Business Environment & Organizational Growth

The assignment analyzes how the business environment influences organizational effectiveness. It examines various aspects like leadership styles (democratic), motivational theories, and the role of the Human Resource Management department in hiring skilled employees. The report concludes that optimizing leadership and motivational strategies contributes to increased sales and productivity.

HOW BUSINESS OPERATE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Importance of accounting for business success................................................................1
5.1 Different functions performed by Human Resource Department....................................1
5.2 Key features of employment legislations ........................................................................2
TASK 3............................................................................................................................................2
3.1 Information on profit and loss account.............................................................................2
TASK 4............................................................................................................................................3
4.1 Analysis to determine your own and others’ roles within a team....................................3
4.2 Notes which can be used to support future training events.............................................4
4.3 Appropriate use of different motivational theories in business activities........................5
4.4 Impact of various leadership styles on employees...........................................................5
TASK 5............................................................................................................................................5
Covered in PPT.......................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
To operate the business it is important that company understands the environment as this
is the factor that affects the business operation internally and externally. Therefore, it is essential
that organisation learn about all the component that are present at market place (Trevino and
Nelson, 2016). This includes legal, political, socio-cultural environment and political element.
Hennes & Mauritz is a multinational clothing retail store and its headquarter is in Stockholm,
Sweden. The report will be focussing on the types along with the structure of private and public
sector in UK. Other than this, how the compnay is operating its business at local, national and
global level. Lastly, the impact of customer services on the company so as to attain success.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
Accounting is very essential for an organisation so as to run their business in an effective
manner. It helps the company in making appropriate decisions because without a proper
management and adequate data this could not be possible (Aronoff and Ward, 2016). Accounting
provides details about the financial statements in terms of profit and loss, cost and earning that is
gained in one financial year. Therefore, it is used in order to evaluate the money that was spent
for business organisation this will assist them in taking key decisions as it will give an overview
about the financial statement of the organisation. Through this firm can expand and increase their
capital base by implementing appropriate methodologies in having proper accounting.
5.1 Different functions performed by Human Resource Department
Human resource department is very efficient and provides basic facilities to the
organisation so that a structure and systematic procedures can be followed. New recruitment is
the main function that is performed by the Human Resource Department, and they hire eligible
candidates who are best suited for the vacant position. For this, company usually give
advertisement in televisions, newspapers, magazines and many more. Other than this, they try to
provide job safety to individuals who are working in a particular company in terms of health and
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safety they make sure that all the people are given a proper environment where they can work in
an appropriate manner along with this
5.2 Key features of employment legislations
For maintaining a minimum standard of employment in a company, regulatory bodies of
a nation has formulated various laws so that every body is treated equally. This includes certain
elements like minimum wages, working hours, leave, and many more. These laws are developed
with the help of jurisdiction. Hennes & Mauritz has included laws for having a peaceful
environment (Finch, 2016). Equality Act of 2010 is assisting the organisation in giving equal
chance to people who are working in the company so that all the no discrimination is done on the
basis of caste, gender, colour, race etc., H&M has also incorporated laws that are related to
health and safety, for example: if the person has suffered with a serious injury or death while
working for the firm than company is providing compensation to the family.
TASK 3
3.1 Information on profit and loss account
profit and loss
statement of H&M
All numbers in
thousands
Revenue 11/30/2017 11/30/2016 11/30/2015 11/30/2014
Total Revenue 200004000 192267000 180861000 151419000
Cost of Revenue 91914000 86090000 77694000 62367000
Gross Profit 108090000 106177000 103167000 89052000
Operating Expenses
Selling General and
Administrative 87521000 82354000 76225000 63469000
Total Operating
Expenses 179435000 168444000 153919000 125836000
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Operating Income or
Loss 20569000 23823000 26942000 25583000
Income from Continuing Operations
Total Other
Income/Expenses Net 240000 216000 300000 312000
Earnings Before
Interest and Taxes 20569000 23823000 26942000 25583000
Interest Expense -41000 -8000 -10000 -16000
Income Before Tax 20809000 24039000 27242000 25895000
Income Tax Expense 4625000 5403000 6344000 5919000
Net Income From
Continuing Ops 16184000 18636000 20898000 19976000
Net Income 16184000 18636000 20898000 19976000
Net Income Applicable
To Common Shares 16184000 18636000 20898000 19976000
Interpretation: As per above mentioned graph it can be concluded that the net income of
company is 16184000 in 2017 which is lesser as compare to previous year.
TASK 4
4.1 Analysis to determine your own and others’ roles within a team
For attaining the goals in an effective manner it is important that a string team is builds so
that they can perform the task in order to achieve a common goal. Every individual in squad sin
important as they perform their activities so as to complete the task. In a group my role is to
manage the team allocate the roles and responsibilities according to the capabilities a person
acquires. Through this, attaining the objectives will be much easier (Foss and Saebi, 2017). For
this, I usually monitor the performance of person who are working in an organisation, it help me
out in evaluating the strong and weak points of an individual and based on that the work is
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allotted respectively. Other than this, I suggest appropriate paths through which the goals and
objectives can be accomplished.
