BSS064-06 Leading & Managing Organisational Resources Assignment Sample
Module code and Title: BSS064-06 Leading & Managing Organisational Resources Assignment Sample
INTRODUCTION
Sustainable leadership in the case of resource management, project planning and performance improvement are the critical measures for all organisations looking for financial stability and business growth. There are three main dimensions addressed by all the reputed organisations around the world to curtail challenges. These dimensions are “social”, “environmental” and “economic issues”. In this regard, effective leadership on the previously addressed parameters and their clarified conceptions can be the key to overcoming productivity and performance issues.
Resource management deals with “planning”, “scheduling” and “allocating human skills”, “and financial and technical types of equipment” for the successful conduction and completion of a business programme. Productivity enhancement refers to increasing the capacity to deliver products or services to cater greater profitability and breakthrough the limitations. With appropriate planning on management of the assets, primary resources and revenue generation it is possible for a company to handle complex challenges associated with the external and internal environment.
Figure 1: Cumulative Funding Valuation History of WeWork (Source: cbinsights.com, 2022)
The research is going to be based on the case study given on one of the largest business to business company of US, WeWork. It was founded in 2010 New York and continuing its growth at a rapid speed in providing flexible workplaces either physical or virtual to the entrepreneurs and start ups all over the world. Presently the company is operational in 700 geographical locations in over 150 cities of 38 countries. WeWork holds $21.76 Billion asset and ambitious to obtain $47 Billion in near future (cbinsights.com, 2022). In this regard multiple challenges and domains are needed to be explored to understand the complexities in the business and effectively handle adverse scenario.
Therefore, the research is focused on demonstration of critical understanding on the integration between leadership and operation management. The contemporary works related to the aspects like “performance management”, “operations”, “business analytics”, “data driven decision making”, “power and politics”, “management of change process” and organisational culture are needed to be converged in context of the company.
Again, it is also needed to be ensured the research is based on strong reasoning and analysis on the effective leadership, operation management and financial analysis. Theoretical synthesis in this regard to comply with the informed decision making approaches practiced in WeWork is the subjects of evaluation. The company already has enlisted itself as one of the largest organisations in terms partnership in the list of “Global Fortune 500”. The management of economic challenges, decisions taken for the sake of organisational growth and handle the impact of losses with effective leadership are going to be justified in light of theories and their derivatives.
ANALYSIS OF WEWORK’S MAIN CHALLENGES
WeWork has been one of the leading firms or can be said a unicorn in the US rapidly emerging and expanding its operational regions effectively. Since its establishment in 2010 the company eventually become the fastest growing company as depicted by Forbes in 2014. Later in 2016 it has been enlisted in the Fortune Magazine’s one of the three high performing unicorns covering thresholds of $10 Billion (Cheah and Ho, 2019). The company has also expanded its operation to the world’s big economic markets like India, China and South East Asia. With continued effort the company presently holds $21.76 Billion assets, 590 thousand members and 4400 employees in 756 locations around the world.
Despite the companies’ diversity and effective resource management, the company is in the spot light of discussion due to its sudden fall in the markets. The experts after critical analysis on the approaches, ethics and business management of the company evaluated some concerning standpoints against the downgraded performance of the company (Orel and Dvouletý, 2020). There are three main parameters driven out in context of the company causing major issues for immense losses.
As incurred by the company worth $4.44 Billion in the recent years it is clear that the company facing challenges associated with its leadership, business development, management and organisational development for balancing its operations. Resource management and corporate governance are also the far reading aspects of the company to highlight the critical measures like financial sustainability and resource planning (Goermar et al. 2021). In this section, the mentioned challenges are going to be discussed to understand the role of financial performances and people associated with the company for its progress.
