Micro-Economic Environment

Explain the Importance of the Micro-Economic Environment to Business Organizations

Business in a literal term is collective work of bunch of people with similar interests in production of goods and services for trading purpose at any market and draws some monetary reward for this whole exercise”. There are so many factors which effect the business organizations one of them is the Micro-Economic environment. This type of environment basically related to the analysis of small area or the marginal aspects of the any organization. The factors which are analyzed in micro economic environment are as following:

Characteristics of organization’s human resource and their ability to manage the organization are analyzed.
Both types of customers (major and minor) are evaluated.
Dig about the means of generating money by organization.
Information is gathered about the suppliers of raw material and their network.
Analysis of local communities , competitors and their business performance is conducted (Hiriyappa,B, 2008)

From above discussion if we conclude that Micro-Economic environment has direct relation to any business organization then it would not be wrong and we are going to discuss the effect of Micro-Economic environment on the performance of any company that how these micro economic environment affect the performance of any company. The company which would be under discussion is Vodafone which falls in the services sector. Vodafone is included in one of the leading companies in communication sector which is providing services in 30 countries and having partnership networks in over 40 countries. Customer count is 360 million in the world and it is 19 million only in United Kingdom. Vodafone started working on 1 January 1985 at London. Vodafone is having more than 8,000 employees in UK. Until 2013 Vodafone was earning £429 million profit.

Micro economic Environment Importance for Business

Micro-Economic environment is very important for business organizations as it could be said that it is complementary for the business organizations because micro economics studies the basic factors which affect the individual business like consumer behavior, market environment, competition in the market and demand and supply forces prevalent in the market place. For the better understanding and explanation of effects of Micro-Economic environment on business organization it is necessary to discuss it which the help of a case study on Vodafone in terms of services. If Vodafone wants to deliver its services in certain country or area then it has to apply certain Micro-Economic principles in order to check the feasibility of business environment in that area. First of all Vodafone has to evaluate the market environment whether market of that particular area is feasible for that kind of business or not.

Micro-Economic environment also includes the environment of the marketplace which is further subdivided into location and governmental policies. Vodafone has to check whether these both factors are in harmony with their business policies or not. They have to check how much tax and other duties they have to pay if Vodafone starts business in that particular country. Micro-Economic environment also include the location for setting up the office for starting business. Vodafone has to find place where it can target its potential customers easily and customers could have easy access to their services. I deal location could be any business hub where lots of offices are located and have to use the telecommunication services on daily basis and want any company with fastest service, better signals, voice quality and internet services.

Survey of other communication networks working in that country would also help the Vodafone to identify how much competition it has to face if it set up their business at any place.

So identification of Micro economic environment is very important for any business organization if it has to do or start new business at any particular place. Regular survey of the micro economic environment also helps the organizations to do their SWOT analysis and keep pace with the ever growing business in the market (Ejim Esther, 2014).

Business Objectives and Behaviour Analysis

In managerial economics the basic purpose of business organization is to maximize the profit of organization. So in economics terms profit maximizes when certain condition of marginal revenue equals the marginal cost (MR=MC) is met. Diagram below is the analysis of changing circumstances which effect the business objective of profit maximization in an imperfectly competitive market in other words monopoly. Profit maximization is considered most important objective of any business when dealing in any type of market whether competitive, oligopolistic, or monopolistic.

There are different objectives ahead of any organization and they also affect the performance of organization in certain ways.

Satisfaction Behavior

This kind of behavior is adopted by the business organizations to set and minimum but acceptable level of revenue and profit collection for business for example a firm has set a certain amount for sale growth or return on any capital which it is acceptable for firm if they get it in case of minimum revenue and profit. In other words it is could be called as the scale for measuring profitability of firm.

Optimization of Sales Revenue

Revenue of any business organization is considered maximum when the certain assumption is fulfilled which is Marginal revenue (MR) = 0.

Managerial Satisfaction

Williamson opined to increase the utility of managerial level through high revenue from sales of firm, a good share achieved in market or through output targets are included in all this.

Constrained Sales Revenue Maximization

Managers would give shareholders free hand to design a constraint which could be minimum profit gaining constraint in order to support their shares worth.

Every business has its own paradigms and at profit maximization level every business organization operates in separate way. If business behavior is summarized then few things are kept in mind while taking decisions such as competitors’ reaction towards policies made by particular organization. Local demands and competitions from rivals make it necessary to give managers authority to set the prices.

Diagram illustrates that how change in objectives affects the business in terms of price and output (Samuelson, 2010).

Market Structures Impact on Business Organizations

Business organizations are categorized on the basis of market structure in which these are serving. Various variables are induced in market which determine its structure and affect the organization’s business working in that market. Variables are costs, mutual dependence, free entry and exit etc (Baumol, 1982; Colton, 1993). Following are the different type of market structure and these variables act under any of these types.

