales and Marketing

Implications of the function

Given the nature of Altons business of supplying services and high-value goods of a complex nature to clients, the team found that ordering and supply parts of inventory management are well organized and the managers are careful in keeping both these well under control.

The observation and suggestion

It was surprising that the managers had overlooked pruning their vendors list of vendors with unsatisfactory past records and left some probability of orders being placed with such vendors. The author exercised extra care in pointing this out to the managers.

What the author learned was

• Even the best systems can have flaws.
• Constant review of every part of a system against an exhaustive checklist is required.
• Tactfully assertive insistence on following the procedures is needed in such matters.

Warehousing and Customer Service Departments

The team spent a lot of time in these departments, because in Altons SCM, these are crucial for winning more clients and maintaining their loyalty in a competitive market. Altons clients are in complex hi-tech activities and a large variety of equipment is stored. Quality assurance, inventory control and planning economical distribution areas and routes require special attention. Peter F Drucker (1967, p. 148) says, A businessman should be able to determine&. the customers, markets and end-users to whom the business contributes distinctive value; and the distributive channels that have to be developed- and satisfied as customers- to reach these customers, markets and end-users.

Altons success depends on high efficiency in logistics, promptly meeting clients equipment and service requirements, minimizing clients complaints to cut service costs. The last entails high vigilance in quality matters. Altons top management is fully behind implementation of 5S practices in their workplace and enforcing Quality Standards ISO 9000 and ISO 9001 and the benefits from these practices are demonstrated to the employees. Paul Hoang (2007, p. 658) points out the dual effect of QA practices. Firstly, these invite participation of all employees and are instrumental in improving employee morale, and secondly, such participation generates new ideas for improving quality of products, operations and processes. This author learned that not verbal exhortation, but walking the talk and valuing every idea is the strongest assertion. The author remembered Pat OReillys observation that the biggest barrier to creativity is the belief that you are not creative (1998, p. 199.) when the team made a few bold suggestions from their theoretical knowledge to improve the warehouse layout to-

• Minimize the movement of myriad items for quality checks.
• Avoid crisscrossing of the routes of movement of inventory items,
• Generally store the inventory so as to occupy only the necessary floor space for economy of movement and efficient use of floor space.

Presentation of Conclusions and Recommendations

The team made a presentation, each team member dealing with a part of it. They made several suggestions as appearing in this personal report and based on logically derived conclusions based on several management theories. Mr. Steven Ng, Executive Director, complimented the team on the well-coordinated presentation, different parts of which were comprehensively interlinked, and termed the suggestions as sound and fruits of excellent management education given by Northumbria University.

References

Drucker, PF, Managing for results, 1967, Pan Books Ltd.

Hoang, Paul, Business and management, 2007, IBID Press, Victoria.

OReilly, Pat, Harnessing the unicorn: How to create opportunity and manage risk, 1998, Gower Publishing House, England.

Introduction

For any project to be implemented, resources are needed. These can be either services or materials required to accomplish the project. It is important to note that the type of resources and the source determine the extent of success in completing the project and subsequently satisfying the end user. The process of acquiring the resources is through the function of procurement which has become a core function in the operations of any organisation.

Procurement incorporates many aspects which call for critical thinking to guarantee both in the inbound and outbound logistics. According to Holm (2012), procurement plays a strategic role in helping businesses accomplish their operations and gain a competitive edge because it is integral in lowering the expenditures of a business and mitigating risks in a project. The following paper examines the function of procurement in a car manufacturing company by exploring sustainable procurement, procurement strategy, and risk supply management.

Project Risk and Procurement Management

In the modern times, procurement management is considered as a factor in the creation of value in an organisation. Efficiency in the procurement is established in terms of the price of the material or service, the quality and quantity affect the overall expenses. For instance, in the implementation of any project, there is the need to consider the risks and put in place measures that will ensure that throughout the procurement and supply chain, an organisation can cope with risks.

This leads to effective procurement that ensures that the organisation is robust in addressing possible risks. As such, efficient procurement ensures that there is timely delivery of materials to ensure continuity of a project. It is based on this understanding that Meehan and Bryde (2015, p. 983) state, Procurement plays a key role in delivering sustainable outcomes through creating, developing, controlling and sustaining the links between organisations and their supply chains to avoid commitments that are only superficial and non-compulsory.

Thus, organisations need to devise measures that ensure sustainability in the core areas of operations such as procurement in order to manage expenditures. It is based on this understanding that in the car manufacturing issues of sustainability, risk supply management, and procurement strategy are important as they influence the performance of the final product in the market.

Sustainable Procurement

Sustainable procurement entails practices that meet the current needs of the business without hurting the survival of future generations. Walker and Brammer (2012, p. 257) define sustainable procurement as the pursuit of sustainable development objectives through the purchasing and supply process, incorporating social, environmental and economic aspects. For instance, in the car manufacturing, there are different materials and services required some of which if not carefully regulated can have an adverse effect on the climate and at the same time influence the how the customers perceive the car.

It is important to note that perception is a fundamental component in the marketing of high-end goods, and thus poor reputation can affect the competitive edge of the product. Also, it is worth noting that the upstream supply chain processes can have a direct or indirect effect on the downstream logistics and are likely to affect the competitive advantage of the business. For example, today customers have become environmentally conscious and tend to buy from manufacturers who employ sustainable processes.

In the manufacturing industry, sustainable procurement involves practices, specifications, and applications of resource acquiring criteria that favour the protection of the environment, ensure the positive social progress, and support economic development. Therefore, there is a lot of emphasis on enhancing the quality of products and services by optimizing costs. In order to ensure sustainable procurement, it is important to assess the requirement of the company, the statutory requirements and the market influences. This enables the company to have a better idea of the products available on the market that meet the sustainability criteria.

