BSS063-6 Management Practice Assignment Sample

1.0 Introduction

The successful running of any business requires the adoption of effective business and workplace models. These models can be adopted by the management of the company to efficiently run their business and successfully expand their business. There are many models present in the world of business management which can be adopted by companies.

The management people can take their decisions in consultation with professionals who do the work of suggesting effective models as per the structure, type, requirements and business efficiency of the company. In this report, different theories and models for the successful running of a company is being discussed, along with the reason behind their adaptation by the management of the company.

2.0 Discussion

2.1 Theories of business management

Scientific Management theory-

This approach is about the scientific management of a business for their successful running. This theory was proposed first by Frederick Taylor in the 1800s. He recommended that principles of scientific methods should be used for the performance of tasks by the employees of the company in their workplace. He was deeply against the idea of leaders or management of the companies giving their judgement according to their own by themselves and not taking any scientific principles for the running of a company. It also includes the personal suggestions of the team members of the company management.

He recommended different simplifying tasks for the increased productivity level of the employees of the company (Buil, et al. 2019). As per his suggestions, leaders of the company should assign team members as per their skills of particular jobs, then train them thoroughly and also supervise them during the whole process to ensure that they remain efficient in their role during the work.

The focus of this theory is on achieving workplace efficiency at the maximum level and finding an optimal way to complete any task that had been assigned to the company. This model ignores the humanity of an individual. Because of these stringent conditions on the workers of the company, this theory is not practised much today by most of the companies to improve their efficiency (Antoniuk, et al. 2021).

But, this theory is being used by some leaders of companies to demonstrate the importance of workplace efficiency. This theory also suggests the ample training of the employees of a company and the need for a cooperative teamwork. Also, ample cooperation between the employees, their supervisors and management people of the company.

Administrative Management theory-

This theory about the successful management of a business was proposed by Henri Fayol in the 19th century. He proposed this theory after thoroughly analysing different organisations through the eyes of company managers and the potential situations they faced during the running of a company (Januszewski, et al. 2020).

He said that the leaders of a company should have five different main functions, those are the forecasts, the plan for running the company, command, and control of the company and the coordination between the employees and their leaders. After his analysis, he developed principles which should tell how the leaders of a company should organize and interact with the team members. These principles are given below.

Initiative: This step refers to the level of freedom the employees should have to successfully carry out their designated responsibilities, without being forced by the leaders of the company or being ordered.
Equity: This step implies that everyone attached to any company should be treated equally by the leaders of the company and should provide an environment of kindness.
Remuneration of personnel: This step is all about the fact that there should be both monetary and non-monetary remuneration based on the performance levels for the creation of a bond between the employees and their organisations.
Scalar chain: This principle talks about the presence of a chain of supervisors from the top management level of the company to the bottom-level employees of the company (Dharmastuti, et al. 2021). This is important for the smooth flow of communication from the top of the company management to the bottom. This step does not have any hard rule regarding the whole chain of communication process in a chain of command.
Unity of direction: This step is about the principles that assert that there should be the presence of only one manager for each department or section of the company. The manager is in charge of coordinating the group activities for the achievement of a single goal.
Division of work: This principle is all about the management of work for the employees within a company (Fedotova, et al. 2023). This step talks about the division of work that should be divided among the employees of the company and the members of the team should be given responsibilities based on their skills and interests to make the work more effective and efficient to the workers.
Authority and responsibility: This step talks about the maintenance of balance between the authority and the responsibility of the employees of a company. The meaning of authority is about the right to give instructions and commands, also making decisions. The responsibility is about the obligation of the employees of the company to perform their designated tasks.
Bureaucratic management theory: This theory was first suggested by Max Weber and focused on the structuring of an Organization in a hierarchical manner. This theory talks about the governance and management of the companies regarding their employees and management. This theory clearly distinguishes between the employees and management of a company in a chain of command from the top to the bottom (Brown, et al. 2020). This theory talks about the creation of a chain of command, clear division of labour, the separation of assets of the Organization and its owners from the employees, adoption of consistent and strict rules and regulations, meticulous level of record keeping and documentation, and the promotion or selection of employees based on the performance of the employees and their qualifications.

