Economics of Innovation and New Technology

Question: You are a journalist for a leading news service. The news organisations newly appointed line manager wants to hire a business editor and you have decided to apply for the position as it will be a promotion. As part of your application, you have been asked to undertake a series of tasks.Task 1 (This will form your introduction)You are required to select an organisation of your choice. (The only requirement is this organisation has to have a website). a) Introduce your organisation and provide a short description of what it is.b) The principles of management e.g., (remuneration, authority, order, discipline, division of work etc.) continually pose challenges for managers. Describe any two of the principles of management?Task 2 (You are now expected to build a profile of your organisation)Your editor enjoyed your opening to (task 1) and thinks your organisation could make an interesting article. He wants you to explain the organisation in more detail. a) Describe the organisations (size, structure and key operations).b) Outline the organisations key strategic objectives (i.e. goals targets) and explain how they plan to use the 4 functions of management (planning, organising, leading and controlling) to achieve them.Task 3 (This question evaluates the importance of culture)You have been debating with your line-manager about the importance of culture to an organisation. He argued that, Management culture is of no importance and has no influence on the success of the organisation!You disagree! Using the organisation you selected for task 1 write a reply to your line manager. Focus your reply on two key questions:a) Describe the importance of management culture to an organisation.b) How does culture impact the success of your chosen organisation? Task 4 (Business planning operations)Your editor is impressed with your work. He wants you to write a short paragraph on the importance of planning and operations to an organisation. Using the organisation you chose in (task 1), write a paragraph answering the following questions:a) Identify the key reasons why line-managers engage in the process of planning. b) Describe the steps taken in analysing the external environmen t of an organisation.Task 5 (Communication)Oh no! There has been a huge argument and your editor is no longer speaking to a senior member of staff from a different department. They are expected to have a close working relationship but effective lines of communication have broken down. As he is your senior, you do not feel you can raise the importance of this to him. You feel it would make a good article so you decide to write a brief note on the importance of effective communication between managers with different responsibilities. Your article must discuss the two following questions:a) Explain the consequences of a breakdown in communication to an organisation.b) Identify any two techniques/technologies (e.g. corporate instant messaging systems, intranet, team briefings) and explain how they could be used to prevent and overcome breakdowns in communication.Task 6 (This will form your conclusion)This application process has been competitive. Your manager gives you the good news; you have made the final 2. He has asked you both to:a) Explain 3 of the key learnings from the tasks undertaken. Answer: Task 1 Introduction The organization chosen for the purpose of this analysis is McDonalds. A multinational fast food chain, MDonalds symbolizes economy and fun. The no frills dcor and self help counters all shout out aloud of the economy. The brand is positioned as a great place to eat out without worrying about a budget. This positioning makes McDonalds the preferred choice of students and those looking out for a quick meal on a small budget. The business model followed by the fast food major is one of the franchises and the introduction of local Cusines to foster a sense of belonging and commitment. Thus, although McDonalds is a global brand, more than eighty percent of the outlets are owned and managed independently by franchises (McDonalds, 2016). The supply chain is centralized and suppliers are committed to maintain a high level of safety and quality as expected from them (McDonalds, 2016). High quality of supplies ensures high quality of products and high level of satisfaction. Task 2 Organisational profile The organisational structure at the global chain is one of franchises with a centralised supply chain management. Local products are included in the Cusine at McDonalds and therefore local products are included in the purchases. This ensures that the local economy is also benefited from the opening of the outlet. As each outlet has a minimum number of employees as they follow a self help counter for service. Therefore, the staff is limited to cooking staff and a floor manager. A fast food chain, McDonalds continues to successfully use the same business model across the world.. The main objectives at McDonalds includes serving good food in a friendly and fun environment. The company aims to be socially responsible and provide its shareholders with good returns.good service, high quality food and economic pricing are the main objectives of McDonalds. Keeping this objective in mind, the entire organisation is focussed on procuring