In the case of the car manufacturer, most of its operations are guided by statutory requirements of environmental management that place certain obligations for suppliers of some products. Therefore, to ensure competitive edge, there is a need to go beyond the statutory regulations and implement internal purchasing practices that are sustainable; it is upon the procurement professionals to put in place measures that guide the practice.

Thus, sustainability has become a core function of business operations that serves for value addition and at the same time to meet the needs of the future generations. Sustainability has three key dimensions of environmental, economic and social considerations. The environmental aspect is concerned with how different processes are management in the procurement chain to ensure that the natural resources are utilised in the best way possible.

The key considerations in this sector include the management of wastes such as re-use, recycling, and disposal. It also involves the type of materials procured and their health and environmental implications.

For example, components to be procured for the car manufacturing should not be hazardous. Besides, most of the target customers for car manufactures are the corporate clients and international organisations that are concerned about the depletion of the ozone, global warming, and loss of biodiversity. As such they are inclined to shun buying from companies whose supply chain does not consider such factors. Purchasing products that are environmentally sustainable will reduce logical problems due to the high degree of compliance. Nowadays, there has been increased emphasis on compliance to set standards.

The car manufacturing industry is very competitive, and the buyers are very particular on the specifications they desire. Besides, they go beyond the specification to examine the best manufacturing practices and certifications such as ISO 14001. This is an international standard that focuses on the organisational protection of the environment and how it balances its operations with socioeconomic needs.

It is based on the ability to go beyond statutory compliance and initiation of internal mechanism that ensure environmental responsibility. The ISO 14001 is a cycle that has continuous improvement based on planning, policy on environment, implementation, corrective actions, and review. Concerning the environmental dimension, Meehan and Bryde (2011) pointed out it puts an organisation at a competitive edge as it helps in financial savings.

On the other hand, the social dimension denotes how the company relates to the community. In most cases, it has been explained related t the corporate social responsibility. Sustainable procurement is a complex issue that puts into consideration the entire supply chain to determine the relationship of the suppliers with the immediate communities (Walker, Miemczyk, Johnsen, & Spencer 2012). It is the mandate of any business to ensure that their operations practices are in line with social requirements. Therefore, the management has the mandate to ensure that procurement department puts into consideration such environmental measures in order to get the desired competitive edge.

Efficient procurement drives an organisational sustainability and helps it to influence suppliers and buyers along the chain. This is achievable through an organisational policy framework that guides the purchase and procurement process to make sure that any procurement contract is guided by clear terms of an agreement. For example, in the procurement of energy and the raw materials, the manufacture should choose certified producers who have been approved to be compliant with sustainable environmental practices. For example, in the case of oil supplier, negotiations should centre on ensuring that company obtains its oils from trusted international dealers for supply of clean oils.

The current business environment necessitates the adoption of strategies that enhance efficiency and promotes competitiveness. A supply chain should incorporate environmental sustainability measures. In the contemporary society, environmental issues have become part of business operations. As a result, consumers are attracted to companies that are responsive to the environment. Environmentally conscious supply chain enhances the confidence of the customers and is crucial to gaining a competitive edge. Best supply chains act as enablers for businesses and help in achieving a competitive advantage (Kilubi 2016). Hence, there is a need to consider the components of environmental sustainability in the course of procurement.

The contracts should include the social responsibility of the parties to be involved in the contract. For a contract to be legally binding, one of the key elements is mutuality of obligation. This denotes that parties should agree on the terms. Based on the current emphasis on the environmental sustainability, contracts should include the environmental sustainability processes as part of the sub-elements in the mutuality of obligation. This will be critical in ensuring that there is value for all stakeholders. This is based on responsible procurement in which ethical, social and environmental factors are taken into consideration.

Procurement Strategy

Procurement strategy entails the procedure put in place by a company to ensure that it obtains the required supplies by considering several elements and factors that influence the value chain. For an effective procurement strategy, there is the need to consider projected risks, the available budget, specifications of the supplies and the stakeholders. Driedonks, Gevers, and van Weele (2014) noted that an effective procurement strategy should be comprehensive, include procurement contracts and measures to select competent suppliers. For the car manufacturer, the supplies are very specific and need to meet certain standards.

As a result, the procurement process is based on trusted suppliers who have a good track record with the company. This is based on the understanding that each service or product has a great implication on the downstream processes in the supply chain. Therefore, to gain the competitive edge, there is need to streamline the procurement process and ensure key processes are put into considerations.

Procurement is all about achieving a satisfactory product. For instance, an effective procurement in which some money is saved in the purchase process of car part and efficient equipment obtained will lead to a riffling effect in the whole manufacturing process, i.e. efficiency and working within time scales which in essence saves money. The management is thus required to ensure that the cost of procurement and the overall supply chain creates value and it is cost effective. One key important factor to consider in the procurement strategy is the input of stakeholders; it is important to implore the stakeholder concept.

The concept stipulates that without the stakeholders, a project cannot run or organisations will cease to exist. There are different categories of stakeholders. In the procurement process, the inputs of stakeholders determine the outcome of the project. For instance, there are stakeholders involved in the use of the product, examining the manufacturing processes, and those availing specifications for the material to be procured and the quantities. Therefore, it is important to consider all the key stakeholders in the car manufacturing as the first step in the procurement strategy. This will ensure efficient in operations which will not only save money but attain value in the process of procurement.

The other important factor that the car manufacturer is supposed to put into consideration as part of the procurement strategy is the need for detailed procurements contracts. Procurement management normally encompasses the relationship between the business and other organisations.