LEADERSHIP CHALLENGES FACED BY WEWORK
In order to perform better and obtain progressive growth a company needs to have efficient leaders equipped with necessary skills. It is not always a leader has to come from wealthy domains or the person has to be the founder of any organisation. Anyone with higher skills, quality and personality to guide the rest of the organisation can be a leader (Gregg and Lodato, 2018). The present incidents taken place in the “WeWork” associated with its chief executive officer or CEO and the decisions taken in favour or disfavour of the company have rise controversies.
Adam Newman, the co-founder of the company has stepped down from his responsibilities of CEO in the recent times due to huge controversies and acquisitions against him (Waters-Lynch and Duff, 2021). Every organisation including WeWork has to manage its resources and financial stability through strategic decisions and balancing the approaches of the company by understanding the balance between capacity and demand.
There are six major values associated with the performance of a leader to ensure high volume of productivity and financial enrichment of a company (Bouncken et al. 2019). In this regard the “Transactional theory” can be implicit. The values addressed in this theory are targeting immediate objectives”, “favouring stand zed process and regulations”, “recent changes”, “discouraging the original thoughts”, “emphasis on the interests of the company” and “encouragement for high performance”.
Over expense on the personal needs and loitering the asset of the company for inconsistent needs can be dreadful for a leader to comprehend (Mariotti and Akhavan, 2020). These factors can challenge the ability of the leader to guide an organisation to its financial sustainability.
Figure 2: Transactional Theory of Leaddership (Source: wework.com, 2022)
There are some differences of opinion on the grounds of leadership of Newman in WeWork. It is said his leadership as a CEO of the company has led it to reach $2 Billion annual revenue through there are controversies causing his sudden downfall. The accusation imposed on him for the loss of company value from $47 Billion to $10 Billion, 2400 job losses in 2019 and continuous fall in shares and stocks of the company (wework.com, 2022).
Evaluated reasons from the theories have clarified that the company has been encountering “loss of will listen”, “distraction from the objectives”, “diversion from the mission” and others. It is high time that the company needs to focus on these aspects while it is also important to know the root cause.
Generally, it is believed the leaders are key role players in balancing organisational couture, financial decision making and stability (Bouncken and Tiberius, 2021). Loss of confidence in this regard enforced Newman to step down from his responsibility and allow the company to embrace in a new way to give it more flexibility.
RESOURCE MANAGEMENT CHALLENGES OF WEWORK
Another driving force for an emerging organisation like WeWork is resource management. It can sustain the productivity, business interests and relations simultaneously to meet the business objectives. The performance of the WeWork led the experts in high concern about the stability of the company to accommodate the interest of the stakeholders and contribute to their growth. Operational activities of WeWork consists of business diversity through shared workspace (Zukin, 2021).
Accommodating the start-ups and entrepreneurs with new and focused environment for work conduction are given utmost priorities by the management since its establishment. In order to understand the challenges of resource management in the company it is important to understand the issues faced by WeWork in the recent times in light of resource management theory.
Figure 3: Revenue Loss over the years of WeWork (Source: investmentmonitor.ai, 2022)
First of all it is worth mentioning the company has grating revenue as well as the increasing losses since 2016 that led emphasis on the resource planning discrepancies of the company (Merrell et al. 2021). There are two major categories of resources namely human resources and financial resources. In both the cases the company has been facing tremendous turmoil’s since 2019.
It was decided by the management of WeWork to denounce 2400 workers from the company (investmentmonitor.ai, 2022). The questions and controversies arose in this regard showcased the inefficiency of the company to address the needs of both the company associates and stakeholder interests.
According to “Taylor’s Scientific Management Theory”, the company failed to entertain planning actives and their separation from the work activities, standardisation of time, processes, equipments and cooperation among the company executions and business demands (O’Reilly and Chatman, 2020). Therefore, essential skills to lead organise and management the business objectives in middle of the rising market challenges are highly devalued leading to the losses more than $4000 Million in 2021.
On the other side, financial stability of the company is also under observation for many reasons. According to “Agency theory” lack of balance between the principal interests and interests of agents associated with the company has diverted the company’s approaches to reach the threshold of $47 Billion net worth.