quality supplies and high quality food for its clientele. McDonalds shall achieve this objective through proper sourcing of the supplies from suppliers across the world (McDonalds, 2016). With quality supplies, the outlets are able to provide the best products to their customers. Furthermore, since the pricing chain is centralised, McDonalds is able to procure the best supplies at the best pricing. This helps ensure that the pricing of the products remains economical across all the outlets of McDonalds. Planning, leading, controlling and organising are all part of the centralised system followed at McDonalds. Although most of the outlets are owned by independent franchises, they need to follow the centralised system of dcor, menu and service in order to ensure uniformity across all outlets of the global fast food chain (McDonalds, 2016). The entire process of procurement is also centralised to not only ensure hat economies of scale can be achieved in pricing, but also to ensure that the products have a uniform taste and flavour. Task 3 The importance of culture Organisational culture is an ambiguous term that lends itself to interpretation. Strong organisational structure is the result of a strong and efficient management as well as dedicated employees. Organisational culture is the cornerstone on which the ethics of organisational growth is dependent on. Management culture enhances both the performance of the organisation (O'Donnell Boyle, 2008), as well as the ethical behaviour of the employees who make up the organisation. There is ample literature on the topic which clearly shows a link between the changes in culture and the performance of the organisation as a whole (Shinkle, 2012). The management can and must initiate a climate of change and lead from the front (O'Donnell Boyle, 2008). Therefore, without a doubt, the success of the orgnsnaition is dependent on the management culture. Understanding the organisational culture is the first step towards ensuring that the employees are in line with the organisational objectives (Singh Mohanty, 2014). Therefore, effective and efficient leadership is able to identify the focal point as well as the leaders within the organisation. They would be the first persons who would identify with the organisational culture and adopt it. The remaining employees would follow these leaders and thus the culture as determined by the management would permeate the organisation as a whole (O'Donnell Boyle, 2008). No organisation is complete without the whole hearted support of its employees. Therefore, if all employees imbibe the organisational culture and implement it in their working life; it is easy to ensure that the entire organisation continues to perform to its optimum (Martins Terblanche, 2003) and as per management directives. Since the organisation works as a united whole, the organisational success is assured through this initiative (O'Donnell Boyle, 2008). Employee empowerment and engagement along with team orientation are intrinsic parts of organisational culture. This proves without a doubt that organisational success is linked with organisational culture. Task 4 Business planning operation Recruitment and management of employees are a part of the responsibilities of line managers. While the roles are not clearly defined in the case of smaller organisations, the same does not apply to larger organisations like McDonads. The relationship between line managers and employees is intrinsic to the success of the organisation and the achievement of organisational objectives. Line managers focus on the strength of their employees and create the organisational culture for their team members. The interaction between line managers and their team members is not limited to guidance. It is a two way relationship that ensures that the employees and line manager relate to each other (Bourne, et al., 2013) for their respective growth within the organisation (Simoes Esposito, 1982). The line managers are the medium of interaction with the top management as far as the members are concerned. Similarly, by leading the team efficiently and effectively, the line manager is able to cement his role and subsequent growth in the organisation (Bourne, et al., 2013). Hence line managers need to plan the work process for their team The external environment of an organisation plays an important role on similar lines as the internal environment (Antonelli, et al., 2013). However, the external environment cannot be controlled in any manner. The various factors that make up the external environment may be classified as direct or indirect, and includes changes in business environment or governmental regulations, actions by competitors and so on. These external factors affect the smooth functioning of the organisation. It is interesting to note that while some of these external factors can be manipulated; the majority of them require the organisation to be moulded and make adjustment in order to function as per its goals and objectives. Several these external factors like organisational culture, company reputation and local economy are known to influence employee behaviour to a considerable extent and needs to be dealt with carefully. Task 5 Communication The consequences of a breakdown in communication to an organisation are