The Woodstock company is one pf the leading and the finest producer of cricket’s related to products like bat, ball, guard, helmet and other stuff. Located in Southeast city England (the home of cricket), they are operating their 24 shops to providing the specialization items of sports and specially cricket related products, 30 years ago this company took over from the largest project group of company and started to operate accordingly the only objective of their senior management was to maximize the profit and nothing else. After took over the project from another group the CFO along with other board of governance started to work on that how to save cost and maximize the profit. The senior management along with CFO made a budget and use the same old traditional way of costing approach like cut off the budget of each and every shop and evaluate each shop according the planning, Although the head office was bearing the budget related to marketing, branding and advertising campaigns also handled all capital related to overall process.
The CFO introduced the new approach with respect to part timers and set the cost which was £7 per hour for part time employees and it was not good enough of that particular time for those employees. All 24 shops were operating by each manager who were responsible for every day task and operational activities related to their business. Another task of their role was to report all financial numbers to their head office, their main task was to recruit those employees who work under their management also they can set the price or cost of products according to the locality and the price could be variate almost 10% which was given by the CFO of that company, also those managers were paid £27,000 and additionally amount of £8,100 in term of bonuses, but those that bonus were depended on different factors like Director’s assessment criteria and performance above the budgeted cost. The next year budget or annual appraisal which were prepared by CFO showed to all managers, despite the good performance of those shops management cut off their cost which were recognized by managers and one of them complaint that regardless the bad economic condition we have performed better but management has not even give her a bonus which is not supposed to come as an output, most the managers showed their concerns over new budgeted plan.
If we see the costing which is presenting for assessment so we can clearly see in 2016 till September , that if we start from the factor sale so the budgeted were allocate were 532,000 but actual sale were 474,200 which means company bear the loss around 57,800 which hurt the most, secondly cost of sale shows that budget was 212,800but in actual the cost occurred with 189,680 so company get benefit with 23,120, then Gross profit shows the good number for WC as the annual stated that estimate was 319,200 but in actual company’s GP is 284,520 which shows the bad sign in term of profit with difference of 34,680, then marketing side the estimated allocated budget was 24,000 but in actual cost occurred for marketing 23,000 with variance of 1,000, which means the marketing cost were covered with budget.
The staff coting depends on 2 main pillars like managers pay and part time employees who are serving the company by shops. If see the managers expenses so it remained constant which means the estimation which company did and the total budget allocated were same 54,000 so there’s no variation at all, but as far as part timers are concern so the budget was around 76,000 and actual cost was 68,000 which means there are some fluctuations but in positive term by 8,000.
There are 2 main cost include in others, first one is property (Land) cost and second is shop profit, in property cost there’s no variation because of the same amount of actual and budgeted 53,200 but if we see the profit which were generated in budget it was around 112,000 but in actual that particular shop generated 86,320 there’s a clear fluctuation negatively by 25,680/ , which shows the competitively of shop.
Those numbers show that shop was facing some serious issues regarding their profit, sales and gross profit which indicate that the management have somehow serious reservations over these numbers and they allocate the budgets according to those numbers not only for this shop but for other shops as well.
For any company the participation is necessary for any manager or board of governor in meeting specially in kind of budgetary meeting where all discussion is based on next year planning and appraisal has to decide. This is a procedure of thought and dynamic, where in standard individuals conclude how to dispense some portion of a civil or open financial plan. Participatory planning permits people to recognize, talk about, and organize open spending activities, and enables them to make genuine choices about how money has to be spent. Let’s take an example of Covic company who were auto manufacturing company the chief finance officer who were their from last 12 years due to his lack of participation the decisions made highly depended on other and those decision which were suppose to make by CFO but other made create the bad consequences to the company as they allocate their marketing budget much low as every person the importance of marketing and advertisement but they allocate only 200000$ if someone see the company’s portfolio so this allocated budget was not enough to operate in next year and the reason was to cut off the extra cost of the company due to increasing expense so they reduced the cost of marketing and advertisement and then company faced the scenario which were really damageable all of these scenario which company faced due to CFO’s lack of participation in annual participatory meeting where he need to give some valuable points for company and make decisions according to the situations, at last company faced the music because of his lack of interest. (Ssebulime, 2019)
Another example which is allocate with APCO company that their managers were not involved in their annual meeting the at result they all faced negative situation due to lack of information and data sharing of company, the same goes with decision making and budgeting procedure they were not able to make estimation for company as they were lack of knowledge about the main root cause. They knew hoe much important that was process for top managers and specially for finance related executives, as hey have to decide and make the proper plan for a company which make a wrong impact to those managers who undermined that process just because of their negligence.
