UGB224 Business Management

This report provides valuable insights into the various aspects of business management and their impact on the success of an organization.

UGB224 Business
Management

Contents
INTRODUCTION...........................................................................................................................1
Part A -Human resource management.............................................................................................1
Issues by concerning the management of people in BMW that has rapidly expanded
production and distribution facilities...........................................................................................1
HRM practices of BMW to encourage the behaviour of employees to deliver the image of
company.......................................................................................................................................2
Impact of increased overseas production on HRM policies.......................................................2
The advantages and disadvantages of performance-related pay.................................................3
Benefits and problems associated with an older workforce as well as impact human resource
practices change to deal with this................................................................................................4
Part B- leading by Motivational ......................................................................................................4
The basic assumptions of McGregor’s Theory and Hofstede point of view............................4
Maslow’s theory of human needs and its relationship with the ideas of Frederick Taylor........5
The difference between Herzberg’s hygiene and motivating factors. ........................................6
The psychological contract .........................................................................................................6
Part c- Managing operations and quality ........................................................................................7
The managerial challenges in setting up an operation system to survive in fashion market .....7
The tendency towards globalisation helps or hinders Zara's success .........................................8
The operational strategy of Marks & Spencer ............................................................................8
The operational challenges of Zara in becoming a world leader.................................................9
Conclusion ......................................................................................................................................9

INTRODUCTION
Business management is the process of organisation and coordination of business action
or activities. The human resource manager of business overseas management and operations as
well as motivate employees direct toward their better performance and productivity. The
manager may also train and supervise new employees in organisation which helps business
organisation to reach its financial or operational objectives.
The following report cover about the human resource management, motivational theories
and managing operations and quality of the company.
Part A -Human resource management
Human resource management is the procedure of selection, recruiting, providing
orientation, inducting staff, training and development, direction, appraising, compensation,
motivating and coordinating with employees for the achievement of organisation goal and
success (Agwu, 2018). As well as it deals with management functions such as planning,
organising, staffing, directing and controlling the process and workforce of the company.
Issues by concerning the management of people in BMW that has rapidly expanded production
and distribution facilities.
As per the case study of BMW, it was established in 1916 at Germany by Karl Rapp. It is
multinational manufacturer of motorcycles, luxury vehicles and aircraft engines. The main aim
of the company is providing superior products and superior services in motor vehicles. They also
offer large variety of options in customer car in the market. So, managing large range of products
and high quality is challenging for the company in recent car section. They need to maintain
both innovative technology as well as flexible and skilled workforce in their production system.
There are various issues in the management of people in BMW which has speedily expanded
distribution and production facilities such as job analysis, recruitment, selection and appraisal
require to help the strategic direction of the organisation.
 Management changes: As company expands distribution and production facilities, its
structure, strategies and internal organisation process will also develop with it. Many
employees and workers may also deal with various issues in adjusting with these
changes. During the time of transformation the management of BMW may also deal with
low productivity and motivation.

 Compliance with regulation and laws: Rapidly changing law of employment is a big
issue for BMW group. The management of BMW is based on various internal values of
organisation towards its manpower(Astrachan and Botero, 2018). The business
organisation also require to abide with government law otherwise they will have to deal
with lawsuits and audits which affects the reputation of organisation.
HRM practices of BMW to encourage the behaviour of employees to deliver the image of
company.
The BMW group want to convey the image that they want to become most profitable and
successful superior manufacturer in the auto mobile industry. This statement show the facts that
the BMW group wants to specify its growth and success path. To deliver that image to the world
the company expect full engagement, dedication and commitment behaviour of their employees.
 Employees engagement: The manager of BMW Group provide various training and
development programme as well as suitable environment to their employees. So, they
enhance their skills and experience to perform the given task with their full potential.
After that If the employees do not perform the task well then the manager must take
appropriate action to improve the quality and performance of the employees.
 Adaptation in their action: In the dynamic market, the technology is changing or
advancing rapidly. So, the employees of BMW use their creative knowledge or skills to
accept the changes in designing and producing the parts of car. The manager should
appreciate the good efforts of employees by giving incentives or rewards to them as well
as motivate other workers to enhance their innovative skills.
Impact of increased overseas production on HRM policies
The BMW group operating globally and they face various problems related to
standardising the human resource management practises of other branches in different countries
toward head quarter practices. The subsidiaries of BMW in other country adopt management
pattern which generally used in their host country (Basit and Hassan, 2017). Some time it has
positive impact on human resource management to make their policies because of variance in
ideas, development program, technology, management practices and research that helps a
business to increase productivity and profitability in global market. The most common barriers to
effective HRM are different organisation values, cross cultural adaptation, management turnover
and style. Operating business globally needs that changes be made to indicate these elements. It