varied and the ripple effect can be felt in several aspects of the organisation (Daly, et al., 2003). While good communication skills are known to enhance the efficiency of the team, the converse is known to result in a loss to the organisation (Gonzalez-Sanchez, 2013). Organisations are divided or compartmentalised into several smaller units called departments or teams (Kor Mesko, 2013). Each team not only fulfils its role but also passes on the required information to the other teams. This communication is needed to ensure that all the teams within the organisation work in tandem and thus achieve the organisational goals and objectives. Needless to say, any breakdown in the lines of communication would result in chaos and loss in terms of business as well as lead to significant financial losses to the organisation. Communication systems have undergone a sea change in the present day. Gone are the days of snail mail and faxes. The email, video conferencing and virtual working are now a way of life. These significant strides made in the communication process have helped change the way in which organisations function. Virtual teams spread across several countries work in tandem to achieve the organisational goals. Teleconferencing and emails are now the staple communication lines, both within the organisation as well as with clients. These real time communication methods help ensure that there is no lag in the relay of information between concerned persons or teams, thus resulting in the seamless functioning of the organisation (Melville, et al., 2004). Since the communication is in real time and as most organisations now rely on virtual offices, it is not a difficult task to ensure that all communications lines are in place at all times regardless of the physical distances that may or may not sep arate the team members. Communication can thus be completed without any interference or changes in pre-set schedules. Task 6 Conclusion The key learnings from the above tasks are related to teamwork and effective team management. Effective communication is the key to organisational success. Communication must be clear and not ambiguous to ensure that there is no room for misinterpretation within and between the various teams. Furthermore, the organisational culture need to be imbibed by the members within the organisation in order to ensure that the entire team functions as a united front rather than as independent members furthering their personal objectives. Organisational culture is intrinsically linked to organisational growth and success (Rashid, et al., 2003). The third factor that influences the organisation is the external and internal environment which would leave an impact on the manner in which the organisation would perform and achieve its goals and objectives. While some external elements may be manipulated, the rest need adjustments on the part of the organisation. Internal factors can be influenced by effective management and leadership. References Antonelli, C., Crespi, F. Scellato, G., 2013. Internal and external factors in innovation persistence. Economics of Innovation and New Technology, 22(3), pp. 256-280. Bourne, M. et al., 2013. Generating organisational performance: The contributing effects of performance measurement and human resource management practices. International Journal of Operations Production Management, 33(11/12), pp. 1599-1622. Daly, F., Teague, P. Kitchen, P., 2003. Exploring the role of internal communication during organisational change. Corporate Communications: An International Journal, 8(3), pp. 153-162. Gonzalez-Sanchez, V. M., 2013. Information and Communication Technologies and entrepreneurial activity: drivers of economic growth in Europe. The Service Industries Journal, 33(Special), pp. 7-8. Kor, Y. Y. Mesko, A., 2013. Dynamic managerial capabilities: Configuration and orchestration of top executives' capabilities and the firm's dominant logic. Journal of Strategic Management, 34(1), pp. 233-244. Martins, E. C. Terblanche, F., 2003. Building organisational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6(1), pp. 64-74. McDonalds, 2016. Our Business Model. [Online] Available at: https://www.aboutmcdonalds.com/mcd/our_company/business-model.html [Accessed 23 July 2016]. Melville, N., Kraemer, K. Gurbaxani, V., 2004. Review: information technology and organizational performance: an integrative model of it business value. MIS Quarterly, 28(2), pp. 283-322. O'Donnell, O. Boyle, R., 2008. Understanding and Managing Organisational Culture, Ireland: Institute of Public Administration . Rashid, M. Z. A., Sambasivan, M. Johari, J., 2003. The influence of corporate culture and organisational commitment on performance. Journal of Management Development, 22(8), pp. 708-728. Shinkle, G. A., 2012. Organizational Aspirations, Reference Points, and Goals: Building on the Past and Aiming for the Future. Journal of Management, 38(1), pp. 415-455. Simoes, P. M. M. Esposito, M., 1982. Improving change management: how communication nature influences resistance to change. Journal of Management Development, 33(4), pp. 324-341. Singh, R. N. Mohanty, R. P., 2014. Communication Satisfaction and Organisational Commitment: Moderating Role of Employees Cultural Values. LBS Journal of Management Research, 12(2), pp. 4-20.