As a result, the strategy includes external players; hence, it is executed through relationships between the seller and the buyer. In the relationship, there are expectations for each party; hence, the need for a contract detailing what each party is supposed to attain from the relationship. Contracts play a great role in establishing a measure of certainty. In any business transaction, there is the need for the parties to understand the roles, responsibilities, and the benefits that are to be attained by each party.

In relation to the car manufacturing, the terms of engagement should relate to the materials and equipment required the quality, and the agreed price. In so doing, the specification should also include the grade of the equipment required. The terms should be based on the market standards. In addition, the specifications should be in line with legal requirements and the set out environmental standards. The aim of contract management is to ensure that there is better value. The better value is achieved by integration of various factors that include the reduction in the risks, right prices, agreed timescales, and reduction in the commercial risks.

On the other hand, the contract should deliver quality, comply with the laid down regulations, and should offer the required value in the survey process. For instance, the car manufacturing project requires specialized equipment and materials. This fact should not be overlooked in the design of the contract. There should be clear stipulations of the requirements which should be included in the contract. Therefore, contracts drawn by the manufacturer should include all the technical requirements to avoid procuring items that do not guarantee the anticipated efficiency during the assembling and the operations of the car.

The third factor for procurement strategy is to ensure that there are clear laid down procedures to get the right suppliers. In most cases, procurement for public organisations is done through competitive bidding. However, this may vary for high technical businesses where they need to deal with known suppliers who are effective. Effective suppliers play a critical role in ensuring that value is realized in the procurement and supply process.

For example, they are critical in ensuring that the terms of contracts are met without coercion and the completion of a project. Just like in other business operations, the positioning of suppliers is critical in achieving the competitive advantage. For the care manufacturer, to understand the supplier position, the key questions to ask include which supplier, where to focus effort, the type of relationship to cultivate during the supply process and the issues that might arise in the supply process. These questions are essential in the selection of the supplier and ensuring that the procurement strategy bores the needed benefits.

For value to be realised and avoid market turbulences that result due to poor selection of suppliers, the business needs to have a selection criterion based on clarification of the requirements and the sourcing options available and adoptions.

Also, the prequalification for suppliers should be based on financial stability, the technical abilities, experience in the field of the supply, track record of the suppliers, compliance with the various regulations and the environmental sustainability capabilities (Meehan & Bryde 2011). Therefore, by engaging the key suppliers from the design process, an organisation can solve supply chain predicaments and diminish wastes along the chain which will consequently lead to improved financial performance (Sobhani et al. 2013).

To ensure that supplier selection is enhanced, the Kraljics supplier model can be applied. The model helps in addressing risk management in the supply and helps buyers in selection the most effective supplier based on the product classification. The design of the model is meant to ensure there is the maximisation of caution in the selection of the supplier. This is achieved by making the buyers utilize their purchasing power.

This makes the selection of the supplier to be a strategic process rather than transactional activity. The model employs four steps that aid in the selection process. They include classification of the product, analysis of the market, strategic positioning, and action planning (Glockner, Pieters, & de Rooij 2015). Figure 1 is an outline of the model that focuses on the supply risk and profit impact. The application of the model ensures that the purchasers maximise the supply security.

In the car manufacturing, the quadrant that is more applicable is the strategic items. This is because most of the materials required for the car manufacturing are specific in nature; hence, a limited number of suppliers who can provide the products. Therefore, strategic procurement operation gives an organisation a competitive edge by reducing wastes in the value chain by ensuring that the right supplier is engaged.

Supply Chain Risk Management

In the procurement and supply chain, risks will occur, and thus there is the need to put in place measures to manage them. The management of the risk starts before a business initiates the project with an idea of creating a system that is robust in dealing with risks. The risks can occur in the inbound logistics such as the supply risks or from the outbound logistics, i.e. the demand risks. It is important to note that a supply chain consists of many players who benefit mutually from each other. However, it is the mandate of a business to put in place measures to manage its suppliers to guarantee value for the business.

This is because a failure by one business in the chain disrupts the entire chain and can lead to loss of revenue, loss of customer confidence, and inflated costs. According to Ghadge et al. (2013), the best way to manage risks is by putting in place measures that mitigate the risks before a project commences. This can be achieved through measures to manage inventory and strategies to ensure good supplier relations.

For example, risks can be mitigated by building ensuring that there are different forms of reserves, excluding suppliers who d not have the capacity to deliver and enhancing the responsiveness of suppliers through good procurement strategy.

This is because a failure in any of the factors leads to the inability to complete a project in the designated time, leads to dissatisfaction among the customers and has a high cost implication on the operations of the company. As a result, there is need to assess the possible sources of supply risk and put in place preventive measures. For instance, for the car manufacturer, the risk of supply can be mitigated by employing the 5-R model. This entails prior analysis to ensure right quality, right quantity, right time, right source, and right price of services and products that are to be procured.

The right quality designates the use of the standard specifications, efficiency and environmental considerations. The right time is a critical factor in the purchase process. Many disputes arise due to late suppliers. There is the need for consensus between the car manufacturer and the suppliers on timescales for delivery. This can be captured in the supply contract by stress testing to examine areas of potential weaknesses in advance.

On the other hand, right quantity entails an agreement with the supplier on the regular flow of the materials. The value of money is realised by ensuring that the right quantities are delivered to the organisation. Supply risks can also be avoided through stringent vetting to acquire suppliers from right sources. Car manufacturing involves many processes and has a high potential of having negative implications on the environment. Putting into considerations that many regulatory bodies monitor how companies balance their production processes with the ecosystem, risks can occur if regulatory bodies detect failure of compliance in the upstream supply chain.

