Principles of Responsible Management

This report discusses the principles of responsible management and their impact on organizations. It focuses on the issues faced by Costa Coffee due to irresponsible management practices, such as improper salary deductions and poor working conditions. The report also provides recommendations for future behavior to address these issues.

PRINCIPLES OF
RESPONSIBLE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Experienced issues in the past as a result of irresponsible management practices and /or is
currently experiencing such issues..............................................................................................1
2. Behaviours or operations attributable to this organisation, either currently or in the past,
that could be regarded as contentious.........................................................................................2
3. These negative behaviours have impacted upon the firm in terms of reputation, customer
response and profitability............................................................................................................3
4. Contrast these behaviours with examples of organisations who have behaved in a more
responsible manner, particularly in relation to the competitive advantage gained.....................4
5. Recommendations related to future behaviour to address these identified issues..................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For an organisation good management practice is backbone as it result within success. In
simple term it can be said that, management is art of getting things done through others within
formal manner (Gilligan and Ridley-Duff ,2018). In addition to this, management is procedure of
planning, decision making, organizing, leading, motivation as well as controlling human
resources, financial, physical and information resources of business firm to reach its goals within
effective manner. Responsible management of company is manager and leader responsibility
because they are two important person who help in performing activity within effective manner.
This report is based on Costa Coffee which is part of coffee house chain and its
headquarter is located at Dunstable, England, United Kingdom. It was founded in 1971 by Bruno
costa and Sergio Costa. Products offering by them at worldwide level are coffee, tea,
sandwiches, sweet snacks and iced drinks. Report will going to discuss current management
practices which Costa Coffee is facing. Along with its impact on firm reputation, customers
response and profitability. In addition to this, recommendation has been also given related to
future behaviour for addressing identified issue.
MAIN BODY
1. Experienced issues in the past as a result of irresponsible management practices and /or is
currently experiencing such issues.
Management is procedure of planning, decision making, organizing, leading, motivation
as well as controlling human resources, financial, physical and information resources of business
firm to reach its goals within effective manner. In an organisation several issues may arise which
may result in irresponsible management practices same as in Costa Coffee also. It is coffee house
chain and its headquarter is located at Dunstable, England, United Kingdom. It was founded in
1971 by Bruno costa and Sergio Costa (Cicmil and Gaggiotti, 2018). Products offering by them
at worldwide level are coffee, tea, sandwiches, sweet snacks and iced drinks.
As per the views of Yusuf. H, 2019 it has been identified that Costa Coffee Franchise
workers are not treated like human beings. Workers of respective organisation had made several
claims alleging poor working condition within 29 franchise stores. In this complaint staff
members stated that manager refuse to pay for sick or annual leaves along with, working outside
on contracted hours as well as retention of tips (Costa Coffee franchise workers 'not treated like

humans', 2019). Moreover, latest allegation which has been surfaced after BBC report it has been
identified that Costa stores which was managed by Kafeel Khan's Goldex Essex Investments Ltd.
That respective organisation has deducted £200 from final payslip of their staff member for their
own training. This became major problem for the employees who are working part time within
store because their salary is less than £200. As there is an complaint also related to holding
wages by ex-employee of Costa Coffee i.e., Daniel Gyori it was upheld in court in favour of
claimant's.
Along with this, there is one another issue also through which staff of Costa Coffee is
going because of their improper management (Høgdal and et. al., 2019). Staff at store under
Goldex Essex Investment Ltd has claim that they had approx. £1,000 amount of their paid
holiday which was deducted from their salary. After doing contract for working of 48 hours a
week as well as staff members has been stated that they worked on average 60 hours per week.
As in contract of Costa Coffee which was signed by candidate while accruing them it was
mention that employee can claim annual leaves but still they deducted some specific amount
from salary.
Thus, it is major issue related to managed through which staff members of Costa Coffee
is suffering. There is requirement to resolve it within minimum time because it may give
negative impact on operations of respective organisation as well as its brand image within
market.
2. Behaviours or operations attributable to this organisation, either currently or in the past, that
could be regarded as contentious.
Issue related to management in Costa Coffee is inappropriate salary deduction of staff
members (Ata and Ünal, 2018). This is major issue and required to be address in effective
manner because it may give negative impact on brand image as well as also on operational
activity of business. Each and every individual who is working within an business firm have
right to get proper wages as per their job roles and working hours. This problem is related to
behavioural attributes because these are changed by Costa Coffee. In simple term it can be said
that they are not working on the policies as well as regulation on which they get signed by the
staff members while accruing. Thus, it is behavioural change which result in unstructured salary
of staff members and their satisfaction. Behavioural attribute of senior manager have negative

