Contemporary Management Issues: Drivers of Change and Strategic Decisions for P&O Ferries

This report discusses the contemporary management issues faced by P&O Ferries, including employee well-being, company culture, regulation and compliance, sustainability obligations, corporate social responsibility, and globalisation. It explores the implications of strategic decisions on the company's commercial and operational activities, and suggests alternative avenues that could have been explored. The report also provides recommendations for improving ethical and sustainability considerations within the organisation.

Contemporary
Management Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Drivers of change that might have informed P & O Ferries strategic decision making.........1
Implications of such strategic decision on P & O Ferries commercial and operations going
forward...................................................................................................................................4
Alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change........................................................................................................6
Recommendations that recognises ethical and sustainability considerations for the company
................................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Contemporary management can be explained as the process of controlling, innovating,
improving and organising the things for achieving the intended goals of the organisation with the
present resources, limitations and conditions within the social and economic environment.
Contemporary management issues can be explained as the critical challenges, problems or issues
that are faced by the organisation and affect the people, activities and performance of the
enterprise. In today's dynamic world there are many contemporary issues that are faced by the
organisation in managing their activities effectively and efficiently (Chuang and Graham, 2020).
The business ethics and sustainability are among very important aspects of contemporary
management that are faced by the organisation in today's era. It is very important for an
Enterprise to achieve success in the business by critically evaluating the contemporary issues and
identifying the solutions for them. The most common contemporary management issues are
related to human resource management, technological management, shareholder expectations,
sustainability and many others. P & O Cruises is a British cruise line based at Carnival house in
Southampton, England, which was established in the year 1977. The following report will
discuss the drivers of changes that have affected the strategic decisions of P&O Ferries. In this
context, it will also discuss implications of strategic decisions on P and O ferries commercials
and operations. In the end, it will provide alternative solutions for handling the drivers of change
and recommendations for improving ethical and sustainability considerations within the
organisation.
MAIN BODY
Drivers of change that might have informed P & O Ferries strategic decision making
The major contemporary issues that can be considered as drivers of change and have led to
the changes and strategic decision making of P&O Ferries are elaborated below:
 Well-being of employees: The employees are considered as the life blood of business
that carries out all the activities of the organisation so that the objectives and goals can be
achieved effectively (Cox and De-Bortoli, 2020). P&O Ferries have laid off
approximately 800 employees that lead to the destruction of employee well-being within
the organisation. This has proven to be an ominous challenge for the organisation and the
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owner of the business has to take decisions in order to improve the well-being of the
employees. Without properly managing the employees within an organisation it is very
difficult to carry the operations effectively and efficiently. Due to the decision of the
organisation to replace the existing employees with the new cheaper employees will lead
to the disruption of the wellbeing of the employees who ate working within the
organization. The shifting of workers from the other locations and replacing the existing
ones may lead to the lowering down of trust among the employees to work effectively
and efficiently (De Vos and Van der Heijden, 2017). It will fear the employees and
workforce that they may lose their source of income and will reduce optimisation of work
at the workplace. The employee well-being is among the most crucial factors to support
higher levels of hybrid performance at the workplace. P&O ferries need to ensure that
their employees' wellbeing is not compromised and the employees feel safer at the
workplace and have job security. It includes the decisions of the organisation for
collecting with their employees, aligning individual goals with organisational goals and
supporting professional development of the workforce. These considerations are the
major drivers of change and strategic decisions that must be taken by the organisation.
 Shaping company culture: The company culture refers to the environment and all the
conditions that affect the activities of employees at the workplace (Gbadamosi, 2019).
The organisation needs to improve and strengthen its company culture so that it can
improve the employee engagement activities and enhance productivity at the workplace.