Therefore, the products used by the car manufacturer should be from certified producers who have been approved to be compliant with sustainable environmental practices. Finally, the right price is concerned with ensuring that prices for quoted by suppliers are within the market levels. High prices can lead to increased cost of production and affect the competitive edge of the business. Right price should be based analysed based on capability and the type of the product.

Conclusion

The procurement function requires a great deal of ensuring synergies across the various departments in an organisation. To achieve the synergy, the management needs to have standard processes of buying with clear responsibilities and tools. The processes act as enablers to guide the purchasing. Also, the aspects of procurement should be based on ethical practices as well as the commercial viability. Therefore, for the case of the car manufacturer, there is the need to balance the sustainable requirements and the technical support. Thus, it is the duty of the concerned department to put in place guidelines to ensure that the suppliers abide by the laid down requirements to avoid wastes or external disruptions that may affect the competitiveness of the business.

References

Driedonks, B, Gevers, J & van Weele, A 2014, Success factors for sourcing teams: how to foster sourcing team effectiveness, European Management Journal, vol. 32, no. 2, pp. 288-304.

Ghadge, A, Dani, S, Chester, M & Kalawsky, R 2013, A systems approach for modelling supply chain risks, Supply Chain Management: An International Journal, vol. 18, no. 5, pp.523-538.

Glockner, H, Pieters, R & de Rooij, W 2015, Importance of the Kraljic matrix as a strategic tool for modern purchasing, LogForum, vol. 1, no.3, pp. 1-13.

Holm, P 2012, The dynamics of procurement management: a complexity approach, Copenhagen Business School, Frederiksberg.

Kilubi, I 2016, The strategies of supply chain risk management; a synthesis and classification, International Journal of Logistics Research and Applications, vol. 19, no. 6, pp.604-629.

Meehan, J & Bryde, D 2011, Sustainable procurement practice, Business Strategy and the Environment, vol. 20, no. 2, pp.94-106.

Meehan, J & Bryde, D 2015, A field-level examination of the adoption of sustainable procurement in the social housing sector, International Journal of Operations & Production Management, vol. 35, no. 7, pp.982-1004.

Sobhani, M, Malarvizhi, C, Al-Mamun, A & Jeyashree, S 2013, Strategic procurement and financial performance of Iranian manufacturing companies, Asian Social Science, vol.10, no.1, pp. 250-256.

Walker, H & Brammer, S 2012, The relationship between sustainable procurement and e-procurement in the public sector, International Journal of Production Economics, vol. 140, no. 1, pp.256-268.

Walker, H, Miemczyk, J, Johnsen, T & Spencer, R 2012, Sustainable procurement: past, present and future, Journal of Purchasing and Supply Management, vol. 18, no. 4, pp.201-206.

Introduction

• The company plans to use a push strategy that does not wait for customers to ask for a product. Instead, it creates products it thinks the customer will demand and then waits for orders.
• Inventory management helps respond to disruptions that make it challenging to drive towards proactive and responsive value chains that ensure easy adaptation to changing demand realities.
• Inventory management will provide predictive analytics that helps mitigate both understocking and overstocking.
• The company has created cross-functional teams that ensure synergies between inventory management, production, planning, and logistics.

Major Problem

The company is experiencing difficulties managing a broad mix of products required and large amounts of absolute and slow-moving inventory.

Possible Solutions

Modifying the Products

Modification of products refers to changing characteristics of the products, and it is done in three ways: appearance, quality, and functions. The disadvantage of product modification is that it works only on products consistent with customer needs. Its advantages are that when functional change is applied, it improves convenience, safety, and effectiveness (Ran, 2021). In addition, operational improvements ensure redesigning of the entire product. For example, the company designs a portable computer keyboard with a backlight to ease use in a dark room.

Changing Mix Depth

Product mix depth refers to several specific products that the company is offering. Since the company is offering computer peripheral devices, it has numerous types of products. It can change its mix by reducing some products and ensuring it manufactures products it can manage easily (Kumar et al., 2019). The advantage of this is that it will eliminate obsolete and slow-moving inventory. The disadvantage of the method is that it can lead to loss of customers because eliminating some products means kicking out the buyers of removed products.

Deciding on Product Mix

Increasing product mix depth or decreasing consistency may not necessarily be a step towards improvement. Decision on product mix should be dependent on market needs and company resources. For example, management can realize particular categories of product mix in which sales are not performing well and are overstretching company resources (Singh Yadav et al., 2020). This situation requires reducing product mix depth or width, and increasing consistency will be a perfect move. This methods advantages increase profitability and ensure better services to the target market. The disadvantages of the process are that it can eliminate products that might have higher demands in the future and decrease entrants of new customers because it focuses on retaining.

Choice and Rationale

My choice is B because it seems to handle all the companys three main problems. To address the broad mix of product, the method suggests reducing effects that are not performing well on sales and retaining products with high sales. The process also identifies how to dispose of obsolete and slow-moving inventories (Kumar et al., 2019). Therefore, choice B is better because it handles all the problems while the other solutions handle two issues.

Implementation

To implement solution B, the steps described below should be followed systematically.

• Step 1 Identify all the computer peripheral devices that the company manufactures.
• Step 2 Identify products with an obsolete and slow-moving inventory.
• Step 3 Disposing of all the obsolete and slow-moving inventory without manufacturing them again (this will ensure a broad mix of products is reduced).
• Step 4 Advertise and sell the companys product (this will be manageable since the company will produce fewer products).

