Contemporary their employees’ resistance to change. 1. What

Contemporary Business Issues

 

In this piece of coursework I will be discussing why the
correct analysis of the business environment is fundamental for a business
organisation and how incorrect analysis would affect the business organisation.
What the advantages and disadvantages and disadvantages of a bureaucracy for an
organisation in this modern day. I will also be discussing who stakeholders
are, and what their typical aspirations of employees would be. Finally I will
be debating how managers can win their employees’ resistance to change.

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1.       What is
intrapreneurship? How can a business organisation incentivise it and benefit
from it?

Intrepreneurship is the act of acting like an entrepreneur in a large
business. The typical skillset of an intrepreneur is that they are highly
self-motivated, proactive and action oriented, this all means that they are
comfortable with taking the initiative even with the limitations the business
may have when they are on the search for a new innovative product. The main difference
between an intrepreneur and an entrepreneur is that an intrepreneur is
comfortable knowing that failure will not cost them personally whereas it will
for an entrepreneur because the business will captivate the loss arising from
failure. Intrepreneurs have many available characteristics, one of them is
where it allows growth within the business with the freedom of experimentation.
An intrepreneur will study all aspects an issue that has come up and they will
attempt to find out the best solution, for example this could be done by an
intrepreneur by increasing the businesses brand within their already allocated
target market.  Successful Intrepreneurs
are comfortable in any position while trying out new ideas trying to implement
them for the preferred results. Intrepreneurs are generally skilled in seeing
new emerging market trends before they emerge into the market, with this
information they will be able to come up with a strategy to help the business
stay ahead of competitors. Due to this Intrepreneurs could be classed as the
backbone and the driving force for planning out the future for the business (Investopedia, 2017) (Chron, 2017)

Intrepreneurship can help motivate people to achieve more within a
business because the prospect of a new business venture may build up their
morale to work harder and more efficiently. Organisations should have
regulations set in place to help motivate employees to be more innovative by
allowing them to work in the right working environment, there are many ways of encouraging
this, this could be done by encouraging new ideas, providing access to new
resources and supporting the trial and error effort. It also helps the
businesses stability economically, this is because when a business reassures
innovation or finds ways to improve operations and/or create new product lines.
The business will attempt to stay competitive towards their competitors by
adapting to changes in the market, this gives them a much better chance at
surviving in their market. Although shareholders are not innovative themselves
they will too share in the economic stability that has been provided by their Intrepreneurs.
If intrepreneurs were to not innovate they could lose their relevance in their target
market therefore leading to majorly scaling down operations due to a decrease
in demands and this could ultimately lead to the business going bankrupt. (Investopedia, 2017) (Bracey, 2017)

Intrepreneurship is highly beneficial to large companies as the intrepreneurial
mind-set within a large business will allow members of staff to bring their
passions to work, this will incentivise them to be more creative at work
allowing them to work harder and to their full potential. If the business is
willing to do this they will be prepared to take on the risks of failure and
the costs of bringing their employees ideas into fruition. If this is
successful and profits are made then they will be shared at an agreed rate between
the business and their employee, this aspect to intrepreneurship allows
businesses to keep their employees loyal knowing they may come up with a ground-breaking
idea to help their business prosper in the long run. (The Sydney Morning
Herald, 2017)

It is evident that intrepreneurship can benefit businesses to help
motivate their employees to allow both the employees and the business to thrive
however it can be costly if the employees proceed to fail over and over again
because it can have an impact on the businesses overall reputation as well as
costing them a large amount of time and money.

2.       What are the
advantages and disadvantages of a ‘bureaucracy’ for an organisation today?

Bureaucracy within a business is a specialized organisational structure
and process of maintaining consistency of authority within an organisation.
These processes are most common in large businesses and helps control internal
behaviour. An example of how this is done would be an oil rig company would
create a bureaucracy to require their employees to complete a safety check every
time they operate the oil rigs. These types of organisational structures tend
to consist of multiple layers of management, these could be ranged from senior
executives to frontline staff, and it could also be referred to as a hierarchy.
The importance of bureaucracy for a business is high, as authority is usually
centred towards the top and information will flow form the top down. It is it
vital because it gives the business a backbone and a way of ensuring that the
correct regulations are followed at all times. However if this is overly used
it could add levels of unproductivity within employees in a business. There is
an aspect in bureaucracy that is called specialisation, this is where the
workers in a bureaucratic structure perform many specialised tasks that demand
training and capability. This would allow trained personal to accomplish these
tasks with ease, the downside of this aspect would be that businesses cannot
afford to work out of their class which means that they cannot take tasks on
that are outside of the range of their job. (Ingram, 2017) (Investopedia, 2017)

Using bureaucracy within a business have many advantages, the main one
of these is that a senior manager in one of these organisational structure
would be able to apply a great deal of control over any organisational
strategic decisions, this can be ideal for owners of businesses with a
controlled style of command the structure will set the pace and basis for the
day to day running of the business. Another advantage of using bureaucracy is
that it leaves no room for favouritism, this is because with the rules and
regulations set in place it allows the business to accomplish results by
increasing morale which will then in turn improve the rate of efficiency at
which employees will work at. An example given for this would be a student applying
for a student loan, there is a long process to getting this done, it consists
of the student meeting certain requirements to be approved for the loan, with a
bureaucratic process it will mean that it will have an emphasis on equality.
Another advantage of this organisational structure would be that it offers a
foundation to scalability, this is because with the increase of work efficiency
it will also increase the level of productivity, the rules and regulations that
have been set in place will allow multiple workers to work together and
function in the same manner which will increase productivity and a quicker rate.
(Webber, 2017) (NCEO, 2017) (Sullivan, 2017)

