Leading and Managing Business Organisations

This report discusses the importance of managing diversities in the workplace with context to Sainsbury's and the challenges faced by them. It also explains the characteristics and advantages of the rational goal theory. The report covers the concept of various management theories and explains the approaches that should be followed to increase the efficiency and potential of an organisation for the purpose of wealth generation.

Leading and
Managing
Business
Organisations
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Table of Contents
Question 1 .......................................................................................................................................3
Introduction ................................................................................................................................3
Importance of managing diversities among staff members........................................................3
Challenges faced by Sainsbury's in the attempt of managing diversities...................................4
Conclusion..................................................................................................................................5
Question 2 .......................................................................................................................................5
Introduction.................................................................................................................................5
Management theories..................................................................................................................6
Advantages of the rational goal theory.......................................................................................7
Conclusion..................................................................................................................................8
References ......................................................................................................................................9
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Question 1
Introduction
The differences in cultural aspects and personal backgrounds has led to formation of
various diversities in the workplace environment. Due to the increasing significance of
globalisation, business world is connecting across geographical boundaries and territories
creating diversities to a major extent. Diversity in workplace is determined by variations in
religious aspects, political views, cultural beliefs, educational and personal backgrounds etc. The
business case for diversity is the conversational conduct of an organisation which connects
various diversities of workforce with the organisational consequences. Businesses are laying
emphasis on the encouragement of practices which supports diversities in the workplace
environment. This report conducts discussion regarding the importance of managing diversities
in the workplace with context to an organisation(Centobelli, Cerchione and Esposito, 2018)
(Laurett and Ferreira, 2018). The chosen organisation for this report is Sainsbury's, which is one
of the leading supermarket brand of UK. The question covers the concept of diversity
management in context to Sainsbury's which discuss its significance and the challenges that are
being faced in managing diversities.
Importance of managing diversities among staff members
A diversified workplace is the one where individuals with different cultural backgrounds
and religions work together with the sense of togetherness and equality. The significance of
diversified workplace is growing due to the growth and development of businesses in the process
of globalisation. The importance of managing diversities in context to Sainsbury's is discussed
with the help of following points:
 Encourage wide range of styles and opinions: The diversity in workplace ensures
connectivity to a wide range of customers with different backgrounds and interests. A
diversified workplace in Sainsbury's helps in increasing familiarity with different aspects
of cultural trends and religious beliefs(Christ and et.al., 2018).
 Different cultural backgrounds promotes organisational learning: Increasing knowledge
of individuals regarding diversities improves the scope of organisational learning which
promotes growth and development of the Sainsbury's.
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 Promotes creative and innovative ideas: Similarities in demographic and cultural aspects
of individuals are likely to create similarities in opinions and thoughts which block the
scope of creativity. Therefore, a diversified workplace promotes high innovation and
welcomes creativity of employees working in Sainsbury's.
 Increased productivity: Managing diversities within an organisation ensures satisfaction
and motivation among employees(Gil, Rodrigo-Moya and Morcillo-Bellido, 2018).
Diversities being embraced by Sainsbury's improves the productivity and efficiency of
their workforce. With increase in productivity level, the company is able to generate high
revenues.
 Balanced psychological state: The effective management and encouragement of various
diversities in workplace helps in promoting stable mental state of employees. With
balanced psychological state, workforce of Sainsbury's work with greater efficiency for
the betterment of their organisation.
Challenges faced by Sainsbury's in the attempt of managing diversities
Managing various diversities in contemporary environment is quite challenging due to
the collision of multiple opinions and perceptions. It is quite difficult to maintain cooperation
and collaboration among employees despite the existence of diversities on a huge extent. The
challenges faced by Sainsbury's in the process of effective management of diversified workforce
could be understood with the help of following points.
 Discouragement of changes through existing employees: The differences in customs and
practices preferred by individuals might lead to the reluctant attitude of employees
towards others. An individual has the tendency of disliking the beliefs and traditions
followed by others which do not match with their perceptions(Van der Voordt and
Jensen, 2018). Thus, Sainsbury's has to deal with the issues caused due to resistance
shown by individuals in acceptance of various diversities.