Appendix A

Answers to Case study Questions

References

Kumar, M., Garg, D., & Agarwal, A. (2019). An analysis of inventory attributes in Leagile supply chain: Cause and effect analysis. International Journal of Mathematical, Engineering and Management Sciences, 4(4), 870-870. Web.

Ran, H. (2021). Construction and optimization of inventory management system via cloud-edge collaborative computing in supply chain environment in the Internet of Things era. PLOS ONE, 16(11), e0259284. Web.

Singh Yadav, A., Abid, M., Bansal, S., Tyagi, S., & Kumar, T. (2020). FIFO & LIFO in green supply chain inventory model of hazardous substance components industry with storage using simulated annealing. Advances in Mathematics: Scientific Journal, 9(7), 5127-5132. Web.

Contract management in enterprises of different profiles includes those processes that are necessary to obtain all the essential resources through the establishment of partnership agreements. The purpose of this paper is summarizing the article Contract Management, Inter Functional Coordination, Trust and Contract performance of Works Contracts in Ugandan Public Procuring and Disposing Entities by Muhwezi and Ahimbishibwe (2015).

As a background, the key features of the research will be analyzed, basic findings, as well as the practical implications of the outcomes. The article in question has a solid methodological basis that reveals the nuances of contract management in the Ugandan internal market.

Research Methodology and Design

The article in question is a correlational cross-sectional study with a descriptive and analytical research design. Muhwezi and Ahimbishibwe (2015) use a literature review as the method of finding valuable scholarly materials to provide a rationale for the relevance of their topic and specific ideas and theories. A number of contracts for Ugandan enterprises were analyzed, and from the whole list, the substantiation base was collected from 64 examples with the corresponding results of the performance of signed partnership agreements. As the convenience of presenting the materials, tables were compiled as the visual means of displaying numeric information.

Basic Findings

As the key positions for evaluation, three dimensions of contract management were applied  delivery management, relationship management and contract administration (Muhwezi & Ahimbishibwe, 2015, p. 81). Based on the results of the survey conducted, it was revealed that the first factor was perceived most positively among all the respondents. The variables used in the study confirmed the initial assumption that the principles of public procurement supported by Ugandan enterprises were largely based on the principles of individualism.

As Muhwezi and Ahimbishibwe (2015) note, on local procuring entities, inter functional coordination was not a significant factor in the implementation of contracts, which proves the conclusion of a monopolistic approach. However, contract performance was found to be dependent on the principles of leadership and trust. The results of the study indicate that the order of the organization of partnership agreements in Ugandan enterprises does not have significant violations and erroneous approaches, and access to information is one of the strengths.

Practical Implications and Limitations

The study under consideration may be useful from an academic perspective due to its detailed analysis of the three dimensions of contract management. Also, specific conclusions about the effectiveness of each of the factors help understand which criteria contribute to increasing the performance of drawing up agreements, and which factors do not carry significant practical value. For the representatives of state procurement agencies, the study by Muhwezi and Ahimbishibwe (2015) can be useful due to the detailed ratio of all variables.

Regarding limitations, there are a few areas that could be covered in more detail. In particular, only state procurement was considered, excluding business structures, and an insufficient number of goals for both parties involved in contract agreements were presented.

Conclusion

The study summarized presents data on the principles of contract management in the Ugandan public procurement system. The research methodology and design allow analyzing respondents opinions on the effectiveness of measures taken at local enterprises and the values of specific components that determine the productivity of partnership agreements. The findings of the article can be useful both from an academic and practical point of view and, despite some limitations, they may be used as a basis for further research in this area.

Reference

Muhwezi, M., & Ahimbishibwe, A. (2015). Contract management, inter functional coordination, trust and contract performance of works contracts in Ugandan public procuring and disposing entities. European Journal of Business and Management, 7(20), 76-86.

The current fix it approach maintained by the Worldwide Chemical Company is ultimately faulty. As described in the case study, it leads to the decreased first-quality product yields and on-time deliveries, compromising the production cycle and hampering profits. Thus, the best way to maintain the companys TQM effort is to discard the approach which is obviously flawed. Smith, as a maintenance superintendent, can reorganize the policy of equipments service accordingly.

This will lead to better predictability of its functionality, and thus, reduce the process varieties, and improve the performance and reliability of the machinery. Additionally, the team of mechanics under Smiths governance seems to experience difficulties with the supply of spare parts, which severely lengthens the productivity and efficiency of the fixing process. Both Smith and Henson thus can contribute to the improved performance, primarily by providing short-term organizational fixes and arranging a change in maintenance policy.

The most obvious alternative to the current operations approach of the maintenance department is the shift from the on-demand maintenance toward the scheduled one. Such change has several benefits. First, such maintenance significantly reduces the time required for the service of the equipment, mainly because of the higher level of organization. Second, the scheduled maintenance allows little to no varieties in the production process as all the interrupts are known beforehand.

Finally, it raises the predictability of the machines malfunctioning, as the mechanic is constantly monitoring its state. Alternatively, additional responsibility can be assigned to the operators of the equipment. They can perform simple tasks such as adjusting minor discrepancies and lubricating the exposed parts (Musa et al. 165). Such activities are beneficial for the machinery but are often neglected by the operators who feel the maintenance department is the only responsible party.

While the scheduled maintenance eliminates the factor of sporadic and unpredictable intrusions leading to the disruption of the production cycle, it still requires time, even when no warning signs were received from the equipment. To bring the adverse effects of wasted time to a minimum, the maintenance must be carefully planned to account for the operators timetables and the production dynamics (Nyman and Levitt 3). In the case of refrigeration equipment, the seasonal nature should be taken into consideration.