is important responsibilities of managers to identify such elements as they operate business
globally. There are some factors also such as political or legal factors which are different from
country to country so,the HRM of BMW must consider them while making plan of action for
company.
The advantages and disadvantages of performance-related pay
Performance related pay refers to the financial rewards such as bonuses for completing
target, financial profit sharing , sales commission and piece work payment given by managers to
the employees for their better performance. In the BMW group there is some advantages as well
as disadvantages of performance related pay.
Advantages of performance related pay are as follows:
 The employees of BMW feels sense of recognitions by receiving rewards for their better
work.
 Manager of the company use it for setting goals and urgent work by giving compensation
to their employees which leads completion the target on time as well as improvement
their performance or productivity.
 It is the most effective method of dealing with low performance of employees in the
production process of cars. It directly linked with bonus or incentives for the workers so, they are more engaged on
achieving the quality and target before deadline.
Disadvantages of performance related pay in BMW are as follows:
 Sometimes the manager set hard target for the employees so, they find difficulties and
feel demotivated to achieve that target.
 There is a disadvantage for BMW that workers can demand an extra payout every year.
In a deflation climate the incentives much not seem to be that big.
 Performance related pay is made for short term goals it is not applicable for long term
goals and target.
Benefits and problems associated with an older workforce as well as impact human resource
practices change to deal with this.
Workforce play an important role in the development of BMW group. Working with old
workers is quite beneficial for the company to deal with regular customers or competitive
market. The benefits of working with old workers are:-

 One of the biggest benefit is that they are well known about the working process of
company so they required less training which will save the company time and resources.
 Working with experienced workforce leads lesser chance of mistakes and blunders. This
is because older workers have the well-tried experience so they perform their task with
less confusion and more accuracy.
There are some problems and disadvantage in BMW while working with older
workforce also such as some times they find difficulties to deal with new or advance technology
(Buil, Catalán and Martínez, 2018). As well as they are not flexible to adopt new changes and
working with traditional or old method.
Human resource management of BMW use various techniques and methods to deal with
this problems such they give break, training, friendly environment and better interaction for the
development and well being of the employees . So, The employees feel relax, stress free, more
focused to balance their work life for achievement of organisation goal.
Part B- leading by Motivational
Motivation theory is the survey of understanding what lead an employee or worker to
work in the direction of achieving personal or organisation goals. By using motivation theories
human resource managers motivates or inspire employees to enhance their performance and
productivity (Dul, 2019. Manager who make various plan and strategy to motivate and drive the
sustainable performance of employees toward the achievement of organisation by fulfilling their
requirements.
The basic assumptions of McGregor’s Theory and Hofstede point of view
McGregor introduced two theories such as X theory and Y theory by that managers of
company address and perceive employees motivation. The two methods of motivation are theory
X and Theory Y management.
 Theory X- In this theory the manager attend to take pessimistic aspect of their employees
and imagine that they are dislike their work, need to be supervised at every step,
unmotivated, avoid to take responsibility and have no ambitions toward work (Chuang
and Huang, 2018). As a result, the manager believe that employees need to be rewarded,
promoted and punished perpetually so, they achieve goal on time with more efficiency.