This theory helps the companies to select their employees and management of them according to a structured manner. The successful implementation of the theory will help the management of the companies to develop and earn profits, which they can invest to expand their presence. This theory is about the internal management of the governing structure of the companies. [Refer to appendix 1]

Human Relations Theory: This is another important theory that talks about the human resources of the companies. This theory was first developed by Elton Mayo, and talks about “human resource management (HRM)” within an organization. This theory is also about the improvement of the productivity level of the company (Zulfiqar, et al. 2019). Elton Mayo was mainly focused on the changing working condition like the length of a workday, break times and lighting. He concluded that every change he suggested through his theory led to an improvement in the performance of the employees and the improvement of the organization. This theory is focused on the satisfaction of the workers, informal workplaces within an organization, and other influencing factors for the improvement of levels of productivity (Faisal, et al. 2022). This theory has three different parts, first the importance of an individual employee, second it talks about the details of informal organizations in the workplace and third, is about the importance of a worker which improves the level of productivity.
Process simulation: This is a process which provides mechanisms for the robust validation of different factors for the companies which were being processed under practically unrealistic conditions. And, if the outcome of the computed simulations is not as per the expected results the deployment of such a model becomes less risky for an organization (PITIC, et al. 2022). There are different elements which are essential for the process simulation. These elements include, “adding inputs”, “conducting design of experiments”, and “Results of the experiment”. The provision of all the necessary information about the company, their businesses, their business models, their profit and loss shares, and other relevant information was added as inputs. The “design of experiments (DOE)” is used for the figuring out all the inputs that had been added and the potential output of the experiment (Arshad, 2020). These are the techniques used for the structure and Organization of simulation experiments. DOE are methods that are formulated by step-by-step instructions and evaluating the results of the experiments with statistical significance.

The first step is the determination of business problems and the selection of required and necessary tools for the successful running of the experiments. The next step is the feeding of inputs into the simulation models to achieve a result. After the successful modelling and achievement of results, business analysts and consultants guide the companies about their businesses.

Risk analysis simulation: This method is also known as the ‘Monte Carlo’ risk analysis model. This model is highly popular and businesses generally use this simulation model before any implementation of critical projects and any changes in the processes. This model works by the management of different outcomes in a process that is easily predictable due to the interventions of variables of factors which are random (Brylev et al. 2022). Thus, this model uses multiple values and averages out a result. There are two different components of asset price movement, the first one is “drift”, which is the constant directional movement and the second one is “random input” which represents the market conditions. This method has a vast array of applications, which are dependent upon a number of random variables, particularly those which have businesses and investments.
Strategic simulation: This is another essential model of simulation which involves various strategic management aspects of a business. These may be factored in at one course during simulation modelling or can be spread over multiple sessions. This model allows overall management of various factors like that are important for the successful running, and management of businesses and gaining profits for further expansions (Yusof, 2021). This simulation model mainly works and deals with the sectors of finance, marketing, and product design among others and the companies those involved in these sectors. These simulations involve a group of learners those constantly interaction with each other.

2.2 Application of those theories for simulation

For the successful running and simulation of the company, there are different simulation models and business management theories applied.

The scientific management theory talks about the use of principles of scientific methods that should be used for the performance of tasks by the employees of the company in their workplace. According to the theory, this would help in the improvement of achievements of the workers of the company and the subsequent profits that can be achieved by the company.

The theory recommended different simplifying tasks for the employees of the company to increase the productivity levels of the company (Hernández-Lara et al. 2019). As per his suggestions, leaders of the company should assign team members as per their skills of particular jobs, then train them thoroughly and also supervise them during the whole process to ensure that they remain efficient in their role during the work.

The focus of this theory is on achieving workplace efficiency at the maximum level and finding an optimal way to complete any task that had been assigned to the company. The application of the theory shows significant improvement in the production capacity of the company, as the demand for their products in the market increases. The application of Human Relations Theory also plays a critical role in the overall improvement of the level of productivity of the company. The theory talks about the improvement of human resource management (HRM)” within an organisation.

The simulation model which was followed during the experiment was Process simulation. This model suggested different processes by which a company can improve its performance and increase its profitability margins (Mercer et al. 2023). The model has three principal elements, those are “adding inputs”, “conducting design of experiments (DOE)”, and “Results of the experiment”.

The DOE is responsible for the complete analysis of the data inputs which are given to the model of the software and the subsequent results, which are then being analysed by business analysts, and company management among others. The model of Strategic simulation is useful for the overall management of various factors like that are important for the successful running, and management of businesses and gaining profits for further expansions.

The analytical tool which the researchers used is the “Marketplace simulations” (Schmeller et al. 2020). This tool allows the business analysts and company managers to evaluate the current status of a company and allows them to redesign or freshly develop their own strategies for the improvement of product standards, and overall profitability of the company. [Refer to appendix 3]

2.3 Results

In this process of simulations, the researchers had used the model of “process simulation”. The analytical tool which the researchers used is the “Marketplace simulations” (Aichinger, et al. 2019). The results of the model which is being employed are given in the figures below.

