LFBM 103: Leading and Managing Business Organisations Report Details

This report, created for the LFBM 103 course, delves into the critical aspects of leading and managing business organizations. It begins by exploring the importance of diversity within a business context, highlighting its benefits such as increased productivity, enhanced creativity, and improved company culture, while also acknowledging challenges faced by organizations like Sainsbury Supermarkets, including communication issues and implementation hurdles. The report then transitions to an analysis of the scientific management and the rational goal theory. It examines the characteristics and limitations of the rational goal theory, its strengths in structured decision-making, and its weaknesses in adapting to rapid business environments and employee needs. The report provides a comprehensive overview of the complexities of modern business management, offering insights into the effective leadership strategies and theoretical frameworks.

LFBM 103 Leading and
Managing business
organisations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
QUESTION ONE ...........................................................................................................................3
Importance of diversity in business organisations.......................................................................3
Diversity challenges faced by Sainsbury supermarket................................................................4
QUESTION TWO...........................................................................................................................5
Existence of scientific management.............................................................................................5
Characteristics and lacking points of Rational goal theory.........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Leading an organisation is done with the help of creating a vision for the organisation and
motivating the teams by praising the members. It involves the proper encouragements of the
employees by inspiring them to do better. Leaders and managers have to keep the vision of the
company in cross hairs and leading them to do the same. Managers are equally important for the
organisations but usually operate having less authority over the people. Managing the business
operations are very important for the operations to go smoothly. This will help in improving the
productivity of the business. This report deals with the importance of diversity within an
organisation and its impact on the performance of the employees. There are different types of
strategic management like the rational goals theory which exhibits different characteristics as
well as some limitations.
QUESTION ONE
Importance of diversity in business organisations
For an organisation working with a diverse workplace must understand the factors which makes
the workplace diversity. It refers to the wide range of differences in between different individuals
of the organisation (Dahanayake, and et.al., 2018). Diversity in a workplace embrace different
race, gender, religion and the citizenship along with distinct differences between people. There
are many benefits from managing the diversities among staff are:
Productivity: Productive employees helps in building the team and fulfilling the shared
vision of the business. Having diversity in workplace leads to increase the morale of the
employees and boosting the efficiency and effectiveness. Employees coming from different
background bring their skills to the table which is helpful in examining the problem and handling
the tasks with the help of many diverse levels. Diversity in the workplace helps in understanding
the customer base with the different diverse backgrounds. This will result in boosting the
employee's productivity.
Improves creativity and innovation: Creativity is the ability to develop unique ideas
and concepts while innovation can be said as the extension of creativity. It is the process of
transforming the ideas into new and different entities (Roberson, 2019). It is very for the
organisations to grow and sustain by bringing in new innovations. The increasing competition
demands for innovation and creativity which is relevant to business. The presence of diverse

workforce in an organisation helps in bringing more creativity and innovations. Following the
diverse practices is not a process to become a leveller but also creates an important factor for
organisation's growth.
Improves employer brand and reputation: Any organisation aiming to become
successful cannot miss the opportunity to know the activities of the competitors. Diverse
workplace is relevant which helps in criteria for meeting the quota of the diverse policies and the
goodwill which comes with it (Gomez, and Bernet, 2019). Diversity helps in building a strong
reputation for the company which increases profitability and provides equal opportunities
regardless of gender or race or any other parameter. Being a diverse organisation stands for being
open minded in the market which makes the customers feel more comfortable.
Improves company culture: The culture of the organisation varies from company to
company. Company's can be following an informal approach where the employees are more
casual in their working environment. Culture of the organisation can be referred the personality
of the company. The behaviours and the feelings along with the thinking defines the way of
performing of an individual in an organisation. Having a diverse workplace will assist in
improving the culture of the company (Hatipoglu, and Inelmen, 2018). The beliefs and actions of
the employees tells a lot about the organisation. Employee have a feeling of job when working in
a diverse group. It makes them keep at ease and avoid the chances of being bias. It helps in
building more respect for the colleagues and thus developing a healthy relations in the
workplace. Diversity in an organisation expands the range of perspective of the employees which
keeps the culture of the company growing.
Diversity challenges faced by Sainsbury supermarket
Sainsbury supermarkets are large stores which have large number of employees working
in it. This company is a retailer therefore the stores requires talented employees which can
understand the products sold in the supermarkets. This company has been trying to have
diversified organizational culture for which it needs to have all kinds of employees. However,
this business faces certain challenges in the diversity among its employees in the supermarkets.
The challenges faced are,
Communication Issues :

