Integrated Communications and Measures Plan for PepsiCo

Push and Pull Strategies

In the midst of high competition from other global beverage companies, PepsiCo needs to employ push and pull strategies in marketing the brand products. The push strategy involves pushing the brand in front of the audience, mainly using paid advertisements or promotions. While the pull strategy is aimed at naturally drawing or attracting customers' interests into the brand or products, mainly using interesting and relevant content (Zhang, et al., 2018). We are told that PepsiCo is one of the world’s leading beverage companies, serving over one hundred and sixty countries. To achieve this title there are some of the strategies that the company has deployed. These include the marketing mix strategies such as the 4ps strategy and accessed various distributional channels to attain the success we see today. However, more importantly, the firm has incorporated a push and pull strategy that has fostered the movement of goods from the producers to consumers.

At PepsiCo, the push strategy is a promotional strategy that uses the company’s sales force and trade promotion activities. The latter actions are aimed at creating customer demand for the company’s products. In this strategy the producers carry out promotions to the wholesalers, then the wholesalers to retailers, and then retailers to the final consumers. The Pepsi Company thus sells its products in bulk to wholesalers giving those discounts, so that they engage in the advertisement of the products making it familiar to the customers. At times it distributes free samples to both the wholesalers and consumers. On the other hand, the pull strategy entails high spending on advertisements and customer promotion. This strategy focuses on creating demand for customers for the product. The success of this process is detected if the customers ask their retailers about the product, then the retailers ask the wholesalers, and then finally the wholesalers to the producers. Then PepsiCo responds by giving bulks with discounts and giving them the product of low quality. However, the failure of this method attracts the pull approach.

Messaging

Pepsi Company can attribute its success and even the future sustainability to message strategy. This is the nature of the information that is presented in the advertisement, which needs to be a clever statement or slogan. The latter slogan should be a coherent message that effectively reaches the target audience and persuade them to decide to purchase the products. The message should be creative enough, carefully planned, and executed. The execution entails the visual aspects used in passing the message to the target audience, which should also be done in the right media, unique to that organization and more importantly satisfying the marketing communication needs.

PepsiCo has thrived even in hard economic times due to its marketing strategies (Camilleri, 2018). Based on the message strategy has done a profound investment in the right channels. The firm relies on traditional advertisements, where it has even increased the advertisement budgets to over 12 percent. However, with the advancement in technology the firm has greatly shifted to digital marketing and advertisement with short videos, infographics, mobile apps, and other forms of information that are well structure to campaign on the brands' products. Its message is clear and brief, for instance, the brand launches new brand series of videos focusing on the drink’s bubbles, greatness in the taste, and refreshment. The current slogan “That’s What I Like” attracts the attention of many customers persuading them that it provides the best.

Communication Channels

After the creation of an effective marketing message, the message needs to be disseminated to the target audience. To achieve the transmission various media have been used by Pepsi to pass information globally. This is basically, referred to as a communication mix done via various channels to reach the target audience. PepsiCo uses print media and media advertisements as part of the traditional channels to transmit the marketing message to the target customer segment. In the latter print and media adverts, in most cases, contains comparative campaigns, whose focus is to damage the brand image of the competitor (Finne & Grönroos, 2017). For instance, the direct competitor for Pepsi is the Coca-Cola Company, in a scenario where an ad displays an individual happily taking a Pepsi drink mocking the coca-cola company, calling the brand “Christmas polar bear.”

Additionally, the company effectively integrates social media in the advertisements. These media have gained millions of followers, who are potential consumers of the brands' products. Also, the company invests in advertisements, where the capital has been used in launching series of viral marketing campaigns, rebranding their image. This also goes hand in hand with promotions on sales, to boost their revenue volumes on a short-term basis. Recently, the firm has launched a social vending system, which taps into social media and wireless interconnectivity, which are purposely used in making sales (Valos et al., 2017). Further, the availability of the internet which has been aided by the advancement in technology creates an interactive approach, which has been harnessed by Pepsi to make their products more known. The latter technology also promotes direct marketing criteria where one-on-one marketing has been made possible via the media. The company has also achieved communication through content marketing through online blogs, premium content, and video marketing and through email marketing strategies to reach its customers. In determining a PepsiCo communication plan, the organization considers the audience or customers it intends to serve, the effectiveness of the content, and the various ways customers are used to receiving information (cadence).

Costs

PepsiCo has put considerations in marketing and communication costs and this has helped to reduce unnecessary losses resulting from the business. Costs are usually incurred in production, transportation, marketing, and sales. The company has employed the key performance indicators that help in reducing costs.

Key Performance Indicators (KPI) To Assess Success

            The major components of integrated marketing communications are important in achieving brand awareness, encouraging repeat purchases, and generating more sales. To evaluate the success of the business, it is necessary to employ the use of key performance indicators that will help in managing and tracking the progress of the plan. PepsiCo has employed KPI to accomplish its objectives (Chitty et al., 2017). This has been successful as the company ensures that the KPI has a measure, a target, source of data, and a frequent report periodically at least to keep track. For us to get a better understanding of the significance of KPI in measuring business success, we had to develop PepsiCo KPIs, which included the following;

• Total Sales revenue -  can be calculated by subtracting total revenue coming in (customers) from the total annual sales. This will help the company determine how marketing has influenced the brand.
• The cost per lead (CPL) - enables the company to estimate the costs of reaching the customers. KPI helps to identify the exact amount of money the organization is spending in efforts to get new customers.
• The number of customers retained – in this scenario the indicators help in identifying and keeping track of the number of customers who often use the products. This will help in determining whether the product has quality in terms of the number of retained customers.
• Social Media research – KPI comes in to analyze and assess the number of likes and shares the PepsiCo product and content is acquiring on social media platforms such as Facebook, YouTube, Twitter, Pinterest, and LinkedIn. It helps that company get a clear impression of its popularity on social media platforms.

The above key performance indicators can be used by PepsiCo to evaluate its success and hence efforts made in marketing campaigns and strategies (Ibatova,  Kuzmenko, & Klychova, 2018). Through the consultation of key performance indicators, the management of the company is always on track.

Projected Revenue and Rationale for the Projection

            The project rationale is implemented in the company to avoid potential miscommunications, which are costly and might arise later. Projected revenue entails estimating or predicting the amount of money the company will generate at a specified period, and this may be quarterly, monthly, or annually. KPIs play an important role in determining the projected revenue of the business. After establishing a projected revenue, there is a need for PepsiCo to rationale the revenue projections. This tells the company the total sales you plan to sell, and how much you predict the sales will grow over time. This enables the company to establish methods through which it can generate sales, enhancing communication strategies, and creating customer awareness. For instance, PepsiCo projects revenue of $500,000 in sales for products sold at $200 each. To achieve its target, it will have to look for ways to produce 2,500 units of products and methods of selling and marketing the product.

References

Camilleri, M. A. (2018). Integrated marketing communications. In Travel marketing, tourism economics and the airline product (pp. 85-103). Springer, Cham.

Chitty, B., Chitty, W., Luck, E., Barker, N., Sassenberg, A. M., Shimp, T. A., & Andrews, J. C. (2017). Integrated Marketing Communications with Online Study Tools 12 Months. Cengage AU.

Finne, Å., & Grönroos, C. (2017). Communication-in-use: customer-integrated marketing communication. European Journal of Marketing.

Ibatova, A., Kuzmenko, V., & Klychova, G. (2018). Key performance indicators of management consulting. Management Science Letters, 8(5), 475-482.

Valos, M. J., Maplestone, V. L., Polonsky, M. J., & Ewing, M. (2017). Integrating social media within an integrated marketing communication decision-making framework. Journal of Marketing Management, 33(17-18), 1522-1558.

Zhang, C., Fang, D., Yang, X., & Zhang, X. (2018). Push and pull strategies by component suppliers when OEMs can produce the component in-house: The roles of branding in a supply chain. Industrial Marketing Management, 72, 99-111.

Leadership and Management.

Leadership and management are vital skills to any profession. Managers and leaders play a crucial role in the organization system, but their characters vary. They are defined according to the tasks that they are responsible for in the organization. Management is planning goals and specifying the purpose of the agency (Allen & Sawhney). They control and organize the personnel of the organization in attaining the organizational goals. Leadership mostly arises where people combine forces to achieve a specific target. It is to inspire or motivate people in achieving long-term goals and are born with the qualities of leading(Allen & Sawhney). They keep an eye on the subordinates and take part in the job subjected to the workers. The main distinguishing characteristic between a leader and a manager is that a leader is part of the team while the manager only controls the group. Those in criminal justice organizations must have the above skills to enforce their services to the public effectively.

Leaders pull employees to achieve organizational goals and objectives, while managers push employees to achieve them. Leaders influence, inspire and drive people, while managers make sure the day-to-day activities are executed effectively. When an individual has both leadership and management skills it gives, continuity of government operations maintains the government's reputation and erodes the citizens with trust in their government (Kapucu & Ustun). In a criminal justice organization, to attain the desired goal, all the personnel, including the management personnel, should work as a team regardless of their position. A manager should also be a leader at all times to ease the tension that was created between subordinates and superiors.

An open system is characterized by exchanging and having feedback from the community in which the system works to represent the external environment. The system is essential to a firm as it allows the interaction of both internal and external environments, thus providing the firm with a chance to evaluate the feedback. The feedback considered provides for the adjustment of the internal structures, enhancing the productivity of the firm. On the other hand, a closed system represents a case where the organization's setup does not change as the internal setting is reliable and is not exposed to change (Zucchella, & Previtali,2019).  I n the system, the operation is done through specialization on each individual's task where the procedures are directed by set rules and guidelines outlining everyone’s role. The process, despite the profession, is controlled by a central control where control is in the hand of the few in the management.

            The closed system is more applicable in the criminal justice system when the organization is involved in making policies in the cooperation where the interaction with the environment is not needed. In this, the staff and management are the only ones required to smoothly develop the organization's procedure. The associations are directed by the managers as the head of the organization; in this case, the chief justice responsible for the justice department.  An open system is usually applicable when the organization offers justice to the community to demonstrate its stand on justice delivery (Park, & Kim, 2018). The same procedure is done when they want to gain the citizen's trust and ensure that the community views them as a source of justice for all despite the races, religions, or ethnicity. Similarly, civil education on people's rights and civil rights is done by the justice system through an open system to allow citizens to get an education on their rights and responsibility.

Reference

Allen, J. M., & Sawhney, R. (2018). Administration and management in criminal justice: a service quality approach.

Jang, Y., Kim, D., Park, J., & Kim, D. (2018). Conditional effects of open-street closed-circuit television (CCTV) on crime: A case from Korea. International Journal of Law, Crime and Justice, 53, 9-24.

Kapucu, N., & Ustun, Y. (2018). Collaborative crisis management and leadership in the public sector. International Journal of Public Administration, 41(7), 548-561.

Zucchella, A., & Previtali, P. (2019). Circular business models for sustainable development: A “waste is food” restorative ecosystem. Business Strategy and the Environment, 28(2), 274-285.

Labor Relation Specialist

 The role of a labor relation specialist is to assist direct and enable job contracts between unions, workforce, personnel, and administrators. Some of the common activities that he or she is most likely to take part in are formulating proposals, facilitating the communication between union administrators, organizations' leaders, and handling compensation and work surrounding grievances (Obedgiu, 2017). The majority of the labor relation specialists are knowledgeable on legal matters and generate joint negotiating agreements for the sake of governing relations between the workforce and employers.