impact because they are not paying attention of rules, regulation as well as policies which are
designed by them. As staff members are working according to that but deduction within
employees salary is unethical and not according to predetermined structure (Langmead, Land
and King, 2019). In addition to this, if there is any modification within existing working them it
is necessary for senior manager to discuss it will everyone so their will no chances of any
problem in future. So, it is necessary for every company to work as per policies and regulation
which are designed by senior staff as it will have less chances of creating any problem.
3. These negative behaviours have impacted upon the firm in terms of reputation, customer
response and profitability.
Management issue within Costa coffee has been explained above this result in negative
impact of organisation reputation, customer response as well as profitability. Because good
management is backbone of business firm and it result in growth and success. If there is issue
within management of company then it have wide negative impact within several aspect
(Moosmayer And et. al., 2019). Explanation of these are as follows :-
Reputation – If there is improper management within organisation then it will directly
impact on reputation within negative manner. In relation to Costa Coffee, staff members are
facing proper in their salary as extra amount has been deducted for their own training purpose as
well as for paid holidays also. For instance, deduction of £200 from final payslip of their staff
member for their own training has been done in Costa Coffee. This became major problem for
the employees who are working part time within store because their salary is less than £200. As
there is an complaint also related to holding wages by ex-employee of Costa Coffee i.e., Daniel
Gyori it was upheld in court in favour of claimant's. This overall situation has given negative
impact on Costa Coffee reputation within market because this case was published in News paper
as well as well known by everyone (Peršič, Markič and Peršič, 2018). Apart from this, if
employees are not satisfied with their job they will not perform day to day operations in effective
manner as well not serve customers effectually. This will result in unsatisfied customers and
negative impact on reputation of Costa Coffee.
Customer response – Now a days customers mentality is that if organisation is not loyal
for their staff members to whom they will be. Such practices within Costa coffee result
unsatisfied staff members if they are not happy with job then services providing by them to
customers will also going to be good which result in dissatisfied customers. Thus, in respective

manner customer response will be negative for Costa coffee company and it may result in
switching brand. Thus, it is important for respective corporation to resolve their management
issues as due to this they may loss their customer base.
Company profitability – Employees and customers both are two important aspect which
play important role in profitability of organisation (Huaccho Huatuco, and Ball, 2019). In Costa
Coffee staff members are not happy due to improper management within their salary structure. If
members are not satisfied they will not going to serve their customers in effective manner which
result in decreasing their loyalty for customers. If Costa coffee customers will get decrease then
it have direct impact on profitability of business firm. Thus, unsatisfied customers as well as staff
members both have negative impact on profitability of company. In addition to this, for
generating high revenue it is necessary to resolve salary related problems of staff members.
Along with this, manger of Costa Coffee have to make sure that services will be provided to
customers in effective manner as per their requirement.
Thus, to overcome with these above mention issues it is essential for Costa Coffee to
resolve their management related issue so that they will gain better future competitive
advantages within market area.
4. Contrast these behaviours with examples of organisations who have behaved in a more
responsible manner, particularly in relation to the competitive advantage gained.
Business environment is competitive in nature for an organisation it is essential to gain
competitive advantage for their long term sustainability. In relation to Costa Coffee, senior
manager have to focus on behavioural attributes because these are creating management
problems (Haski-Leventhal, 2018). As extra deduction made in salary of staff members which
was not predetermined within payslip as well as in contract also. Below mention are several
responsibilities which have to be perform by senior manager of Costa Coffee explanation of
these are as follows :-
 It is important for senior manager to discuss all regulations, policies as well as rule with
each and every staff member working within respective organisation. As it is important to
create awareness related to working of company among personnel. So they will work in
effective manner and result in growth as well as success of business.
 In addition to this, manager and leader of Costa Coffee have to ensure that they are
working on predetermined policies which they had discussed with candidates while