Perfect competition: Gives liberty to many sellers of same product to enter in the market.
Monopolistic Competition: There are lots of sellers in market but also offering different products.
Oligopoly: limited number of sellers but products could be same or different.
Monopoly: Only one seller ruling the market.

Market structure has very profound impact on the business organizations because it has direct effect on different business dynamics such as motivations, opportunities, and business organizations’ decisions. This basic theme of analysis of market structure’s impact on business organizations is to study these effects separately and make the market more predictable for business organizations (McNulty 1968; Broaddus, 1991).

In order to study the impact of market structure on the business organizations, it is very important to define market because product substitutability is important task performed by the market structure which is very key element in the working of any organization (Broaddus, 1991). But any economist from Adam Smith to onwards is not able to crack this hard nut.

Through market structure analysis business organizations become able to predict market and act accordingly in order to generate more revenues and compete with their rivals. Market structure analysis also helps business organizations to keep pace with the changing dynamics and challenges of market.

In case of mobile network performance Vodafone increased its mobile network speed up to Mbps which shows that Vodafone is on track of achieving their target of 3Mbps. Vodafone held maximum market share in year 2013 too according to analysis of its relative market share performance report. Vodafone has increased their dividend up to 7% consecutively three years. Revenue collection was not much satisfactory in year 2013 as it remained -1.9% and £40.9 billion in case of services which was less than last year (Vodafone annual report 2013).

References

Hiriyappa, B. (2008) Strategic Management for Chartered Accountants, New Age, pp 3, 30 Micro-Economic Environment.

Ejim, H (2014) What Is the Relationship between Micro-Economics and Business? Wise Geek Micro-Economic Environment

Samuelson, (2010) Micro-Economics and the Micro-Economic Environment 19th edition, McGrawhill

Baumol, W J., (1982). Contestable Markets: An uprising in the Theory of Industry Structure. American Economic Review (March): 1-15.

Colton, R D. (1993) Consumer Information and Workable Competition in Telecommunications, Journal of Economic Issues 27(3) (September):775-792.

McNulty, P, J. (1986) Economic Theory and the Meaning of Competition Quarterly Journal of Micro-Economic Environment (November: 639-656.

Broaddus, A (1991) The Structure of the Market for Banking Services. Federal Reserve Bank of Richmond Monthly Review Micro-Economic Environment (November): 35-42

Vodafone Group Plc (2013) Annual Report for the year ended 31 March 2013, the way ahead Introducing Vodafone 2015”.

Office of National Statistics, 2013, Statistical bulletin: Gross Domestic Product Preliminary Estimate, Q2 2013.

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Bridge Construction

Currently, the need of constructing strong bridges on highways and streams is increasing day by day because of the unbelievable environmental changes and to cope with contemporary needs, the architects are needed to pay specific attention towards the designing of the bridges. Nowadays, there has emerged a vast variety in bridge constructions and hence, it has become really difficult to select which one is suitable for which locality. However, this thing can be assessed through scrutinizing environmental factors since it is the contemporary environment that can give an overview of what is the need of local people.

In this paper we examine bridge construction, the light is thrown upon several kinds of bridges and their designing, which factors are pondered upon while designing scrutinizing the bridge and how the environmental factors are scrutinized while making a bridge design. The first part of this paper throws light upon different elements which are contemplated in order to make a bridge, including span, material, placement and form of the bridge. The second part throws light upon three different kinds of fundamental structures that are used in order to formulate bridge design, including beam, truss and ach structure. The third part of this paper gives an overview of what challenges the architect has to face while designing a bridge and the last paper gives the example of bridge designing from three perspectives i.e. steel made bridge, covered bridge and Earthquake Bridge. The entire paper is developed keeping the scholarly articles and journals in view.

However, before throwing light upon which bridge is constructed in which sort of circumstances, it is vital to analyze the kinds of bridges and their requirements.

Bridge and its Requirements

If the analysis of all kinds of bridge is done, there are millions of bridges which are constructed using dissimilar structures but the basic architecture of all these bridges is the same. However, these bridges are constructed to help people in crossing valleys and streams without any apprehension but the main thing is that how these bridges are constructed?

A bridge architect has to consider lots of things including bridge span, size, look, shape of bridge, distance from ground or stream or material used for the construction according to environmental needs etc. However, four different factors which are required for constructing the bridge that can compete with natural forces, involve span, material, placement and form of the bridge.

As far as span is concerned, there are three different types of spans which can be contemplated for the construction of the bridge keeping environmental factors and whereabouts under consideration. These three are simple, continuous and cantilever types of span.

Keeping the material needs in view, to construct a bridge concretely and with extreme accuracy, stones, metal, concrete etc are required to mixed up with harmony so that the constructed bridge can easily cope with environmental hitches. Suppose, if the bridge is constructed over stream, it is vital to use concrete material with appropriate mixing of stones so that the bridge can be build in a strong way that enable it for coping water hitches.