Educational Requirements

 The role of a labor relations specialist is extensive and they need to have a human resource or even human resource management degree. A bachelor's degree in accounting and business might come in handy due to handling checkbooks and other sources of information about human resources. Some academic institutions provide labor or employment relations degrees that center on labor-specific content such as agreement negotiations and occupation regulations. Most of the managers prefer prior work experience before permitting one to advance into labor relations (Merluzzi, & Phillips, 2016). Also, the profession requires most of its students to know mediation skills which are essential in the understanding of information pertained to joint bargaining mechanisms. Therefore, some institutions of higher learning offer certifications in the collective bargaining process. This profession requires one to fight for the rights of workers. Thus, the need to be always mediation for the rights of two or more people which in the long run affects the overall performance of the entire organization or even government parastatal. One of the key roles of labor relation special. In the meantime for the most part, there are some of the cases that need to be decided based on the close relationship between the labor relation specialist and the disciplinary board.

Primary Responsibilities

Labor relation specialists are found in various industrial sectors. Specific roles and obligations might vary from one place to another, however, primary duties are common among people acting as labor relation specialists. For instance, researching and drafting proposals is a key duty that labor relation specialists perform from day today. Labor relation specialist ensures that proposal language is in line with collective bargaining procedure (Frolova et al., 2020). These contracts are commonly known as collective bargaining agreements because they act as jurisdictional and technical strategies for workers and administration dealings. Labor relation specialists investigate, transcribe, and sensibly analyze summary documentation. They assess proposals for the sake of making sure they satisfy the requirement of all parties. For the sake of coming up with more than a way of solving challenges, the labor relation specialist has to formulate operational regulations, contract suggestions for work negotiations with workers, administrators, and additional collective bargaining parties. In terms of legalities, the labor relation specialist has to help with the interpretation of legal contracts. Providing interpretation and directives ensures adherence to contract regulations, wage jurisdictions, and standardized laws. These duties are central to the labor relation specialist profession. Ensuring that workers and managers are taking part in labor relations procedures is vital to the profession.

90-Day Work Plan for Labor Relation Specialist

Focus in the First 30 Days for orientation and planning

 The first 30 days are dedicated to defining goals and learning as much as possible about the company. Also plans and contributing to the execution of applicable strategies. Specifically, meeting with each team member and comprehending their grievances and other issues that need immediate attention. On the second day meeting with senior-most administrators. This way, the work can begin on the right foot as all the people have to agree on the tabled issue and also agree on working on weaknesses and collective bargaining.

 Also, in the first 30 days, the labor relations specialist is to assess the mechanisms meant to address the workforce. After the review, the labor relation specialist is to define weaknesses and strengths and then come up with safety and medical issues. These might be inclusive of providing comprehensive orientation to other workers and sharing with them the immediate aims of the office of the labor relation specialist.

 30 Day Period for Progression

  The labor relation specialist should have a clear ground on the issue affecting job contracts.  The broadening of understanding about the company. Also, the labor relations specialist should be able to come up with required alterations on demand. At this point, the officer will have acquired enough information that will help in making the required changes. There are specific that he will be required to carry out (Absalyamova, & Absalyamov, 2015). The first one is ensuring the union leaders are meeting every week and discussing the main agenda as per. Also setting up a team that would negotiate between union leaders and managers because most the frictions normally exist due to disagreement between these two factions. This way, there can be accountability between the warring parties. Another goal is the creation of goals and educating the employers on issues that need to be dealt with on an immediate basis so that the workers can feel satisfied with the provisions of the law.

Last 30 Days for Development

 These days are dedicated to the growth of the company and that of its workers. To achieve this, the labor relation specialist will have to oversight workforces, and act as a representative between the workers and administrators. Also, the labor relation specialist leads conferences between administration and workforce. Each day, labor relation specialist has to meet with workers and company legislatures to gauge immediate needs that have cropped up over a short period (Balynskaya et al., 2015). During most of the meetings, the labor relation specialist must address and raise awareness on issues troubling the companies. Informing both the management and staff on challenging issues affecting the company is one of the most genuine ways of expressing the needs and wants of the people and then coming up with more single negotiations for constructing a positive long-lasting association. A reliable comprehension of the tasks at hand is required of the reliable employment regulations of the company. For instance, the fair labor standard regulations are to be used in solving most of the issues that might crop during any conflict between the workers with administrators. Most of the activities at this point will revolve around the development of more than one aspect. Also, the customization of the role is important to the holder of the office because it will ease off the burden and help in the coordination of the labor relation office with other departmental heads. All the specific initiatives that began at the office have to be worked on on a timely basis and confirmed through the coordination of more than one office.

 In summary, the role of a labor relation specialist is to bring an understanding between the workforce and the union. Hence, assists in the facilitation of performance and increases productivity within the company. Within the first 30 days the labor relation specialist is required to get acquainted with the human resource communication systems of the company which will in turn help in the building teams with other people. The next 30 days are for progressing the company goals and executing the plans outlined earlier.

References

Absalyamova, S. G., & Absalyamov, T. B. (2015). Remote employment as a form of labor mobility of today’s youth. Mediterranean Journal of Social Sciences, 6(1 S3), 227-227.

Balynskaya, N. R., Sinitsina, O. N., Kuznetsova, N. V., & Koptyakova, S. V. (2015). Management of the process of vocational training of a competent specialist. Mediterranean journal of social sciences, 6(5 S4), 538-538.

Frolova, I. I., Nosov, V. V., Zavyalova, N. B., Dorofeev, A. E., Vorozheykina, T. M., & Petrova, L. I. (2020). Labor opportunism as a blocking factor for the innovative development of industrial enterprises. Entrepreneurship and Sustainability Issues, 7(3), 2228.

Merluzzi, J., & Phillips, D. J. (2016). The specialist discount: Negative returns for MBAs with focused profiles in investment banking. Administrative Science Quarterly, 61(1), 87-124.

Obedgiu, V. (2017). Human resource management, historical perspectives, evolution, and professional development. Journal of Management Development.

Responsible Enterprise and Response to UN Sustainable Development Goals

Introduction

This essay aims at expounding on the meaning of responsible enterprise and strategies deployed by organizations when responding to the United Nations (UN) sustainable development goals. The essay follows a normal structure with an introduction, a discussion on the impact of business in society, and a definition of responsible enterprise response to the sustainable development goals. Additionally, the paper also incorporates a comparison and a contrast between the role of government, NGOs, and the society, with the last part as a conclusion, which is a synthesis of the findings and evaluations that would help conclude what is meant by a responsible enterprise. This essay incorporates the study of the climate action sustainable development goal. Climate change has been an area of concern to the United Nations due to the rising greenhouse gas emissions that are affecting the whole world. The UN aimed at taking positive action concerning the climate finance flows and how the national authorities can contribute towards planning and accelerated action that would solve this challenge and opt for adoption across the globe. The reason for this choice is that climate change has a direct impact on social, economic, and the environment as the three pillars that aid in reaching sustainable development. However, climate action is accompanied by various challenges that delimit its process of acceptance and adoption across the globe. The latter challenges are grouped as either social, economic, and environmental challenges. Social challenges arise as people in the contemporary world tend to live beyond their capacities, the problem is within the society itself and commonly result in homelessness and joblessness. Additionally, there is an environmental challenge that has resulted from people's actions that cause massive and irreversible harm to the surrounding environment, thus affecting their livelihoods and well-being. More importantly, the economic challenge that is our major area of concern is associated with instability, lack of control over the economic destiny as well as growing economic inequality and awareness. This essay presents a discussion on responsible enterprise and how responsible organizations respond to the UN sustainable development goals and the role of stakeholders in responsible business.

Impact of Business in the Society

The business organization has a critical role that it needs to play in its operation to ensure that it observes climate action. Organizations need to ensure that it adopts the guidelines that have been set by the UN organizations to ensure that the business meets the standards that would make the business become one of the responsible ones. The business operation takes place in the environment associating directly with the environment and people, therefore the operation can either impact the surrounding society positively or negatively. Additionally, some business operations are guided by the ethical code of conduct while others are unethical, which makes the overall operation irresponsible. Various bodies of operation engage in business are profit-oriented while other social enterprises are focused on the non-profiting operation and instead work towards giving back to society. In this section, we will discuss the role of business and theoretical positions in relation to the role of business in society. Additionally, this section incorporates ethical values and how different organizations use the response spectrum to achieve a competitive advantage and become responsible enterprises.

The business operation plays a significant role in meeting the world's increasing needs and desire for goods and services in order to satisfy their daily life. The primary focus of the business is to create and fulfill their customer’s demands in a cost-effective manner. Additionally, the business has been noted to perform a central role in providing financial prosperity to the countries and the entire globe. It has also been noted that most individuals forget the diversity of financial benefits that are associated with the business operation. The latter operations help in the remuneration of the organization's supply chain, and the support of the public services such as schools and hospitals roads that have been impacted positively through the taxations paid in numerous forms to the government tax collection bodies. Additionally, business operations find pensions and support savings through dividends and interests. More so, many individuals forget that every individual in the country might benefit directly from the business operation as either employee, consumers of goods and services, pensioners, savers, or even as voters. Besides, the workplace is also where most people spent much of their daily lives, it where employees get a platform to interact creating a sense of community where people congregate and familiarize themselves with others.

Perhaps, the ethical capital is achieved through moral virtues that attract the growing interests and the interests of customers that yield competitive advantage. The latter advantage is an economic asset that aids an organization or business to increase profitability and increase its survival chances. The ethical capital is linked to the five-level spectrum of responsibility, where the fifth level is the traditional and non-profiting bodies, and non-profiting with income-generating activities. Then ascending to the fourth level, which is the social enterprise, to the socially responsible business, level three to the corporation practicing social responsibility to the top at the spectrum as the traditional for profiting level. The second and third levels address the business’s social responsibility to society.

The sustainable development goal urges business operations to take urgent action to combat climate change and its impacts. Almost all business operations have an impact on the climate and in most cases, the effects are adverse making it harmful to the well-being of people. An excellent example to address is the automobile industry in the chase to achieve sustainability and ensure competitive advantage. Nevertheless, the organizations need to ensure that as much as it needs to keep competitive it should ensure that the enterprise ensures social responsibility. Businesses should, therefore, ensure that their operations are intended to achieve moral agency and create ethnic capital. Similarly, actively engage in blending of value to achieve social, economic, and ethical capital. The business operation now moves beyond corporate social responsibility and focuses on creating capital through ethical trading and competent management of business operations. More so, the moral agencies intend to create ethical capital through ethical reasoning, therefore making the organization responsible.

It is the role of the businesses to ensure that in its entire operation it keeps the environment safe. This is by ensuring that all its operations are in accordance with the set UN guidelines that are aimed at limiting environmental pollution. The latter pollution has been noted to result from the greenhouse gases in the atmosphere that have been noted to rise in recent days. Business operations need to adhere to the Paris Agreement adopted in 2015 that was aimed at empowering the global response to the threat of climate change (Assembly, 2015, p.338). The agreement was purposefully targeting to lower the global temperature that had risen resulting in high survival risks. Incorporation of the action in the business operation would ensure that the business operation does not harm the environment and makes it productive for society and sustainable.