accruing them (Smith, 2018). Because it they are not working on before discussed
policies then it will have negative impact on day to day operations of business.
Thus, by conducting such practices it will be easy for company to gain their staff
members satisfaction as well as customer's loyalty which is necessary for Costa Coffee long term
sustainability in market area.
5. Recommendations related to future behaviour to address these identified issues
After going through entire discussion on management issue of Costa Coffee it has been
recommended that company have to resolve their problem within minimum time duration.
Because it have negative impact in several manner such as brand reputation, customers response,
profitability and many more. In relation to Costa Coffee some recommendation are as follows :-
 Costa Coffee have to value their staff members as well as contribution also because such
practices result in motivation and effective conducting day to day operations. Along with
this, respective business have to conduct such activities which encourage their staff
members for performing their operations in more effective manner. Apart from this,
Costa Coffee have to implement minimum wages act and policies related to the same.
Because it will help them in designing salary structure of each and every staff members
in proper manner as per their working hours and job profile.
 In addition to this, main issue is related to improper deduction from salary of employees.
To overcome with this issue Costa Coffee have to implement policies on which they get
signed from candidate while hiring them. Because employees are working according to
that if activities will not conducted in that manner then their will be chances of
unsatisfied customers.
 Along with this, if several changes are taking place in rules, regulations and policies then
it is important to discuss it with each and every staff members. By such practices they
feel motivated as well as part of organisation. If personnel are aware with implemented
policies they will also conduct activities in effective manner as per requirement which
result in less problem as well as growth and success of business.
Through above mention recommendation it will be easy for Costa Coffee to overcome
with their management issue in effective manner. Along with this, it also help in making their
customers as well as staff members satisfy. Because unsatisfied employee will not going to serve

their customers in proper manner as per their requirement which result in reducing customer's
loyalty.
CONCLUSION
From above discussion it has been summarised that, good management within
organisation result in its success as well as development. In this overall practice manager and
leaders play important role in proper management of organisational working. It is important to
manage each and every activity within effective manner because if company is going through
any issues related to this then it will impact on company's reputation, customer response as well
as profitability. To overcome with such issues business firm take major steps in relation to their
customers and staff members. Most important is to discuss each and every step which has been
taken within organisation because it result in their motivation and effective operations of
company.

REFERENCES
Books and Journal
Gilligan, C. and Ridley-Duff, R., 2018. Principles of Responsible Management Education
(PRME): SIP Report SIP Report for Sheffield Business School.
Cicmil, S. and Gaggiotti, H., 2018. Responsible forms of project management education:
theoretical plurality and reflective pedagogies. International Journal of Project
Management, 36(1), pp.208-218.
Høgdal, C. and et. al., 2019. Exploring Student Perceptions of the Hidden Curriculum in
Responsible Management Education. Journal of Business Ethics, pp.1-21.
Ata, U. Z. and Ünal, G., 2018. Effects of Sustainable Supply Chain Management on Responsible
Investment Through ESG Indicators. In Handbook of Research on Supply Chain
Management for Sustainable Development (pp. 133-143). IGI Global.
Langmead, K., Land, C. and King, D., 2019. Can management ever be responsible? Alternative
organizing and the three irresponsibilities of management.
Moosmayer, D.C. And et. al., 2019. Leaving the road to Abilene: A pragmatic approach to
addressing the normative paradox of responsible management education. Journal of
Business Ethics, 157(4), pp.913-932.
Peršič, A., Markič, M. and Peršič, M., 2018. The impact of socially responsible management
standards on the business success of an organisation. Total Quality Management &
Business Excellence, 29(1-2), pp.225-237.
Huaccho Huatuco, L. and Ball, P.D., 2019. The quest for achieving United Nations sustainability
development goals (SDGs) Infrastructure and innovation for responsible production and
consumption. RAUSP Management Journal.
Haski-Leventhal, D., 2018. Strategic corporate social responsibility: Tools and theories for
responsible management. Sage.
Smith, J., 2018. Efficiency and ethically responsible management. Journal of Business
Ethics, 150(3), pp.603-618.
Online
Costa Coffee franchise workers 'not treated like humans', 2019.[Online].Available
through<https://www.bbc.com/news/uk-49432367>