CORPORATE GOVERNANCE CHALLENGES OF WEWORK
The simplified structure followed by the company to handle complex market issues as well as internal management are enforcing the company to face major governance threats. In most of the cases, higher authorities like CEO are the principle decision maker therefore the interest of other stakeholders are fall under jeopardy (Swezey and Vertesi, 2019). Increasing importance on self-interest than less focus in management of the needs of employees or organisation to the changing market adversities resulted in loss of confidence of the stakeholders on the management.
The resulted fact from these aspects is gaping to entertain immense loss of assets and increase in liabilities (Ivaldi et al. 2018). Therefore, the significant fact to notice from this derivation is increasing demand of the company associates, over importance on personal needs, lack of transparency in operation and control of management make financial sustainability highly vulnerable to downfall.
The data published by Forbes in this regard showcased the company IPO has reduced to 40% that resulted $504 Million loss in annual revenue of the company (Murphy, 2018). Lack of emphasis on global challenges like pandemic, wars and others hampering the embracement of the company and greater interests on meeting personal needs like salary and allocations are hampering WeWork success.
EVALUATION OF IMPROVING RESOURCE MANAGEMENT AND ENHANCING PRODUCTIVITY AND PERFORMANCE
In the earlier section it has been discussed that resource management are divided into two categories namely human resources and financial resources. WeWork has been trying to minimise its losses through reduction in workforce. Experts belief, it cannot be a solution for a company to reduce its work capacity by renouncing the number of employees (Lee, 2018).
Human resources are highly important to obtain innovative approaches and accommodate changes in the management. Contrary to that WeWork considered the investments on the salaries and allowances of the associates can be used for making up the debts. On the other side, ethical value of a company in a marketplace especially for an organisation like the WeWork is very crucial (Ceinar and Mariotti, 2021). The customers of WeWork are the entrepreneurs and start-ups that look for a proper accommodation and work place for their official operations.
WeWork ensures the workplaces are suitable for their business needs where the places are either physical or virtual. In order to know their demands, the company has to be empathic to the situations and challenges of their clients. Therefore, the company needs to maintain diversity in this regard by enlisting a large number of people with skills in different domains.
These domains can be in finance, legal fields and technical. WeWork has expanded its operational regions from local to global (Spinoza et al. 2019). Therefore, the discussion on resource management, productivity and performance of WeWork are needed to be discussed on the global aspects.
IMPROVEMENT OF RESOURCE MANAGEMENT
After restructuring the leadership and employee management in the organisation, the company is focused to enhance their resources through diversified approaches. One of the major steps of taken by the company in this regard is merger and acquisition (Ivaldi and Scaratti, 2019). There are two major reasons WeWork has taken this step first to obtain external growth and second to have the competitive advantages.
Recently, the company is focused on purchasing assets in the new countries to entertain growth and increase the shares (Vidaillet and Bousalham, 2020). WeWork considered going public by listing its shares in the market. With the rise of 13.49% on average the present share value of the company has reached $11.78. The initial public offerings presented by the company in this regard with BowX Acquisition Corp. or BOWX with $9 Billion merger deal once gain rising the market value of the company.
Figure 4: Co working Market Share of WeWork (Source: dspace.mit.edu/bitstream, 2022)
Resource management is a critical issue to undertake for a company like WeWork operational in the global market. Considering the challenges faced by the company, there are some critical measures to take for increase and stabilise resources for financial sustainability (dspace.mit.edu/bitstream, 2022). First thing to consider in this regard is taking absolute interest on knowing the responsibilities of the associates in the company. There are total 4400 associates presently working form the better co working spaces for their stakeholders.