 Theory Y- in this theory the manager take positive and optimistic opinion of their
employees as they more involved in decision making, self motivated, happy to take
initiative and challenges, accept responsibility, solve problem creatively and enjoy in
taking ownership of their task. As a result, the manager encourages trust based and
collaborative relationship with their employees for the achievement of personal and
organisation growth.
Hofstede has pointed out that these theories is based on observation in western societies
which are different from the new economic powers in the east. In my opinion, I disagree with
this statement of Hofstede as the theories of McGregor is applicable for all the organisation
culture in the world. It is general needs of every employee which every manager must consider
while dealing with them as well as consistent working for the growth of organisation.
Maslow’s theory of human needs and its relationship with the ideas of Frederick Taylor
The manager use this theory to motivate their employees by fulfilling their needs. It is the
motivational theory which define that employees actions or behaviour are motivated by specific
five needs. It is often portrayed by a pyramid form of needs, along with this the primary needs at
the bottom level and more crucial needs at the top level.
 Physiological:It is the basic things such as food, water, shelter, and sleep a person
require to survive. The manager provides and fulfil this basic needs of the employees by
giving them break for lunch and rest for relaxation.
 Safety: It is the needs of an employee to feel secure and safe in their life and organisation
(Kaplan, 2017). The human resource manager provides job or income security, security
from violence and create healthy environment to employees so, they work efficiently
without the fear of sickness.
 Love and belonging: This level of needs include friendship, family, love and sense of
belonging of a person. The manager try to make healthy or friendly environment in the
organisation by interacting with employees. So, they cannot feel left out and depressed as
well as work with full dedication.
 Esteem: It is concerned with employee's need to feel respected as well as earn status and
recognition. The manger listen their employees and give them chance to take initiative
and increase confidence to perform better. Further, they give rewards and promotion for
their better work.

 Self actualization: At this level the employees seek to become the specialist and best in
their career. The manger provide various training and development program to their
employees so they increase their skills and experience for future opportunities.
Relational between Motivational theory of Maslow and Frederick Taylor
Both Maslow and Frederick Taylor theories encourage motivation of employees. As per
these theorists, talents or works of employees wants to be retained and motivated as to motivate
employees to take more efforts for the success of organisation. According to these theories, the
needs of every employees must be satisfied which leads them to work smarter or harder to gain
more recognition and rewards as well as growth of the business in the long run.
The difference between Herzberg’s hygiene and motivating factors.
Herzberg's motivational theory are also known as two factor theory (Kasemsap, 2018).
This theory define two elements that is motivation and hygiene which are essential for
employees to perform their task efficiently.
 Motivational factors such as incentives, promotions, bonus and growth opportunities
which inspire employees to perform better whereas, hygine factors such as cleanliness,
fringe benefits and working climate which are essential for job at organisation.
 Motivational factors are essential for employees to perform their job and are known as
satisfiers on the contrary, if hygiene factors are missing at the organisation then it drive
to dissatisfaction among the employees.
The psychological contract
The psychological contract is a intangible deal between the employer and employees
which define their obligations, ambitions, expectations and beliefs while working in an
organisation. It also influences the communication and behaviour of employer and employees in
their daily action. It includes mutual beliefs, informal arrangements and perceptions among
them.
a. My expectation from employer of company is they provide better and safe work environment
so, I can take efforts and contribute to the team for achieving the goal (Lee and Saunders, 2017).
Also, sometime they give recognition and reward for my good efforts along with that they
provide job security and training and development program for my future growth.
b. My expectation from employers for part time job while I am studying is their corporation in
my study, give practical knowledge and better carrier opportunities for my future growth.

