Contemporary Issues in Business Management Assignment

Contemporary Issues in
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business management refers to the process through which business operations and human
resources of an organisation is staffed and managed in appropriate manner. When business is
organised and managed in appropriate manner, then it is easy for managers to achieve aims and
objectives i.e. good profits and productivity (Islam, 2016). Business management is sum up of
planning, staffing, organising and controlling business operations but in current market business
operations gets affected with external environment as well, so in current market there are some
contemporary issues as well. This investigation is based on Golds Gym which is situated in
Dagenham, UK. There are some contemporary issues such as minimum wages, corporate social
responsibility, diversification of workforce, improper working condition, etc.
MAIN BODY
As per view of Clint Coghill, 2019 there are different issues such as lack of finance,
improper monitoring of performance, etc. through which performance of whole organization gets
affected. This makes proper changes in working style due to which people are able to understand
about changes which are taking place in market. There are different issues which arise in Golds
Gym due to which perform of whole organization gets affected. There is issues related to work
force diversity, corporate social responsibility, minimum wages, improper working condition.
Due to these issues employees are not satisfied hence there is increment in labor turnover rate as
well which is not fruitful for organizational growth and development. There are changes in
external market working policies as well, so it is important fort managers of Golds Gym to
understand about changes which are taking place in external market. In Golds Gym there are
issues because of improper management of business activities, hence there is requirement of
proper working style which makes it clear for employees about working style. These are the
issues which is contemporary in nature and arise because of improper business management. So
there is requirement of proper planning with the help of which operational activities are
performed within specified manner (Hashim and Hamzah, 2014).
Work Force Diversity is the contemporary issue which is faced by management of Gym
because under this there are workers from different geographical background. As per view of
Karen Brown, 2019 employees is one of the most important component which assist in
improving performance of overall association because they are the connection between business
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organization and consumers. Work force diversity is also one issue which arise in Gold Gym
because there are many workers from different geographical region. This is issues because
sometimes employees face issues at work place due to lack preferences to their religion and
culture. There is requirement of different skills and knowledge for performing business
operations in better manner. In Golds Gym there is requirement of operations and sales manager,
fitness instructor, service technician, front desk operator, etc. so there is requirement of different
skills among workers through which Golds Gym can provide better services to consumers.
When there are workers from different geographical region, then organizational
environment is dynamic which is relevant in current market because current working
environment is changing. When there are different employees from different background, then
there is easy in understanding others culture and values as well. So there is positive and familiar
relations among workers.
But when workers are from different geographical region, then there is difference in their
mind set due to which they might get affected negatively. For instance: workers are working in
tea, so there are possibilities that of majority of workers are from same region, then they might
criticize others which increases possibilities of dissatisfaction among workers (Pitts and Zhang,
2016).
Minimum Wages is other issues which arise in Golds Gym because workers are not
getting specified rate of remuneration which is set under law in order to reduce possibilities of
evade rights of workers. According to Kimberly Gilsdorf, Fay Hanleybrown and Dashell Laryea,
2019 there is requirement of minimum wages through which it is easy for management to
maintain engagement of workers. This is the best way through which it is easy for educing labor
turnover and absenteeism in organization. Minimum wages are important because this is the
limit which is set by government through which individual can reside in society up the mark.
When consumers are getting minimum wages then there is maintenance of proper brand image of
Golds Gym.
Due to this issue, there is dissatisfaction among workers and this increase rate of labor
turnover and absenteeism at Golds Gym. Minimum wage are not paid by management of Golds
Gym , then there is lack of skilled and talented work force through which organization can
sustain in industry. But when minimum wages are paid to workers, then they are stable with
Golds Gym, which reduces selection, recruitment and training cost for new employees. There is
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less possibilities of legal case against Golds Gym a they are working as per rules and regulations
(Cavusgil and et. al., 2014). There is requirement of complete knowledge to workers about their
compensation and remuneration so possibilities are nil of being miscommunication among salary
and remuneration.
