BUMGT5980: Managerial Decision Making for Envato's Workplace Issues

This report addresses managerial decision-making challenges at Envato, Australia, focusing on issues arising from a culturally diverse workforce. The report identifies problems such as ineffective teamwork, increased customer complaints, and communication barriers. It employs 5Ws and SWOT analyses to define the issues and proposes solutions including enhanced communication infrastructure, cultural awareness workshops, and improved leadership development programs. The solutions are evaluated using the Affinity Diagram tool, and an implementation plan with an action plan is provided to improve workplace culture, team performance, and customer satisfaction. The report emphasizes the importance of HR management and training programs in addressing cultural orientation and professional skills to foster a positive and productive work environment.

Running head: MANAGERIAL DECISION MAKING
Managerial Decision Making
Name of the university
Name of the student
Author name

1MANAGERIAL DECISION MAKING
Table of Contents
Introduction....................................................................................................................2
Background and overview of problem...........................................................................2
Definition of problem.....................................................................................................3
5Ws analysis...............................................................................................................4
Swot analysis model...................................................................................................5
Solution generation........................................................................................................6
Brainstorming ideas...................................................................................................8
Issues..........................................................................................................................9
Solution 1...................................................................................................................9
Solution 2...................................................................................................................9
Solution 3...................................................................................................................9
Language barrier and cultural diversity in workplace..............................................9
Degrading workplace culture, weaker team performance and voluntary turnover.10
Increasing rate of dissatisfied customers.................................................................10
Evaluation of the solution............................................................................................12
Implementation procedure...........................................................................................13
Action plan...............................................................................................................15
Conclusion....................................................................................................................16
Bibliography.................................................................................................................17

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Introduction
This paper intends to talk about managerial decision making scenario where a
particular issue will be discussed and accordingly a solution will be generated. The chosen
organisation is Envato, Australia is a graphic and web designing company which is dedicated
to deliver creative and digital assets. In order to produce unique and new contents everyday
they need to hire designers and developers. They have a different section of training and
development to support their future requirements of work. The organisation stimulates both
the social and economic situation in a positive way by offering digital educational
programmes for development of future and existing human resources. Therefore, the purpose
is to follow managerial decision of problem solving levels to point out and resolve an
emerged issue. In addition to that solutions will be evaluated and action plan for
implementation will be mentioned as well.
Background and overview of problem
Following the trend of globalization, the company possesses extended community
outside Melbourne as well. Their people are from all across the world sharing and
transforming ideas into reality. The company has been exploring global talents and believes
that ideas deserves growth. Envato encourages creativity and offers chances to grow
considering global talents as one community. Recently, the central issue has been observed
regarding managing culturally diverse workforce. As a result, the concept of team work is
continuously ending up as ineffective. Consequently, customers’ complaints has been
increased by 10% from the previous session. For such non-cooperative workplace scenario
management has primarily identified lack of communication and language barrier as major
issues. Therefore, the company’s motive would be to integrate the workforce irrespective of
cultural diversity and motivate them towards team work. In order to increase customer

3MANAGERIAL DECISION MAKING
satisfaction, company needs to concentrate on training and development programme along
with developing a positive working culture1.
Definition of problem
As stated in Wood et al. (2009)2, problem identification is as crucial as the diagnosis
stage of a certain diseases. Much like a disease, if it cannot be identified correctly, solution
will be inappropriate too. Therefore, understanding nature of the problem is important to
resolve or reduce its affect.
As discussed in Oetzel (2017)3, no matter the workforce is diverse in nature or not, if
the intercultural and system communication is not strong then it is difficult to deliver work as
per customers’ expectation. Irrespective of industry scenario, workplace culture will improve
if people start to depend on their co-workers in terms of sharing knowledge, culture and work
related information4. It has been understood that organisation culture is linked with
1 Noe, R.A., Wilk, S.L., Mullen, E.J. and Wanek, J.E., 2014. Employee Development: Issues in Construct
Definition and Investigation ofAntecedents. Improving Training Effectiveness in WorkOrganizations, ed. JK
Ford, SWJ Kozlowski, K. Kraiger, E. Salas, and MS Teachout (Mahwah, NJ: Lawrence Erlbaum, 1997) ,
pp.153-189.
2 Wood, R., Cogin, J., & Beckmann, J. 2009. Managerial problem solving: Frameworks, tools, techniques.
Sydney: McGraw-Hill.
3 Oetzel, J.G., 2017. Effective intercultural workgroup communication theory. The International Encyclopedia
of Intercultural Communication, pp.1-5.
4 Shao, R., Rupp, D.E., Skarlicki, D.P. and Jones, K.S., 2013. Employee justice across cultures: A meta-analytic
review. Journal of Management, 39(1), pp.263-301.