The periods of high workload (the hot season) must include more frequent brief overviews while more substantial repairs and complete overhauls should be assigned to colder seasons. In this way, the least possible time will be consumed by the process, making its impact bearable for the production cycle (Slack, Chambers, and Johnston 302).

The big concern of the management team is the idling of the personnel. According to Henson, the maintenance department is sitting all day playing cards. A good alternative to this is monitoring suggested above. The schedule of mechanics must be arranged in such a way that they would have an opportunity to perform a routine check and timely repairs of equipment without bothering the personnel. Additionally, the case clearly mentions the inadequate theoretical basis (poring over schematics) and poor warehouse organization (hunting for spare parts) (Heizer and Render 502). Both issues need to be addressed, as the comprehensive knowledge of the theory and the organized the tools and supplies improve the productivity of work (Richards 36).

Besides the monitoring which significantly raises the predictability of the machines breakdown, other methods may be utilized. First, the manufacturer usually provides information regarding the equipments service lifespan, as well as the guidelines for the most likely weak points. Additionally, consulting the operator may provide information regarding the machines behavior. While being largely unreliable, such inquiry may provide useful insights when approached with caution (Dhillon 112).

Works Cited

Dhillon, Brandon. Engineering and Technology Management Tools and Applications, London, UK: Artech House, 2002. Print.

Heizer, Jay, and Barry Render. Principles of Operations Management, New York: Pearson, 2013. Print.

Musa, Mohd Azam, Nazrul Idzham Kassim, Akhtar Razul Razali, and Wan Ahmad Najmuddin Wan Saidin. Improvement of Overall Equipment Effectiveness (OEE) through Implementation of Autonomous Maintenance in Crankcase Line. Applied Mechanics and Materials 761 (2015): 165-169. Print.

Nyman, Don, and Joel Levitt. Maintenance Planning, Scheduling, and Coordination, New York: Industrial Press Inc., 2001. Print.

Richards, Gwynne. Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse, Philadelphia, Pennsylvania: Kogan Page Publishers, 2014. Print.

Slack, Nigel, Stuart Chambers, and Robert Johnston. Operations Management, New York: Pearson, 2010. Print.

Introduction

Talent management is an essential tool that can contribute to an organizations success by enhancing performance, innovation, and employee motivation. This practice is especially valuable for large firms working in highly competitive business environments. Marks and Spenser (M&S) is an international retail company based in London, United Kingdom. Over the years, it has developed an effective human resources (HR) management strategy, counting talent recruitment and retention among the key focal areas. The present paper will seek to identify and discuss the companys talent management strategy, evaluate the influence of environmental and regulatory factors and propose recommendations for improvement.

Part I: Background and Practices

M&S Business Strategy

As a company that operates in a highly competitive retail market, Marks and Spencer require a solid, effective business strategy to aid in the companys growth. At the core of this strategy is the firms unique business model, which focuses on delivering great value for money (M&S, 2019). This approach requires the company to control costs without sacrificing the quality of materials, designs, and services, which can be made possible by using innovative technologies and ensuring commitment on the part of employees.

A significant part of Marks and Spencers business strategy involves allowing customers more choice. The companys shops offer a wide range of products from home accessories to clothing (M&S 2019). Products such as shoes and clothing also have a great variety in terms of sizes and color schemes. This aspect of Marks and Spencers business strategy is critical to the firms performance as it expands the target market. For example, by offering clothing in large sizes, the brand attracts customers who would usually only shop in plus-size brands. Although such variety complicates the companys internal processes, requiring adjustments in production, the benefits of this strategy outweigh the costs by increasing sales volume.

Lastly, according to the 2018 Annual Report, the company is now in the midst of a large-scale transformation process designed to ensure that Marks and Spencer can succeed in the contemporary market. This change involves enhancing the consumer value proposition, re-designing the sales structure, and improving operations (M&S 2019). For example, the company is planning to diversify its range of food offerings, switch from clearance sales to full-price sales, develop the digital shopping experience and reduce production and distribution costs (M&S 2019).

These changes will most likely allow Marks and Spencer to improve its position in the UK market as well as in some global markets. Nevertheless, the company requires the full commitment of its staff along with successful talent management to ensure that the change process is implemented smoothly.

M&S HR Strategy

The success of Marks and Spencer in the business arena is a direct result of the companys efficient human resource management. The company recognizes the input of every worker, which is why a significant part of its strategic report is focused on the people in the organization: M&S has a longstanding tradition of employing excellent colleagues and creating an engaging and motivating working environment (M&S 2019). The role of HR in the company is therefore prominent and involves functions such as recruitment, selection, motivation, training, and performance management. The present section will explain various HR strategies in these areas and show how they help Marks and Spencer to enhance talent management.

Recruitment

Recruitment strategies are a critical part of Marks and Spencers human resource management strategy as they facilitate attracting new talent to the organization. To achieve this goal, Marks and Spencer use three recruitment strategies: targeted recruitment, partnerships with schools and universities, and job advertising both on the M&S Career portal and in stores (M&S 2019). Targeted recruitment is typically used for high-level positions and involves offering a job vacancy to a particular person having known achievements and competencies. This means that the prospective employee has a history of accomplishment in other companies and possesses the skills necessary to enhance the success of Marks and Spencer.

To attract young workers for entry-level positions, Marks and Spencer draws on partnerships with schools and universities and offers programs for internships, placements, and postgraduate employment. Recruiting graduates and students is a potent HR strategy because it helps attract fresh talent with excellent academic knowledge in appropriate areas. Researchers also note that, provided the organization offers professional development opportunities, recent university graduates are likely to stay in the company for a long time, reducing costs associated with recruitment, selection, and induction training over time (McCracken, Currie & Harrison 2016).