The communication which takes place between the team members of the particular
department in Sainsbury supermarket. In these stores the employees working most of them has
their first language English. Some individuals which do not speak the same language build a
language barrier which makes their team work ineffective. Difficulties in understanding can also
lead to misunderstanding and failure of comprehending instructions from the leader. This
develops into a productivity drop of the employees (Nickpour, Lim and Giacomin, 2018).
Too many opinions :
Employees from different backgrounds and experiences are the result of diversification in
the supermarkets of this company. These individuals have different ways of approaching a
scenario and in the implementation of their ideas. Despite being a valuable asset for the company
some times the organization has to face excessive number of opinions which can leader to failure
and also conflicts.
Hostility :
The organization does not want this to happen but it is the behaviour of the humans that
they make decisions over the basis of judgements and unconscious biasses despite having good
intentions. Different individuals have different people to trust to and this effects their decisions.
Implementation challenges :
The creation of diverse forces is a very ethical idea for the company but the
implementation of this process is not as easy as planning. These challenges occur because
different people believe differently about diversification. Enforcing of diversity is not an easy
factor for the managers of the supermarket.
Retain bad talent :
In some scenarios the organization just to make sure that they have diversification in their
organization have to retain the employees who do not have good performance as per the other
talents. This become very bad for the operation of the company (Westaway, Kling and Smith,
2018).
QUESTION TWO
Existence of scientific management
The rational goal model stats the for influencing the leaders and the communities for the
use of different ideas and ends these four approaches are utilized. According to this model the

four approaches which influences the leaders are Planning, Goal-setting, productivity and also
efficiency. The Scientific management was a considered to be weak because it failed to fulfil the
requirements explained in many theories like rational goal model. Despite this some organization
still think of its as a viable because it proves to hypothesis according to which the three key
principles of scientific management states that the managers who follow the scientific
management should research the performance of the employees and replace them with new
employees (da Silva, Callaghan and Deelman, 2017). Although it is very easily understandable
retaining employees for an organization is very essential as it save the time and money of the
organization but according to scientific management getting rid of resources which are not
performing at its maximum and replacing it with new employees is also considered to be a very
effective strategy which can be applicable in those organization which are concerned with
performance of their employees more than any other aspect of it.
Characteristics and lacking points of Rational goal theory
Rational goal theory is used in the production of goods which will lead to attain
maximum number of profits. It is applicable for all the employees. It helps the employees to
achieve their maximum productivity and reach their highest potential. It works by looking into
five principles which are to identify the one and the best way to perform a certain activity. There
is a selection of highly qualified person and their is training given to the employees to help them
grow. The organisation provides a base for financial simulation and the responsibilities of the
manager are centralised (Marshall, 2019). This theory helps in putting emphasis on the structure
and actions performed by the managers which is very crucial. Movement studies lead to the Time
limitations can also be an issue. Since there’s a lot of information needed, the necessary time for
observation, collection and analysis is also essential. In a fast-paced business environment where
time is crucial, the rational model is somewhat limited.
imposition of robotics movements on the employees which made them become impossible to
sustain however, this theory take this into account while considering the individual and
psychosocial needs of the employees. It focused on the human relations. This theory believed
that neglected employees can result in shattered organisational cohesion. Rational goal theory
allows following the objective approach which is based on data which is scientifically obtained.
This helps in reaching and taking a informed decision. Rational goal theory helps in reducing the