Participative budgeting is a planning procedure wherein the individuals who are in the lower levels of the board are associated with the spending readiness process. Dissimilar to the forced planning process, participative planning imparts the obligation to bring down level directors to give them a feeling of possession in the business. Participative planning additionally will in general produce financial plans that are more attainable since lower level workers are better situated to advise their managers where supports should be dispensed. At the point when an organization employee’s participation planning, it shows the top administration s trust in its staff. The representatives feeling of proprietorship gives them the inspiration to try sincerely and achieve the objectives that they arranged. The budget faces a higher possibility of being reachable if the individuals setting up the financial plan are proficient about the costs that are brought about inside the company, while the senior managers may have the essential data about the running of the organization, According to (Barsky, 1999) Corporate planning presents a remarkable setting to consider managerial systems since it is a routine, broadly utilized, prominent procedure that joins and effects all organizational functions. Participatory or base up planning is a case of a component received by firms to advance representative strengthening and cross utilitarian association. Firms frequently adopt participatory planning projects to enable representatives by permitting the workforce to set execution targets and distribute resources. The system structure gives off an impression of being very like a geological perspective on a conventional corporate chain of command. As far as the planning procedure, this system is very uncovering about the genuine associations among the players. Be that as it may, the participative planning process was intended to modify the progressive pyramid. By definition, the embraced reason for strengthening programs is to put bleeding edge supervisors at the focal point of forms. (Lerner, 2011)
Spintex shop manager missed the WC’s budgetary practice, which means he missed the main and the most important aspect which may lead to get disadvantage for next year, as company decided the whole budget for his shop as his absence what they decided he can resist at all or make any complaint against those decisions which were made in that meeting.
Barsky, 1999. A core/periphery structure in a corporate budgeting process. Connections, 22(2), pp. 22 29.
Lerner, 2011. Participatory budgeting: Building community agreement around tough budget decisions. National Civic Review, 100(2), pp. 30 35.
Ssebulime, 2019. Budgeting and financial performance.
Knights and Willmott talk about numerous facets of organizational behavior, among which the following five are noteworthy, Power, Identity, Freedom, Inequality and Insecurity. Before we move on into discussing one of these to be the basis of competent, profitable and skillful organizational behavior, we need to have a broader outlook on what need to be addressed as key factors functional in a dynamic organization, influencing managers and workers’ relationship one way or the other. People become a part of many organizations in order to accomplish certain objectives which vary in dynamics and fluctuate from one flux to another but regardless what capacity they fall in, almost every such goal is influenced either directly or inadvertently by the organizational behavior and manager worker relationship. Moreover, in work space several tools together work in cohesion and utmost coordination to bear maximum efficacy and achieve desired results. Talking of such tools the appropriate structure, technology, behavioral relationships of people and environment play a pivot role.