The bridge surface also matters a lot as far as the placement of bridge is considered. This surface can be deck, thorough and pony which is employed appropriately. While constructing this kind of bridges, trusses type and surface level matters a lot. The bridge form such as beam, truss, arch etc also considered while constructing a bridge keeping the environmental factors in view. The next part of this paper will through light upon all these three types and how they work in different environments.

How Bridge Construction Works In Different Environments

Every bridge is constructed keeping environmental and constructional issues in view and hence the architecture is designed accordingly. The demand of material and method of construction is assessed by scrutinizing the whereabouts of the construction site. However, these three kinds of bridges are suitable for different kind of environments and these are as follow.

The beam bridge

The beam bridge is suitable for temperate environment since the construction of such bridges is done using horizontal beams which are used to give support on the end of each pier. Usually the beam weight pushes on the piers straightly. While using beams for bridge construction, usual span is observed is no more than 250 feet.

The trusses bridge

Truss bridge construction structure is one of the widely used bridge structure in United States and thousands of bridges have been constructed using this structure. Basically, in this bridge structure, the triangular steel bars are assembles in a sharp series. Cantilever bridge is the most complex kind in this structure and Earth of Forth Bridge of Scotland is the most appropriate example in this regard.

While constructing bridge using the structure, rigid arm of every two piers are extended from each side and steel bar is projected between each two pier from top to bottom. The arms are projected in the middle in order to hold and support one side so that the bridge remains strong. These arms support the central span.

Usually this kind of bridges are good for the places where the weather is strong, dynamic, always changing and strong winds blow since, this kind of weather requires a strongly constructed bridges.

The Arch Bridge

This structure of bridge is innovated by Romans using stones in order to make bridge carrying great strength. However, today, these arch bridges have been made using concrete or steel in order to construct the bridge in a strongest and modern way. Usually the span of such bridges is more than 800 feet. This kind is also good for aggressive environment.

Additional Structure

Though these are three basic structures which are employed in order to get ultimate architecture but mostly, two of them are amalgamated to get ultimate bridge that can aid the architect to meet the bridge construction requirement. Most of these amalgamated structures involve trussed through arch, trussed deck arch, covered trussed etc.

Environmental Challenges for Bridge Construction

Different kinds of bridges are constructed in different ways keeping environmental needs under consideration but during this process, there are several severe challenges appear as the strong hindrances during the construction process. These obstacles varies according to the type of the bridge structure i.e. beam, arch or truss one, along with the environmental factors which are pondered well before hand while constructing bridge from its core. Some major challenges which involve during bridge construction include the traffic load during bridge construction, geometric and construction challenges, environmental changes and deformation (ICE, pp. 217, 2001) However, for making a bridge that tallies the environmental factors, the bridge designing plays an inseparable role and all three basic units of bridge design needs particular attention from architects.

Bridge Construction Design Steps

The construction of a bridge involves several sensitive issue which are employed in order to meet the objectives since the life of thousand people rely upon the construction of the bridge. However, while constructing a bridge, there are lots of factors that are kept in limelight and the entire design of bridge is constructed. While making design of a bridge, either the architect is eager to place it on highway, stream, busy post or some small canal, it is divided into three major parts. These parts involve superstructure, substructure and foundation. Each part is needed to pay special attention while designing so that the ultimate objective can be met. (Bangash, pp.5, 1999) The example of steel bridge construction, Earthquake Bridge and covered bridge building can be taken as evidences in this regard. The next part of this paper will show different types of bridges and the way these are build.

Steel Bridge Building

Steel bridge structure is one of the widely exploited structures worldwide and utilized in order to control and handle heavy traffic load. However, the construction of steel bridge is also a matter of challenge for the architect since the architects have to keep several issues under consideration.

While constructing steel bridge, first it is essential to keep superstructure and substructure in view. Before doing bridge designing and paperwork, the form of bridge is also selected; either the choice should be beam structure, arch structure or the trusses based one. It is also vital to throw light upon the need of surface whether which one is suitable according to the environment, deck or covered one. All these factors are pre-planned before starting designing of the bridge in formulated. Hence, the capability and accuracy of the bridge very much depends upon the above mentioned factors and the architect has to pay attention to all these factors so that a bridge can be formulated in order to meet the environmental requirements.

Why steel bridges are preferred over other structures? The reason is very obvious since it has the capability of coping environmental challenges, either it is related to whether or the circumstances. It is its strong capability to bear heavy load of traffic and strength of tolerating speeds. The reason behind this fact is the steel based surface which is strong enough to handle environmental and crowd related issues.

There is no lit-up problem with steel based bridges since the quality of such bridges is very high. Since the hostile environmental factors are minimized, the result appears in the form of safety and economic benefits.

Covered Bridge Building

Another type of bridge is covered bridges that are structured with wooden trusses. Basically this kind of bridges are good for the places where the threat of climatic changes is at its apex and the masses have threat of being injured because of this environmental change.

In this kind of bridges, the surface of bridge is protected with enclosed roof in order to keep the whether related issues aloof from the bridge users. However, this kind of bridges is stronger as compared to some other in the sense of weather since the safety from climatic effect widens their life span. Most of these bridges are constructed using trusses and the most renowned design in this regard is Brown trusses.