chances of error, distortions and assumptions along with the emotions of the managers. There are
chances of having poor judgements which were done in past (De Carolis and Mazzotta, 2017).
By following a step by step process helps the decision makers to deal with difficult situations
during the time of a complex environment. rational goal theory provides an approach which
helps in making high quality decisions which leads to reduce the risk of uncertainties with
regards to the decision making. this theory brings in discipline, consistency and logic in the
process of defining the problem. It is used to deliberate the present and future consequences of
each alternative and helps the decision maker to arrive at optimal decision. It helps in breaking
down the complex issues while considering all the aspects of the problem and finding out all
possible solutions before the goal setting process.
This approach failed to not be phase out on entire grounds in the operations of
organisations is because of some flaws in the theory. Other management theories focus on
efficiency along with rewarding the employees to increase their productivity. the main purpose
of the management were to ensure receiving maximum welfare for the employer who is linked
directly to its employees. The tasks given here are based on being generic and subordinate. It
makes the employees feel the part of the assembly line and being able to contribute to the
creativity of the team (Henry and Lanier, 2018). This theory contains some insufficient
information which results in creating problems which has to be addressed by the managers. Then
there is an evaluation on the alternatives which will lead to the final decision making. The
limitations on time creates an issue as there is requirements of lot of information within the
necessary time for observation. The collection and analysis of information is also an important
part. This modern business world works at very fast pace have the importance for time which
limits the use of rational theory. The approach of this theory causes slip up on the side of caution.
Goal is set based on the parameters which are only available which cannot bear the risk
important for achieving success.
CONCLUSION
It can be concluded that leading and managing a business is very important for the
organisations to maintain the proper operations of the business. Diversity within the organisation
helps in creating more open mindset within the organisation. It helps in learning new values and
approaches coming from different backgrounds. An organisation such as Sainsbury which is

present in a large area and working with large number of employees will face many problems
such as communication issues and implementing problems which can affect the effective
working of such a large firm. The theory of Rational goal is used for the purpose of management
which is followed by several companies. Theory posses many points of weakness while showing
a broad range of characteristics.

REFERENCES
Books and Journals
da Silva, R.F., Callaghan, S. and Deelman, E., 2017, November. On the use of burst buffers for
accelerating data-intensive scientific workflows. In Proceedings of the 12th Workshop
on Workflows in Support of Large-Scale Science (pp. 1-9).
Dahanayake, and et.al., 2018. Justice and fairness in the workplace: a trajectory for managing
diversity. Equality. Diversity and Inclusion: An International Journal.
De Carolis, B. and Mazzotta, I., 2017. A user-adaptive persuasive system based on ‘a-
rational’theory. International Journal of Human-Computer Studies. 108. pp.70-88.
Gomez, L.E. and Bernet, P., 2019. Diversity improves performance and outcomes. Journal of the
National Medical Association. 111(4). pp.383-392.
Hatipoglu, B. and Inelmen, K., 2018. Demographic diversity in the workplace and its impact on
employee voice: The role of trust in the employer. The International Journal of Human
Resource Management. 29(5). pp.970-994.
Henry, S. and Lanier, M.M., 2018. Classical and Rational Choice Theories. In The Essential
Criminology Reader (pp. 1-2). Routledge.
Marshall, S., 2019. Leading and managing strategic change. In Strategic leadership of change in
higher education (pp. 22-34). Routledge.
Nickpour, F., Lim, Y. and Giacomin, J., 2018. Beyond accessible aisles? Psychosocial inclusivity
of shopping experience: an ethnographic investigation. ISSN 2398-3132 ISBN 978-1-
912294-20-6. 5. pp.67-83.
Roberson, Q.M., 2019. Diversity in the workplace: A review, synthesis, and future research
agenda. Annual Review of Organizational Psychology and Organizational Behavior. 6.
pp.69-88.
Westaway, S., Kling, C. and Smith, J., 2018. A comparison of the performance of three sward
mixtures sown under trees in a silvopoultry system in the UK. Agroforestry
Systems. 92(4). pp.1009-1018.