Part c- Managing operations and quality
Operation and quality management is the process of managing production activities,
responsibilities and decisions to deliver better quality of product and services. It includes
responsibilities of managers toward people, process and product. The operational function
engaged in production process which is essential part of company. In the production process
they transform inputs by using raw material, finance, workers, machines and information into
final goods and services for selling in the market (Leiß and Zehrer, 2018). In the context of Zara,
the company was established in 1975 by Amancio Ortega, it deals in the fashion product like
shoes, clothing, beauty, perfumes, swimwear and accessories. While dealing with the dynamic
trends of fashion, the company face many challenges in their production, manufacturing and
distribution in global market.
The managerial challenges in setting up an operation system to survive in fashion market
Operation function is the key part of any business as well as good operation management
is based on process consistency (Pohlmann and Kaartemo, 2017). To grow in fashion market, the
manger of Zara must monitors and manage the production process and quality of all fashion
products. There are some major managerial challenges in setting up an operations system in
Zara to serve as fast moving company in fashion world.
 The operational manger of Zara find difficulties in organising and managing customized
product inventories according to its nature.
 Sometimes they find difficulties to maintain the quality of product in given raw material,
budget and time which lead wastage, cancellation and returns of product from parties
 The workers of operation department in Zara do not understand about the usage and
working with new technology or machines which leads delay in time, wastage of
material as well as poor or incomplete process of production.
 At the time seasonal peak the manager of Zara unable to arrange warehouses for extra
production inventories as well as for final product also (Ritter and Lettl, 2018).
The tendency towards globalisation helps or hinders Zara's success
Zara deals in fashion product such as clothing, shoes, perfume beauty and accessories and
expand their business in global market which results in more success for its growth. They offer
fashion product to customers from their multiple branch located in different countries. The

tendency of Zara towards globalisation helps it to reach at top in fashion world. After expand
their business globally the company receive huge success and profit (Russo and Confente, 2017).
Customers from different countries like and appreciate the quality of their product which leads to
huge profits, customer base, goodwill and brand value. The market value of the company is also
increase so, many foreign investors show their interest in investing for the expansion of
company. Further, company also introduce new line of product for the easy availability of all
fashion product in one store. Also, they have benefits to operate internationally as they get
various technology, ideas as well as highly skilled and experience employees which increase
their productivity to become successful.
The operational strategy of Marks & Spencer
Marks & Spencer is multinational fashion retail company which deals in foods, clothing,
gifts and home furnishing. The aim of the company is to provide standard or quality product for
the maximum satisfaction of customers (Tseng, H and Yeh, 2019). It define that, to maintain the
quality of product and services is key role of the Marks and Spencer's operation strategy.
Operational strategies of Mark & Spencer is to maintain and accomplish the business aim in their
production activities. Operation management activities of company assure that all its product and
services are of standard quality and the outlets are situated in the target market or peak location.
The company use top down strategy in their operation to deliver quality products and services in
favourable location for the comfortability of customers to become most sustainable retailer in
world.
Differences
There are some difference in operational strategies of Zara and Mark&Spencer such as
Mark&Spencer follow traditional approach and time or cost consuming packaging system as
their process start with buying team, developers, logistics, design, technologist, merchandisers,
suppliers and at last store. Whereas, Zara work with innovative design, fast packaging or deliver
process and vertical integration along with this they deliver new design and new collection in
market with in a week.
The operational challenges of Zara in becoming a world leader.
To grow globally the company face many operational challenges during the production
and deliver process. To maintain the productivity and position in the competitive market they
have to modify and diversify their product line to satisfy customer's tastes and demands to their

location. As the result, increase in production and distribution cost due to exploding variability
in their customer orders (Vom Brocke and Mendling, 2018). The expenditure on legal formalities
are also increased because they operate in different countries as well as they find difficulties to
understand the process of different countries which is time consuming also. The biggest
challenges of Zara is to maintain the cost related distribution and inventory management,
designs, labour and high tech equipment for producing wide variety of innovative product in
dynamic world. The managers of company also face language barriers and culture issues while
dealing with stores manger of another countries.
Conclusion
As per above report, it is concluded that human resource management play an important
role for the success of any organisation. Employees of the company works with full engagement
and dedication to convey the good image in global market. Managers of companies use various
motivational theories such as Maslow and f McGregor’s Theory X and Theory Y to motivate
employees toward achieving goal. In the addition, to reach at the top in the global market the
company must make best operational strategies to deliver standard quality of product and
services to satisfied the needs of customer and gain huge profitability as well as market share.
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