They are categorised into leaders like CEO and board members, employees and workers. It can be said these are the responsible authorities for resource management (Butcher, 2018). The focus to ensure resource management can be done through building an updated knowledge base, market alignment of resource pool, reviewing the role of contractors or the third parties, opportunities to enlist new skills, collaboration with the sales and others (Tintiangko and Soriano, 2020). It also includes early allocation of the resources and opportunities, time management, tracking demands and ensuring consistent tracking.
The decisions taken by the company to lay off 2650 employees in 2020 during the economic crisis of COVID – 19 has dampened the market performance and value of immensely. The company also reduced its spending by $460 Million in the year compared to the previous one. Despite the short-term contribution of these aspects of the company as adopted during crisis, it lays higher threats to the financial sustainability in the future. In order to bring back reputation, secure resources and embrace business, the company has planned and executed its business expansion in 60 new locations (Durante and Turvani, 2018).
The investments are also done by the company to renovate and facilitate advanced tools to its offices worth $20 Million. In order to regale its popularity, it is trying its best to expand into the growing economy with allot of population like India with an investment as large as $100 Million (https://techjury.net/blog/wework-statistics/#gref).
ENHANCEMENT OF PRODUCTIVITY IN WEWORK
The productivity of accompany is lined with the engagement of the employees and stakeholders. Interest of people or clients in this regard is very crucial to address the objectives set in that organisation to obtain higher growth and profit. There are some steps to increase the business productivity in an organisation like WeWork working in the global environment. The steps are detailed below –
Keep the operations simple.
Strategies are needed to enlist in the management that are easily communicable and executable (Cabral and Winden, 2020). A proper pattern to sustain productivity is highly crucial for WeWork in this regard to curb out the tasks determined by the company and sustain high volume profit. SMART goals can be proven effective in this regard comprising of specific and achievable objectives.
Setting reminders
Reviewing the steps taken, allocation of timeline and entertain the changes are crucial for a business to prosper in the rapidly changing markets like the US. WeWork is operational in many regions around the world where the company face immense challenges (Gomes et al. 2020). In order to address the needs of the clients and enlist their requirements in the business dealings the company must set reminders to review its taken measures and address correctness.
Minimisation of time waste
Clarified and focused agenda, good communication, inclusion of market research, aligning the associates to a single objective is critically important for the organisation to entertain. It can reduce the number of complexities thereby operational time to execute a business project.
Motivation and wellness programmes
Every organisation including WeWork must accommodate the interests of the internal and external stakeholders simultaneously. Proper financial planning by reducing wastes, extra expexpences and luxuries can be a suitable option for a company to enlist productivity and financial sustainability (Hölzel and de Vries, 2021).
It enhances the trust of the associates on the management decisions thereby motivate them to take up new challenges. Along with that suitable workplace management like including wellness programmes can be an option for the company to ensure high volume of productivity even for the B2B companies like WeWork.
IMPROVEMENT OF PERFORMANCE IN WEWORK
Performance improvement is directly linked with the financial sustainability and public interests associated with a business firm. Companies like WeWork where market expansion is rapid compared to the management capacity, must consider on adaptation of strategies to enhance efficiency. Every company like WeWork must consider on their objectives first prior to investment on allocating human or financial resources (Micek, 2020).
Clear vision and mission statement clarifies business perception of the leaders to their associates and stakeholders. Therefore, employees are prepared for the upcoming results and challenges going to be encountered in future during the critical times. Presently, the moves of the CEO of WeWork may be in favour for the company while lack of communication, identification of key performance indicators and optimisation of productivity have dampened his image as well as the market value of the company.
The operational activities of WeWork are solely related with the regions of activities of its clients. They need to deliver places of work and facilities according to their needs. Therefore, the company has to ensure flexibility in their business activities to check the downfall of company during high demanded (Bandinelli, 2020).
Efficiency of a company is determined by the ability to deliver products or services at the time of needd. WeWork has failed to maintain that stability due to lack of workforce, resources and strategies. Considering these aspects, the most significant factor to improve high standard of performance is ensuring the capacity to retain promises to the clients by keeping a sustainable financial environment and balancing public interests.