The data shows that the score of the “fundamentals of product design” is at 62%, the score of “fundamentals of strategic planning” is at 54%, the score of “fundamentals of online marketing” is at 77%, the score of “fundamentals of pricing” is at 86%, the score of “price elasticity in practice” is at 83%, the score of “online paid advertising” is at 68% and the score of “profitability” is at 49%. The result of the simulation is shown in the figure below.

The model is also being used for checking the claims of the company which they show in their advertisements. It had been found that, the claim of the company that their stores are open at different parts of the globe. The results show that the stores are not open all the time in different parts of the world like Latin America, Asia-Pacific, and Europe (Onggo, et al. 2021). Thus, after the successful deployment of the model of “process simulation” the results show scores of different factors according to the given inputs. The result of the simulation is shown in the figure below.

The results help the business analysts and company managers to change or redesign their strategies according to the findings of the simulation analysis. The new strategies should include a change in the overall strategic planning of the company to improve its presence in the international market (Svatošová, 2021). The results show that the online paid advertising is another important factor that needs to be factored in and improved for the growth of the company.

The other simulation analysis shows the following result. It showed that there is a tremendous improvement in the use of social media by the customers of the products of the company as their quarterly budget increases. Thus, the management of social media is a crucial factor in this regard. This is shown in the figure below.

2.4 Analysis of the Results

The results show clearly some trends. It shows that fundamentals of strategic planning” is at 54% and profitability at 49%. Thus, the need to improve their online advertisement capabilities is the need of the hour. It will also help to improve the profitability of the company. The simulation model which was followed for the complete analysis of the results of the company is “process simulation”. This simulation model followed different stages during its application.

The first stage is “adding inputs”, in which the data about the relevant factors of the company is being inserted into the simulation software for analysis. The second stage is the “designing of experiments (DOE)” which is used for the figuring out of all the inputs that had been added and the potential output of the experiment (Narayanan, et al. 2019).

These are the techniques used for the structure and Organization of simulation experiments. DOE are methods that are formulated by step-by-step instructions and evaluating the results of the experiments with statistical significance. This analysis clearly shows the total result of the company, with areas which need potential improvements.

The tool used for the simulation analysis is the “Marketplace simulations”. This tool allows the business analysts and company managers to evaluate the current status of a company and allows them to redesign or freshly develop their own strategies for the improvement of product standards, and overall profitability of the company.

The tool also helps students of business management to understand different business decisions and understanding of that. Also, provide ways to integrate the potential strategies with the results of the simulation analysis. This way the tool used for the simulation analysis for the improvement of strategies of a company is useful for subsequent evaluations (Snipes, et al. 2021).

From the results, it can be analysed that there is a major need for improvement of strategic planning of the company, as well as online advertising campaigns to improve the profitability of the company. There is also a need to redesign their advertisement campaign, as it is clear that their stores are not open at any part of the time in different regions of the world.

3.0 Recommendations

There are different recommendations that should be followed by the researchers, and the company to improve its credentials in the market (Lohmann, et al. 2019). These are given below.

For a more through and complete assessment of the company’s profile, there should be a simulation analysis based on at least one other simulation software tool.
There should be a following up of other simulation processes by the researchers for the critical analysis of the company.
There should be an evaluation which is strategic and only involves key areas of the operation of the company.
The result and analysis of simulation management should also include different business and workplace management theories, like scientific management theory among others.
The potential solution strategies should also be provided in the simulation analysis.

4.0 Conclusion

In conclusion, it can be said that the simulation analysis is vital for almost all the companies to effectively manage their business. Nowadays, different software tools are available that complete this analysis based on the inputs provided to them. There are different simulation models present, which are used by the business analysts and company managers to improve their business management. Based on the results obtained from the simulation analysis on software, business analysts and management of the company can design and change their strategies to improve the profitability and presence of the company.

The report completed a simulation analysis of the chosen company using the available data and prepared a report with that. This report will help to improve the status of the company in the international market. This report will also help the management people can take their decisions in consultation with professionals who do the work of suggesting effective models as per the structure, type, requirements and business efficiency of the company.

Reference List

Journals

Aichinger, C., Docherty, M., Kronawettleitner, D. and Mühlböck, S., 2019. SUCCESS FACTORS FOR LEARNING WITH BUSINESS SIMULATION GAMES–A LITERATURE REVIEW. EDULEARN19 Proceedings, pp.3706-3710.