P&O Ferries have been very ineffective in shaping the company culture and have forced
the employees to leave the organisation for creating a limited amount of profits. Due to
the decision of the organisation to replace and change the existing employees with the
new ones the performance of the organisation has declined. The challenges faced by
organisations include causes of unethical behaviour with the employees, declining profits,
cancelled bookings, lowering beans value, etc. The organisation needs to improve its
organisational culture because in an estimate 77% of employees have stated that the
company culture of the organisation is essential for improving employee productivity and
engagement. P&O ferries must comply with the changing requirements of the employees
at the workplace and try to develop hybrid working conditions so that more dispersion of
employees at the workplace can be seen. The human resource is not only responsible for
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improving the organisational culture but the managers also play a very important role in
shaping the company culture and enhancing employees’ performance. With the help of
active interaction among the employees, adapting social learning and cultural change can
help to transform the organisational culture and improve performance of the employees.
 Regulation and compliance: Dealing with the regulations and compliances has become
major challenges in today's era and it affects the strategic decisions and changes within
the organisation. The P&O Ferries need to follow the rules and regulations mandated by
ITF (International Transport Workers' Federation). The organisations need to respond fast
to the new guidelines and the changing legislative and political environment across the
international borders (Lucey, Thibault and Ten Cate, 2018). Similarly, the organisation
has to comply with some of the regulations and rules so that the legal and political
challenges can be avoided. There are many factors that affect the well-being of
employees at the workplace and the rules and regulations help to maintain certain basic
aspects of managing the employees effectively.
 Sustainability obligations: This sustainability in today's world plays an important role in
maintaining the sustainable business operations that have minimum negative effect on the
environment, society and economy. Sustainability has become one of the most important
factors that leads to the changes and affects decision making of P&O Ferries. The
organisation has been stressed for not maintaining sustainability standards which affects
the image of the organisation. Due to the increasing sustainability issues the organisation
has faced many challenges like declining reputation, lower profits, etc. (Mirror, 2019). In
order to stay competitive in the market the organisation must follow the sustainability
practices within the organisation.
 Corporate Social Responsibility (CSR): The corporate social responsibility focuses
towards benefiting the stakeholders of enterprise so that potential challenges can be
eliminated. CSR includes many issues that are taken into consideration for improving the
business aspects like stakeholders’ opinion, human rights, legal requirements, working
conditions, gender equality, nature/ecological balance, etc. P&O has not been responsible
towards their employees and major times it has violated its corporate social
responsibility. The organisation has failed in maintaining human rights, corporate
governance, consumer interest and proper work conditions, within the organization which
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has degraded its corporate social responsibility. The organisation must ensure corporate
social responsibility in enhancing its performance.
 Globalisation: Globalisation can be explained as the expansion, interconnectivity or
linkage of activities of an organisation, individual or group with the people, organisations
and groups across other Nations is considered as Globalisation. The activities of
globalisation have intensified in today's world and the organisations are focusing to move
forward (Oktadiana, Wattanacharoensil and Tolkach, 2022). P&O Ferries has expanded
its operations from a UK based organisation to a Dubai based company and has
operations in many ports of the world. Globalisation has affected the majority of
organisations throughout the world and has intensified competition and requirement of
the stakeholders. Organisation needs to fulfill the requirements in the international market
so that it can achieve success.
Implications of such strategic decision on P & O Ferries commercial and operations going
forward
The implications of strategic decisions on P&O Ferries commercial and business
operations going forward are elaborated below:
 Encourage Creativity and Innovations: The strategic decisions taken by organising
nurturing creative teams and growth of innovative ideas within the organisation
(Podgorodnichenko, Edgar and McAndrew, 2020). P&O Ferries have developed such teams
that can improve the success of the business and put great ideas for ensuring the recovery of
organisation and produce greater efficiency and effectiveness. With the help of collaborative
work within the organisation the company is able to satisfy the requirement of employees in
order to achieve greater performance and productivity at the workplace. Due to the strategic
decisions the organisation has also developed greater creativity and innovation that has to
bring new ideas and inventions for the organisation so that the day to day operations can be
improved. With the help of strategic decisions and changes made within the organisation the
company is able to improve its functions and achieve greater profits.
