Describe about the Introduction to Business for Management Body.
Scope of human resource management
Human resource management department of an organization is responsible for covering various aspects of employee development, relations and resourcing. HR department of the company is to plan, formulate and implement programs and policies designed for making use of the human resource department. It is a management body that deals with the people associated with OOB, New Zealand.
The environment of ever-shifting business characterizes the competitiveness of the business world. It is a complex challenge that is required to face by the company. Employee resourcing is an approach that addresses the challenges related to the employees of the company. OOB is a small medium enterprise in the food and beverage industry. Organic food is the sector in which OOB belongs. Employee resourcing focuses on some interrelated activities of planning and recruitment of employees (Devonish, 2013).
Employee resourcing calls are responsible for creation of both short term and long-term goals. Planning of short term goals includes contractual or service obligations and meeting the present production level. Long-term goals or strategic planning entails a degree of predicting shift of the market trends along with adaptability of OOB while capturing the trends easily. The demand and supply of labour is necessary for maintaining a smooth flow of operations. Forecast of market trends along with business trends help OOB the way of selecting candidates and deploying them after recruiting.
The process of recruitment is a cost incurring process. Recruitment of experienced candidates in the organization helps in the increase of productivity of the firm. It refers to a short-term goal that requires fulfillment of the existing job positions of OOB. To complete the process of recruitment and selection, various things are required such as job designing, job analysis, vacancies, job description, etc. The HR department of OOB must be focused on these aspects in order to successful planning of the employee base and other developmental programs for increase of productivity. OOB on successful implementation of employee resourcing will enjoy benefits of improved productivity. Apart from that, performance management and deployment is also covered in the employee resourcing. delegation of tasks in an effective manner is responsible for improved performance of both employees and OOB as a whole.
Employee development is referred to as a joint initiative of the employer along with the employees of it in order to upgrade the present competencies, skills, knowledge and abilities of an individual. Employee development process includes training and developmental programs of the benefit of the individuals. It is practiced to nurture and develop employees. OOB should practice this for transforming their employees into valuable resources. OOB through its practices of employee development will be able to grow a level of attachment with its employees. it can be fulfilled by implementing different types of training in OOB for its employees.
Training refers to learning and guiding employees for their improvement in performance as well as organizational performance. OOM must formulate goals and objectives while formulating training for their employees. however, there are different needs of implementation of training such as: environmental changes, organizational complexity, human relations, change in the job assignment, etc. There are different types of learning, training and developmental modules that OOB can implement in its organizational level. They are:
Job induction training is for the new joiners. Experienced trainers of OOB will provide guidance and training to them in the training session. Refresher training is provided to provide an idea about the changes in the working pattern of any field of operations. Vestibule training is a type of training provided to the employees that are working from a distant place. Apprenticeship training is an important training module that is prescribed for a specific time (Gupta and Kumar, 2012).
Employee relation is an aspect that is very important for all companies. Companies from multinational to small medium enterprises strictly adhere to maintain good employee relations within the organization. There are goals and objectives of employee relations that OOB can include in the strategic goals of human resource management. Employees of organizations must respect each other while maintaining an environment of discipline and decorum in the office environment. The main goal of OOB in terms of maintains a sound employee relations must be aligned with the organizational goals (Doherty and Norton, 2013). Proper remuneration is also a part of employee motivation. OOB should select a certain pay scale for its employees free from any discrimination.
However, there are different methods and approaches that OOB can implement in their organization. The motivational methods can be of varied levels. It can be in terms of both monetary and non-monetary benefits. The techniques include business promotion, employee recognition program, enjoyable working environment, trust building, and cross training. Apart from that, many monetary benefits are there that OOB can provide to their employees to keep them motivated in their work. Many big companies like Coca Cola and PepsiCo provide paid vacations, proper casual and sick leaves, incentives, and extra pay in festive seasons to their employees for improved performance (Zukauskas and Vveinhardt, 2015).
Organizational Structure of OOB is described in the following diagram. the company follows hierarchical style of organizational structure.
Figure: Organizational Structure of OOB
(Created by Author)
PESTEL Analysis is described here to explain the business environment of OOB in New Zealand.