4MANAGERIAL DECISION MAKING
managerial decisions, measures and communication procedures. The positive result indicates
managers’ efficiency in terms of generating, evaluating and implementing the solution.
The following tools will be appropriate while defining the problem; such as, 5Ws analysis,
SWOT analysis.
5Ws analysis
5Ws analysis is about identifying component of existing issue. It discusses central
points of the problem and help to understand easily.
What Ineffective team work, increased number of unsatisfied customers
Where Envato, Melbourne, Australia
When During regular working hours and it is increasing consistently.
Who Human resource and management team
Why  Culturally diverse workforce is facing problem while
communicating due to language barrier.
 Besides, lack of understanding the instructions in virtual method
and lack of employee integration or engagement programs are
leading towards weak teams.
 Weak quality has been produced and delivered. Consequently,
customers’ dissatisfaction is increasing.
Again gathering reference from the journal of Wood et al.5 SWOT analysis will help
to present the current workplace scenario of Envato, Australia by identifying its strengths and
5 Wood, R., Cogin, J., & Beckmann, J. 2009. Managerial problem solving: Frameworks, tools, techniques.
Sydney: McGraw-Hill.

5MANAGERIAL DECISION MAKING
weakness. Opportunities will be suggested based on strengths and weakness analysis will
reveal its future threats.
Swot analysis model
Strengths Weakness
 They believe in new ideas are source
of growth.
 The organisation provides chances to
fresh global talents and simplified
web solutions.
 Based on commitments towards its
people both employees and
customers.
 Apart from delivering creative
solutions, Envato provides web
development education for social
development.
 There is lack of effective
communication between culturally
diverse employees.
 Managers have not taken concrete
step against the miscommunication
which is affecting workplace culture
as well.
 Language barrier is highly present.
 The rate of customer satisfaction has
decreased.
Opportunities Threats
 Envato can extended their virtual
mode of helping hands to new global
customers’ base.
 Along with digital development
education, meetings video
conference can be arranged to
integrate, engage and motivate
 Companies with same interests can
beat Envato due to lack of effective
communication and managerial skill.
 Rate of dissatisfied customers will
increase in future days if the issue is
not treated properly.

6MANAGERIAL DECISION MAKING
employees towards shared goals of
customer satisfaction and growth6.
 Language and culture workshop,
sessions to develop knowledge
across cultures is necessary to get
along with co-workers.
 Lack of work engagement due to
degrading work environment which
can lead even towards voluntary
turnover.
As mentioned before, and it is evident from the SWOT analysis too that Envato is
facing issues of weaker team management and increasing number of customers’ complaints
due to culturally diverse workplace. Indifferent or unprofessional nature of management is
indulging the situation leading towards degrading workplace environment.
Solution generation
Defining the problem is important in terms of generating appropriate solution.
Addressing weaker team coordination as a result of ineffective leadership behaviour,
managerial decisions and actions must be reviewed and they must boost employee motivation
to achieve shared goals along with regaining their reputation among global base of
customers7. Lack of communication and team management which is a consequence of
language barrier that must be resolved too by arranging employee engagement workshops
and meetings8. This would help in developing workplace culture and production accordingly.
6 Martelo, S., Barroso, C. and Cepeda, G., 2013. The use of organizational capabilities to increase
customer value. Journal of Business Research, 66(10), pp.2042-2050.
7 DuBois, M., Koch, J., Hanlon, J., Nyatuga, B. and Kerr, N., 2015. Leadership Styles of Effective Project
Managers: Techniques and Traits to Lead High Performance Teams. Journal of Economic Development,
Management, IT, Finance & Marketing, 7(1).

