Global Organisations and Resource Management

Global Organisations and Resource Management

Introduction

The global organization is an international alliance that involves different countries. It can define as an organization following the international law commission and possess its own international law that governs it. Resource management means resource allocation and management such as finances, skills, technology, machinery and other resources required for the particular organization. Management of resources ensures that external and inter resources of the organization are used effectively and are within time and budget constraints. Resource management in a global organization gives an overview of whom and what is involved in a project. For a global organization resource management helps to utilize planning and make the planning process more transparent. Resource management will help the organization to have control over the project. The study aims to learn about the global organization and resource management concerning the company’s organisational structure, culture and methods of communication that can influence the success of the business.

Overview of the industry

Retailing plays a major role in the UK market. British’s largest private sector is retailing that provides jobs to almost 3 millions of people. Retail industry in the UK gives workers freedom and great opportunities for development in their career. For many young people retail is the first in their career ladder. In the Retail industry, 42% of employees are having the age group between 16-17years old. The retails sector pays a share to the public sector - £18 billion in net VAT, national insurance and business rates (statista.com, 2020). UK's retail productivity is much more in comparison to other nation. Moreover, the UK retail industry is much more promising as many of its ingredients of success are in place. Retailing in the largest sector of the UK saw an excessive increasing demand before and after lockdown during the pandemic (Covid-19) and the sales reached its peak in this period (statista.com, 2020).

Discussion

Success or failure of an organization can be determined by a company’s organizational structure. The management and the employees the employer choose directly influence the organization's structure and culture. The size of the business and the stages of development affect the success of the organization. When the structure, talent and behavioural aspects are stable and developed in the organization then the path for success is smoother for the company. Organizational structure without authority does not help the employees to execute strategies.

The culture of the organization helps to create an environment within the organization that influences the long-term plans which in turn pushes the organization towards its vision (Indiya, et al 2018) Business success is inevitable if all the elements of culture in brought together under one umbrella. There are five basic elements of organizational culture that influences the success of a company – ownership, purpose, community, communication and effective leadership. Organizational culture creates a positive experience for the employees. These employees are willing to engage more with their work.

Effective communication contributes to organizational success in many ways. It motivates the employees and satisfies them. Management communication ensures employees to understand the terms and condition of their job role. Effective communications can drive employee's loyalty and commitment towards the company. Communication is a two-way process – improves to build strong employer-employee relationship ultimately leading to the success of the company. Open communications encourage the emergence of an effective team. According to Laužikas and Mili?t? (2020), Effective communication promotes an environment where employees can understand each other and thereby increasing the productivity of the company. If the communication within the organization is smooth then there will be no room for confusion or conflicts among the employees.

Factors affecting the organisational structure, culture and methods of communication

Organizational structure is the outline that depicts the authority and guidelines the company follows. Size of the unit indicates the scale of operations (Dessart, 2019). Size is vital factor entailing cost, productivity and efficiency of a business. Technology also determines the size of an organization. The size of the organization is determined by – capital employed science and technology, employees, job design, the span of control and delegation authority. A lot can depend on organizational strategy. It is entirely the company's decision whether they will produce a completely new product or they produce a product that is already in the market with more cost-effective. Each of these strategies will require a specific structure that will help the organization to reach its desired goal.

Culture implies the beliefs, policies, ideologies and practices of an organization. The work culture is a common platform that brings the employees together in a common platform. The first factor affecting culture is individual along with the organization. The sex of the employees also has an effect on the organizational culture – male dominating female counterparts. The nature of the business affects the organizational culture s well.

Communication being an effective tool in the organization gets influenced by environmental, external, internal and other factors (Dessart, 2019). In the retail industry, the environmental factor is those that bring a visual problem that hinders the message within the organization. Customer's desire depends on the stable and dynamic environment. In a stable retail environment customer's desire is constant and well understood. But in a dynamic environment, their desires are always changing and the condition is thought of as turbulent. The political stability of the nation, technological availability and economy of a country are some external factors influencing communication in a retail organization. Internal factors include conflicts, poor timing, attitudes and leadership style.

Theories based on organisation structure

Organizational theory is the study of organizational structure, functions and human resources. The first theory is the Classical Theory that deals with the formal structure of the organization. According to Ferdous (2017), the best way for the smooth functioning of the organization is to divide the task and group the tasks into the departments. This structural division in the retail industry helps to accomplish the organization's goals. The second theory is the Human Relation theory also referred to as a neoclassical theory. This theory deals with people who are recruited and their behaviour within the organization. The Hawthorne studies deal with the way people behave in the workplace is affected by other factors. The third theory is the Decision Making Theory states that decision in the organization is present at all levels. According to Ferdous (2017) when decision-making theory is adopted by industries then there is a hierarchical form of organization.