 Barriers in effective communication: Due to the mismatch and dissimilarities in attitude
and preferences of employees, communicating with effectiveness is posing as a major
challenge. employees all over the world which are associated with operations of
Sainsbury's come from different backgrounds and have different perception. Ensuring
effective communication within large and complex organisations like Sainsbury's is very
difficult to manage.
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 Clashes of thoughts resulting chaos: Opinions and views of staff members shows
disagreement given that they come from majorly different backgrounds. Therefore,
clashes and dissatisfaction are very obvious which makes it difficult for managers to deal
with.
 Typical stereotypes and prejudices existing: there are various stereotypes that exist
regarding a specific religion or particular tradition which are likely to arise discussions
among employees(Carvalho and et.al., 2019). The presence of various diversities might
create beliefs which promote racism, sexual harassment and conservativeness in
workplace.
 Issues related with implementation of effective policies: It is quite difficult for large
companies like Sainsbury's to effectively implement policies and code of conduct which
promotes equality among multiple diversities. To improve the behavioural conduct of
employees to ensure acceptance and agreements, effective establishment of policies is
required by the company.
Conclusion
The process of managing various diversities in a workplace has become very crucial and
importance to ensure proper working of an organisation. Sainsbury's pays great attention and
emphasis on the encouragement of diversified workplace to maintain effectiveness among their
employees. The management of organisation with numerous diversities is extremely challenging
and proper implementation of policies is hard to establish(Ainsworth, 2020). Hence, the
company should promote practices which welcomes and encourages the individuals from
different backgrounds. The organisation should clearly state and mention their policies regarding
the acceptance and maintenance of diversities to promote equality.
Question 2
Introduction
The rational goal theory is a scientific management model discovered by Frederick
Taylor. Management is the process of getting things done by others which focus upon the
achievement of organisation goals along with attainment of personal goals. Taylor suggest the
application of scientific principles for the effective production activities of an organisation. The
rational goal model of management pay focus on the enhancement of production capacity to
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promote high revenue generation. The theory explains the five fundamental principles which will
lead to greater efficiency in production and maximise output generation. This model lays
emphasis on the significance of external management control in the working of an organisation.
This question covers the concept of various management theories and explains the characteristics
of rational goal model(Tripathi and Jha, 2018).
Management theories
The management theories deals with the fundamentals and explains the approaches that
should be followed to increase the efficiency and potential of an organisation for the purpose of
wealth generation. The process of industrial revolution give rise to the formulation of various
approaches and theories suggested by influential personalities. The major theories of
management are stated below:
 Scientific management theory by Frederick Taylor: taylor focus on the application of
scientific concepts for management of functions of an organisation.
 Administrative management theory by Henry Fayol: Fayol suggested 14 principles of
management which describes the concepts to promote effective administration in an
organisation.
 Bureaucratic management theory by Max Weber: Weber focus on the aspects which
could bring standardisation. He pays emphasis on the formation of chains of command to
establish control in an organisation.
 Human relations management theory by Professor Elton Mayo: The theories suggested
by Mayo put great attention on the human element and considers human resources the
most important aspect of an organisation.
Frederick Taylor described various principles and approaches which focus on scientific
application and implementation of methods and approaches to maximise organisational
efficiency. The rational goal model is a concept explained by Taylor which discuss the relevance
of five major principles which are mentioned below:
1. Identify the only and best way to perform an activity: This principle suggests
Identification and selection of the most appropriate and only way to perform an activity.
This ensure maximum efficiency and potential generation throughout the processes.
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2. Select the highest qualified person to do this: Select the best qualified and most suitable
person to perform the task according to their calibre. This will promote value addition
and accuracy in the performance and completion of a target.
3. Train and develop employees: Training and development programmes conducted on a
frequent basis enhance the skills and abilities of personnel.
4. Provide financial stimulation: It suggests fostering individuals performance by providing
financial incentives to employees in order to promote motivation. Monetary benefits
drive employees to work better and push them towards the direction of organisational
objectives.
5. Centralize responsibilities through managers: Centralisation of authority and
accountability is an effective way to establish systematic working pattern in an
organisation which helps in avoiding conflicts and chaos.