Responsible Enterprise and Its Response to the Sustainable Development Goals

In the review of responsible enterprise, we need to get a clear understanding of various concepts. The latter concepts are used by organizations to respond to sustainable development goals. Some of the terms that we need to expound on include responsible enterprise, corporate social responsibility (CSR), corporate citizenship (CC), shared value, circular economy (CC), both in theory and in practice.  When defining the responsible enterprise we cannot fail to mention all the concepts that are associated with business operation focusing on obtaining a successful business that meets the sustainable development goals and in this case observing climate action. This section presents the discussion of the differences and similarities between corporate social responsibility and shared value in theory and practice.

Some organizations believe that resources occupying the earth's surface belong to every individual. They have created a slogan that states that “this land is our land,” which now mandates that organization to take action and protect the resources for future generations. When we say that an enterprise is responsible we mean that the business regardless of size, ownership, legal status, structure, or sector’s operations have a positive contribution to the social, economic, and environmental progress within the countries within which they operate (Bule, and Less, 2016, p.121). On the other hand, the organization should also avoid or address the negative impacts that are associated with its operations. In this context the business operations to be responsible, it should take urgent action that would help in combating climate change and its impacts. At the end of this process, we would get an environment that is friendly to humans, economically productive, and an ample ecosystem.

When addressing the UN sustainability goals we cannot fail to mention corporate social responsibility (CSR). This is a business model that helps companies become socially accountable to themselves, the stakeholders, and most importantly to society. There are many scholars who have tried to give CSR various definitions, for instance, Carroll (1991) defined CSR using a pyramid. The latter pyramid was named as CSR pyramid where its base comprises of the economic responsibility as the foundations where all the other responsibilities rest (Carroll, 1991, p.39). This is the base from which the legal, ethical, and philanthropic responsibilities lie. Putting Carroll’s pyramid in real-life practice is by ensuring that the business operations are economically profitable, then adhere to the legal laws and business regulations, thirdly, ensure that the business operations observe ethical obligations, by being right, fair, and just, avoiding all forms of harm to the society. Fourthly, the organization should ensure Good Corporation with the citizens, focus mainly on contributing resources to the community that would help improve the quality of life.

Putting corporate social responsibility into practice is known as corporate citizenship (CC). It the understanding that the business operations or corporations have both social, cultural, and environmental responsibility to the society that it operates from. Additionally, it keeps organizations informed of their financial and economic responsibilities that aid in improving the community’s well-being and meeting sustainable development goals. According to Crane & Matten (2010), the CC is a new term that has developed in the management literature addressing the social role of the business. The term gives the business an extra obligation and operations to extend beyond the financial box and work towards shaping society. More so, the organization has to keep stakeholder responsibility to meet its responsibilities purposely to create and maintain a sustainable success for the organization and the society at large (Crane, Matten, and Moon, 2010, p.64).

Organizations, individuals, and governments have a responsibility to ensure that they can achieve resource sustainability. This is by ensuring that all their operations do not harm the environment and thus ensuring that the future planet would be able to support the population in the future. Thus circular economy is the evolution in environmental awareness that governs industrial operations to ensure that their activities do not harm the earth (Lacy, and Rutqvist, 2016, p.19). The introduction of the CE into the global perspective has made it possible for organizations to achieve the circular advantage and enable them to meet the sustainable development goals, more particularly, the 13^th SDG that addresses climate change.

The success of business revolves around appreciating the role of shareholders and society. It is, therefore, the role of businesses to ensure that their operations and products make a positive influence on society. According to Porter et al. (2011), shared value is referred to “Policies & operating practices that enhance the competitiveness of a company while simultaneously advancing the economic & social conditions in the communities in which it operates.” Working towards creating a shared value we need to create a shared opportunity, which incorporates social needs, business opportunities, and corporate assets and expertise. Besides, the business needs to engage the stakeholders to help them achieve long-term sustainable value creation, and that their products remain relevant to their customers who have been found not to support any business whose operations harm the society’s well-being (Post, et al., 2011, p.31). Precisely, the shared value aims at creating laws and business principles that govern the business code of conduct that would ensure a protected future, thus achieving good nutrition, clean water, and rural development in the society where these organizations operate (Crane, et al., 2014, p.130). When companies get compliant, the result is sustainability, both socially, economically, and environmentally.

From the above information, we can state that CSR and shared values have commonness. Both, address how business organizations can ensure a positive contribution to the social, economic, and environmental well-being that aims at meeting the sustainable development goals. More importantly, creating a business world whose operations are guided by the social virtues and believes and improvement of life on the planet today and in the future. Both obligations focus on creating laws and business principles that control the business code of conduct in order to achieve sustainable business value. Although CSR and shared seem almost alike there are some differences between them. According to Kramer (2011), CSR is widely perceived as a cost center and not a profit center, while shared value creation focuses on new business opportunities that aim at creating new market opportunities that would improve profits and increase the business competitive advantage.

The Role of Government, NGO’s, and Customers in Society

In order to achieve a responsible enterprise, we cannot overlook the role of government, NGO’s, and customers. Business operations are aimed at producing goods and services that would help meet the consumers’ needs and desires. Their duty in the success of the business operation is greatly overweighed and most of the organization aims at harnessing the global pool of customers. The latter action results in unhealthy competition in the marketplace and turn lead to unsustainable health behavior. For companies to compete with their rivals, some of them have sought to escalate the executive bonuses, use of creative accounts, and use of child labor. An example of the companies that tried this is the Barclays bank, making some of its clients unhappy with the bank and left. The customers have a critical role to play when addressing the competition issue. One of the greatest tools that they possess is the voice and the wallet, customers do not need to struggle with what they can do is to reward responsible organizations by buying their products (Kotkin, et al., 2010, p.46).

Additionally, the customers are responsible for the modern structure of the economy that encourages unsustainable consumption. The consumption is in line with the products that have been produced by these businesses. According to Desjardins (2007), it has been noted that the modern economy encourages irresponsible behavior, much more the planned and perceived obsolescence has led to a decline in product conception and sometimes embarrassing. In conjunction with the sustainable development goals, the behavior has led to negative impacts on the environment where the e-waste is increasing limiting the ability to meet SDGs. Thus, diminishing the capacity of organizations to become responsible enterprise globally. Customers have an obligation to support new ideas such as recycling goods, to ensure that they will help businesses meet the sustainable development goals. Additionally, the consumers highlight materialistic society creating a problem for consumers, Soper creates a tipping point where the society redefines consumerism changing the whole community to enhance good life (Soper, 2017).

Moreover, the government plays a significant role in creating a responsible enterprise. Using various tools the government intervenes and regulates the entire business operations. The main aim is to ensure that no harm is evitable by running the business. When managing the business field the government uses six tools in its action towards intervention. The first tool is the regulation tool where the government implements and enforces norms that directly impact the behaviors of economic agents, precisely the government operates under command and control principles that monitor the business compliance (Giesler, and Veresiu, 2014, p.840). Secondly, the incentive tool is common with most governments to foster the growth of the business operation into the global market, the government provides terms that are friendly to investors attracting new businesses. More so, the government levy taxes to that, at times, discourage most of the business operation, when these terms are not friendly the rate of investment decreases. Another tool is the marketplace permits that control how businesses consume environmental resources and trade, such as carbon trade where all the operations of an organization are governed by a set balance that would help in protecting the environment (Porter, and Van der Linde, 1995, p.33). Additionally, the government provides awareness on how businesses can operate responsibly, as well as information on the policies and strategies on how the overall business activities should be conducted. It is through these policies and strategies that business investors decide whether they would put their operations in a region and not others. When all the stakeholders meet the set conditions and associate amicably the result would be the attainment of the sustainable development goals.

Conclusion

In conclusion, the sustainable development goals are significantly influenced by the responsible enterprise. This is because they impact the social, economic, and environmental pillars associated with sustainable development. In order to meet the SDGs and get a socially responsible business organizations to need to consider the sustainability spectrum and more proficiently address the climate action as well as maintaining the moral positions and ethical capital. Responsible enterprise, corporate social responsibility, and shared value, primarily consider businesses whose objectives are to ensure the well-being of the society and at the long last, help meet the sustainable development goals. However, the latter goals cannot be achieved without the hand of customers and the government who take charge of the most important activities in the business field. The customers, consume the products and services from the organization while the government regulates the entire process starting from the opening of a business, the manufacture of products, and the selling process among other obligations. However, I would state that a responsible enterprise is a business operation that sustainably performs all its activities, a business where its stakeholders do only it is right not bending to any action that can violate the sustainable development goals.

References

Assembly, G., 2015. Sustainable development goals. SDGs, Transforming our world: the, 2030, pp.338-350.

Baden, D., 2016. A reconstruction of Carroll’s pyramid of corporate social responsibility for the 21st century. International Journal of Corporate Social Responsibility, 1(1), p.8.

Bule, T. and Less, C.T., 2016. Promoting sustainable development through responsible business conduct.

Carroll, A.B., 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4), pp.39-48.

Crane, A., Matten, D. and Moon, J., 2010. The emergence of corporate citizenship: historical development and alternative perspectives. In Corporate citizenship in Deutschland (pp. 64-91). VS Verlag für Sozialwissenschaften.

Crane, A., Palazzo, G., Spence, L.J. and Matten, D., 2014. Contesting the value of “creating shared value”. California management review, 56(2), pp.130-153.

Dahlsrud, A., 2008. How corporate social responsibility is defined: an analysis of 37 definitions. Corporate social responsibility and environmental management, 15(1), pp.1-13.

DesJardins, J.R., 2007. Business, ethics, and the environment: Imagining a sustainable future. Pearson/Prentice Hall.

Giesler, M. and Veresiu, E., 2014. Creating the responsible consumer: Moralistic governance regimes and consumer subjectivity. Journal of Consumer Research, 41(3), pp.840-857.

Kotkin, R., Hall, J. and Beaulier, S., 2010. The virtue of business: How markets encourage ethical behavior. Journal of Markets & Morality, 13(1).

Kramer, M., 2011. CSR vs. CSV–What’s the difference?. FSG Creating Shared Value Blog.

Lacy, P. and Rutqvist, J., 2015. The Roots of the Circular Economy. In Waste to Wealth (pp. 19-23). Palgrave Macmillan, London.

Lacy, P. and Rutqvist, J., 2016. Waste to wealth: The circular economy advantage. Springer.

Matten, D., Crane, A. and Chapple, W., 2003. Behind the mask: Revealing the true face of corporate citizenship. Journal of business ethics, 45(1-2), pp.109-120.

Porter, M. and Van der Linde, C., 1995. Green and competitive: ending the stalemate. The Dynamics of the eco-efficient economy: environmental regulation and competitive advantage, 33.

Post, J.E., Lawrence, A.T., Porter, M., Weber, J. and Kramer, M., 2011. Creating shared value. Harvard Business Review.

Soper, K., 2017. A new hedonism: A post-consumerism vision, the next system project.

 Capital Management

1. Evaluate effective working capital management techniques. 

The health sector involves many activities in dealing with finances. Working capital is among functions that deal with cash and inventory management. In addition, it deals with the payable and receivable accounts. Therefore, Working capital management techniques are fundamental tools when determining operational liquidity. The essence of understanding the working capital is to establish ways to minimize risks while maximizing assets. 