Basically these bridges are constructed for one way lane of traffic and used for local purpose. Hence, these are made of wooden and if they are not protected in a righteous way, their life span gets shortened soon. According to researches, an uncovered wooden bridge may last within 10 to 15 years of its construction as compared to covered one which has long life span. However currently, there are lots of covered bridges which are constructed using metal, steel or similar other material but these types of bridges also need protection to widen their lifespan. However, the reason behind covering metal based bridges is to provide convenience to the users rather than safety of bridge.

Earthquake Safer Bridge Construction

Another example of bridge design and environment compatibility can be assessed through the bridge design which is formulated to keep the harms caused by earthquake aloof from the bridge and its users. According to Buffalo (2007), “Bridges that “dance” during earthquakes could be the safest and least expensive to build, retrofit and repair.”

Apart from climatic factor, another environmental factor ‘earthquake’ has been given specific attention that causes severe loss if the bridges got hitches and get down in such circumstances.

The contemporary researchers have developed the first seismic bridge design and tested this methodology successfully observing how it moves and jumps off during the course of earthquake. During the test session, this bridge has proved itself a stronger one since the steel truss made towers are used to support the decks of bridge and the construction of this bridge has been less expensive as compared to others. U.S highway administration has funded this research in order to build a safe and earthquake free bridge design which can come up with the needs of dealing with earth hitches.

While designing this bridge structure, the emphasis is laid on having strong foundation since the earthquake issue always caused broken bridges from their foundation. So, the construction of foundation structure is given more importance as compared to superstructure and substructure.

Conclusion

For construction of the bridge, it is essential to keep the environmental needs, material and designing of the bridge under consideration and according to the assessed specifications, the appropriate bridge construction design should be adopted. There are lots of pre-formulated designs for this cause but all of them needs some basic elements to get changed and this change is made possible through constructing the bridge using a structure that tallies with the environment of that respective place.

In this regard, this paper has given an overview of what the basic requirements of the bridge construction are, how the environmental needs can be assessed, which structure will be appropriate for which kind of circumstances and what sort of material should be used in order to cope with such environmental changes. Moreover, all these basic designs can be used to formulate specific design for some special place, keeping the environmental challenges in view.

References

Bangash, M. H., (1999) Prototype Bridge Construction Structures: analysis and design Front Cover M. Y. H. Bangash.

Thomas Telford, 1 (999) Great Britain (Bridge Construction section): Thomas Telford.

BUFFALO, N. Y., (2007) Bridge Construction Will Rock Safely with New Quake Design.

ICE (2001) Current and future trends in bridge construction and maintenance 2: safety, economy, sustainability and aesthetics; proceedings of the international conference organized by the Institution of Great Britain: Thomas Telford.

Orchard (2007) Student guide to steel bridge design – Bridge Construction. North Lincolnshire: orchard Resource Base.

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Business Strategy

Business Strategy King Digital Entertainment Company

King Digital Entertainment is the company that developed Candy Crush, which is a globally popular mobile game (Wilhelm). The company has registered rapid growth in the past few years, particularly during the years between 2011 and 2014; the company’s revenue generation grew from USD 63.9 million in 2011 to USD 1.88 billion in 2013. During the same period, the company’s active user count increased from 30 million to 408 million, as of the last quarter of 2013 (Wilhelm). About three-quarters of the revenues of the company accrue from the mobile channel, which demonstrates the centrality of the mobile channel to the company’s business strategy (Chapman). The company employed a very unique strategy in the already saturated games market; it developed and concentrated on a handful of games, which were well received in the market (NBC News). The positive reception and popularity of the games can be attributed to the company’s competitive pricing of its products.

Business Level Generic Strategies

The main business level generic strategies used by King Digital Entertainment include cultivating more competitive advantage over competing companies, through maximizing the value offered to its customers (Kozami). The company does this through increasing the benefits enjoyed by their customers and also offering more service areas, which justify their pricing. In this area, the actions of the company include the development of games with a solidly social nature, the use of cross-platform technology infrastructure during the development process, the utilization of viral channels, and offering highly effective social features. Relevant to this generic business strategy, there is also game longevity and the cross-promotion of new games to the audience, which offers higher value to gaming customers.

The second business level generic strategy used by the company is that of differentiation, where the company has maintained the leadership position in the offering of games with distinctive qualities, which are customer-driven (Kozami). Towards putting this strategy into action, the company maintains a massive layer network, which informs product development and product purchases. The strategy is also informed by the fact that the company spreads the news about the social features of their products through viral channels, which ensure a wide scope of coverage. Additionally, the wide-reaching time-based campaigns help the company to develop products that are reflective of the needs of their customers, which also improves the experience of the customer.

