Leading and Managing Business Organizations

This report discusses the importance of leading and managing business organizations, the benefits of diversification, challenges faced by Sainsbury's in managing diversity, and the continued use of rational goal theory in some organizations. It also covers the broad characteristics of the theory and why it has not been phased out entirely in some organizations.

Leading and Managing
Business Organizations
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Why is it important for Business Organisations to manage the diversities among their staff?...1
Discuss some of the challenges which Sainsbury’s Supermarket would face in their attempt to
manage the diversity among their employees..............................................................................2
Despite its weaknesses, certain aspects of Scientific Management (Rational Goal Theory or
Taylorism) continue to exist in several organizations today.......................................................4
Discuss the broad characteristics of the theory and explain why they have still not been phased
out entirely in the operations of some organizations...................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Leading and management are two important aspects and required for the business organizations
because this supports in providing a direction to the resources of the organization for improving
their efficiency and the productivity. Management of the business organization helps in
controlling the resources or entities which are responsible for achieving a particular goal. On the
other hand leadership in the business organization refers to the ability of an individual for
influencing, motivating, and enabling the other resources in contributing the success of the
organization (Smits, and Bowden,2018). The report will describe the importance of
diversification of employees in the business organizations and the challenges faced by the
employees for diversification in the Sainsbury supermarket. The aspects of rational goal theory
and their characteristics and why they have still not been phased out entirely in the operations of
some organizations has also been illustrated in the report.
MAIN BODY
Why is it important for Business Organisations to manage the diversities among their staff?
Diversity means understanding that each and every individual is unique and have its own
recognition and able to understand the individual differences. It is very important for the
business organizations to have diversification in their workforce because diversification drives
creativity and innovation. When each and every employee and the manager have equal respect
for each other rather than focusing on any discrimination like race, gender, ethnicity, physical
abilities, sexual orientation then the company will able to grow more productively and have a
better success rate. The diversified workplace will consists of variety of employees such as
religion, culture, language, educational backgrounds, skills and capabilities and sex orientation.
When the business organizations combine diversified employees in their workplace than they
would get different perspectives and opinions about the business and this will result in benefiting
the organization and helps in providing utmost growth to the organization as well.by using this
concept the business organization will able to grow in various ways and have more productivity
comparatively(Barattucci, Alfano, and Amodio, 2019).it is very crucial for the business
organization to manage the diversities among the staff because this provides lot of benefits to the
organization and some of the benefits are as follows:
 The diversification among the employees in the business organization helps in generating
more creativity and innovation as whenever individuals from diversified factor mix
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together in the organization, they always come up with the new ideas and opinions and
this brings more success and growth to the organization.
 A diversified employees within the business organization will able to understand the
needs and requirements of the customers more precisely and come up with innovations
for fulfilling their desires.it has been studies that the diversification in the organization
will increase the productivity by 35% and this will also help in increasing the morale
value of the team members as well. By developing a desire of working more effectively
and efficiently the organization will have more productivity.
 Generating more revenue is one of the most important aim of the business organizations.
It has been observed that by using diversification among the employees in the
organizations the revenue rate have been increased by 19%.
 The business organization who encourages diversification will helps in making the
employees more valued and accepted. This will provide a positive environment and
makes the work culture more enthusiastic. The happy employees will always stay long
with the organizations and the companies will also able to retain them which means the
companies need not be spend more money on the employees and this will help in
reducing the employee turnover (Pembleton, 2018). The saved fund can be invest
somewhere else for more growth and development.
 By using diversification in the business organizations, they will able to connect with
wider range of the customers.by sourcing employees from various backgrounds ,
languages the company can ensures that they can reach to the wider target market.
Because of diversification and different backgrounds the employees will able to connect
with customers of various categories in their working life and this will lead to more
growth and productivity.
Discuss some of the challenges which Sainsbury’s Supermarket would face in their attempt to
manage the diversity among their employees.