Moving on, now we will discuss freedom and its significance in organizational behaviors. Before jumping right to what freedom means for workers in a workplace, we first need to define how freedom in different parts of the world manifests itself in organizations. Globally it has different meanings. And what is applicable to one region in a conservative part of the world might not be the same for an independent corporate sector in a comparatively liberal part in another corner of this world. With every passing day trends are changing, technology is taking over and modern ideas have sabotaged the old, ancient and versed norms that society once practiced. This twenty first century is the era of globalization and permutation. (Chumg et al, 2016)
This is the era of newness and modifications of the old rotten values that were once considered holy for people. But with all the variations and alterations we still cannot speak with assurance that what freedom means for people under the communist government of China is the same for people in a corporate sector in the United States. But that being said there still exist a wide range of commonalities between the two so in the upcoming paragraphs we would discuss in detail about how significant is freedom for the people in a workplace and what actually do they expect in terms of freedom from the authorities or their managers if we specifically talk about an organization or a firm. (Young, 2016)
As we talk about independent countries and their liberal policies what must be taken into account is the accountability and responsibility that comes along, with the independence that a country achieves. And coming on how in certain organizations the thought processes of people work as they consider being a person belonging to an independent country where he does not only reserve the right to clothing, shelter and education but also possesses every major right to hold his opinion and express it whenever and wherever that particular idea needs to be expressed not even bothering about how that specific thought would be somewhat unacceptable by other people in that area or workplace. If a person thinks that what he has his freedom of choice and expression, the organizations sometimes fail to fall in coherence to a person’s ideas about freedom. Here what should be the essential point of discourse is that how the organization and a particular employee’s opinions or how do we put it here perspectives aligned? Like in what parameters and directions do they fit together with each other or what are the areas of work and growth where changes can be made according to the needs of the two. Now when we talk about someone’s freedom, we are actually taking into context three essential elements. (Bos Nehles et al, 2017) With freedom we are talking about the freedom of thought, the freedom of action and the freedom of words. When these three elements perfectly lie in coherence to each other that is when we say that yes, an employee’s ideals of freedom have been taken into consideration and have been worked upon the right way.
With freedom what else is really important for ideal organizational behavior is leadership and empowerment. Majority of the organizations working globally which have made their name in their particular area of expertise, just to name a few, many multinationals McKinsey, RMSI etc. All these organizations work on the idea of giving their employees whole freedom enabling them to work in utmost harmony and coherence but at the same time making those people their own leaders, giving them the right to work according to their specialty and ability they also made sure to intrude the factor of accountability. Because what has been observed in the numerous researches that have been done and published across the globe is that by giving people absolute freedom to work in accordance to how they want to work does not only improve the work efficacy but also empowers the employees making them believe the idea that they are brainy enough and well suited for the job. (Bonau, 2017)
It works wonders for their mental capacity as they consider themselves empowered enough and intellectual and sophisticated enough to be able to work as on them is bestowed the responsibility, trust and faith of their employers. And this is how one makes people in a work place work more effectively and independently because when those people have the right idea and choice of freedom they not only work because they are being paid for it, they work because they know they are being respected and they are free individuals not chained by the false ideas of authority and slavery where managers consider their employees their good for nothing subordinates and never give them to express their transparent impartial and unbiased outlook in the view they hold or in the work that they are made to do. When employees are granted freedoms bring more innovations and better and right ideas to make their work the best and more effective. And this is how Facebook and Google etc. have made their names worldwide. (Mills et al., 2017)
Yes you read that right, giving autonomy to employees in workplace really works wonders in improving the efficacy of that particular work to double triple to what it was before. So what need to be practiced in organizational behaviors are not authority and strictness but autonomy and freedom. But with freedom, autonomy is just as significant. The employees should have an idea about who are they accountable to. They should never be just let loose and given the freedom to do whatever they want to do. But the right approach is always granting them freedom and then having the right accountability over them so at least they know that they will be questioned for the work they do, in their specific work place. (Sjøvaag, 2020)
Freedom is a robust tool in organizations. And not only does improve the work efficacy but works great deal for an employee’s personal well being, peace and security and also a particular organization’s culture. Also, it has been seen in many organizations that when employees are granted freedom to do things the way they plan on doing it, they make use of their own thought processes and present different, unique and viable solutions to a problem. However we cannot just define freedom in one confined boundary for this one word is not a mere six alphabets word but it intrudes broad domains and some serious reservations that must be taken into account while talking about freedom and its aspects and effects worldwide.