The ways in which functional level strategies support generic strategies

Functional level strategies are the approaches used by the functional centers of a company, towards the realization of business and corporate unit objectives and strategies, through the maximization of productivity and the utilization of resources (Kozami). These strategies support generic strategies by streamlining the resources of a company and its productive capacity towards the generic strategies. For example, towards increasing differentiation, the resources and the productive capacity of the company is channeled towards research into new game designs and incorporating the changing needs of customers (Wilhelm).

Identification and discussion of business-level growth strategies

The business-level growth strategies of the company revolve around the exploitation of the differences of the target customers from the industry-wide balance (Kozami). The company realizes this through isolating a specific buyer classification, isolating their segment, and concentrating on the group to find its niche. In the real world case of King Digital entertainment, it has included diversifying into the mobile game portfolio and broadening the game portfolio through capitalizing on the mobile channel, which yielded 75 percent of the company’s revenues (Wilhelm).

The mission statement of the company revolves around the provision of highly engaging content to the different customer groups, in a way that matches their mobile needs at any time, place and on different devices. This mission statement is encapsulated in the growth strategy of the company, which revolves around increasing app-usage during different times and customer groups (Wilhelm).

The strategic plan of King Digital entertainment revolves around capitalizing on successful brands to foster the growth of newer ones, which increases the uptake of the company’s products within the market (Chapman).

SWOT Analysis

Strengths

Capacity to change strategy; for example, the capitalization on the three leading titles: Candy crush saga, farm heroes saga, and Pet rescue saga to grow other game brands.
Focus on research and development, incorporating discrete campaigns.
The popularity of their games, particularly Candy crush saga.

Weaknesses

Dependence on the success of the current game brands to foster growth
A streamlined niche market: more than 75% of revenues came from the mobile channel
Stagnant global sales

Opportunities

Developments in mobile gaming
Increased uptake of online and mobile gaming
Changing customer needs

Threats

Issues related to consoles
Increases in software copying and piracy
Strategic game release dates, to avoid the slowdowns of holidays among other events (Wilhelm).

References

Chapman, Llizette. IPO-Minded Gaming Co. Kabam Buys Phoenix Age; Largest Buy Yet. Business Strategy – The Wall Street Journal. 10 Mar. 2014. Web. 17 Mar. 2014.

Kozami, Azhar. Business Policy and Business Strategy Management. Second Edition. New Dellhi: Tata Mc-Graw-hill Publishing Company, 2006.

Wilhelm, Alex. Inside The IPO of Candy Crush Maker King Digital. Business Strategy Techcrunch, 13 Mar. 2014. Web. 17 Mar. 2014.

NBC News. Candy Crush Game Maker Aims to Hit $7.6 Billion IPO Sweet Spot. 2014. Web. Business Strategy Snapshot. 18 Mar. 2014.

Business Management Essay Topics University

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HR Performance Motivation

HR Performance Issues and Motivation

“Do not discipline employees who are unable to perform a task. Discipline those who are able to perform a task, but are unwilling or unmotivated to succeed” – SANS Leadership and Management Competencies course book in HR performance.

Understanding HR performance and the motivations of employees in order to identify and correct performance issues is fundamental to effective Human Resource management. Because of this, there is a wealth of research related to understanding the underlying causes and effects of good and bad employee performance. The goal is to figure out where the problem originates and to develop ways to correct those problems.

HR performance and Motivation theories are abundant but all originate from the experts considered to be fathers of motivation theory; Maslow and Herzberg. Early motivation theorists like Abraham Maslow and Frederick Hertzberg, laid the foundation upon which modern motivation theory is built. Their work has guided research in this area of study since the late 1950’s and early 60’s (Hendriks, 1999).

Yet as the workplace has evolved and diversified over the last several decades, so have the perspectives on motivation theory. The foundation has remained the same, but the perspectives are changing and elaborating what was original hypothesized by Maslow and Herzberg.

Take for instance Maslow’s need hierarchy theory. Maslow theorized that human motivation is driven by five needs: the need for shelter or safety, food and water, love and respect, recognition and fulfillment. These needs are organized in a hierarchy based on basic needs and “higher-order” needs; food and shelter are basic needs, recognition, love, fulfillment and respect are higher-order needs (Hendriks, 1999).

Hertzberg, on the other hand, proposes just two categories in his motivational theory. Herzberg concludes that people are motivated by either extrinsic or intrinsic motives (Gagne’ & Deci, 2005). Mainly, this theory says that either a person is motivated because they like what they are doing, or, they are motivated based on the expectation that they will be rewarded in some way for the work they are doing, this is key to promote good HR performance.

Both theories suggest that employee satisfaction is important to motivation and that in order to keep employees motivated, their needs must continue to be satisfied. Maslow’s theory falls short of prescriptive answers to questions of employee motivation, whereas Hertzberg suggests that employers can maintain employee satisfaction by considering the intrinsic and extrinsic motives of their employees when adopting rewards incentives and HR performance (Davoren, n.d.).

While Maslow and Herzberg’s theories in their broader applications have become less applicable as the workforce and workplace has changed, the fundamental basis of these theories is still sound and relevant to current motivational and HR performance theory.

