BSS064-6 Leading and Managing Organisational Resources Assignment Sample
Module code and Title: BSS064-6 Leading and Managing Organisational Resources Assignment Sample
To
CEO of “The Broadsword Production Group”
From
Members of “board of director (BOD)”
Subject Line:
Introduction and purpose
Management is an important part of an organisation that guides organisation toward sustainability to achieve better future performance. More specifically, business management refers to coordination and organising the way of business activities. During management processes, organisational managers are able to oversee operation and effectively guide employees to achieve top productivity levels.
There are different types of management processes available for organisations that assist in effectively managing resources within an organisation. In case of SMEs, management is a necessary factor that provides them the proper guidance towards improving business activities to achieve higher sustainability. An organisation management is usually divided into different levels that are “top level managers, middle managers, fast line managers and team leaders”. Usually management focuses on development of a decision tree that assists in creating a flow in organisations.
Decisions come from top level and it is shared among members of organisation to achieve better productivity and profitability. This study has focused on two different management factors in an organisation that are “Corporate governance and leadership”. These two factors have a higher influence on organisations management processes to effectively manage resources and assist businesses to grow in market. This study has explored opportunities and challenges of corporate governance and leadership that occur among SMEs. This study has focused on a SME from UK called “The Broadsword Production Group”.
Critical analysis and evaluation
Corporate Governance
Figure 1: Corporate Governance (Sources: Influenced by Jurakulovna and Bahodirovich, 2021)
Corporate Governance (CG) is an organisation system by which businesses are usually directed and controlled. As followed by Jurakulovna and Bahodirovich (2021), organisations’ board of directors are usually being the one responsible for maintaining governance in an organisation. Apart from this shareholder’s role in governance to appoint directors and auditors depending on their choices for satisfying their own needs.
It has been identified that majority of organisations get a higher benefit by implementation of CG in their company. Although, it case of SMEs, they face higher challenges during implementation of CG. As mentioned by Gallagher (2018), SMEs face challenges while trying to survive in a competitive business environment. Lack of resources availability for SMEs often affects running an organisation having to immerse themselves in variety of operational functions.
Therefore, SMEs usually neglect strategic issues such as Strategic governance. In case of Broadsword Production Group, they were also facing similar challenges that majority of SMEs had faced during implementation of CG (WEAREBROADSWORD, 2022). Therefore, they have to focus on improving CG in organisation to achieve higher profitability.
Finance
In case of managing finances CG plays an important role in organisations and assists companies to grow business faster. It has been identified that, in an organisational financial investment CG plays an important role (OECD 2021). Growing in market SMEs have to involve in financial investment and CG provides them higher effectiveness.
During the investment processes, cooperation and a constant search for most effective way for combining the resources are required in producing an adequate amount of goods and services. In this context, CG has the economical ability to match commercially visible projects with available financial resources to make the project profitable for enterprises.
It has identified that capital resources are one of the important resources that are essential to make a competitive organisation. However, during management of financial operation SMEs such as Broadsword Production group has to face challenges in maintaining statutory laws and regulations.
As commented by Santri et al. (2022), statutory laws and regulation involve the public policy domain and in this case, CG is generally regarded as a means to advance SMEs towards economic growth. Organisation such as Broadsword have organised events in different places. Therefore, they have to understand their regurgitations effectively to organise events without any complications.
On the other hand, increasing financial resources for SMEs shareholders are a necessary point. In this context, different countries have different company laws that they are required to maintain to provide better opportunities to shareholders. In recent times, company law used a vehicle to improve transparency and protection of shareholders rights (OECD 2021).
In case of SMEs, usually they were unable to maintain company laws that affect the existing shareholder they have. Therefore, shareholder not receiving better opportunities by investing in organisation they might withdraw their fund that affects organisation financially.
Ethics
Business ethics is always part of good corporate governance in an organisation. Maintaining ethics is necessary for businesses to achieve better results while operating business in the market. As mentioned by Price (2018), fair treatment of shareholders is an important role of corporate governance. A good CG would be able to protect all shareholders and their rights during involvement with organisation.