As per view of Amy Gallo, 2019 there must be proper working environment in
organization to maintain rationality among workers. But other contemporary issue in Gold Gym
is Improper working condition under which gives bad working circumstances to workers of
Gold Gym which affects performance of overall association. There is requirement of proper air,
light, ventilation, etc. through which business operation are performed in appropriate and
relevant manner. Due to improper working condition, there are possibilities that efficiency of
workers gets affected ad they do not want to work at Golds Gym for longer time. This creates
dissatisfaction among consumers and it impacts overall organizational growth. Satisfaction of
consumer is important because if they are not satisfied than there is negative environment in
organization. Negative impact of improper working style is reduction in consumers, withdrawing
membership fees, etc. so it is tough for Golds Gym to sustain in business environment for longer
time.
But if proper working condition is provided, then workers of Golds Gym is working up
to the mark and Golds Gym will managing organization as per legal laws and regulations.
Proper facilities can be providing to employees by analyzing their feedback about organization.
There is increment in brand value when existing employees have positive views about it (Byers,
2015).
In current market, there is important and crucial role of organization in improving
condition in context of future aspects because business operations has to be done with Corporate
Social Responsibility. Managers of Golds Gym is considering corporate social responsibilities in
appropriate manner so this is the major contemporary issue arise. In this criteria Golds Gym
have to pay some specified percentage of income for social growth and development. Reason
behind this responsibility is: as while working Golds Gym is using and availing resources from
society as well, so it is important and specific for making organization as per external market.
There are many negative aspects which might arise for managers of Golds Gym to make good
brand image. In current market, it is essential for managers to understand changes and then
impalement in business organization through which they can sustain in organization and
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maintain good brand image in association. If corporate social responsibility, criteria is not
fulfilled, then there are possibilities of increment in government interference which hampers
brand image of Golds Gym.
In Golds Gym major contemporary issue is of corporate social responsibility which is
major because this is the activity which ha to be performed by managers of Golds Gym in terms
of legal aspects. As per change in working environment of association, there is requirement of
proper accounting and book keeping system through which it is easy to analyse amount of
profits. Corporate social responsibility is the way under which Golds Gym is responsible for
paying proper understanding to people (Schaltegger and Burritt, 2017). There are some norms
which are relevant in context of understanding policies for understanding it. In corporate social
responsibility, there is interference of government, so it is important to accept changes, there is
some specific rate of profit which has to be paid for social betterment.
With not agreeing with policies of corporate social responsibility, there is more
government interference and brand image of Golds Gym might goes down. There is doubt in
mind of consumers about working style and authenticity of services offered. So this affects
goodwill in negative manner. When there is god profits , then Golds Gym have to pay more but
if they are not paying, then organization will be culprit.
But if managers of Golds Gym follow proper norms and ethical consideration of
corporate social responsibility, then they can sustain in industry for longer time. There are less
legal issues which does not give more importance to organization. There will better consumer
relations which makes ease in providing better consumer base and getting proper feedback from
them. There are possibilities of conflicts with the motive of profits (Ferlie and Ongaro, 2015).
As per my point of view there is requirement of following proper policies which has to be
considered under corporate social responsibility. When company is working as per norms, then
there are possibilities of expansion or they can diversify their business operations. There is good
relations with consumers through which they can sustain in industry. There are many
competitors in industry, if association is not following CSR norms, then there are possibilities
that they might complain to authority, so in this case there are possibilities that company is not
able to stand in market for attaining competitive advantage.
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In order to understand corporate social responsibility, there are two different models i.e.
Caroll's pyramid and Triple bottom line approach with the help of which it is easy to understand
it in more better and effective manner (Brass and et. al., 2014).
Caroll's Pyramid
With the help of this model, it is clear that CSR activity is one of the crucial element
which affects performance of Golds Gym negatively or positively. In Caroll's pyramid, it is clear
that profitability of organization comes at priority. There is requirement of complete and specific
information about working style through which they can work as per norms of society. There are
four responsibilities which has to be considered for understanding corporate social responsibility
by managers of Golds Gym because with considering it, organization is able to perform activities
with considering future aspects. These four aspects are discussed as under-
(Source: Carroll's CSR Pyramid, 2019)
Economic- In this responsibility, business have to be profitable through which they can
achieve their targets i.e. good profits and productivity. This is the way through which long term
sustainability can be achieved by Golds Gym.
Legal- There are some legal laws and regulations which has to be considered for
successful and smooth running of business. There are different legal laws and regulations which
has to be considered such as equality act, minimum remuneration act, etc. through which
working style of Golds Gym is authentic (Smallbone, Welter and Ateljevic, 2014).