Among some of the more recent expansions on motivation theory include the Commitment and Necessary Effort (CANE) motivation Model, Self-Determination Theory (SDT) and the Cognitive Evaluation Theory (CET). Motivation theory has been applied to understanding motivation in many different areas, including in sports, academic achievement and business. These theories applied in business can help solve HR performance issues and improve employee motivation.

The CANE motivation model tries to incorporate the many different aspects of motivation theory. It takes the best approaches of modern research, and combines them into one all-encompassing theory that can be used to understand the motivations of professionals with knowledge based jobs (Clark, 1998). These types of jobs, white collar jobs that require some expertise and professional knowledge, usually involve incentives for attracting highly educated professionals. Understanding the interaction of rewards systems and motivators that guide those professionals is very important for HR recruitment.

Clark argues that some strategies in the area of organizational development overestimate the effect that employee incentives like contests and performance recognition have on employee motivation (Clark, 1998). These strategies are widely used as a means to increase worker productivity. However, some research studies have suggested that studies that show that these strategies work to improve motivation are “fatally flawed” and that these strategies may not have as much power to influence employee behavior as previously thought (Clark, 1998).

The CANE Model says that motivation and HR performance is two-pronged and intertwined. First, motivation is based on commitment to a goal. The second is the amount of effort that goes into achieving that goal (Clark, 1998). If an employee is motivated by a commitment to achieving their goal, he or she will remain focused on that goal even if they are tempted to focus on other less important goals. Once that level of commitment is achieved, the effort needed to achieve the goal, or the “Necessary Effort”, will sustain the motivation to complete the task. If the task is perceived as important, then the necessary effort to complete the task is tied to its importance.

Though Maslow and Herzberg’s theories are becoming outdated, the CANE Model falls short of unifying motivation theory into one model because of its limitations in broad application. It is too broad to explain the nuance effects that culture and diversity have on individual definitions of commitment, effectiveness and control (Clark, 1998). Not to mention that broad solutions to problems of motivation in the workplace can only be identified by this model; applying those solutions to specific job performances is more difficult and requires more specialized solutions.

Self-Determination Theory has evolved not only through theoretical analysis but has also held up in empirical studies. SDT relies heavily on needs based theory, but the needs are more psychological in nature. Satisfying these psychological needs, according to Self-Determination Theory, motivates behavior and also elucidates the processes that direct action (Gagne’ & Deci, 2005).

In this theory, by determining underlying psychological needs, employers can appeal to the intrinsic motivations of employees to correct performance issues and to increase motivation. Intrinsic motivation is driven by internal satisfaction. This involves the motivation that comes from being engaged in an activity that brings personal satisfaction. It is unrelated to any material reward. An employee is motivated by a psychological need to be challenged or to feel a sense of accomplishment (Ryan & Deci, 2000).

Since all behaviors are at their core driven psychologically, research in the area of Self-Determination Theory has tried to discern which of these psychological needs are being fulfilled by intrinsic motivation. What has been concluded is that intrinsic motivation can be encouraged and facilitated by environment since intrinsic motivation is not caused but rather “catalyzed” into action when the conditions are right (Ryan & Deci, 2000).”

Lastly, Cognitive Evaluation Theory (CET) which is one aspect of Self-Determination Theory finds that intrinsic motivation can be produced by offering encouragement and feedback that satisfies a sense of accomplishment and competence in employees (Ryan & Deci, 2000). This can be done using rewards for achievement; a bonus for timely turnaround or for reaching a sales goal. But employees can also be intrinsically motivated by words of encouragement that satisfy the same psychological need for feeling competent; a pat on the back or a ‘good job’ goes a long way.

Work performance is directly affected by job satisfaction and motivation. The work performance is the outcome. When working from the intrinsic motivation model, appealing to the internal psychological needs of employees can increase job satisfaction, which in turn sparks motivation and finally produces an improved work performance. Understanding the means to increase job satisfaction is the crux of resolving performance issues and positively motivating employees.

Solutions to performance issues should be evaluated at all levels. Just because an employee is not performing satisfactorily doesn’t mean that the problem lies with the employee. Sometimes, the problem is in management style or a lack of resources to do the job right. These things can exacerbate poor performances when the employee feels that they are not being given the proper tools to complete their job or receiving the necessary feedback to do the job correctly (Lister, n.d.). By simply rewarding exceptional behavior or providing constructive feedback for poor performance, an employer can improve job satisfaction and thereby resolve performance issues.

Therefore, assessing the needs of the group can allow employers to predict how those assessments will effect “job satisfaction and work outcome” (Gagne’ & Deci, 2005). Also, evaluating the types of needs that are being satisfied can affect job satisfaction and outcome. Herzberg presents two different factors in employee motivation. There are hygiene factors, the more superficial needs, and the motivation factors, which include more intrinsic motives.