 Create Positive workplace culture: With the help of strategic changes the evolution of
organisational structure can be felt which can improve the department activities for serving
various functions of the organisation. P&O Ferries have developed a positive work culture
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with the help of strategic decisions because the employees field more safely and comfortably
to work with the organisation constantly. At the time of change the organisation faces many
challenges but with the help of these changes the organisation can achieve its objectives
effectively and efficiently. With the help of strategic decision making the changes
implemented were positive and can help to flourish the organisation in the international
market.
 Technology advancement and digitalisation: The changes and strategic decisions can help
the organisation to improve technological advancement and its growth in future
(Radosavljevic, 2022). With the help of effective decision making activities within the
organisation advancement in technology and digitalisation can be utilized. The rising level
of growth and advancement within the industry has intensified the level of competition and
the proper decision making duties and implementation of plans can help P&O Ferries to stay
ahead of competition. The organisation can thrive to improve its business by adopting digital
Business models and improving the level of productivity and growth. With the help of
strategic decisions the technology can help to fulfil the requirements of employees and
customers.
 Satisfying stakeholder requirements: The stakeholders of an organisation may comprise of
its customers, employees, shareholders, boards, and other people who are interested in the
business. With the help of strategic decisions the organisation can improve the stakeholders'
experience with the organisation. The stakeholders are the main customers of the business
and this helps the organisation to grow constantly. By identifying the stakeholders' needs
and requirements from the business it becomes easier to comply with their expectations and
provide a greater level of satisfaction to them. The P&O Ferries can identify the needs of
stakeholders and easily fulfil their requirements so that better chances of growth can be
obtained. With the help of strategic changes and decision making the customers can make
informed decisions with better services and fair business practices if the enterprise.
 Emphasize rules, expectations and standards at the workplace: The rules expectations
and standards at the workplace are very important so that the organisation follows every
legal and political obligation so that its business activities do not have any challenges (Sani
And et. al., 2019). P&O Ferries follows all the necessary rules for minimum wages,
employee safety, international border laws, overseas business transactions, development of
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host countries etc. that helps it to operate smoothly across the borders. By following the
legal and political requirements the company can avoid the risk of reputation loss, financial
loss, etc. It is very important for the organisation to develop such strategies that can help it
to complete with the other organisations effectively and efficiently.
 Ethical business and Sustainable operations: The strategic decisions and changes can help
the organisation to improve its business ethics in terms of managing the employees
effectively and efficiently, providing equal rights, improving customer satisfaction, etc. With
the help of effective decision making and change management the organisation can develop
employee enhancement, employee rights, and other architects within the business. Corporate
social responsibility can help the organisation to improve its ethical activities in terms of
maintaining proper employee well-being, remuneration, quality products and services, etc.
The business can also improve its sustainability practices that can help the organisation to
achieve a positive brand image in the front of society and it will contribute positively
towards the economic, social and environmental growth. The sustainability practices of the
organisation can help to improve the activities of the organisation in order to stay positive
towards the environment, community and economy as a whole.
 Social development: Social change can be explained as the process of social progression or
socio-cultural evolution that can help the organisation to support social growth (Shah, Razaq
and Islam, 2022). In today's world the organisations cannot exist without satisfying their
social responsibility towards its stakeholders. With the help of strategic decisions and
changes P&O Ferries can easily fulfill the requirement for social development and improve
the lifestyle of people. The organisation can improve positive relations with the employees,
create employment opportunities, provide equitable growth, contribute positively towards
the social development etc. The organisation provides greater opportunities for improving its
image in the front of society by fulfilling their expectations from the organisation.
Alternative avenues they could have explored considering the nature of the pressures for
change/drivers of change
The contemporary issues are the main reasons for the transformations and adjustments to the
ways an organisation operates or functions (Shittu, Williams and Shaw, 2021). The alternative
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avenues that could have explored the nature of the pressure for change/drivers of change are
given below:
 Corporate governance: Good corporate governance includes focusing on maintaining
balance and transparency in controlling and managing the activities of the organisation. It
consists of good practices and ethical decision making by the organisation that helps to
present the condition of the organisation and resolves the key concerns of the stakeholders of
the business. It is very important for the organisation to improve its image in front of the
customers, employees and other stakeholders, which can be done by strategic decisions and
corporate governance. It can help to satisfy customer interests and provide better chances of
growth for the organisation (Sutinen and Seijo, 2018).