Working capital management techniques are critical in an organization and to ensure it is effective there are various factors to assess. The forecasting cash flow should be based on a contingency plan (Sunday, 2011). Therefore, the current state of the economy is assessed to understand how it influences cash inflow. If there are significant, effect in cash flow that will have a future impact on the company should be noted early enough. Therefore, there should be mechanisms to help in dispute management based on the consumers’ complaints. Further, the techniques should offer alternatives to capital projects that an organization could invest in to ensure the cash flow is sustainable. Also, there should be proper procurement and inventory management, ensure the vendors are paid in good time, and facilitating a suitable accounts receivable process through a fast billing and shortened cash conversion process.  

2. Evaluate alternative capital projects

The health care sector should also consider some alternatives for the source of cash inflows. Various options are available for an institution to choose, and they do not have to depend on the payments from the clients. For example, there can be the establishment of real estate trusts, a partnership between the for-profit and non-profit organizations, utilizing the abandoned buildings whitening the premises, and investing in private equity investment (Sunday, 2011). These alternative capital projects are meant to establish a one-time project that will reduce liquidity in the organization. In the long and short run, these investments will lead to revenue generation for the organization to match the projected forecasted cash outflows to cash inflows. Therefore, a wise decision should be made before investing in these capital projects to determine if they are viable within the targeted time. If the feasibility study before the establishment brings a negative report then it is not worth investing in such a project because there should be a balance after trading-off and risks and returns.

3. Analyze risks associated with capital projects.

The definition of risk according to financial management is the degree of uncertainty of the outcomes from a project. Therefore, health care stakeholders should consider the possible risks that could be associated with the intended capital project. Therefore, the risk-return trade-off is a major tool that the management should evaluate an investment that will ensure that the sourced resources and funds committed to the project will yield high rates of return. However, the projects that require funds tend to be riskier despite a projection of high returns. However, it is advised to invest despite the risks if the returns are highly projected instead of committing resources on a project that will offer lower returns (Baker, 2019). There are possible risks related to wrong spending of the available capital, which should be avoided as long as they do not profit the organization. However, there are external forces that lead to a change in the economy, and technology changes that affect cash flow. In such a case, the healthcare sector should choose technology that will not affect the costs of operation to remain relevant.  

4. Describe the decision-making factors in lease versus buy. 

Most organizations face the dilemma of whether to buy or Lease. The decision should be determined by various factors meant to bring the desired results. A decision should be based on assets’ requirements benefits to the organization and the expected returns for the specified period. In addition, the type of asset and technological developments drives the decision. As a result, companies have to make a wise decision on the capital-intensive assets that will be vital for the organization. For example, the acquisition of properties, machinery, and land requires much money and it is upon the organization to decide if to buy or lease. Therefore, the level of capital intensity, the term of use (short or long term), and the significance of the ownership are major factors (Vasigh, Fleming & Mackay, 2017). Finally, the risk and rewards, as well as the tax benefit of the assets, must be considered to ensure the organization benefit from the decision. 

5. Describe the effect of financing strategies on the cost of capital.

The significance of managing the cost of capital in a company is crucial because it affects the capital structure. As a result, it is crucial to embark on a strategy during the financing of the operations and investing because it affects the cost of capital. It is well elaborated through the weighted average cost of capital (WACC), which factor in the total cost of capital (Baker, 2019). The adoption of the external financing strategy leads to an increase in the cost of capital compared to firms that rely on their internal sources of finances; hence offering a free source for finances.

6. Describe the benefits and risks of debt financing

The benefits include retaining control, taxation advantage, and better planning. Debt financing leaves the control to the lender and makes decisions and in the end, the full repayment ends the relationship. In addition, there is a reduction in tax interest and the borrower can plan the budget every month. The risks include qualification barriers, discipline, and collateral requirements (Schich, 2019). Therefore, borrowers have to qualify enough credit rating. However, financial discipline is a challenge, which increases the risks among investors. Lastly, the asset placed as collateral is at risk if the loan is not repaid accordingly. 

References

Baker, J. H. (2019). Capital Projects. Building America, 72-109.             doi:10.1093/oso/9780190696450.003.0004

Schich, S. (2019). Implicit Bank Debt Guarantees: Costs, Benefits and Risks. Contemporary        Topics in Finance, 41-78. doi:10.1002/9781119565178.ch3

Sunday, K. J. (2011). Effective Working Capital Management in Small and Medium Scale           Enterprises (SMEs). International Journal of Business and Management, 6(9). doi:10.5539/ijbm.v6n9p271

Vasigh, B., Fleming, K., & Mackay, L. (2017). Buy versus Lease Decision-           Making. Foundations of Airline Finance, 339-363. doi:10.4324/9781351158046-12

 Team Conflict Management, Interdependence and Effective Communication in a Cultural Diverse Workplace

Name of Organization: Breville Group Limited

Website: https://brevillegroup.com

Executive Summary

The main aim of this report is to respond to issues that relate to team conflict management, interdependence, and effective communication in a culturally diverse workplace. Breville Group Limited is an organization that will be used to relate to these issues. The main sections in the report are, concepts relating to leadership and cultural diversity, cultural diversity in relation to Breville Group Limited, the analysis of the findings, and the recommendation.

For the report, the academic search process was used to find articles that contained information that was relevant to the information needed for the report. From the articles, it is clear that team conflict, interdependence, and effective communication in a culturally diverse workplace are major issues that are faced by both the managers and the employees. Poor communication and lack of cultural competency from the managers are factors that create team conflict since they lack the knowledge of handling the employees. These findings mean that for a culturally diverse workplace to thrive, in terms of conflict management, interdependence, and effective communication, managers need to gain knowledge and skills to understand how to handle the culturally diverse employees.

Introduction

Breville Group Limited is a company that is part of the household appliance manufacturing industry that provides electrical appliances in the consumer products industry. It operates through two-segment which are global product and distribution. The global products offer premium products that are developed by the Breville brand and are sold internationally. Breville invests in product expansion abilities whereby they recruit, train, and develop marketers, engineers, and industrial inventors. This report aims to respond to issues that relate to team conflict management, interdependence, and effective communication which are significant elements in such a company that deals with culturally diverse workers. In such a company that employs a lot of workers with different backgrounds in their different sectors, conflict, poor communication is inevitable. The company’s management ought to come up with an organizational culture that is designed to prevent conflict and enhance communication as much as possible. Designing policies that are clear, consistent, and inclusive of every person will help to manage workplace conflicts and enhance communication.

Method

For the report, I used the academic search database to find relevant articles. The terms I used were “responding to issues relating to team conflict management and interdependence and effective communication in a culturally diverse workplace”. I included the year that I wanted the article to be so it could fit my search because I wanted one that was not published older than 5 years. I looked at the title of the article to choose the relevant one. I narrowed down my search by looking for a journal article that was peer-reviewed because they are more reliable and contain a lot of information. Through the abstract from the articles, I read through to know if the article had information that I needed for my report. I chose these articles because they contain information that I needed and which is relevant to my report topic.

Concepts relating to leadership and cultural diversity

Due to the continued globalization which has attracted an increase in culturally diverse employees, leadership in the workplace has been faced with different issues that are connected to multicultural team conflicts. Diversity is defined as the differences in a group regarding an attribute on which people can be different from or resemble each other. Cultural values, beliefs, physical appearances, language accents, work behavior are some of the differences that can cause workplace conflict among diverse employees (Sogancilar & Ors, 2018). Other significant differences and differences that multicultural teams face are language barriers, ineffective communication, and different styles of communication. This causes miscommunication in the team which undermines the growth of the team. Cultural diversity has brought about multicultural teams in the workplace changing the work environment which has both negative and positive outcomes.

 Multicultural teams have had their fair share of challenges for leaders and employees as well. To know how to handle these challenges, the leaders have to understand how to effectively lead multicultural teams and how to solve the challenges being faced in the workplace due to cultural diversity. Studies show that managing cross-cultural differences is a serious issue faced in many companies (Sogancilar & Ors, 2018). This is because culture intensely influences the manager’s attitude, interrelations in the workplace amidst other activities. With this in mind, it is clear to depict that serious issues arise in a work environment where individuals from culturally diverse backgrounds are working together. The attitude of a company towards diversity can be thought of to be influenced by the way a manager handles it and how he perceives the advantages and disadvantages of these differences. Some managers undervalue cultural diversity and try ending it in their organizations. Others take those differences as an advantage to the organization and use them to enhance the performance of the organization through their diverse knowledge and skill. Managers can encourage and support cultural diversity in an organization and therefore as a leader determines the outcome of diverse employees.

This is because leaders facilitate the functioning of the multicultural teams and through this, they determine whether diversity affects teams positively or negatively. Cultural intelligence for leaders is an important aspect in a culturally diverse workplace because it enables the leaders to work with multicultural teams. Cultural intelligence can act as a moderator of diversity in the workplace which will help the leaders to handle most of the issues and conflicts. To expedite favorable team processes in a diverse culture and promote team interdependence, cultural expertise is important for leaders (Rosenauer et al., 2016). Cultural intelligence consists of motivation and self-efficient beliefs in regards to multicultural situations, efficient behavior adaptation, and knowledge about cultural differences. These components enable individuals to know how to act in cross-cultural situations. Leaders with high cultural intelligence are more effective while working with culturally diverse employees and shape the team’s and organization’s response to diversity. A leader’s cultural intelligence is positively related to the ratings of the team member’s proficiency and leader efficiency. Leaders who are culturally intelligent like to interact with culturally diverse individuals and are mindful of the cultural differences. This makes them consider differences when deciding upon an issue or a person. Leaders that have little cultural intelligence on the other hand have less diversity awareness are tend to rely on nationality as a prompt to group their team members. This creates room for unfair treatment and team conflict in a culturally diverse workplace.

Cultural diversity in relation to Breville Group Limited

Breville Group Limited is an organization that is involved in designing, developing, branding, marketing, and distributing products. For all these processes to be effectively accomplished, it involves a lot of work and this means a lot of employees too. Breville is an organization that is committed to moral, responsible, and viable conducts and are determined to create a culture that increases their contribution to society. Cultural diversity for the organization is inevitable because it is a global organization meaning that it attracts even culturally diverse employees. It is an organization that has lasted for a long time and therefore understands the impact of culturally diverse employees and their contribution to the organization. Breville Group Limited is an organization that focuses on the creativity of their products and this involves teamwork and interdependence to achieve the uniqueness of their products. According to Rosenauer et al., (2016), task interdependence requires close collaboration and practical teamwork and provides the basis for diversity to develop its impacts on team performance. Breville is a successful organization and has remained relevant for many years. This shows that it has effective management and this includes the culturally competent leaders who can communicate effectively with the employees because poor communication leads to misunderstanding and therefore poor performance. Culturally intelligent leaders possess the necessary attitudes, skills, and knowledge to deal with cultural diversity in the workplace. They know how to handle multi-cultural teams effectively and therefore enhance the company’s performance. Apart from Breville being a successful organization, it also recruits, trains, and develops marketers, engineers, and industrial inventors globally. All these processes require interdependence from the employees so that they can be accomplished and the leaders, they require to have the right knowledge on how to handle any issues or conflicts that may arise. The close interaction of the team members helps them integrate their skills and ideas to find a solution and culturally diverse employees have broad and different ideas which when put together work perfectly for the organization. Leaders need to encourage more cultural diversity in the organization for successful results.