The application of this theory is not very difficult as this approach was suggested at the
time when organisations used to operate in a straightforward manner. The principles suggested
by Taylor implies the operational process of business organisations in systematic and customised
manner(Gunasekera and Chong, S.C., 2018). Its principles focus upon the quality and greater
value addition by adopting the strategies which ensures highest efficiency in the completion of
procedures. This theory attempts to increase production capacity by encouraging practices which
ensures accuracy in the process.
Advantages of the rational goal theory
The model of rational goal theory apply and implement effective methods of scientific
management. The theories of scientific management pays attention on the methods and
techniques of science which are suggested to bring accuracy in the business operations. The
advantages of rational goal theory are discussed below:
 Promotes accuracy: The identification and selection of most appropriate methods are
done through evaluating scientific techniques which avoid the possibilities of errors. The
scientific principles of management make effective use of science to conduct research
and look out for solutions considering logical reasoning.
 Reliable sources of information: Taylor discouraged the practice of following
conventional methods by relying on the past events and statistics. He promotes the use of
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science and suggest application of logical methods to identify the most suitable procedure
for completion of a task.
 Maximise efficiency: The scientific application of methods and use of reliable
information promotes effectiveness and efficiency in the work procedures(Plichta, 2019).
The use of logical approach in the business functions promotes accuracy in the
performance of an organisation.
 Ensures systematic working: Centralisation of responsibilities through managers establish
the code of conduct which implies proper working through identifying accountability.
 Improves performance of employees: Through constant training and development
employee's skills and abilities are being enhanced which promotes organisational
efficiency. Taylor pays attention on the development of employees which ultimately
leads to progress and success of an organisation.
Conclusion
The applications of scientific management in modern organisations is relevant and
important due to the benefits that it is awarded by it. The rational goal theory is easy to
implement in the management processes of an organisation. It facilitates systematic working in
the operational activities of an organisation and promotes efficiency in production. However, the
concepts of Taylorism sometimes burdened employees through putting pressure to work more
than their capacities. The scientific principles of management ignores the humanly aspects which
do not consider the well being of individuals. Scientific application of methods are only capable
of measuring quantitatively and neglect the aspects of quality. Despite the limitations and
criticism of scientific management, it is still in practice within organisations. The principles of
scientific management promotes creativity and innovation in the functioning of organisations.
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References
Books and Journals
Ainsworth, S.H., 2020. Rational Choice Theory in Political Decision Making. In Oxford
Research Encyclopedia of Politics.
Carvalho, A.M. and et.al., 2019. Operational excellence, organisational culture and agility: the
missing link?. Total Quality Management & Business Excellence, 30(13-14), pp.1495-
1514.
Centobelli, P., Cerchione, R. and Esposito, E., 2018. How to deal with knowledge management
misalignment: A taxonomy based on a 3D fuzzy methodology. Journal of Knowledge
Management.
Christ, K.L. and et.al., 2018. The potential for ‘boundary-spanning organisations’ in addressing
the research-practice gap in sustainability accounting. Sustainability Accounting,
Management and Policy Journal.
Gil, A.J., Rodrigo-Moya, B. and Morcillo-Bellido, J., 2018. The effect of leadership in the
development of innovation capacity: A learning organization perspective. Leadership &
Organization Development Journal.
Gunasekera, V.S. and Chong, S.C., 2018. Knowledge management for construction
organisations: a research agenda. Kybernetes.
Laurett, R. and Ferreira, J.J., 2018. Strategy in nonprofit organisations: a systematic literature
review and agenda for future research. VOLUNTAS: International Journal of Voluntary
and Nonprofit Organizations, 29(5), pp.881-897.
Plichta, J., 2019. The co-management and stakeholders theory as a useful approach to manage
the problem of overtourism in historical cities–illustrated with an example of
Krakow. International Journal of Tourism Cities.
Tripathi, K.K. and Jha, K.N., 2018. Application of fuzzy preference relation for evaluating
success factors of construction organisations. Engineering, Construction and
Architectural Management.
Van der Voordt, T.J. and Jensen, P.A., 2018. Measurement and benchmarking of workplace
performance: Key issues in value adding management. Journal of Corporate Real Estate.
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