Moreover, fairness to shareholders would assist organisations in achieving foreign shareholders. Increasing in shareholders count is always effective for an organisation increasing financial strength. However, in case of SMEs lack of effectiveness in corporate governance they were unable to maintain fairness for shareholders. As reported by Siegel et al. (2019) SMEs having lack of experience and effective top level managers in organisation is the main reason behind facing challenges in CG.
Therefore, to mitigate this type of challenges for Broadsword production group they have to focus on providing shareholders better opportunities when they involve themselves with organisation. Maintaining ethics and fairness SMEs were able to achieve good investment that ultimately provided benefits in improving economy. Organisations are able to attract both national and foreign investor for businesses to increase financial ability. Hence, in long-term business operations SMEs required to have a good CG with ethics to achieve better performance in market.
Sustainability
Figure 2: Corporate Social Responsibility (Sources: Influenced by Franco et al. 2020)
Effective CG is not only effective for companies, it also provides benefits to society. As mentioned by Farnham (2022), CG assists organisations to improve strategically by providing effective strategies. CG in SMEs usually involves strategic planning for organisations to make better decisions for organisations that assist in gaining sustainability for future.
It has been identified that corporations gain interest in sustainability in recent times. Corporations that are able to recognise their business impacts, then environment creates a sense of accountability to society. Sustainability is a strong concern for SMEs for the future business operations.
It is considered a corporation interest to oversee social responsibility that usually provides higher sustainability for SMEs. CG plays an important role in implementation of “Corporate Social Responsibility (CSR)” (Worokinasihand Zaini, 2020). Although, in SMEs CSR implementation is usually gets neglected over other business operations. Majority of SMEs neglect CSR over other business activities that would provide them better economic advantage.
As reported by Franco et al. (2020), CSR refers to an idea that plays a positive impact in organisations by focusing on community considering environmental and social impact. However, compared to other business activities CSR provides a long term sustainability focusing on environmental and social responsibility. As reported by Al-Abri et al. (2018), lack of finances, human capital knowledge and expertise in SMEs affect CSR implementation. During CSR this factor effectively assists organisations in developing effective strategic planning that would provide organisations better sustainability for future. For instance, SMEs are unable to have strategic vision and also affect CSR implementation.
Leadership
Growing SMEs to a large organisation effective leadership is necessary for companies. As mentioned by Daniëls et al. (2019), leadership refers to ability of a person or a group of individuals who are able to influence or guide a group of people to achieve goals. Every organisation has a particular goal that they want to achieve through effective operation business activities. In this case, leaders are the one who provide the organisation and its employees the proper guidance to achieve the goals faster.
As reported by Gandolfi and Stone (2018), leaders are able to improve organisation management capabilities using personal skills. Leaders usually involve management activities such as operations, finance and human renounce management in an organisation. Hence, having better leadership capabilities is necessary to have among the employees in an organisation to improve business faster.
Although, SMEs having lack of experience in leaders are usually affect their management capabilities in different management departments that restrict them from achieving higher profitability (Nouar and Popovics, 2022). In case of Broadsword production group, this company has more than 25 employees, which indicates a lack of employee power within organisations. Moreover, effective leaders with higher leadership experience do not want to work in SMEs of low salary scale. SMEs are unable to pay higher salaries to experienced people like large organisations. Hence, SMEs have to work with leaders that have decent leadership capability.
Traditional Perspective
Leadership has different styles and every leadership style is different from each other and provided effective benefits depending on business needs. As mentioned by Rizvi (2022), traditional leadership is a leadership style that refers to a person’s capability to direct and influence an organisation or group of people towards particular goals. As commented by Koenane (2018), traditional leaders have the power to make decisions in an organisation without consulting any other top level members in organisations.
In case of SMEs, traditional leaders able to create rule within organisation the way employees are going to be behave. Moreover, they also have the control over organisation resources such as money, time and people. Hence, it indicates that traditional leaders have an important role in an organisation’s resources management processes.
Apart from this, type of leader in SMEs have the personal qualities such as integrity and charisma that assist SMEs in developing informal networks such as trust that allows organisation to create better relationship with others to grow businesses. For instance, a traditional leader in organisation can provide benefits such as handling pressure. In this case, this leadership style would provide assistance in guiding organisation towards right path.