Lastly, posting job advertisements on the M&S website and in brick-and-mortar stores is a useful recruitment strategy, particularly because it attracts applicants who are already interested in the brand and its products. For this reason, Marks and Spencer do not employ independent job search platforms, a strategy that enables the company to narrow down the pool of applicants, thus supporting the selection process.

Selection

Selection methods used by Marks and Spencer vary depending on the type of recruitment strategy. To identify talents in targeted recruitment, Marks and Spencer use information gathered from recruitment agencies and references obtained from existing staff members (M&S 2019). This is a potent talent management strategy because it enhances the selection process and ensures that a candidate can perform well in the chosen position, a particularly critical factor when recruiting for top positions (Collings, Mellahi & Cascio 2018).

The selection process for students, graduates, and other external applicants follows a different path. Candidates are typically invited to use the M&S Careers portal to complete an application. At this stage, all candidates undergo mandatory screening, which takes the form of online tests and further in-store field evaluations. The assessments used by Marks and Spenser vary for different positions, evaluating the specific skills and competencies of each candidate. According to Mensah (2015), aptitude tests and assessments help attract new talent to the organization. Hence, the recruitment process in Marks and Spencer is an active component of talent management for the firm.

Performance Management

Marks and Spencer do not openly share its performance management strategy in official documents or statements. The company, which uses a wide range of KPI measures to assess performance, states that its approach to performance management is outcome-based (M&S, 2019). These factors fit into a performance appraisal and management method called management by objectives (MBO).

In this effective albeit relatively recent approach to performance management, companies define their goals and translate these into employee performance indicators (Aksoy & Bayazit 2014). For example, if a companys goal is to enhance customer service, the target for store workers would be to have a high customer satisfaction score. If a company is focused on enlarging revenue, store employees will be evaluated based on sales volume in a given period.

Marks and Spencer perform monthly appraisals with additional quarterly and annual reviews (M&S 2019). This allows the company to track the implementation and success of its business strategy in real-time and make any necessary alterations. To support performance management, employees showing excellent results in appraisals receive rewards and recognition by the scheme identified in the next section. As a consequence, performance appraisals and the firms management methods motivate employees to show their best, contributing to talent management.

Rewards and Recognition

Rewards are an essential part of performance management because they encourage employees to work towards achieving goals. Hence, Marks and Spencer offer two types of rewards and benefits: performance-based rewards and general rewards. General rewards apply to all company workers regardless of their performance and include employee discounts, corporate schemes such as Share buy, Salary Sacrifice, and Sharesave, and an annual bonus based on the companys overall financial performance (M&S Careers n.d.). While these bonuses do not contribute to performance management in the organization, their usefulness lies in attracting new talent to Marks and Spencer.

Performance-based bonuses, in contrast, are aimed at existing workers who are willing to develop and grow with the organization. For Marks and Spencer, these include quarterly benefits, the Performance Share Plan, and industry awards (M&S 2019).

The Performance Share Plan is applied primarily to top management, delivering company shares in return for excellent performance (M&S 2019). Industry awards are available to all employees; these include Marks and Spencer providing prizes, monetary and non-monetary, to its best employees and stores (M&S 2019). Such performance-based bonuses help to motivate workers, achieving better business outcomes.

Training and Development

Employee development at Marks and Spencer is focused mostly on training and mentoring programs. For instance, according to the companys annual report, Marks and Spencer offer business school training as well as senior management mentoring and coaching schemes to develop employees skill mix (M&S 2019). Store employees also receive additional training in customer service to enhance the customer experience.

Offering a variety of training programs allows organizations such as Marks and Spencer to develop an internal talent pipeline and improve performance (Schiemann 2014). Festing and Schäfer (2014) also note that training and skill development reinforce the psychological contract between an employee and an organization, improving commitment and engagement levels and enhancing retention rates.

Similarly, mentoring and coaching schemes help to improve employees skills, thus contributing to talent management. These strategies are particularly useful for developing leadership capacities and identifying talent for promotions (Corner 2014). Most employees perceive successful persons, such as high-level managers, as authority figures, and the latter also possess unique experience and knowledge of the company. Therefore, mentoring further assists employees in their professional growth and improves their performance in their current position.

Part II: Legislative Environment

Legislation has a significant effect on HR practices because it influences hiring and compensation in a company. For Marks and Spencer, the key legislative document in this area is the 2010 Equality Act, which protects individuals from discrimination based on race, sex, disability, religion, and age (Equality Act 2010: guidance 2015). In particular, the Act stipulates that all people should receive equal pay and equal opportunities concerning employment. The legislation allows employees to file complaints regarding workplace discrimination, which could lead to legal action against the company (Equality Act 2010: guidance 2015). Therefore, ensuring appropriate employment conditions is vital for Marks and Spencer in complying with the law.

To reduce discrimination and promote diversity, the company has committed to improving its internal environment for all employees and has made adjustments to HR practices. For example, Marks and Spencer have pursued efforts to promote employment for persons from various cultural and ethnic backgrounds, members of the LGBT+ community, and persons with disabilities (M&S 2019). The companys management is also taking action to monitor and reduce pay gaps, reporting that the mean gender pay gap stands at 12.3%, lower than the industry average (M&S 2019). Future activity in these two areas will help the organization to ensure compliance with the law and create a positive internal environment beneficial for all employees.

Part III: Corporate Social Responsibility

While reducing discrimination is necessary to establish legal compliance, maintaining corporate social responsibility (CSR) is essential to fostering a positive image for the company. The critical aspect of Marks and Spencers CSR strategy is enhancing sustainability by addressing environmental risks, such as emissions, energy use, and waste (M&S 2019). For large companies, engaging in sustainability initiatives is crucial because they have the most significant impact on the environment (Sheffi 2018). Therefore, by acknowledging and improving its influence on the environment, Marks and Spencer are building a positive brand image.