Analysis of conflict management in a culturally diverse workplace

Effective communication in culturally diverse teams is a big problem that causes misunderstanding to occur. When there is a misunderstanding, conflicts are bound to arise. Lack of awareness about diversity for the managers and the team members can easily lead to conflicts because different cultures have different working styles and expectations. When there is poor communication and both the manager and the team members are not aware of the difference in cultures, apart from the conflict, the team members will underperform. Therefore, the manager must know how to handle culturally diverse employees to avoid these conflicts and enhance performance (Rosenauer et al., 2016). With the increase of culturally diverse employees in organizations, the leaders have to learn how to handle each person differently and understand the different cultures. The manager should embrace diversity and create a work environment that encourages team members to acknowledge diversity to promote interdependence in the team. The manager has to create positive or negative working relations among culturally diverse team members by how they handle diversity. Cultural intelligence is a vital tool that many ought to have because it helps them clearly understand an individual and their culture, know how to communicate to them effectively to avoid misunderstanding, and the approach and style to use for different individuals.

Recommendations

Based on my findings, managers need to learn how to be culturally competent to avoid conflicts that come about due to misunderstanding. They should be competent enough to adopt different management styles and should always want to learn more to be the best. This way they will have the ability to understand each individual’s needs. They need to encourage workers on the significance of cultural diversity and the positive impact it has on the organization’s performance if utilized properly. Effective communication should be practiced to ensure that there each part clearly understands the other. Being a diverse employee in itself is challenging and therefore, a manager should be considerate, patient, one who could be approached easily and one who interacts with the employees on the challenges they are facing and is ready to listen to them and come up with a solution. This encourages the employees and makes them feel valued and through this, performance is enhanced. A manager needs to keep improving on the cultural diversity knowledge and skills to keep up with the team members and learn the different styles to use in handling them and conflicts in case they arise.

References

Breville (2018). Retrieved from https://brevillegroup.com

Rosenauer, D., Homan, A.C., Horstmeier, C.A. and Voelpel, S.C., 2016. Managing nationality

diversity: The interactive effect of leaders’ cultural intelligence and task interdependence. British Journal of Management, 27(3), pp.628-645.

Sogancilar, N. and Ors, H., UNDERSTANDING THE CHALLENGES OF MULTICULTURAL

TEAM MANAGEMENT. Journal of Business Economics and Finance, 7(3), pp.259-268.

Employee Recognition Programs in the Public and Private Sector

 Abstract

            Employee recognition programs in the workplace can provide a positive environment and morale within an organization.  This paper will have the needed research on organizations with and without recognition programs.  The research material will provide insight into which organizations personnel enjoy their place of employment.  The paper will also include evidence to support if employee recognition programs motivate employees to make an extra effort in obtaining company goals set by their superiors.  An essential aspect for effectual leadership pertains to strengthening and inspiring other workers to steer good performance. Both financial and non-financial prizes can apply to this particular goal. As this paper examines the background about the characteristic prominence of employee recognition within an organization, it will also unveil the need for a reliable reward system as organizations try to retain profitability and face stiff competition in the current dynamic market (Montani, 2020). Most of the time, recognition is significant if it is connected to specific achievements or organizational objectives. Whenever a company recognizes workers, explaining credit helps the workforce relate the acknowledgment to their work ethic, encouraging persistent performance among the workforce workers.

                        Key Words: Acknowledgment, Complimentary, Virtuous.

 The Impact of Forward and Backward Integration on Microsoft’s Performance and Sustainability in America

Introduction

In the course of developing this dissertation, I will be the impact of forward and backward integration on Microsoft′s performance and sustainability in America.  The paper will be focusing on investigating how vertical integration may influence the operating performance and sustainability of an organisation in the contemporary business world. According to Joyce and Paquin (2016), Vertical integration (VI) which encompasses both forward and backward integration strategies is frequently used in overcoming market challenges and thus boosting the performance and competitiveness of an organisation. Thus, the focus of the dissertation will be to determine the correlation between vertical integration on performance and sustainability following a case study of Microsoft Inc.

Background

In this dissertation project, three themes will be investigated to determine the effects of vertical integration on a firm are which are performance, inventory turnover, and sustainability. With respect to performance, the impact of vertical integration on the performance of a firm is a subject that is often addressed in economic and management studies. However, the conclusions are contradictory as some studies find a negative impact while others indicate a positive one on operational performance. Vertical integration is a business model that fell out of tech companies' favour since companies such as Microsoft have achieved immense success in specialising in their value chain are highly competitive. Hence, there is a need to establish how the shift from the horizontal to vertical business model might affect the firms’ performance.

Inventory turnover is another theme that the research project will seek to explore. One of the main challenges that are faced by tech companies in manufacturing as well as distribution lies in managing inventory and more specifically inventory turnover. Vertical integration is considered an effective approach to alleviating the challenges that are associated with the supply chain. From the management perspective, large companies including those in the tech industry are pursuing vertical integration to refine their management of inventory. The third theme that will be investigated through this research project is sustainability. While operational efficiency is vital in boosting the performance of a firm, there is a need to focus on achieving sustainability by retaining a competitive advantage. Thus, the study will seek to establish the influence of vertical integration on Microsoft’s sustainability.

Problem Statement

In today’s 21st century, businesses are operating in a globalised market that is characterised by intense competition as firms compete for a significant market share. Both forward and backward integrations allow organisations to determine how to structure their operational strategies to achieve a competitive advantage. Vertical integration is a business model that is adopted to gain control over the organisation’s supply chain leading to operational efficiency, increased production, and competitiveness. The supply chain approach allows a company to achieve the objective of attaining a sustainable supply chain. Vertical integration is a paradigm that is focused on improving all the core competencies of a business, which leads to cost-saving, competitiveness, and improved performance. However, even though vertical integration strategy leads to an increased organisational performance by creating efficiency in the supply chain, existing literature shows the lack of consensus on the applicability of the model to tech manufacturing companies compared to service firms. Therefore, the research project will seek to establish the validity of these doubts by following a case study of Microsoft being a tech manufacturing firm.

Aim and Objectives

Research Aim

• To investigate the impact of forward and backward integration on Microsoft’s performance and sustainability in America

Research Objectives

• To determine the impact of forward and backward integrations on Microsoft’s performance in America
• To determine the impact of forward and backward integrations on Microsoft’s inventory turnover in America
• To determine the impact of forward and backward integrations on Microsoft’s sustainability in America

Research Questions

• What are the impact of forward and backward integrations on Microsoft’s performance and sustainability in America?

Literature Review

Introduction

Vertical integration is an influential business model, which is an empirically noticeable trend in the global market, particularly in the manufacturing industry. The literature on the adoption of Vertical integration in the business world and its implication is extensive. The objective of this literature review is to provide an in-depth critical analysis of existing literature. This section provides empirical findings from existing literature on the effects of vertical integration on the performance and sustainability of a firm. The focus is to establish the strengths and weaknesses of the model in influencing performance and sustainability. However, the formerly dominant approach has recently been abandoned in the last two or so decades after tech firms and manufacturing companies realised that focusing on their competencies while outsourcing on others also leads to competitiveness and sustainability. However, the findings of recent literature indicate that vertical disintegration has not attached the anticipated performance outcomes.

Vertical Integration and Organisational Performance

Empirical evidence supports the notion that vertical integration creates different economies, which influences operational and organisational performance positively when utilised under market failure conditions such as market uncertainty, demand variability, and transaction cost. However, reviewing the existing literature on vertical integration, it is evident that the findings on its effects on performance are contradictory. In a systemic review study by Kaiser and Obermaier (2020), a negative correlation between vertical integration and performance was established. The study established that it is only through vertical disintegration that continuous performance increase is achieved. Andreou, Louca, and Panayides (2016), however, argued against this citing that vertical integration is vital in enabling a firm to establish how to structure its operations in a way that enhances its competitiveness. The evidence supports that while core competencies might allow the companies to increase their performance, most of them are unable to sustain the development as a result of a competition which disrupts this business model. Ataseven and Nair (2017) also supported the findings that vertical integration has a positive contribution to operational and organisational performance, citing that it improves the overall management of the supply chain. In today’s business setting where firms are operating on a large scale, vertical integration appears to enhance their ability to effectively manage their supply chain.

According to the resource-based view (RBV), the success of vertical integration is determined by the competitive advantage of an organisation within its supply chain. In the study involving manufacturing firms in the U.S, by Wan and Sanders (2017) found that vertical integration hurts performance for firms that lack predominant capabilities and resources within their supply chain. Therefore, capabilities only lead to increased operational performance if they are unique, rare, and not imitable. Heeringa et al. (2020) supported the finding citing that well-established companies can mainly benefit from the vertical integration model based on their resourcefulness and capabilities. Operational performance is achieved by providing high-quality control and standards on both input and output. A high level of vertical integration can boost operational performance and competitive advantage.

Vertical Integration and Sustainability

The application of vertical integration is to enhance the competitiveness of an organisation leading to sustainability. For globalised companies, managing the supply chain is one of the most important aspects of the business as it determines its overall performance. The study by Helfa and Campo-Rembado (2016) found that in the manufacturing industry, vertical integration contributes to improved coordination and integration of the supply chain which leads to improvement in operations, inventory management, and ultimately financial performance. The essence of integrating the supply chain is to ensure that a firm has a smooth production process.  Sutduean, Singsa, Sriyakul, and Jermsittiparsert (2019) support the findings citing that the objective of adopting vertical integration is to scrutinize the supply chain system. By diminishing the challenges associated with supply, lead to effectiveness in managing production and operations.

Ponomarenko and Sergeev (2016) agree that the impact of vertical integration on sustainability is huge although it takes place discriminatively. Vertical integration not only improves the performance of organisations but also counters the overall impacts on competitiveness and sustainability. Sroufe (2017) argues that sustainability is mainly achieved by small firms given that large and established firms are well-positioned. Hence, competitiveness is determined by the nature and size of the business.

The literature findings illustrate that vertical integration has a significant impact on a firm’s performance and sustainability. The model helps in boosting the performance of the organisation by increasing the efficiency of operations which leads to increased production (Bonilla et al., 2018). On the other hand, sustainability is achieved based on the ability of the organisation to retain operational efficiency and high financial performance (Siva, Gremyr, and Halldórsson, 2018). 

In conclusion, in the last two or three decades, the model has been used widely in boosting the management of supply for large organisations which are seen as a driver for competitiveness and increased financial performance among firms. As posited by Joyce and Paquin (2016) in the globalised business landscape, value chain efficiency and increased use of vertical integration have been dominant business strategy over the years.

Methodology

Introduction

This chapter will provide a description of the research methodology to be occupied by the dissertation. In detail, this section will outline the conceptual philosophy, research strategy, data collection process and methods, data analysis, and ethical considerations.

Conceptual Framework/Philosophy

The study will occupy interpretivism since it is qualitative research. The basic advantage of the approach is that it provides a comprehensive description as well as analysis of the subject of research without narrowing the scope of the study and the extent of the participants’ responses (Alharahsheh and Pius, 2020). The objective is to interpret the concept of vertical integration and to determine its impact on performance and sustainability. For the inductive approach, I will begin by making a specific observation, which will allow the production of generalised theories and conclusions. An inductive approach is beneficial as it considers where the effort of the research lies and is suitable for a small study sample.