Political factors: Government of New Zealand has stable policies of government regulations that support small medium enterprises within the country. However, every three years, the rules and regulations of government changes, OOB must be aware of the fact. Companies must be feasible to adapt the changes in its legal compliance along with its business operations. It is considered as one of the drawback of the governmental rules that affect the business environment of the country (Luo et al., 2012). Labour laws in the country are very strict. Labors are extensive. Hence, expense of the companies in case of production would be higher. Companies in New Zealand have to pay more taxes as the lending rate is very high. It is the result of reduced profitability of OOB in the country. Political condition of the country shuffles at three years of interval due to election.
Economic factors: Economy of New Zealand is very good as the per capita income of the people is very high. Compared with the other countries income of people is high as the labour is expensive. Companies are paying more to the employees. Rate of every product in New Zealand is very economical. Hence, people can easily afford the products. OOB sell its product that is affordable for every category of people. Organic products are new in the sector of food and beverage market globally. It is a type of niche category. The demand of organic products is high in the market. Hence, the prices are relatively high when compared to normal goods (Park and Shaw, 2013).
Social factors: The social system of New Zealand is depended on the business environment of the country. The government of the country depends in the export and import of goods. Population of the country is not very much high. However, the literacy rate of the population of New Zealand is 100%. It is a good factor resulting in increased employment rate. However, the health department of the country is very developed that has increased the life expectancy of the country. Life expectancy of New Zealand is 81. People have spending habits. there is a high demand of organic foods in New Zealand as people are becoming health conscious day by day.
Technological factors: Technological dearth of New Zealand is very high. The country has developed its own technologies related to IT. It has witnessed a significant development in the development of various technological products especially in the field of information technology. OOB will be able to use many technologies related to the manufacturing process as well as the distribution of its products in the market. Usage of technology will decrease the lead time while increase the productivity.
Environmental factors: There are sufficient environmental regulations that are present within the country. Government of New Zealand is very much aware about the standards of pollution in the country. Latest technologies are used to check pollution as well as cleaning the environmental (Ntalianis et al., 2015). Regulations are also there for the companies for checking the level of pollution in the manufacturing sites. In this way, ecological balance is maintained. OOB should use modern technologies that will emit low emissions of polluting gases in the air.
Legal factors: OOB has to abide by the trade laws, business regulations and labour laws of the country. Change of government at an interval of three years results in improvement and substantial changes in the laws and regulations of the countries. Due to the strong adherence of the laws, political stability is maintained and companies in certain circumstances are facing problems. Change of law in many cases can incur cost to the company. Change in business operations results to increased manufacturing cost.OOB should take consideration about these factors (Karl et al., 2016).
Horizontal integration for OOB
Horizontal integration is a method using which an organization can improve its production at the same part of the supply chain. This might be done through external expansions and acquisition or merger (Pellinen, 2016). This process is expected to develop domination if an organization has captured the mainstream of the market for that product or service.
OOB can join hands with any other organization that also produces fresh and frozen varieties of organic Strawberries and Blueberries. According to Nowak and Szewczyk (2015), in this situation the chances are high that they will create a monopoly. Besides, it is evident that horizontal integration is useful when a company is competing in a growing industry, economies of scale will have a significant effect on the business and cooperation can lead to a dominance that would be allowed by the government (Jatana et al., 2014). In case of OOB, all these situations are found and that is why horizontal integration would be best for them.
Ansoff growth matrix
Among four quadrants of Ansoff’s matrix, market development quadrant will be discussed in this study. This quadrant helps an organization to target new markets or new areas in the existing markets (Jolink & Niesten, 2015). Using different sales channels how an organization can gain success in different market segments can be understood through this quadrant of Ansoff’s matrix.
Demand for organic foods is rising in various countries of the world. For example, in USA the organic food industry is worth $27bn and in Germany it is $8.3bn (Nowak & Szewczyk, 2015). It clearly indicates that OOB should starting exploring these markets in order to gain more revenue. That is why; market development has been selected for OOB in order to gain business growth.
For market growth, OOB will have to target a market where the demand for organic food is higher than any other country. For example, in USA they can expand their business by sharing hands with another organic food production organization.
Figure: Ansoff Matrix
(Created by Author)
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