MANAGING CHANGE AT WEWORK
POLITICS AND POWER WITHIN RESOURCE MANAGEMENT
Politics in organization comprise activities that an organization like WeWork takes in order to achieve, develop and utilize the power as well as other resources. As per the views of Ferris (2018), it includes the influential acts for enhancing or protecting the employees and groups working in the organization.
MANAGING THE CHANGE PROCESS
In order to manage the change at WeWork, the managers and leaders should put the people first and make them understand the changes happening within the organization. In the views of Marshall (2019), a successful implementation of change is done only when the employees are fully corporate and understand the concept and need of change. Along with this, they must incorporate effective leadership that will influence and encourage employees to take the change positively.
ORGANIZATIONAL CULTURE
The chosen organization works towards their aim with the implementation of kindness, care, authenticity and collaboration. As informed by Wework (2022), around 89% employees have said that in this organization’s culture “people care about each other”. Wework puts their effort in making their new employees feel welcome at the organization. Additionally, they always try to show gratitude towards their employees’ hard world and do not take anything for granted.
CONCLUSION
The current study has focused on a detailed analysis of the main challenges faced by the organization mainly during the pandemic era. The main issues that have been raised in the pandemic era and the effect of these changes on the productivity and success of the organization. The necessity of an effective leadership strategy and the improvement of resource management needed for the development of the organization are also discussed in this study. The development of the leadership strategy by ensuring the performance and productivity of the organization has been elaborated on and discussed in this study.
The study further discusses the effect of the previously faced challenges within the organization because of the global pandemic and the effect of that on organizational progression. It analyzes the impact on the internal and external factors that are affected by that situation. The study further offers the effective recommendation needed in the leadership style, resource management, and “corporate governance management” of the organization.
Recommendations
The effective changes within the existing business model and the leadership style generally enables the organization to gain a competitive advantage and thus the organization is recommended to follow the below-mentioned strategy to gain productivity and development of the organization in the long run.
The recommended leadership management for ensuring the organizational success.
The effective leadership model and strategy generally allow the organization to successfully handle the required development and changes within the organization. According to a recent study, the first CEO of the organization generally failed to manage the difficult situation due to the lack of the implementation of the correct leadership approach. Therefore, the leaders of the organization are recommended to follow the “transactional leadership model” to deal with the situation and the employee more effectively and smoothly (Saeed and Mughal, 2019).
This leadership model generally follows the simple reward and punishment policy; the employee will feel motivated and bear additional responsibilities within the work. As opined by Cuaresma-Escobar (2021), apart from this, the “situational leadership theory” can be followed by leaders in order to deal with difficult situations, thereby address a specific situation, and then successfully handle them.
Improvement of the “corporate governance management”
“Corporate governance generally allows the organization to successfully follow and manage the mission, vision, and objectives of the organization. The effective use of the corporate governance model generally leads the organization to secure the business objective and gain the expected revenue generation of the organization.
The “Anglo-US model” can be an effective model for this reward and therefore the business authorities of the organization can deal with this situation. With the application of the model, the duties and responsibilities of the managers and business executives of the organization can be effectively managed. The manager can more effectively track the overall working procedure of the organization thereby securing the success of the organization.
Changes within the resource management
The development and efficiency of the organization generally depend on the effective management of the resources. The challenges that the organization has faced due to the defect in resource management in the pandemic era. Several resources such as financial resources, human skills, inventory, information technology, and production resources need to be developed by the organization. “Behavioral management theory”, is further developed by the organization in order to successfully understand the needs and demands of the employees (Mandysová and Kubanová, 2019).
To defeat different difficult situations like the pandemic era, the managers of the organization can incorporate such a strategy as its strategy to treat the employee as essential assets. A more flexible working schedule can be offered by the managers to keep up employee motivation, which is very essential.
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