In today’s technological world, the use of technology and globalisation is increasing so rapidly
and individuals are connected more with each other and this results in increasing the
diversification in the workplace in terms of gender, religion, nationality and many more.it has
been seen that people from different countries speaking different languages are working together
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in the same organization and this is providing utmost to the organizations but there are always
some other side also which are the challenges faced by the companies as well as by the
employees for attempting diversification in their workforce. Similarly the employees of the
Sainsbury supermarket are also facing the same issue in their work place by using the concept of
diversification (Van de Ven, and et.al, 2020). Some of the challenges faced by the employees of
Sainsbury supermarket are as follows:
Communication barriers: one of the most common factor faced by the employees in the
Sainsbury supermarket are the barrier of communication. Communication barrier is one of the
obstacle faced by every international business organizations as people came from various
countries and speak different languages so sometimes it would be difficult for the employees to
understand their native language and even the ones who are speaking in English also have to
face this because of difference in ascent. Therefore working with diversifies employees need
very strong interpersonal abilities and cultural sympathy.
Less trust: it has been observed that people from minor groups feels very hesitated while asking
any query to their managers as compared to the people with major groups. They feel like they
will be trusted less and treated unlikely by the other employees as well (Holloway, Jayne, and
Valentine, 2021). For example individuals from the Asian countries feel like the same and they
did not feel comfortable in raising their opinions.in order to mitigate the issue the manager
should have strong leadership skills and good communication skills so that each employees feels
homely atmosphere.
Cultural misunderstandings: when people from different cultures mix together than this
creates a big misunderstanding between them. For instance some people feel offended by
receiving a thumbs up from the other one. In the same way the Sainsbury supermarket’s
employee also feel the cultural differences because of diversification and this leads to the loss of
development and growth as well. For solving this issue the company should provide an
atmosphere where everyone should respect each other and also listen each other or having
empathy towards the team members.
Slower decision making: diversification leads to innovation and creativity and also require
multiple opinions and perspectives but because of this the team members will not able to make a
final decision for anything related to the Sainsbury supermarket and it also slower the decision
making process. For instance in the Sainsbury supermarket if one product is on discount and the
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other product is not and the employee have to take some decision regarding that then it would be
difficult for them to reach to the final output(Pendleton, and Robinson, 2018). So in order to
mitigate this the organization should select one member as the head for taking the final decision.
Despite its weaknesses, certain aspects of Scientific Management (Rational Goal Theory or
Taylorism) continue to exist in several organizations today.
Scientific management is basically a theory used for management that helps in evaluating and
producing the workflow. The main aim of scientific management is to improve the efficiency of
economy like labour productivity. It is one of the oldest way of applying engineering to the
process of management within the business organization.it is basically the process of knowing
what to be done in the best and most affordable manner and also for analysing the process of
production for increasing the productivity of the business organization. This approach is used by
the management of the business organizations in order to handle all the process of management
and provide the scientific techniques like recruitment, selection and providing training to the
employees. Scientific management is also known as rational goal theory or taylorism. This
approach is used for controlling that helps in promoting the productivity and output of the
organization (Su, 2018). The rational goal theory has been introduced by Frederick Taylor and
he tries to use the science in the production process by the help of managers. This would help in
providing maximum profit for the employees as well as for the organization.by the help of
rational Goal theory the employees of the business organization would be able gain more profit
and productivity. The rational goal model has four components and which are internal process,
human relations, open systems and the last one is rational goals. This model helps in
understanding the importance of external components of management within the organization.
For achieving the productivity it is very important to understand and fulfil the responsibilities of
employees and producers. Similarly for performing well in the target market there are various
things which should be take care of like setting the objectives, quickening productivity and also
becoming more profitable than the competitors by the use of technologies.
Despite its weakness there are some certain aspects of rational goal theory that
continued in many organizations till now because of many principles like it helps in identifying
the best possible way for performing the activities within the organization, selecting the highest
qualified and talented employee for doing the task, this approach train the employees and allow
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them to grow, providing the financial inspiration and consolidating the tasks with the supervisors
of the business organization(Murphy,2021). The strength of using the rational goal theory in the
business organization is to highlights the arrangement and achievement by the supervisors and
this is very crucial to do.