Theories based on communication

Communication is the key to success. In fact, the communication of the company if chosen wisely then it will develop the culture of the organization. The first theory is the Critical Theory which deals with resolving conflicts within an organization. As stated by Martínez-Ávila (2016) there are tendencies of the employees to resist their managers. Adopting this theory helps to prevent the problem from growing between the employees. It encourages the workforce by providing direction that will unify all to work towards a single goal. The second theory is Information Theory entails that information within an organization travels without no or minimal mistakes. If communication is viewed through information theory lenses then the company will focus on the ways to fix the messages. Measures needed to be put for communications accuracy. The Post-Positive Theory is the third theory where there is a natural condition in the organization. As opined by Martínez-Ávila (2016) this theory in the retail industry mainly focuses on messaging to be designed in a certain way that people obeys the rules and regulations of the office. The fourth theory is the Groupware Theory - when old chains of communication changes with technology then employees can communicate through mobiles and computers for the quick spread of information.

Theories based on organisation culture

Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede is to understand different culture across the borders and the ways which business are done in a different culture. According to Yang (2019), this theory deals with the different culture that is present across countries. Six categories can define a culture - Power Distance Index, Collectivism vs. Individualism, Uncertainty Avoidance Index, Femininity vs. Masculinity, Short-Term vs. Long-Term Orientation and Restraint vs. Indulgence. The power distance index deals with the extent to which inequality in the organizations is tolerated. High PDI indicates that culture accepts there are inequality and differences in power. Low PDI indicated a decentralized structure with a participatory management style. "I" indicates the individualism is greater when it comes to attaining personal goals. "We" implies that there is more importance to collectivism. Uncertainty Avoidance Index deals with the uncertainty and ambiguity tolerance in the organization. "The Tough vs. Tender "or the masculinity vs. femininity is behaviour towards achievement, perception about sexual equality and so on. Long term orientation is oriented towards future and delaying of short- term gratification to achieve long term success in the organization. Short-term orientation focuses on delivering short-term goals. The indulgence vs. restraint focuses on the extent to which society wishes to full its desire.

Strategies to overcome the issues that are being faced within the organisation

The retail industry is always going through the process of change so they constantly have to face different challenges. And this year COVID- 19 have made it more difficult for the retail market.

Undergoing the New normal protocol to prevent the transmission of Covid-19 retailers is facing various problems in dealing with it (statista.com, 2020). The new normal protocol for retail industries list includes – limited customers in the store, safe distancing is maintained, ensuring customers and staff all are wearing a face mask, maintaining the hygiene of the products, implementing the cashless transaction and proper sanitization measures before entering any store.

Secondly, keeping up with the expectation of ever-changing customers is another issue. Customer changes their preferences much faster as one could have imagined. The retail industry needs to pay more attention to elements that will give those accurate forecasts about consumer’s demand (Elg., et al 2020)

Third, maintaining customer loyalty is a difficulty when it comes to the retail industry. A good consumer experience is the main factor for creating loyalty towards the brand. To keep a customer loyal, retailers need to use a personal approach by sending personalized mails.

Fourthly as opined by Elg (2020) managing internal communications is a difficult task. Inefficient communications can disrupt business productivity and process. The retailer should adopt a system for effective internal communications. An ERP system is the best solution for managing internal communication within the employees.

Fifthly retaining and engaging the employees is a huge task. Organizations can provide constant training to the employees to optimize their capabilities. HR is responsible for competency management system within the organization.

The issue of the global game of digital disruption is a recently developed phenomenon. With the growth of e-commerce, customers have several options to choose from before making any purchase. Huge discounts in-store with online advertising on social media will help to reach a larger audience (Jain. et al 2019)

Lastly finding the best solution for the retail industry is the ultimate problem of all. It is recommended to opt for a system that is created with the purpose of smooth operations of the retail industry. This kind of system will help to manage inventory, sales to managing aspects and customers.

Conclusion

The success of the organization needs inspirational leaders, managers along with suitable structure, balanced culture and effective communications. To achieve sustainable results the organization needs to engage the employees and execute success. Right people in right place means the success of an organisation. The company has to give all the employees opportunities to contribute to the shared purpose. There is various success factor involved when it comes to the success of any organization. The most vital factor is qualified and experienced employees to optimize competence. Bringing unique products and services to the market can yield high profits for an organization. A good decision is a sheer fortune for a business to flourish.

Reference list

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Elg, U., Hultman, J. and Welinder, A., 2020. Competing corporate sustainability perceptions in a global retail organization. International Journal of Retail & Distribution Management.

Ferdous, J., 2017. A Journey of Organization Theories: From Classical to Modern. International Journal of Business, Economics and Law, 12(2), pp.2289-1552.

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Indiya, G.D., Obura, J. and Mise, J.K., 2018. Effect of Organization Culture on organization performance on Public Universities in Kenya.

Jain, T.K. and Sharma, A., 2019. Impact of Training and development on Employee Performance in Retail Sector: A Review paper. Available at SSRN 3316856.

Laužikas, M. and Mili?t?, A., 2020. Impacts of modern technologies on sustainable communication of civil service organizations. Entrepreneurship and sustainability issues, 7(3), pp.2494-2509.

Martínez-Ávila, D., Semidão, R. and Ferreira, M., 2016. Methodological aspects of critical theories in knowledge organization. KO KNOWLEDGE ORGANIZATION, 43(2), pp.118-125.

statista.com, Coronavirus: impact on the retail industry in the UK [online] Available at:

Yang, H., 2019. On Hofstede’s Two Cultural Dimensions: Individualism-Collectivism and Power Distance.