Strategy

An unstructured survey is the selected strategy. An unstructured survey is deemed as appropriate as it helps in maximizing the collected data. Also, it does not limit the scope of the research given that it offers the researcher flexibility and it, therefore, becomes easier to capture the information that was not intended but aligns with the needs of the study. The strategy will therefore help in gathering maximum data hence ensuring that the study is credible and reliable.

Data Collection

In-depth interviews and semi-structured questionnaires will be utilised as the data collection tools. The tools are easy to use and they lead to the collection of maximum data in support of the research subject. Besides, the methods are appropriate as they provide flexibility while ensuring that the researcher builds positive relationships that prevent resistance which might affect the credibility of the study. The questionnaire will be used as the guide for the interviews.

Data Analysis

Content or thematic data analysis will be used to analyse data collected from the interviews and questionnaire. The thematic analysis involves summarizing, analysing, and classifying data into specific themes and sub-themes in alignment with the aims of the study (Belotto, 2018). Therefore the data will be classified into three themes, performance, sustainability, and inventory turnover.

Proposal Plan

Gantt chart

Some of the tasks that I identified as critical in the accomplishing the goals of the research project include topic development, research proposal, literature review, methodology, data collection, data analysis, results and discussion, proof reading the paper and submission. The tasks are in the given order as they will take place chronologically as illustrated. The objective is to ensure that with the successful completion of one task, this builds a foundation for the other. The tasks must be completed in order for the project to be successful. The most important is the topic selection and proposal development. The proposal will serve as the guide for the entire project and it is therefore important to ensure that the selected topic is not only relevant but also feasible. The tasks are allocated specific time based on their complexity and length.

Several problems are likely to be experienced along the way. However, if a problem is experienced such as in setting milestones, I plan on consulting my professor and supervisor for advice and guidance. In addition, I plan to rely on building good relationship with others to ensure that any possible challenge is countered without fail. Also, conducting thorough research is critical in overcoming the challenges which cannot be avoided. Hence, as a researcher I am prepared to deal with any rising issues during the process of developing the dissertation hence ensuring that the objective of the research are achieved and that the outcomes are reliable and credible.

Reference List

Alharahsheh, H. and Pius, A., 2020. A Review of key paradigms: positivism VS interpretivism. Global Academic Journal of Humanities and Social Sciences, 2(3), pp.39-43.

Andreou, P.C., Louca, C. and Panayides, P.M., 2016. The impact of vertical integration on inventory turnover and operating performance. International Journal of Logistics Research and Applications, 19(3), pp.218-238.

Ataseven, C. and Nair, A., 2017. Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature. International journal of production economics, 185, pp.252-265.

Belotto, M.J., 2018. Data analysis methods for qualitative research: Managing the challenges of coding, interrater reliability, and thematic analysis. The Qualitative Report, 23(11), pp.2622-2633.

Bonilla, S.H., Silva, H.R., Terra da Silva, M., Franco Gonçalves, R. and Sacomano, J.B., 2018. Industry 4.0 and sustainability implications: A scenario-based analysis of the impacts and challenges. Sustainability, 10(10), p.3740.

Heeringa, J., Mutti, A., Furukawa, M.F., Lechner, A., Maurer, K.A. and Rich, E., 2020. Horizontal and Vertical Integration of Health Care Providers: A Framework for Understanding Various Provider Organizational Structures. International journal of integrated care, 20(1).

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Wan, X. and Sanders, N.R., 2017. The negative impact of product variety: Forecast bias, inventory levels, and the role of vertical integration. International Journal of Production Economics, 186, pp.123-131.

Discrimination in the workplace

Problem statement

           Safety in the workplace and cooperation with locals are some of the important elements that people consider before deciding to pursue a career in law enforcement. In Canada however, the Royal Canadian Mounted Police faces major issues related to discrimination based on gender and sexual preferences. This research will therefore seek to answer the question, is it morally forbidden to discriminate against other people on the grounds of misogyny or homophobia when you are a member of the RCMP force? 

Thesis statement

           Although members of the Royal Canadian Mounted Police force are expected to practice professionalism while in the field, issues related to discrimination relating to discrimination based on race and sexual preferences have forced recruits to carefully consider the ethical ramifications of joining the Royal Canadian Mounted Police. 

Introduction

           Discrimination in the workplace has become one of the major challenges that exist in a diverse working environment. Organizations have been forced to seek out different ways to promote unity and help reduce cases of discrimination in the workplace. Although the majority of organizations and institutions have developed policies that help establish a culture that is against discrimination and oppression of others, the same cannot be said of the Royal Canadian Mounted Police department. News reports, complaints from victims, and testimonials from witnesses have revealed a great deal of discrimination that exists amongst law enforcement officers in the RCMP. Recruits and youths aspiring to join the RCMP must therefore consider their options before joining the RCMP as it is likely to expose them to an environment full of discrimination based on race, sex, and sexual orientation. 

Background

           The Royal Canadian Mounted Police was intended to serve the interests of the community and protect the rights and freedoms of the citizens in their jurisdiction. While there are those committed to upholding the principles and purpose the police force was originally intended for, the RCMP has taken on a different image that greatly differs from what the force was intended to achieve (Aielo, 2020). Cases of discrimination and use of excessive force are common in the RCMP. Officers from the department have been reported to engage in violent acts against one another and also when apprehending suspects (Aielo, 2020). The negative reputation has made it difficult for the law enforcers to carry out their duties and also made the recruitment for new officers more difficult. 

           A majority of the ethical dilemmas that a recruit is likely to face in the RCMP are attributed to the issues of discrimination based on gender and sexual orientation. The specialized teams that exist in the RCMP are greatly to blame for the existence of gender-based discrimination and sexual assault in the department (Lewis, 2013). Recruits trying to fit into the specialized teams are often required to perform sexual favors to top officials to secure a position in the specialized teams. Oftentimes, men are given leadership positions and result in forcing women to different forms of sexual harassment. Recruits are also subjected to harassment in the form of pejorative comments and penetrative sexual assault especially amongst female officers (Lewis, 2013). Members of the LGBTQ community are also at risk as issues of being out without the individual's consent are common in the RCMP. Recruits seeking to work with the RCMP must therefore be prepared to work in a hostile environment not only in the field but also at the base of operations.

           Recruits seeking to join the RCMP must also take into consideration the impact that working in an organization with a bad reputation could have on their career goals and overall safety. Similar to other police departments, the success, and safety of police officers while on duty is greatly influenced by the nature of the relationship they have established with the general public (RCMPA, 2016). Concerning RCMP, the rampant issues of sexual harassment, police brutality, and discrimination in the workplace have destroyed the reputation that the RCMP once had with the public. Recruits must therefore expect major challenges even when performing simple tasks such as collecting evidence and interviewing witnesses (Aielo, 2020). Such an environment also poses great risks for the recruits and other officers especially during arrests where the public strongly opposes actions engaged in by the RCMP force. Those seeking to join the RCMP must therefore be prepared to work under hostile conditions and expect challenges to arise from within and also from the general public. 

           The hazardous working environment that exists in the RCMP is greatly attributed to the lack of unity and cooperation amongst the officers when performing their duties. Recruits are also likely to face the ethical dilemma of discrimination based on sex which is common in the RCMP and greatly favors men. Most of the leadership positions and highly ranked departments are occupied by men (Fine, 2020). There also exist systematic barriers that make it difficult for women to become successful enough to qualify for high ranking positions. Often, female officers are requested to perform sexual favors to qualify for desired positions. Sexual harassment is also common and a significant number of women have issued complaints and reported cases of rape and other forms of sexual harassment by superiors (Tasker, 2016). Such an environment is dangerous for recruits because it discourages teamwork creates a hostile environment that may not be ideal for recruits. 

The ethical dilemmas can however be resolved through concepts such as the Respect for Persons. If used correctly, the Respect for Persons could help to identify areas that need to be rectified to help members of the RCMP make better decisions that are free from bias (Downie & Telfer, 2020). At present, most of the ethical issues that recruits are likely to face in the RCMP are influenced by the culture where most officers are more concerned with fulfilling their interests. The approach will therefore force them to factor in how one’s actions affect another and why it is important to protect people’s rights and freedoms (Caruso, 2016). The Respect for Persons can also help train RCMP officers on the importance of protecting the rights and freedom of the people under their care, especially those who cannot do it for themselves. 

           An argument can be made that the public and the media are to blame for the high number of cases relating to discrimination and the negative image that is associated with the RCMP. The objection is based on the various cases where civilians dressed up or imitated the RCMP officers and went on to terrorize residents (Aielo, 2020). Despite the occurrences where civilians imitated RCMP officers, there is enough evidence to support the claim that the working environment that RCMP officers have to work in is undesirable. The few innovations and development projects have done little to improve the hostility that exists among officers in the RCMP force. 

           Although recruits are likely to face various challenges after enrolling with the RCMP, there have been various developments that have been launched to try and create a better and safer working environment for RCMP officers. A good example is a decision made by the department to compensate over 2,304 women for being victims of different forms of sexual assault from their colleagues (Aielo, 2020). The government has also paid millions of dollars to help settle lawsuits and provide legal representation for victims from the RCMP who may not be able to represent themselves in court. The added support and combined efforts from the top management could help create a more ideal working environment that is a deal for recruits and officers. 

           The Royal Canadian Mounted Police can also employ the use of the act-utilitarian and rule-utilitarian concepts to ensure that any positive change that is introduced is sustainable. Under the Act-Utilitarianism, the RCMP can help law enforcers to think more about the nature of their actions and how they contribute to discrimination and other challenges that exist in the RCMP (Frey, 2013). Often, discrimination occurs because the officers are not fully aware of the impact that their actions have on the population and colleagues. The Rule-utilitarianism concept on the other hand will help the RCMP to develop and implement rules that seek to create a better working environment and also protect the rights and freedoms of the officers and the general public (Mokriski, 2019). The process to introduce new rules should focus on identifying areas where discrimination occurs to enact policies that try to prevent such forms of discrimination and oppression from occurring. 

Conclusion

           The image associated with the RCMP has continued to deteriorate over the years. Issues relating to discrimination based on gender, sexual orientation, and position in society have made it difficult for recruits enrolled in the police force. The unsafe and hostile working environment that exists in the RCMP forces recruits to work under strenuous conditions and overcome major challenges even before they get the chance to adjust to their new environment. Despite these challenges, however, concepts such as rule utilitarianism and act utilitarianism can be used to develop new policies that determine how members of the RCMP interact with one another and with the general public. Despite the prohibition on actions that result in discrimination and oppression of officers and recruits, there is still a need for more efforts to try and create an ideal working environment in the Royal Canadian Mounted Police force and make it more suitable for officers and recruits alike. 

References

Aiello R, (2020) “It shook me: Report details toxic and hateful culture within RCMP” CTV         News, retrieved from, https://www.ctvnews.ca/politics/it-shook-me-report-details-            toxic-and-hateful-culture-within-rcmp-1.5195954

Caruso, P. M. (2016). Respect for persons: The foundational moral disposition in medicine (a      renewed physician ethos: respect for patients as persons). Nashville, Tenn. Vanderbilt University

Downie, R. S., & Telfer, E. (2020). Respect for persons: A philosophical analysis of the   moral, political and religious idea of the supreme worth of the individual person.           London: Routledge.