Other efforts related to CSR in Marks and Spencer concern enhancing relationships with local communities and suppliers. According to the companys report, Marks and Spencer contribute to local communities through improving infrastructure, providing jobs, and running fundraising events (M&S 2019). The firm also monitors suppliers labor practices to prevent modern slavery and includes low-income populations, such as farmers, in its supplier base, thus helping their development (M&S 2019). Both of these aspects of Marks and Spencers strategy are having a beneficial effect on its corporate image, attracting not only customers but also prospective employees.

Part IV: Core Position Analysis

The core position in Marks and Spencer is the store manager because these individuals can influence sales and customer service, thus improving financial performance. The main information related to this position is as follows:

• Job description: A store manager oversees all internal operations within the store, including recruitment, selection, training, motivation, marketing, performance evaluation, and record-keeping. Store managers are required to report performance to regional management and should ensure that their store has the resources and staff to operate effectively.
• Person specification: A store manager must have prior experience in retail work, preferably in management. This employee should have a positive job attitude and be highly motivated to achieve great results. Key skills required for success in this job include communication, conflict resolution, motivation, leadership, customer service, accounting, and performance management.
• Recruitment channels: A store manager should be hired through internal recruitment, meaning that the best store employees having strong leadership potential should be offered this job. Internal recruitment is beneficial as it ensures that the manager will have sufficient knowledge of the company and its internal processes.
• Selection methods: Store managers should be selected based on individual performance appraisals and standardized candidate screening used for applicants at Marks and Spencer. This will ensure that the candidate has sufficient skills, knowledge, and motivation to succeed in a leadership position.
• Performance management criteria: The performance of store managers should be judged based on the sales performance of their store and in-store customer satisfaction rates as well as by relevant HR metrics, including turnover, job satisfaction, and engagement.

These specifications help to clarify desirable job behaviors, knowledge, skills, and attitudes critical to the success of store managers. The recruitment, selection, and performance management plans identified above will allow Marks and Spencer to find excellent candidates and ensure that their work results remain consistent. Consequently, they will also assist in improving the financial performance and customer satisfaction rates of Marks and Spencer stores, thus helping the company to achieve its development objectives.

Part V: Recommendations

Although the chosen strategy for HR management enables Marks and Spencer to attract, develop and retain talent, some limitations remain that could affect the firms effectiveness in this area. First, as noted in the annual review, the company suffers from a bureaucratic culture with poor accountability and staff-led decision-making processes (M&S 2019). According to a study by Kontoghiorghes (2016), organizational culture plays a critical role in talent management success because it impacts the attitudes of the management along with internal decision-making processes.

While staff-led decision-making is not necessarily a negative practice autonomy improves employee development and motivation (Collings, Mellahi & Cascio 2017)  poor accountability and the laid-back attitude of the management could be harmful.

Hence, it is advised that Marks and Spencer should create a change in its organizational culture by enhancing the internal structure of teams and processes. This will allow the top management to implement any further talent management initiatives successfully while also ensuring clarity in terms of duties and processes. Instead of introducing centralized decision-making, which could discourage employees from taking initiative in their areas, Marks and Spencer should establish a shared decision-making model with adequate supervision and define a path of accountability for various processes (Collings, Mellahi & Cascio 2017).

This will promote effective decision-making on all organizational levels while also allowing employees to exercise their autonomy, thus developing their professional capacity. As a result of these changes, the organization will improve talent management by removing barriers to positive HR practices and developing the staffs competencies.

Second, the review also highlights the issues of communication and innovation in the company: This top-down silo structure has been compounded by a very strong sense of hierarchy which often means that ideas and challenges do not feed back to the leadership and the value of our passionate store management talent does not get exploited (M&S 2019, p. 9). Poor communication is among the key obstacles in talent management, possibly resulting in impaired innovation (Tafti, Mahmoudsalehi & Amiri 2017).

As a consequence, it is recommended for Marks and Spencer to enhance internal communication using a two-way, transparent communication scheme that connects all employees to management. This will help to successfully implement any changes in HR and talent management practices while also promoting idea sharing, leading to improved innovation.

Lastly, it is recommended that Marks and Spencer should enhance the range of training opportunities available to employees. The analysis of the companys HR practices suggests that the company focuses its training schemes on business training and on-the-job induction (M&S 2019). While these may help employees in their professional development, the company could also greatly enhance its talent management by offering training in creativity skills and leadership. Creativity training is effective in promoting innovation as it allows employees to develop problem-solving abilities and out-of-the-box thinking (Ritter & Mostert 2017).

Leadership training, on the other hand, will assist Marks and Spencer in preparing existing employees for new professional opportunities. Such in-house talent development schemes are effective because they promote retention and reduce reliance on external recruitment while creating a committed and motivated workforce (Chartered Institute of Professional Development [CIPD] 2017). Hence, this recommendation promises to have a positive influence on the talent environment in Marks and Spencer.

Conclusion

On the whole, Marks and Spencer is a well-established company with a strong business strategy that allows it to deliver consistently high-performance outcomes. The HR strategy of the company is effective in attracting and retaining talent in the organization. Nevertheless, Marks and Spencer are experiencing some issues in organizational culture, decision-making, communication, and innovation, influencing the effectiveness of HR practices for talent management. The proposed recommendations are based on research evidence and can thus help to address barriers to talent management in Marks and Spencer along with increasing the role of employees in the companys success by contributing to their skills and autonomy.

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