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Illustration 1: Carroll's CSR Pyramid

Ethical- There is requirement of ethical and moral working style of workers. There are
some set perimeters which has to be considered by managers while they are working in industry.
This makes employees of Golds Gym satisfied that their rights are abolished and they are treated
fairly at organization.
Philanthropic- This is the responsibility which shows that origination is responsible for
society as well because they are availing resources from society. So in this there is requirement
of charity for disable, donations for societal development, etc. platform for Golds Gym to
provide up- liftment to society.
Triple Bottom Line Approach
Triple Bottom Line approach is the theory which shows that organizations must use and
work as per social and environmental development of society. As per this model, it is essential
for Golds Gym to work for societal growth and development as well. There is three components
which has to be consider under it-
Profit- This is the traditional requirement of organization with which they are working in
society. The main and prime factor which has to be considered by managers of Golds Gym is
profit under which they are responsible for earning specified amount through which they can set
off their cost.
People- People are sources who works for Golds Gym in providing services better
manner to society. There is requirement of completing various operations of Golds Gym through
which employees can perform activities in better and appropriate manner (DesJardins and
McCall, 2014).
Planet- This factors measure how an organization is responsible from environmental
context. It is important for managers of Golds Gym to understand how they can responsible for
society sustainable growth and development.
CONCLUSION
From the above discussion, it is clear that there are different types of complementary
issues faced by organization due to improper planning of business operations. There is
requirement of complete and specific information to employees, so they can perform activities in
appropriate manner. Corporate social responsibility is the main issues because this is the
responsibility for which organization is responsible. If this is not fulfilled, then there are
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possibilities of government interference due to which brand image of company might reduced.
With the help of Caroll's Pyramid model it is clear that organizational main motto is to earn
profit but they are equally responsible for society as well. From the Triple Bottom Line
Approach, planet and people are two factors which shows that organization have to work for
society as well for their long term sustainability.
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REFERENCES
Books and Journals
Brass, D. and et. al., 2014. Contemporary perspectives on organizational social networks.
Emerald Group Publishing.
Byers, T. ed., 2015. Contemporary Issues in Sport Management: a critical introduction. Sage.
Cavusgil, S. T. And et. al., 2014. International business. Pearson Australia.
DesJardins, J. R. and McCall, J. J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Ferlie, E. and Ongaro, E., 2015. Strategic management in public services organizations:
Concepts, schools and contemporary issues. Routledge.
Hashim, N. and Hamzah, M. I., 2014. 7P's: A literature Review of Islamic marketing and
Contemporary Marketing MIx. Procedia-Social and Behavioral Sciences. 130. pp.155-
159.
Islam, N., 2016. The Use of Information and Communication Technology (ICT) and Business
Management: Contemporary Issues and Challenges. Available at SSRN 2856262.
Pitts, B. G. and Zhang, J. J. eds., 2016. Global Sport Management: Contemporary issues and
inquiries (Vol. 1). Taylor & Francis.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market
economies: Contemporary issues and perspectives. International Small Business
Journal. 32(2). pp.113-116.
Online
Coghill, C., 2019. The Key To Building A Successful Alternative Asset Management Business.
[Online]. Available through:
<https://www.forbes.com/sites/forbesfinancecouncil/2019/10/01/the-key-to-building-a-
successful-alternative-asset-management-business/#4fa131a7771f>.
Brown, K., 2019. To Retain Employees, Focus on Inclusion - Not Just Diversity. [Online].
Available through: <https://hbsp.harvard.edu/product/H04OIE-PDF-ENG?
Ntt=Work+Force+Diversity&itemFindingMethod=Spotlight>.
Gallo, A., 2019. How to Speak Up About Ethical Issues at Work. [Online]. Available through:
<https://hbsp.harvard.edu/product/H04OIE-PDF-ENG?
Ntt=Work+Force+Diversity&itemFindingMethod=Spotlight>.
Gilsdorf, K., Hanleybrown, F. and Laryea, D., 2019. How to Improve the Engagement and
Retention of Young Hourly Workers. [Online]. Available through:
<https://hbr.org/2017/12/how-to-improve-the-engagement-and-retention-of-young-
hourly-workers>.
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