Among hygiene factors that Herzberg identified are things like salary and work conditions. Motivation factors on the other hand, include things like personal achievement, opportunities for promotion, and a sense of responsibility (Hendriks, 1999). These factors have a direct and indirect effect on job satisfaction and performance. Hygiene factors according to Herzberg’s theory mostly affect motivation in a negative way; by the very absence of things like good working conditions and status, job satisfaction is decreased (Hendriks, 1999).

Consider a garbage man whose job performance has gone down. His work has slowed and he seems clearly dissatisfied with his job. Upon evaluation, HR has discovered that the employee is dissatisfied with his salary. He has been on the job for several years without promotion and without pay increases. According to both Maslow and Herzberg’s theories of motivation, his job dissatisfaction is rooted in one of his intrinsic and basic needs not being met; salary, food and shelter.

But further analysis supports Herzberg’s theory that there is a second prong to this employee’s dissatisfaction and poor HR performance. He has not received a promotion, which is more than mere dissatisfaction with his salary; it implies that he is dissatisfied because he is not receiving the recognition that he feels that he deserves for the time and commitment he has given to his employer. By not relating to the psychological need for recognition, which has its own intrinsic reward for the employee, the employer is partly to blame for the performance issue and lack of motivation.

To resolve any HR performance problem, the employer must first identify the causes of the problem and then seek to improve job satisfaction through proper motivation. In this scenario, showing that management cares about his input and recognizes his many years of contribution by giving him a raise or a new promotion or job title, can help to resolve those performance issues by appealing to the intrinsic and extrinsic motivations of the employee.

Works Cited

Bong, K. (n.d. ). HR Performance Management Laboratory.

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Sainsburys Operations Management

Sainsbury’s Operations Management

The major role of operations management is to make use of company strategies by ensuring that they are put into action, through various ways (Misra, 2008, p. 895. Sainsbury’s is one of the leading global retailers, competing with regional heavyweights such as Tesco, among others. The company was started in 1869, and right now it has about 1,200 supermarkets and stores around the globe, it has about 161,000 employees, better called colleagues (J-Sainsbury’s, 2014). Sainsbury’s has a team of managers, who are responsible for the implementation of important company strategies on a daily basis. Figure 1 below shows Sainsbury’s financial position in 2014.

Amount	£357Million	14.5%	16.7%	£12.7 billion	24 million	161,000
Description	Underlying half year pre-tax profit	Underlying half year basic earnings share	The market share	Group Sales (Half Year)	Weekly customer transactions	Employees (Colleagues)

Operational Context

At the helm of the operations board is the Chief Executive (Mike Coupe), then the following heads: John Rodgers (Chief Financial Officer); Helen Buck (Business Development Officer); Rodger Burnley (Retail and Operations Officer); Tim Fallowfield (Company Secretary and Corporate Services Director) and Peter Griffiths (CEO Sainsbury’s Bank), among others (J-Sainsbury’s, 2014). Most of the operations led by various managers in the company are aimed at enhancing the company’s position in the market, and making it more appealing to its clientele in the end. For instance, the retail company works on an ecosystem-related operations management plan, which aims at enhancing the conservation of fisheries (Sainsbury, Punt & Smith, 2000, p. 731). The company uses the Management-Strategy-Evaluation design as a way of focusing on all the important details that enhance effective operations management (Sainsbury, Punt & Smith, 2000, p. 731). Figure 2 below shows the operational data in terms of environmental conservation, even as the company continues to expand.

Description	Annual Carbon emission reduction	Electricity supply from green power	Stores with natural refrigerant	Solar Panel installed
Amount	-2.4%	13.5%	166	107,396

External Influences

There are many factors affecting the performance of any business, such as Sainsbury’s, and most of them are external. One such factor is the availability of strong competitors such as Tesco. Market entrants also divide the market share, as they come up with brilliant strategies to win their customers. Just as it is for other competitors in the market, it is the aim of every operations manager to ensure that the major objective of each activity is high consumer satisfaction (Parker, 2012, p.45). Economic stability of different nations is yet another factor influencing the decisions of Sainsbury’s, especially in terms of expansion. Economic meltdowns, for instance, affect customers’ purchasing power, and this also applies to political instability. The power of the customers due to the availability of competitors and substitute goods also influence Sainsbury’s prices. This is the case too where the suppliers have an increased power, as a result of supplier collusion, among other factors.

The role and importance of effective operations management

Supporting the Company’s Strategies

That operations management is an essential part of a business is a fact, and this manifests itself in a number of ways. For instance, it is the role of the process of operations management to support strategies that are developed by the board of directors (Pycraft, 2000, p.43). In this approach, it is the work of the operations management to come up with the essential resources that are going to make it possible for company strategies to be realized at the end of every operation (Pycraft, 2000, p.43). It is the work of the operations management to come up with ways that will ensure the most sustainable production processes, which ensure maximum cost-cutting for the company, as much as the strategies would allow.