Fine S, (2020) “RCMP discriminated against female staff in job sharing program: Supreme          Court” The Globe and Mail, retrieved from,         https://www.theglobeandmail.com/canada/article-rcmp-discriminated-against-female-            staff-in-job-sharing-program/

Frey G, (2013). Act‐Utilitarianism. In The Blackwell Guide to Ethical Theory (eds H.       LaFollette and I. Persson). https://doi.org/10.1111/b.9780631201199.1999.00012.x

Lewis T, (2013) “RCMP discriminates against and abuses first nations women” BBC News,         retrieved from, https://www.bbc.com/news/world-us-canada-21447735

Mokriski D, (2019) “The eligibility of rule utilitarianism” Journal of Ethics and Social     Philosophy” retrieved from, https://www.ctvnews.ca/politics/it-shook-me-report-            details-toxic-and-hateful-culture-within-rcmp-1.5195954

Royal Canadian Mounted Police Act, (2016) “Public interest investigation report into issues         of workplace harassment within the royal Canadian mounted police” Government of Canada, retrieved from, https://www.crcc-ccetp.gc.ca/en/public-interest-        investigation-report-issues-workplace-harassment-within-royal-canadian-mounted

Tasker P, (2016) “RCMP’s recent history of harassment, abuse and discrimination” CBC,             retrieved from, https://www.cbc.ca/news/politics/rcmp-sexual-harassment-history-    1.3453413

Managing for High Performance Reflection

High-performance organizations are firms that are developed and led by their founders to achieve a sustained high commitment from all stakeholders, employees, clients, and the community at large. This kind of organization stands out from the rest by maintaining their achievements over a long period of excellence. Any organization is bound to change for the better and usually by new managers who take charge in times of crisis when they use methodologies that focus on performance and commitment. Commitment and performance are essentials for the success of an organization despite the well-being of the economy. 

Performance alignment, psychological alignment, and capacity for learning and change are the organizational outcomes that should be achieved to ensure high performance, high commitment in an organization (Lagace 2007). To achieve a high-performance organization, the leader has to set a general direction as well as listen and involve other people to identify and get solutions for issues that arise. The leader has to have a compound stakeholder viewpoint while managing an organization. When leaders achieve the organizational outcomes and can maintain them over a certain period, they ensure that their organization will achieve a sustained high performance for a long time.

Performance alignment happens when the leaders establish winning strategies and manage to maintain that alignment with their structure, system, abilities, and culture. All firms go through strategic variations but HCHP organizations can realign faster with commitment from the employees. For high performance to be accomplished, all features of the organization’s strategy must be associated with the planned mission of the organization. In performance alignment, the strategy that is developed has to be distinctive, focused, and should be based on values (Beer 2009). This is because a focused and distinctive strategy to deliver value to the target client is necessary for sustained competitive advantage. A focused strategy enables the management to hire employees that are aligned to the kind of service being offered. The organization has to fit the strategy in performance alignment and so the strategy developed should be clear. This makes it possible for it to fit the organization and the people in it. If an alignment lacks in the strategy, it is difficult for it to be effectively implemented and performance is compromised. Strategy implementation is all about developing a design that facilitates execution.

High-performance organizations are clear about the attitudes, abilities, and behaviors required in the implementation process. They are clear about the qualities of employees that they want to work in the organization. This is because mistakes done in hiring can be costly and reduce the value proposition for customers and shareholders. In performance alignment, the organizational design controls have to be internally consistent. Consistency is necessary for creating employee trust and commitment to the objectives, values, and strategy (Beer 2009). Employees have to have an assurance that the management keeps its words. Internal consistency makes it hard for competitors to copy another organization’s strategy for its success. It is easy for a firm to copy other firm's policies but difficult to copy internally consistent practices. It takes some time to develop culture and employee attitudes and a manager who possesses the right style, values, and strategies needed to create a HCHP system.

Another organizational outcome that needs to be achieved and sustained is psychological alignment. High-performance companies can emotionally associate people with a bigger purpose. Performance management means managing with the heart where leaders create an organization that offers employees at any level in the organization a sense of higher purpose, challenges, and the capability to make a difference. This is something that employees are always yearning for but most of the time are denied that opportunity in their organizational life. Employees who are psychologically associated with the task and principles of the organization are driven from the inside compared to those that need motivation from incentives which tend to be a temporary motivation. With psychological alignment, teamwork and relationships are what drives behavior in the organization (Beer 2009). Willingly, people sacrifice their self-interests over the demanding objectives that are needed for high performance. For it to be achieved, HCHP organizations create and prioritize human resource management guidelines and practices. Organizations looking for psychological alignment create a distinct psychological contract between managers and employees which includes what the employees and the management believe they are getting and giving in the relationship. Normally organizations expect that managers and workers perform the given tasks to achieve performance values.

            In HCHP organizations with psychological alignment, the administration expects that employees will work in collaboration, supervise, and control themselves, work selflessly and constantly change and become accustomed. The HCHP organizations deliberately draft a psychological agreement that helps to bring about emotional commitment from their employees to the community. Employee expectation in HCHP organizations is so much more than money and reasonable treatment which is contrary to employees from other organizations (Beer 2009). They expect the management to abide by the values that connect them to the community to create trustworthy relationships, achievements, being involved, challenges, growth among others. The HCHP organizations choose employees that have these needs since not all employees have them. The aligned psychological contract ensures that the employees have the interests of the organization and the customers at heart and work with a combination of their heart and their head rather than just with the use of their hands.

Capacity for learning and change is another organizational outcome that needs to be achieved and sustained. This outcome tends to be a difficult one for organizations to develop effectively and even high-performance organizations find it difficult to sustain. Capacity for continuing change is the key to competitive advantage in an organization (Creelman 2010). Despite it not being easy, the capacity for learning and change enables an organization to adapt from where they are at the time to a better and bigger organization that attracts new customers. It also makes the organization have a diverse workforce which is for the better of the organization because diversity means different ideas, knowledge, and way of doing things. The capacity to adapt allows the organization to grow and serve more people. Diversity in functional proficiency and personal background enables HCHP systems to adapt. When individuals with different backgrounds and from different levels of the organization engage with different elements of the organization, organizational learning and change become possible. The problem is in most organizations, individuals with diverse points of view are never encouraged to share their opinion. The capacity of an organization to uphold a performance-oriented culture and one that supports trust and constructive conflict is important in sustaining high performance.

In my future responsibilities as a manager, I will ensure that I manage employee performance since it is the most important part of an effective leader. According to research, managers who engage ineffective performance management yield extraordinary business outcomes. High performance as a leader will help build the manager-employee relationship which is essential for the organization (Beer 2009). For employees, high-performance management allows them to develop and advance their knowledge and careers and therefore accomplishing their work in the organization as they should. As a leader, it is important to build a high-performance culture since it is necessary to enhance trust and manager-employee relationships and the overall success of the organization. A performance culture is important in an organization since it ensures that there is collaboration, support, and care for the employees. Creating a HCHP as a manager is not easy and as a leader, I will make principled and courageous choices about how the organization should be managed and this will begin from the hiring process. As a leader, I will get a leadership team that will develop distinctive, clear, and focused strategies and adapts to them. Having a clear management philosophy that reflects the inner beliefs and values about life, the role of the organization in the community, and the nature of people at work is important as a leader.

High-performance organizations are characterized by commitment and performance as the essentials for the success of an organization. There are three organizational outcomes that when achieved and sustained by the leaders, ensure that the firm will achieve sustained high performance for a long time. Performance alignment, psychology alignment, and capacity for learning and change should be achieved and sustained in a HCHP organization. As a manager, I will practice high-performance management leadership to create employee commitment, employee-manager trust, and relationship for the overall success of the company.

References

Beer, M. (2009). High commitment high performance: How to build a resilient organization for

sustained advantage. John Wiley & Sons.

Creelman, D. (2010). Michael Beer: High commitment, high performance. Creelman Research,

3(2).

Lagace, M. (2007). High commitment, high performance management. Retrieved from

https://hbswk.hbs.edu/item/high-commitment-high-performance-management

Safety Audit in the Construction Industry

Introduction

 The construction industry in various nations has put in place safety management frameworks and auditing structures to upgrade its workers' safety and maintain safety standards. Reacting to the need to improve safety measures, critical industrial players have proposed key measurements and access to their current or ongoing safety interventions to protect workers. Most of the safety auditors in the construction industry use various steps to ensure that construction sites are safe from harm. Some carry out an analytical analysis of the area, followed by a thorough assessment of the environment before any work can proceed (Dessler, 2018). This paper will demonstrate the safety level on a construction site by reviewing a checklist containing complex core issues on safety.

Construction Safety Measures

 According to OSHA standards, every construction site, falls are responsible for two-thirds of the fatal accidents in the industrial sector. If a construction industry has two or more people working more than 6 feet above the ground, the company must offer the worker's safety gear to ensure their safety in case of a fall. Based on this particular statement, most construction workers are geared up whenever they work above 6 feet. Even though some of the gears might seem worn out, the workers donned them, indicating that the construction industry follows through with the workers' safety regulations. Also, some workers lack a fitting harness to keep them from falling. More so, some of the construction sites lack lifelines or guard rails to prevent accidental falls from occurring.

One of the unique mechanisms used for ensuring that workers remain safe in the ever-changing construction site is setting up communication systems. From observation, most construction sites enact communication systems depending on the size of the site. Even though overlooking an elaborate communication network is risky to the workers. Communication systems at construction sites are often ignored because they assume that they can shout at each other and communicate whatever they want to without harming each other. However, sometimes, accidents can occur due to miscommunication (Dessler, 2018). For example, according to OSHA standard guidelines, communication systems are meant to ensure construction workers are well informed of any hazardous chemicals on construction sites or even workspace. Employers are to mark dangerous chemicals and communicate with the workers.

Identified Risks in the Construction Industry

 Even though workers are aware of the safety measures to keep them safe from harm, their behavior cannot keep them safe. Most construction workers are not concerned about the safety of other workers or even their own. Thus, their employers have not raised enough awareness of how they should conduct themselves in security matters while on site. For example, some workers assume that fellow workers can handle the same amount of workers as them hence overloading the wheelbarrows and other trolleys. On the other hand, the construction industry deals with incomplete contracts, among other numerous issues. More so, construction is a risky venture. Each construction project has its problems and dangers (Wasilkiewicz et al., 2016). Defining common challenges in construction sites might help to anticipate or even mitigate the risks. For instance, in some construction industry, protective gear is not compulsory, while in some, protective gears are available but not worn consistently. Careful management and implementation of projects often lead to the misinterpretation of safety regulations. Sometimes the performance or the project setting might lead to more safety issues because the employer might fail to put safety measures in place. While working, most workers are not supervised hence increasing chances of accidents occurring while on site. The construction industry also lacks a detailed, consistent manner of assessing whether the workers adhered to the safety measurements outlined. In addition, construction sites do not have marked entry and exit openings. People assume that they can pass through any door. Nature and grit associated with construction sites make the job ignore safety measures because they seem petty compared to the physicality of the actual appointment. Thus, on the site, the workers often do not adhere to the construction rules and guidelines as stipulated by construction companies, which reveals no reliable connection between the company and the workforce sent on the site. In other words, the risk factors are connected to site conditions, type of building materials used, and unanticipated risks. Sometimes the construction industry experiences a reduced workforce, forcing the companies to overwork the rest of the personnel (Wasilkiewicz et al., 2016). Whenever these risks manifest in long and short-term impacts, workers might die, or the project might stall. In the long run, some of the defined risks need to be mitigated to save lives and enable people to carry out their work effectively.