Discuss the broad characteristics of the theory and explain why they have still not been phased
out entirely in the operations of some organizations.
The rational goal theory helps in focusing on the ability and capabilities of the organization for
achieving the goals. This is one of the oldest approach used by the organizations for promoting
productivity and growth. The rational goal theory is basically used for taking decisions and there
are some steps which have to be followed by the business organizations for implementing this
approach and which are identification of the issues or opportunities , collecting and stimulating
the relevant data , the third one is evaluating the information collected , the fourth one is
developing multiple options, the next is analysing and assigning value to each of the option ,
then selecting the options which is best for applying and the last one is doing right practice on
that option for getting better outcomes and which provide benefits to the business
organizations(Steglich, 2018). Some of the business organizations have still not phased out
entirely the rational goal theory in the operations of the organization because this approach is an
objective approach which is based on the information obtained scientifically for reaching to the
informed decisions.by using this approach the chance of getting mistakes and errors gets reduced
and helps in minimizing the emotions of the supervisors.beacuse of this rational goal theory the
business organizations will able to reach to the decision making process more effectively and
this helps in achieving the goals of the organization as well.
The rational goal approach aims is to focus on the abilities of the company for
meeting the objectives and achieving the goals. The goals of the organization have been
recognized by generating the general goals, establishing the worth or objectives for it
achievement and also explaining the set of actions for each objective. The rational goal theory
works on basic three concepts and which are rational actors, self-interest and the last one is
invisible hand (Elbanna, and Child, 2019). This approach helps in decision making process by
the help of self-control, reliability and reasoning.
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CONCLUSION
From the report it has been understood that leading and managing the business organization is a
important process which helps in providing a way to the companies for achieving their goals and
meeting their objectives. The diversification among the employees in the business organizations
is also very important as it helps in growing more effectively and helps in increasing the revenue
and the Sainsbury supermarket employees are facing some challenges because of diversification
and this has also been illustrated in the report as well.scientific management and rational goal
theory in the business organizations and its characteristics are also discussed in the report.
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REFERENCES
Books and references
Smits, S.J. and Bowden, D.E., 2018. A perspective on leading and managing organizational
change 1. Economics and Business Review, 1(2), p.3.
Barattucci, M., Alfano, V. and Amodio, S., 2019. The company judged from the inside:
diversification, equity and justice in organizations. Journal of Psychological & Educational
Research, 25(1).
Pembleton, C.J., 2018. Creating revenue diversification among nonprofits (Doctoral
dissertation, Walden University).
Van de Ven, A.H., and et.al, 2020. Organizational diversity, integration and
performance. Journal of Organizational Behavior: The International Journal of Industrial,
Occupational and Organizational Psychology and Behavior, 29(3), pp.335-354.
Holloway, S.L., Jayne, M. and Valentine, G., 2021. ‘Sainsbury's is my local’: English alcohol
policy, domestic drinking practices and the meaning of home. Transactions of the institute of
British geographers, 33(4), pp.532-547.
Pendleton, A. and Robinson, A., 2018. Lack of diversification among employee stock owners:
An empirical evaluation of behavioral explanations. Human Resource Management, 57(5),
pp.1175-1187.
Su, Y., 2018. Taylor scientific management theory carding and significance of organization
management. Social Sciences, 6(4), pp.102-107.
Murphy, G.L., 2021. A rational theory of concepts. The psychology of learning and
motivation, 29, pp.327-359.
Steglich, C.E.G., 2018. The framing of decision situations: automatic goal selection and
rational goal pursuit. University of Groningen.
Elbanna, S. and Child, J., 2019. The influence of decision, environmental and firm
characteristics on the rationality of strategic decision‐making. Journal of Management
Studies, 44(4), pp.561-591.
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