 Demographic changes: The changing work dynamics due to the different demographic
conditions requires an organisation to improve its operations and workplace culture. P&O
Ferries have grown their business to operate effectively in the US but with the change in the
location of its operations in Dubai lead to a terrible demographic shift. The organisation
must consider the demographic changes due to the shift in its activities from one place to
another that affects the workplace environment (Techera, 2018). The demographic
requirements of the organisation in Dubai may be completely different from that of
operations in the UK. By considering the new ways of handling the business and providing
training in development to the existing employees can help them to adjust in the changing
dynamics at the workplace.
 Social changes: The continuously changing social trends impacts on the change making
activities of an enterprise. The consumers as well as the employees have different
expectations from the organisation as compared to the enterprises in previous times. P&O
Ferries have to identify the requirements of the society, by considering the requirements of
the people and employees. The society requires that the work of organisation is for the
greater good of people and the chances of employability and improvement in lifestyle can
enhance. With the help of identifying the social requirements and developing more
environment conscious plans the organisation can create better output (Vorontsova and et.
al., 2017). The consumers are becoming more environments friendly and they require that
the organisation must follow its corporate social responsibility and sustainability practices.
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 Political and legal restrictions: Political and legal regulations are very necessary for
improving the work conditions of the employees. There are many allegations on P&O
Ferries regarding their unethical practices and unlawful behaviour towards employees. The
organisation must satisfy the government and legal requirements so that it does not face any
challenges in the future. The political and legal obligations must be followed and the
changes must be made by keeping in the requirement of some legal aspects like minimum
wage for employees, fair compensation, and other rules and regulations that govern the
business. The organisation must fulfil these requirements for carrying their businesses
smoothly.
 Technological changes: The intense growth of technology throughout the world is the main
contemporary issue that affects the decisions in a business. P&O Ferries must identify the
explicit technology changes throughout the world and try to make innovations that can take
the organisation ahead of competition. The technological advancements can help the
organization to improve its business operations, reduce workload, improve efficiency of
employees, etc. (Wise, Harris and Whittam, 2021). With the introduction of new technology
in the organization the organization can create better experience for the customers, stay
competitive and generate a higher amount of profits.
 Economic conditions: An organization has to deal with many economic challenges when
handling their businesses internationally. P&O Ferries operate on multiple ports of different
Nations. This affects the business activities because there is a need to synchronize the
activities of business to changing economic conditions of every nation. This makes it very
difficult for the organization to constantly upgrade itself with the changing economic
conditions of different nations like fluctuating fuel prices, inflation-deflation, tax rates, etc.
The companies must identify the changing economic conditions across the Nations in order
to comply with the changes and create positive performance.
 Changing stakeholder’s needs and corporate leadership: In order to implement the
changes in a successful manner it is important that the stakeholders' perspectives must be
hard and their needs must be aligned with the business goals. It is very important that P&O
Ferries must understand stakeholders' perspectives, resistance, objectives and motivation in
order to increase organizational performance. If the leadership is not aligned to the
stakeholders’ expectations and organisational goals the company may not be able to succeed
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with the changes. By understanding the change readiness, the mood of stakeholders and
related factors that may become potential challenges in the future can be understood. The
details must be collected by understanding the requirements of the stakeholder groups and
identifying the major risks in achieving the strategic changes.