Safety Recommendations

 The first step is creating a conducive working space where the workers can foster a safety zone while working. This can be enabled by supervising the workers and advising them to adhere to the stipulated rules and regulations on construction matters. Most of the workers need to work under close supervision so that they can conform to all the laws. Many people are termed as effective if they work in unison and follow all the safety measurements based on the regulations (Schwatka et al., 2016). More so, all the workers are supposed to be trained on matters about safety measures and awareness on how to handle accidents so that in the long run. Secondly, all the workers are to wear protective gear at all times so that they can prevent an accident from fatally injuring them. More so, given the conditions under which construction, the project should begin after an induction. Lack of installation might cause an unforeseeable accident to occur from time to time. Hence, everyone should be familiar with the job's manner and how each position should be handled during the entire working session. An induction will also determine the safety measurement people should follow once they are working on the site.

Furthermore, the inauguration informs when to start and when to regularly leave the job, hence providing enough insight into how the job should be handled in the long run. An additional recommendation that is often overlooked is keeping the construction site clean. The debris should be collected and then disposed of off the site (Dessler, 2018). An untidy site often misleads and causes missteps to occur hence may lead to an accident. A messy site can only generate more openings for the occurrence of accidents. A tidy construction site marks the safety sites, and the no go zones for the workers. In terms of maintaining safety, the supervisor should mark all the dangerous places in the site in order to prevent accidental slip up or falls. This way, all workers can design places to work and where to avoid in the long run.

Conclusion

 The construction industry dynamic projects has resulted in the creation of more than one safety measurements. For instance the organizations should provide safety gears to workers operating beyond 6 feet above the ground level. Also, all the workers are to be inducted and oriented before the work begins. Construction works has to label the construction site so that all the workers can identity danger zones.

References

Dessler, G., (2018). Human Resource Management 16th ed.

Schwatka, N. V., Hecker, S., & Goldenhar, L. M. (2016). Defining and measuring safety climate: a review of the construction industry literature. Annals of occupational hygiene, 60(5), 537-550.

Teo, A. L. E., Ofori, G., Tjandra, I. K., & Kim, H. (2016). Design for safety: theoretical framework of the safety aspect of BIM system to determine the safety index. Construction Economics and Building, 16(4), 1.

Wasilkiewicz, K., Albrechtsen, E., & Antonsen, S. (2016). Occupational safety in a globalized construction industry: a study on Polish workers in Norway. Policy and Practice in Health and Safety, 14(2), 128-143.

Safety Management

Introduction

Safety management is understood as an approach that is used to apply ideologies, structures, procedures, and methods to prevent and reduce accidents, damages, and other hostile outcomes in an organization. It provides an organized way to constantly recognize and monitor hazards and regulate risks while maintaining affirmation that the risk controls are efficient. The safety management system is composed of safety rules and goals, safety risk control, safety guarantee, and safety promotion. Safety management is the process of managing business activities and applying policies and measures to minimize risk.

According to Ahmad (2018), safety management or performance is the quality of safety-related work, and its enhancement in the organization to increase its resistance and lower the risks of accidents. Great safety performance and high productivity work well together. The practice of safety management is a significant aspect used to improve the effective management of safety in the organization. The management system is supported by practices that are made up of committed management, safety education, the participation of workers, safety verbal engagements and response, safety guidelines, safety promotion, and strategies. The commitment of management is important in an organization because it reduces the number of accidents in the place of work. It emulates the importance of management of safety associated issues which are shown in the care and support given to develop a safety-related program.

Safety training is important especially in educating employees on safety practice and acting following the guidelines. Involving employees in the process is a behavior founded methodology which consists of persons or groups escalating the flow of engagements and decision-making developments in the company. Employees should be involved in the process for them to give their suggestions, comments, and insights concerning safety. This involvement empowers the employees psychologically through their participation in making safety decisions. Safety communication and feedback are important in safety management to report on any problem, the cause, accident, and non-compliance (Ahmad 2018). Therefore communication between the employees and the management is important in terms of feedback and comments on any safety-related improvements. Safety rules and procedures are crucial in safety management because they set the mission, vision, roles, set up the standards for employee behavior, and provide a safety system that will correct the safety behavior of the employees. Safety promotion and policies are important to the organization for them to be able to sustain and promote the safety policies implemented by the organization.

Research shows that the main cause of death resulting from an occupational injury is associated with protective features such as safety and health information and management factors and not to risk features such as risky working surroundings. Safety and health training is an effective and important strategy to improve safety behaviors and prevent injuries in the workplace. Safety and health managers hold the roles of delivering efficient safety and health education in the workplace (Park 2018). Diverse safety and health policies and programs are developed in support of small businesses. In the models suggested to prevent occupational injuries, among the situational factors included are human resource and organizational systems for the workplace safety and health are related to increased employee safety knowledge and motivation, more employee engagement in safety behaviors, and a reduction of accidents in the workplace. Safety and health human resources can strengthen workplace education and communications, hence improving employee safety awareness, information, skills, inspiration, and goals.

The reason organizations adopt a safety management system or an approach based on behavior is to manage their safety roles in an effort to perform well. Most companies prefer to adopt one structure due to practical and logical motives. Earlier behavioral systems take on observational techniques whereby employees distinct critical behaviors, observe employees for these actions, and offer their responses. Progressive behavior-based systems expose and correct organizational obstacles that hinder safe acts (Wachter& Yorio 2014). Features of these systems are required to efficiently manage safety performance in an organization.  Both aspects are included in the human performance methodology which tries to recognize and eradicate the causes of mistakes made by individuals in the workplace.

In human performance theory, objectives, missions, guidelines, and programs have concealed organizational weaknesses that could result in inconsistent fortifications and error precursors in organizations. The error signs are not favorable conditions because they intensify the possibility of human mistakes while executing particular activities (Wachter& Yorio 2014). The most common mistake traps consist of time and mental burden, exhaustion, interruptions, self-confidence, and engaging in new tasks.  In human performance, human mistakes are a huge problem in the system. It is unavoidable for organizational flaws to rise in a safety system and management practices. This is because safety systems cannot plan for regulation and prevention contrary to all possible error-prone conditions because in so doing, work should be arranged and controlled to be difficult hence using a lot of time, is not workable and is not reasonable. Safety management systems are normally established through rules, procedures, and strategies making them hard to be adjustable to the natural and unavoidable disparities arising in the work performance and the dangers being stumbled upon.

From a behavioral viewpoint, employees come along with their opinions, principles, and visions to the development and execution of safety management systems and in the ultimate work performance. The employee links with the safety management system by taking part in the structure. The drive to take part can be impacted by employees, opinions, and principles which can influence the employee’s value and regularity of involvement. In case of an accident, the worker's behaviors of the ones that interface with the dangers, are thoroughly examined during accident inquiries. To improve human performance, there are tools that can be used to lessen the chances of human mistakes (Wachter& Yorio 2014). The tools can be perceived as drivers for providing psychological and social abilities that compliment an employee’s practical abilities to encourage safe and effective duty performance. The commonly used tools for improving safety include leading pre and post-task sessions, peer-checking performance, and the use of self-checking methodologies for the employees who hardly believe that they have the required knowledge to make decisions. These tools engage employees to have more awareness in situations that concern their safety, mistake setups, responsibilities to be executed, and the environs. Engaging employees in safety helps to lessen the likelihood of individual mistakes from happening by involving them and making them conscious of the responsibilities, environment, and the related risks and the mistake traps that could be in existence. This means that increasing the level of engaging the employee in safety activities could be associated with improved safety performance.

The “Occupational Safety and Health Act” was passed to make sure that every working person has a safe and healthy work environment and also to preserve our human resources. This act developed the “Occupational Safety and Health Administration” which is used to govern the actions and enforce the safety and health principles that concern employees in the U.S. Both the managers and the workers have duties and privileges under the act. The employer’s responsibilities are to ensure that they present a working environment that is free from familiar risks, having familiarity with the required OSHA values, and scrutinizing the situations in the workplace to make certain that they fit into the OSHA values (Dessler 2017). The employee’s responsibilities are conforming to all appropriate OSHA values, they should follow all the safety and health regulations made by their employer and should report hazardous conditions to the superior. In the act, workers are given the right to claim for safety and health in their work and not fearing that they will be punished.

According to Kaplan & Mikes (2012), making rules and ensuring that employees follow them is sensible and reduces most of the hazards that could cause destruction in an organization. However, the use of rules in risk management will not reduce the probability or the effect of a tragedy. This paves the way for a new classification of risk that permits managers to know the risks that can be accomplished by using the rule-based methodology and which ones require other methodologies. The first step in developing a well-organized risk management system is comprehending the dissimilarities among the kinds of hazards that are faced by companies. Categorization of risks includes “preventable risks” which are inner risks that come from the organizations that are manageable and are supposed to be avoided. Companies need to tolerate mistakes that would cause little damage to the initiative and for which acquiring thorough evasion would be expensive. However, in general, organizations should strive to eradicate these risks because they are not beneficial and in the long run can diminish the worth of the company. This risk category can be achieved through prevention by observing operational procedures and guiding people’s conduct and decisions to follow the appropriate norms.

“Strategy risks” is another type of risk which are willingly recognized by an organization to make greater earnings. A strategy with great expectation of earnings calls for the organization to take on noteworthy risks and handling these risks is key to taking potential advances. These kinds of risks cannot be accomplished through the rule approach, but through a risk management system that is developed to decrease the possibility that the expected risks increase the capability for the organization to manage the risk events when they occur (Kaplan & Mikes 2012). A system like this does not stop organizations from taking on risky ventures but enables companies to take on higher risks hence great returns. The third category is the “external risks” which are risks that come from actions outside of the company and beyond its control. These are risks that could be a result of natural or political disasters and key macroeconomic shifts. It is hard for companies to prevent themselves from such events and so the management has to concentrate on recognizing and justifying their effect. Companies ought to modify their risk-management processes to fit the different categories.

Accidents could be prevented by reducing unsafe conditions and according to OSHA, employers are supposed to introduce all possible engineering and work practice controls to eradicate and reduce hazards (Dessler 2017). Employers need to develop safe environments for vulnerable employees such as young, old, female, and immigrant workers to ensure that their safe and healthy. Accidents could also be prevented by reducing unsafe acts through screening, training, and posters, motivation, and positive support. The unsafe acts could also be reduced by promoting a culture of safety, developing a helpful environment, creating a safety procedure, and placing precise loss control objectives. Safety based on behavior and safety awareness programs and employee involvement could also be used to reduce unsafe acts.

Conclusion

 Safety management provides an organized way to continually recognize and monitor risks while upholding the assertion that the risk controls are efficient. The practice of safety management is a significant factor that is used to improve effective management of safety in the organization hence increasing production. Safety and health training is an important strategy to improve safety behaviors and prevent injuries in the workplace. Safety rules and procedures help to set the mission, roles, and vision for employee behavior while health promotion policies are important to sustain and promote the safety policies in the organization. To ensure safety and health for employees and their employers, the occupational health and safety act was developed which helps to state their responsibilities and rights in the workplace. Workplace hazards are different and each should be managed according to its category. Reducing unsafe conditions and unsafe acts could prevent and reduce accidents in the workplace.

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