Apart from this, SMEs have to face some traits while having a traditional leadership style within an organisation. Traditional leaders are having higher authority such as having power to take decisions without discussion might create challenges for SMEs. Therefore, leaders taking any wrong decision would affect the overall organisation. In case of Broadsword, while event planning, traditional leaders making any wrong decision would affect the event and reduce their profitability.
Regenerative Leadership
The phrase “Regenerative leadership” is being increasingly used to refer to the implementation of living systems thinking and being expressed in leadership in all its shapes and forms. As commented by Long (2020), regenerative leadership, it has been emerging as a concept over previous years that assists organisations in achieving sustainability. It has been identified that sustainability in leadership is based on ways leaders deal with specific challenges that occur in organisation.
In recent times, this leadership style has become a paradigmatic shift regarding leadership and organisational development. In case of SMEs, development is main factor therefore, following a regenerative leadership style would be more effective for organisations. Regenerative leadership provides a concept and approach that supports SMEs and its leaders their own development transitions. Hence, making the change in organisation such a Broadsword regenerative leadership would be most effective.
Contemporary leadership in Technology sector
A contemporary leader is the one that got influenced by collaborators while they are working together to achieve changes in an organisation. As commented by Deepdisha (2019), contemporary leadership style is more likely related to parenting in recent times. It has been identified that leadership has three different variables that are the leaders, his or her followers and conditions that are directed by situations. As mentioned by Bett et al. (2020), contemporary leadership includes leadership styles such as transformational leadership and visionary leadership.
As followed by Kotamena et al. (2020), transformational leadership is one of the popular leadership approaches to develop. In case of technology sectors, the transformational leadership style of leaders would be most effective. Technology sector has been changing because of high technological availability in market. In recent times, technologies have been improving day by day and leaders are required to effectively guide organisations in adopting these technologies to achieve better business activities. Therefore, transformational leadership style provides effective skill to leaders that assist in adopting these technologies and assist SMEs to grow.
Conclusion and Recommendation
Organisational heads or “Board of Directors” develop different guidelines and represent them as “Corporate Governance” for having a control over organisational functions. These guidelines are developed in a manner that would aid in achievement of organisational goals through maintenance of them. “Board of Directors” are not responsible for implementation of these guidelines within organisation.
They recruit leaders within organisations for implementation as well as maintenance of “Corporate Governance”. Leaders are responsible for guiding different groups who are responsible for different types of activities. Different types of leadership principles are there, from which leaders choose a single type of leadership approach. These leadership approaches are chosen by leaders according to their abilities and organisational functionalities.
This email has mentioned different types of impacts of “Corporate Governance” on SMEs along with discussions on different forms of leadership styles. Issues related with Traditional, Regenerative, and Contemporary leadership styles have been discussed with regard to SMEs. Moreover, issues occurring due to improper corporate governance and Leadership styles have also been discussed with regard to “The Broadsword Production Group”.
These discussions included within this email would create awareness and understanding about different types of issues faced by SMEs. Some recommendations such as incorporation of digital devices, analysis of organisational functionalities and many more can be provided for solving issues related to corporate governance and Leadership styles.
Leadership styles have evolved over time, and various leadership styles incorporating modern techniques are in practice. These types of leadership styles should be tried and also before implementing any leadership style organisational activities are required to be analysed. This will provide proper ideas about functionality of organisations and a chance of aligning leadership principles with them.
In case of “Corporate Governance”, during their formation, “Board of Directors” should gather insight from organisational executives about organisational functionalities. This will lead to development of more appropriate guidelines for controlling organisations. Moreover, achieving organisational goals would become easier with implementation of these guidelines within an organisation. Managers and executives responsible for controlling and monitoring different organisational functioning should improve their work procedure through incorporating modern technologies.
These technologies would enable them to convey their guidelines to employees working within an organisation. These will also aid them in gathering insights of organisation from employees about different activities and issues of organisation. These insights can be further conveyed to “Board of directors” and they can implement changes within organisational guidelines as per necessity. Implementation of these changes will lead to enhanced productivity of organisations.
References
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