Antoniuk, D.S., Vakaliuk, T.A., Didkivskyi, V.V., Vizghalov, O., Oliinyk, O.V. and Yanchuk, V.M., 2021, October. Using a business simulator with elements of machine learning to develop personal finance management skills. In CoSinE@ ICTERI (pp. 59-70).

Arshad, M., 2020. Artificial Intelligence in Business Simulation Analysis. European Journal of Technology, 4(1), pp.16-30.

Brown, D.M., Robson, A. and Charity, I., 2020. International Masters’ student perspectives of team business simulations. The International Journal of Management Education, 18(3), p.100268.

Brylev, S. and Levina, N., 2022. Using business simulators in the educational process stem-education of Ukraine as a direction of professional orientation of young people. Przedsiębiorstwo we współczesnej gospodarce-teoria i praktyka, 2(35), pp.52-68.

Buil, I., Catalán, S. and Martínez, E., 2019. Encouraging intrinsic motivation in management training: The use of business simulation games. The International Journal of Management Education, 17(2), pp.162-171.

Dharmastuti, C.F., Darmoyo, S., Gunawan, R.A. and Duka, M.N., 2021. Business simulation, student competency, and learning outcomes. Jurnal Manajemen, 25(1), pp.160-174.

Faisal, N., Chadhar, M., Goriss-Hunter, A. and Stranieri, A., 2022. A Systematic Literature Review on the Evaluation of Business Simulation Games Using PRISMA.

Fedotova, I.V. and Bocharova, N.A., 2023. USING THE BUSINESS SIMULATION METHOD IN THE LEARNING PROCESS OF FUTURE SPECIALISTS IN THE FIELD OF ECONOMICS AND MANAGEMENT. Publishing House “Baltija Publishing”.

Hernández-Lara, A.B., Perera-Lluna, A. and Serradell-López, E., 2019. Applying learning analytics to students’ interaction in business simulation games. The usefulness of learning analytics to know what students really learn. Computers in Human Behavior, 92, pp.600-612.

Januszewski, A. and Kujawski, J., 2020. Research concept of business simulation game application to management education in Poland.

Lohmann, G., Pratt, M.A., Benckendorff, P., Strickland, P., Reynolds, P. and Whitelaw, P.A., 2019. Online business simulations: authentic teamwork, learning outcomes, and satisfaction. Higher Education, 77, pp.455-472.

Mercer, I.S., Swab, R.G., Harris, J.N., Tomczyk, D.A., Hnatkovich, A. and Bruns, R., 2023, March. When Play And Work Collide: An Interactive Panel Symposium Exploring The Use Of Gaming To In Management Education. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 50).

Narayanan, E. and Turner, J.J., 2019. Perceptions of simulation games and the role they play in creating an enterprising and employable graduate. International Journal of Education, Psychology and Counseling, 4(30), pp.179-196.

Onggo, B.S. and Foramitti, J., 2021, December. Agent-based modeling and simulation for business and management: a review and tutorial. In 2021 Winter Simulation Conference (WSC) (pp. 1-15). IEEE.

PITIC, D. and IRIMIAŞ, T., 2022. FOUR DECADES OF LITERATURE ON BUSINESS SIMULATION GAMES: A SEMANTIC AND CONTENT ANALYSIS. Review of Management & Economic Engineering, 21(4).

Schmeller, R., 2020, March. Does Glo-Bus Strategy Simulation Demonstrate Novak’s Training Theory?. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 47).

Snipes, R.L. and Pitts, J.P., 2021. THE EFFICACY OF USING TEAMS VERSUS INDIVIDUAL PRACTICE ROUNDS IN BUSINESS SIMULATIONS. Copyright 2021 by Institute for Global Business Research, Nashville, TN, USA, p.71.

Svatošová, V., 2021. Proposal and simulation of a business process model of strategic management in e-commerce. Ekonomický časopis, 69(07), pp.726-749.

Yusof, M.S., 2021. Business simulation as key motivation factor in stimulating business intention amongst university students in Malaysia. Advanced International Journal of Business, Entrepreneurship and SME’s, 3(10), pp.69-74.

Zulfiqar, S., Sarwar, B., Aziz, S., Ejaz Chandia, K. and Khan, M.K., 2019. An analysis of influence of business simulation games on business school students’ attitude and intention toward entrepreneurial activities. Journal of Educational Computing Research, 57(1), pp.106-130.

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