To analyse the most critical underlying cause of the given organisational problem within the theories learnt in the unit and the function(s) of management that best addresses the issue(s) identified and suitable approaches to overcome it.
The objective of this report is to discuss the solution for the problem of Crown Departmental store pvt ltd. The staff of the company lacks the require training to maintain the inventory. The functions of organizations that would be discussed in this report would be basic functions of planning and organizing.
As mentioned above, the staff of the company lacks the require training to maintain the inventory. This is the reason that there has been a difference between the actual level of inventory in the store and recorded inventory on books of company. The things that could have been differently to avoid the problems can be discussed as:
What should have been done?
- Inventory management is not an easy and routine task and every employee in the organization cannot perform this task (Sharma & Prykop, 2012). It is important that the job given to employees should match their skills. The management of Crown Departmental store pvt ltd could have used trained staff to manage inventory.
- Inventory management and verification with actual count should be a continuous activity for organization. This should be done as a frequent practice, at least once a month (Cai & liu, 2012). Crown Departmental store pvt ltd was doing it once every three months. Ideally, Crown Departmental store pvt ltd should have the provision of auditing inventory levels, once every month.
The organizations functions to be used
The problem with Crown Departmental store pvt ltd is a classical problem where organization lacks planning. It appears that the problem of inventory mismatch could have been avoided if emphasis was given on the planning function. It can be said that planning is the core and most important organizational function. The effective planning could have address this issues as in the case of effective planning; management could have used only the resources with specific skills of inventory management. Another important management function that could be used here to avoid the problem is organizing function. It can be said that manager didn’t plan and organize the training session for employees. This problem could have been avoided if the employees of Crown Departmental store pvt ltd was trained enough to perform the inventory management function. It can be said that the management of Crown Departmental store pvt ltd lacked the basic function of planning and organizing; therefore the company reached this stage. One of the solutions for this problem is to plan for monthly audit. The management should realize that the auditing of inventory levels is an important thing and it should happen on monthly basis rather than on quarterly basis (Corbridge, 2010). One of the recommended solutions for Crown Departmental store pvt ltd is to have regular trainers who would impart training to the employees of the company. There has to be a provision of mandatory training.
All the employees from low-level employees to top-level manager should participate in this training program. Other than this mandatory training program for everyone, the company should also have a provision of specific training programs that would be designed to meet the need of employees who performs the function of inventory management. It is also important that the employees of Crown Departmental store pvt ltd should be given a platform where the mistakes can be minimized. The work pressure should not be very high on the employees. It is important that management should focus to create the external environment in which employees can work without any pressure. The improvement in external environment would help to reduce the chances of errors. Employees should also be encouraged to work on their health (Voorde & Paauwe, 2012). The chances of error would be further minimized if employees were in good health. All these are the planning and organizing measures that should be taken by the management of Crown Departmental store pvt ltd in order to ensure that these issues do no resurface again.
The problems for Crown Departmental store pvt ltd are big but these problems can be resolved with effective planning and efficient organizing. It is important that management should focus on Training and development program, designed for employees would certainly help employees of Crown Departmental store pvt ltd to minimize the errors in inventory management.
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