7MANAGERIAL DECISION MAKING
The level of solution generation discusses the series of probable solutions to solve the
existing issues. It will help the organisation to change from its faulty state to the preferred
one. It has been observed that the root of issues are cultural diversity and rest of the issues are
interrelated. A communication gap has generated due to cultural differences which is
affecting team coordination. Consequently, a faulty culture is leading towards faulty
performance. Solutions must be aligned with the root cause and other issues will resolved one
by one due to their dependant nature. Therefore, with the help of brainstorming innovative
ideas the issues will be handled. Apart from providing digital solutions to customers, solving
workplace issues are necessary to sustain within a competitive business scenario9.
8 Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management, 63(3), p.308.
9 Akins, R., Bright, B., Brunson, T. and Wortham, W., 2013. Effective Leadership for Sustainable
Development. E Journal of Organizational Learning & Leadership, 11(1).

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Brainstorming ideas

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Issues Solution 1 Solution 2 Solution 3
Language barrier
and cultural
diversity in
workplace
To maintain
seamless
communication IT
infrastructure must
be developed.
Meetings must be
arranged through
various methods like
video conferences
for better interaction
with virtual teams10.
Social media
platforms can be
used to increase
familiarity among
culturally diverse
workforce.
Workshops can be
arranged along with
educational
programs. Training
and development
sessions are
necessary not only
for professional
development; basic
language education
is important for
understanding the
instruction and
behaviour of co-
workers.
Degrading
workplace culture,
weaker team
performance and
voluntary turnover
Leadership
behaviour must be
changed towards
employees to induce
positive workplace
culture.
HR development
sessions are required
to motivate
employees towards
shared goals in order
to boost both
Employee
engagement must be
generated by
introducing
employee loyalty
programme. It will
10 Hoch, J.E. and Kozlowski, S.W., 2014. Leading virtual teams: Hierarchical leadership, structural supports,
and shared team leadership. Journal of applied psychology, 99(3), p.390.

10MANAGERIAL DECISION MAKING
personal and
organisational
growth11.
not only develop a
positive workplace
culture;
consequently, will
restrict voluntary
turnover as well.
Increasing rate of
dissatisfied
customers
Customers’
satisfaction is
dependent on
success of effective
communication plan
and its
implementation.
Improved IT
infrastructure and
success of training
and development
programme will
ensure efficient
production.
A team can be
developed to solve
and culture the
customers’
complaint. It will
help to generate
personalised solution
and regain the
reputation.
From the above analysis, it has been clearly understood that HR management could
have been more effective before, as they knew cultural diversity can occur as a problematic
component in terms of hustle free team work and performance12. Therefore, identified central
causes are as follows.
11 Truss, C., Shantz, A., Soane, E., Alfes, K. and Delbridge, R., 2013. Employee engagement, organisational
performance and individual well-being: exploring the evidence, developing the theory.
12 Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage Publications.

11MANAGERIAL DECISION MAKING
 Lack of effective communication among employees and between employees and
management leading towards weaker team work and increased rate of customer
complaints.
 Lack of leadership skills and vision as they failed to address such predictable
workplace scenario prior to such degradation.
 Training and development programs are not addressing the cultural orientation of
employees and focusing on their professionals skills only.
The following impacts are leading towards negative culture among employees and
affecting efficient production.
 Cultural differences is leading towards communication gap. Indifferent nature of
managers was indulgent and resulted in less engaged employees, voluntary turnover,
inefficient team work lack of motivation and weak co-ordination among them.
 Customers are gradually losing their confidence over the company and looking for
substitutes.
 Lack of education regarding different culture is resisting the employees to develop
familiarity among co-workers.
Evaluation of the solution
Affinity Diagram tool will be used to evaluate the proposed solution precisely. The
evaluation program as stated by Wood et al.13 this procedure is an effective way to recognise
and treat issues that have been generated through brainstorming. It will consider the
opportunities which have been analysed via SWOT analysis. After evaluating the solutions,
13 Wood, R., Cogin, J., & Beckmann, J. 2009. Managerial problem solving: Frameworks, tools, techniques.
Sydney: McGraw-Hill.