However, advantages tend to go together with disadvantages, the main
one of these is the lack of innovation. The resilient structure of a
bureaucratic structure and its tight specialisation discourages creativity and
innovation throughout the business. Regardless of how innovative and inventive
the business owner is it is close to impossible for a single individual to
create the range of ideas necessary in a large interdisciplinary group. Because
of this businesses may fail to anticipate upcoming trends and exploring new
markets, this could also have an impact on the businesses growth because
managers in bureaucratic structures tend to view employees as cogs in a working
machine, rather than individuals that contribute towards the company’s future. This
will sacrifice any possibilities the businesses have because they want to
ensure that they enforce their rules. Another major disadvantage of this
organisational structure would be that is lacks responsiveness. The repetitive
processes that are essential in this structure done not tend to react well to
change in laws technologies or customer trends, when these changes come into
play businesses using bureaucracy will decide to ignore them, which could cause
them to be left behind by their competitors, or change their processes which
can be very expensive in terms of costs and time.   (Ingram, 2017)

To conclude, it is clear that using bureaucracy can be highly effective
for certain businesses but as well as being effective it could also be a
deciding factor in the fate of the business if things were to change (mentioned
in the disadvantages above). If a business was to use bureaucracy it could
either allow them to excel in their market space or it could cause them to be
left behind after being reluctant to change.

 

3.       Who are
stakeholders? What are the typical aspirations of employees as stakeholders?

A stakeholder is anyone (person, business, social group or a society)
that has an interest/stake in a business, they can be affected by activities
the business undertakes. Stakeholders consist of; owners/shareholders, these
stakeholders are most interested of the profits the business are making as it
will give them an insight on the dividend they will receive, there are also
managers who are most importantly concerned about their salaries and any long
term benefits they will receive for staying loyal within the business,
employees are also stakeholders and they are mostly concerned about job
security as they want to be financially stable earning high wages.  Customers are also a vital stakeholder to the
majority of businesses, customers are most concerned about buying good quality products
at reasonable prices. There are 3 more somewhat important stakeholders for most
businesses and these are; suppliers, local community and the government. Suppliers
are mostly interested in businesses continuing to purchase their supplies which
gives them a sense of security signing long term deals with businesses. The local
community have a stake in businesses because businesses tend to employ locals
from the area, most business activities also can affect the local environment
as well as the community. Finally the government are also a stakeholder in all
businesses as they want businesses to do well and thrive as they are happy to
collect tax from any operating business. All business have stakeholders,
internal and external. Internal stakeholders refer the individuals within the
business and external stakeholders refer to outside parties. (Bitesize, 2017) (Chron, 2017) (Lumen, 2017)

Employees within any business have many aspirations, one of these would
be that since the managers of the business will set out the overall strategic
directions for the business it is the employees who are generally closest to
the action. They are the ones who have to interact with customers on a day-to-day
basis, in a manufacturing working environment they will be directly working on
the businesses products. For most businesses their success depends on the
dedication and work ethic of their employees, if the employees were not to work
up to par it wouldn’t allow the business as a whole to reach their profit and
revenue goals for the year.  Another aspiration
for an employee to have as a stakeholder would be job security, this is because
if a business was too continually make risky business decisions this could have
an effect on the bottom line of the business, including employees. This could
be putting employees’ job security at risk. Due to this an employee may see fit
to take interest in decisions being made in the business and if they do not believe
the right decisions is being made and they job may be at risk they may decide
to leave and find work elsewhere. Employees will need a sense of job security in
the long run to allow them to have the stability to thrive in the business. Employees
are also concerned about pay, since employees are affected as stakeholders in
terms of their economic wellbeing. Employees are concerned on how often they’re
being paid as well as how much. The decisions being made by management could affect
the pay of their employees. If a business owner decided to implement features
to an employees pay such as benefits or a signing on bonus it will affect all
employees in the business. (Chron, 2017)
(Commercial Diplomacy, 2017)

To conclude, it is evident that employees are seen as one of the most
important stakeholders within a business because they are the main working
force of the business, they are most generally concerned about how safe their
job is, as well as the morale of the workplace and how they will be getting
paid.

 

4.       How can managers
win their employees’ resistance to change?

Resistance to change is where an action is taken by an
individual and groups when they recognise a change that is arising and may be a
threat towards them. For the majority of business change is inevitable unless
they want to allow their competitors to get the better of them, change could be
seen as a threat, an opportunity or a problem it all depends on the perspective.
Generally people are used to change whether they are up for it or not,
resistance to change and acceptance are normal in any situation. Resistance to
change may not necessarily be seen as problematic, because with change resistance
is to be expected. Since change is a constant factor in the business world
managers will be appointed the task of managing the developed change and
applying it with nominal interference on how things are operated in the business.
If this wasn’t done effectively the business will have to deal with a much
larger resistance to change which will be highly problematic for the business
and will be delegated to the managers of the business. The commitment and
communications between both employer and employee has a big factor to play in
this because if the business was to implement a change they could hold a
meeting before initiating the change to see how employees react to this, if
there is resistance then the managers will be able to communicate the resistant
employees and find a way to work around the resistance, this will ultimately
benefit the business in the long run because all employees and managers will be
on the same page for any upcoming changed in the business. (B, 2017)
(Prosci, 2017)

Managers can win their employees resistance to change by preparing
for it, this means that

 

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