4.2 Notes which can be used to support future training events
A strong team always provides a better results so that company can attain a superior
position at market area. For this there are certain steps that are to followed in order to have an
effective team.
Stages of team development: As per the theory given by Tuckman there are basically four stages
for developing a team and these are given below:
Forming: For developing a new team orientation is required so that leader can have an
idea about the nature of individual and accordingly team can be build. In this, all the members
who are assigned are very polite and humble as this is the initial step of team development.
Storming: This is t he next move in which people starts pushing their limits and perform
the activities it is one of the reasons why most of the organisation fail in developing a team. In
this conflicts and issues arise and leaders search for appropriate path for resolving these clashes
(Chung, Yang and Huang, 2015).
Norming: Under this, people tries to interact with each other and try to resolve the issues
and differences. Employees start giving respect to leaders and their subordinates respectively. An
overlap between storming and norming can be seen.
Performing: After going through all the stages mentioned above this step come into
being. Team perform the task for attaining a common goal and leaders monitor the entire squad
so as to analyse whether the team is working appropriately.
Different types of motivational theory
Maslow's Need Hierarchy theory: This is the basic theory that are adopted by most of
the organisation in order to motivate their employees so that they can perform the task
effectively (Buhmann, 2016). The theory includes basic human needs which every company
should consider like physiological, safety and security, social, esteem, self actualisation. It help
the firm in encouraging the employees.
Herzberg's motivational theory: It is classified into two factors intrinsic and extrinsic
motivation. Job satisfaction and dissatisfaction is concerned in this, is that a linear relationship
can be maintained.
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McClelland's Need Theory: This theory is categorised into three elements i.e.
achievement, affiliation and power. Under this, the theorist has explained about how and
individual can achieve their targets with the use of above mentioned three elements.
Various kind of leadership styles:
There are different kind of leadership styles that have been optimised by the company
H&M. It depends upon the the circumstance which company is facing for example: if the
organisation wants a increase in productivity and sales in a particular time frame than they will
incorporate Autocratic style of leadership. Other than this, democratic style of leadership is also
adopted by H&M and it is helping them in sustaining the loyalty of employees.
4.3 Appropriate use of different motivational theories in business activities
It is important that leader and managers encourage their employees on a regular basis so
that company can run their business in an effective manner. Therefore, for motivating their
employees Hennes & Mauritz is using Maslow's hierarchy theories so as to provide facilities
according to the basic needs. They are providing safety and security to their employees by giving
them compensation, job security and many more (Carayannis, Sindakis and Walter, 2015).
Esteemed and self actualisation is needs are also fulfilled as it motivates and individual in
pushing their limits for achieving their targets.
4.4 Impact of various leadership styles on employees
Autocratic leadership styles can sometimes create problem between superiors and
employees as worker may not agree to work under the rigid system of the organisation. H&M
has incorporated democratic leadership style and employees who are working there are very
happy about this. This is helping them in having a proper interaction between employees and
superiors. Thus, all the workers are having a healthy environment at workplace (Demuijnck and
Fasterling, 2016).
TASK 5
Covered in PPT
CONCLUSION
From the above report it has been concluded that, business environment plays an
important role in operating their firms in an effective manner. Department of HRM also help the
organisation in some or the other manner as they hire fresh candidates for different departments
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who are skilled in their respective fields. Therefore, for an effective growth leaders optimise
different leadership and motivational theory so as to encourage their worker. As a result an
increase in company's sales and productivity can be seen.
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REFERENCES
Books and journals
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Aronoff, C. and Ward, J., 2016. Family business values: How to assure a legacy of continuity
and success. Springer.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Foss, N. J. and Saebi, T., 2017. Fifteen years of research on business model innovation: how far
have we come, and where should we go?. Journal of Management. 43(1). pp.200-227.
Chung, H. F., Yang, Z. and Huang, P. H., 2015. How does organizational learning matter in
strategic business performance? The contingency role of guanxi networking. Journal of
Business Research. 68(6). pp.1216-1224.
Buhmann, K., 2016. Public regulators and CSR: The ‘Social Licence to Operate’in recent united
nations instruments on business and human rights and the juridification of CSR. Journal
of business ethics. 136(4). pp.699-714.
Carayannis, E. G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Demuijnck, G. and Fasterling, B., 2016. The social license to operate. Journal of Business
Ethics.136(4). pp.675-685.
Pereira, B. A. and Caetano, M., 2015. A conceptual business model framework applied to air
transport. Journal of Air Transport Management. 44. pp.70-76.
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