Recommendations that recognises ethical and sustainability considerations for the company
It is significant for an organisation to focus on remaining ethical as well as sustainable so that
all the activities are executed in an ethical and proper manner (Amaro, Antunes and Henriques,
2018). Some of the suggestions to the higher authorities of P & O Ferries in order to recognise
as ethical and sustainable is given below:
 It is recommended to the managers of P & O Ferries to make use of new technology and
focus on work with Eco-efficiency as it help in improving the negative affect along with
it also decline ecological affects. In addition to this, it also allows a company to smoothly
carry out all the activities in a systematic and timely manner that has positive impact on
the performance as well as profitability of respective company. The use of Eco-friendly
products helps in satisfying the requirement of working ethically and also helps to remain
sustainable for longer time period (Charalambidi and et. al., 2020)
 It is recommended to employees to provide training session to its staff members and
make them educate towards ethical and sustainable considerations so that they can work
accordingly. In addition to this, it will also help in executing and maintain the
performance at high level that has positive impact on brand image of company.
Furthermore, following of all the ethical considerations allow a company to maintain
positive working culture and environment within the organization.
 It is suggested to managers of P & O Ferries to focus on declining the use of carbon
emission and consumption of natural resources so that they can save the environment of
being harmed. This also act as part of company towards improvement within the society
and help them to develop brand image which is vital to maintain growth in an effective
manner (Clarke, 2017).
The most of the people who work as casual worker in DP World face challenge to fulfil
the basic requirement of human being such as house, cloth and food because the DP World is not
followed the minimum wage rule in the UK. The DP world should provide the minimum wages
9

to worker so that they can be lived the life smoothly and they can be accomplished the basic
need of human being. The DP World ought to go with UK government's law as it increases the
brand image of the company in across the global. The respective company ought to more focus
on ethical welfare as it can be helpful for company as it improve the retaining of worker and
reduce the resignation of casual worker (Griffin, 2021).
The DP world should more focus on healthcare of worker as they can use effective work
tool that protect the worker from miss-happening and death. The respective company ought to
use insurance premiums and worker’s compensation claims that help in improving the brand
image of the company. The DP World should use free tobacco policy in workplace that help to
decline the use of tobacco among the people and it may reduce the chance of cancer. The
respective company ought to provide the healthy food to casual worker that help in improve the
productivity of the business. The DP World should use worker friendly machinery that help in
performing the business activities easily and make smoother (Kochan, 2021).
Carroll’s Pyramid
In context to Carroll's CSR pyramid, it is basically a framework that helps in
understanding why and how the company should take social responsibility. In context to
Pyramid, it was basically develop by Archie B. Carroll and helps in highlighting the most
significant responsibilities of the company.
10

In reference to P & O Ferries, it comprises of various responsibilities such as Philanthropic
responsibility, economic responsibility, ethical responsibility and legal responsibility. In context
to the company, the pyramid's base is considered to be profit and this foundation is necessary for
the organisation in order to meet the regulations as well as the demand of the shareholders
(Pandey, 2021). In context to P & O Ferries, the companies have shareholders who demand and
expect a reasonable return on their investments and who basically want to do their jobs in a fair
and safe manner. In reference to the legal responsibility of the company, it basically involves
comply the minimum rules that have been set (Sajid, S.M., 2021). In context to organisations,
they are expected to function and operate within the rules. In reference to ethical responsibility,
the company embrace practices, activities and standards and comprises of ethical standards.
Another responsibility is philanthropic that comprises of the discretionary activities and business
practices. In context to organisations, they are expected to take part in activities and adoption of
different types of philanthropy such as community development, gifts, volunteer work, donations
and discretionary contributions to the groups of stakeholders and community (Carroll’s CSR
pyramid, 2020).
CONCLUSION
From the above discussion, it has been concluded that there are many issues faced by an
organisation and to deal with it is important for a company to focus on analysing the external and
internal analysis. This helps an organisation to analyse the factors effect on it and the
opportunities they have to deal with the issues. It is analysed that pestle analysis help in
analysing the macro environmental factors that impact on its business activities. It is vital for a
company to have an effective strategic plan so that it can easily cope with the changes arise in
the business environment that has positive influence on the profitability as well as performance
of company. It is determined that development of alternatives assist a company to maintain its
productivity level. Furthermore, it is determined that it is significant for an organisation to follow
the ethical and sustainable consideration so that all the activities are implemented properly and
the brand image is also improved as well.
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