Product Positioning

It is the work of the operations management to ensure that the final product stand out in the market, as a better option among many. One thing for instance, is ensuring that the product is made through green processes, and that it is of high value, such as the fish. This positioning of products will come in the form of differentiation, where a company like Sainsbury’s sells the same product as Tesco, but makes it look different to attract more consumers. This will ensure more unique product details, and better prices, making it possible for the retailers to make more profits (HSC, n. d).

Product Differentiation for Varying Consumer Demands

The use of an effective operations management plan ensures that the business focuses on different customer demands (HSC, n. d). For instance, Sainsbury’s is a major retailer that deals in a huge amount of products, which target many different categories of consumers. In order for the company to focus on various consumers as effectively as possible, there is a need to ensure that a blanket strategy is developed, and implemented for the same. Such a strategy is then shared among the many departments of a company such as Sainsbury’s as seen above. Moreover, it is the operations management team that is responsible for the management of production processes up to when products reach the clients. For example, in the fisheries management plan stated above, it is the work of Sainsbury’s to manage fish rearing up to when various finished product are sold to customers (Sainsbury, Punt & Smith, 2000, p. 731). This is an effective way of enhancing product quality; hence, positioning products as of high value in the market.

Interdepartmental Integration

The availability of an operations management plan makes it possible for the business to integrate various departments (HSC, n. d). Just as stated above, the Chief Executive comes up with a strategy, which ensures that the various involved departments know their roles towards the company goals in each project. The manager divides work among the departments and shows them where they need to integrate with other sectors and how they would be able to do it. Without a well-strategized operations management, it would be difficult for the departments to realize how they are supposed to contribute in various roles during the processes involved. This merit makes operations management an important tool of avoiding conflicts and saving time in the process of product development.

Performance Objectives of Sainsbury’s

Great food
Sourcing with integrity
Respect the environment
Sound Community Social Responsibility
Great workplace for the “colleagues” (J-Sainsbury’s Annual Report, 2014)

4 Vs of Operations Management

Volume: Sainsbury’s provides more food for less money
Variety: Sainsbury’s provides different types of products in varying tastes
Variation: services can be online or on-site, and there are delivery services too.
Visibility: product labelling and shelf positioning makes it possible for store shoppers to see what they need. This is the same on the online stores. (Managers Door, 2013).

The operations performance objectives of organisations

Every organization has its own objectives when it comes to operations performance. For many retailers like Sainsbury’s customer service delivery is at the top of everything. For Sainsbury’s, for example, this all begins with the perfect treatment of its staff, using the slogan, “How we manage is how we serve” (Lewis & Trevitt, 2000, p. 6). According to this strategy, a satisfied staff member is usually capable of offering quality services to clients at all times. Therefore, the goal of high quality service delivery for customers becomes realisable. It is also the objective of organisations to ensure that the clients not only get quality services, but also receive quality goods every time they do transactions. For Sainsbury’s, this has been done through effective operations management, for instance through the fisheries management plan, where the production of high quality fish is ensured right from the farm level (Sainsbury, Punt & Smith, 2000, p. 731).

Colleagues who are satisfied always ensure that company goals succeed. Sainsbury’s has always wanted to ensure that its clients come back at all times. In a situation where delivery services are required, happy colleagues will always ensure time is kept (Annual Report, 2011). Through this annual report of 2011, the company found out that it was able to record at least 21 million transactions on a weekly basis, in the food sector, and this was higher than its previous fiscal year (Annual Report, 2011). This was a sign that the operations management’s goal of reduced prices and enhanced product quality worked perfectly, thanks to making Sainsbury’s a “Great Wok Place”.

Businesses also have the goals of enhancing their competitive advantage through growing in other ventures. Sainsbury’s has focused on this by developing non-food sectors to get a larger share of the market (J-Sainsbury’s, 2014). For instance, it developed the banking services as a way of grasping the financial market, to increase its growth. Moreover, other sectors such as the clothing brand, made it possible for the company to multiply its sales, according to the 2011 Annual Report. With these objectives, Sainsbury’s has been able to survive tough competition from many huge and small market entrants, to remain a force in the market, for many years. This is a sign of the important role an effective operations management strategy plays in the development of any business.

References

HSC., (n. d) Part 1: Role of Operations Management.

J-Sainsbury’s. (2014) Board Management

J-Sainsbury’s., (2014) Annual Report and Financial Statements, 2014.

Lewis, R., & Trevitt, R. (2000) Business: Vocational A level. Cheltenham: Stanley Thornes.

Managers Door., (2013) Top 5 – The Four V’s of Operations Management.

Misra, K. B. (2008) Handbook of performability engineering. London: Springer.

Parker, D. W. (2012) Service operations management: The total experience. Cheltenham: Edward Elgar.

Pycraft, M. (2000) Operations management. Cape Town: Pearson Education South Africa.

Sainsbury, K.J., Punt, A.E, & Smith A.D.M., (2000) Design of operational management strategies for achieving fishery ecosystem objectives. Journal of Marine Sciences, 57, 731-741.