Free speech is crucial but what more important is how to set some boundaries to it in an organization. And it does not only involve the employee’s presence in the work place but also, his presence outside of it where he must know that being granted freedom of choice does not in any way mean that he has the freedom to express any of company’s secret codes, policies or internal crisis to the people outside. So yes freedom is important bit there must be some set defined domains as to how one must exercise his freedom of expression within and outside a company. But what needs to get addressed here is that freedom in a workplace must never be just a trend that the employees exploit. Instead the norms must be renewed and new actions and policies be undertaken with every passing month and year according to the set agenda and needs and wants of a company (Simola, 2018). And most importantly the employees should be making sure that they enjoy their freedom of thoughts, actions and expression but they should always act maturely and never spoil any authority that they have been entrusted upon by their managers in the work place.
Now that we know and appreciate that freed is a fundamental right that must be granted to every individual whatsoever, we need to look into various procedures and policies that various companies undertake in order to grant their employees the right freedom. So, what are various protocols that a company must follow to make sure that their employees have their freedom but also that they are not exploiting it but instead taking it maturely and responsibly?
For that we would now look into some broader perspectives as have been written by many researches in their publications that have been viewed, read and cited in journals across the world. So first off, we need to consider how essential dissent is and how it has to be as respectful as anything. Freedom over time must include inclusion and results in diversity. So, inclusion refers to the focus solely being on the subject matter regardless of who expressed it and in what peculiar manner or in what language or with what emotions. Also, when we take into account dissent, we ought to make sure that the dissent is respectful. Also, when we do not have pour thought processes working in just one direction and when our brains are open to accept new and brilliant ideas with no former preconceived notions that is when we are seriously open and acceptable to the impartial views given by people that they express fully exercising their freedom of expression. Also biases when it comes to the working in a n organization, are deep rooted and it is not always easy to get rid of them, obliterating them to the point where they no longer influence your ideas or your notions and outlook on a number of things.
So, in order to ensure an inclusive organization the people in authority have to make sure that they encourage and pursue freedom of expression and let its course stay the way it is, without bringing undue changes to it and the rules applied to it. Furthermore the other things that must be taken into account involve the modern thinking, radical out looked and unbiased thought process. For that what most essential part is, getting rid of the traditional thinking and old norms? Now it is easy to say that we should get rid of thinking oddly according to the old devised rules but practically speaking it is hard to exercise set rules in one’s daily life. So for that the ideal approach is thinking big and bringing new entrepreneurial skills to the agenda.
Getting rid of traditional conservative concepts does give every employee an opinion and in the long run a deciding vote and fair share of freedom of expression when something either big or small is being decided for a company’s profits. Like for example if a company needs to buy a new model or let us say that a company needs to take into consideration a new methodology that has never been practiced before. In that case all employees are gathered and asked for opinions. Everyone from the senior most to the junior most is present to give in, his own opinion. At such crucial times while drawing a solid final conclusion sometimes the discussion gets all heated up and in the end usually the person who is the senior most or is the most authoritative, intimidating or vocal, his opinions are put over the opinions of his subordinates and this approach is exactly what we are trying to get rid from. We need to break the barriers and freed ourselves of the chains of hypocrisy and authority where the only the opinion of the person who dominates is heard. Rather what our approach should be is listening to and implementing on the best argument quality wise regardless of whether the person making it is a manager or a subordinate.
For the better culture in an organization and for the better values and high morals in a work place in order to double the profits first need to get rid of the already existing norms of injustice and non transparency and partialness. I mean we in this modern era need to have a rational outlook towards organizational behaviors. A company always hires the people with the best resumes. Not just people who have high scores on their SATs, well that are sometimes totally irrelevant because what matters the most for a company is how smart, intellectual an brainy their employees are. So when such passionate and inspiring people are hired, such people never get afraid of holding their sane opinion and voicing them. Such individuals express their arguments with such conviction that sometimes even the managers or CEOs are left in awe. And then, when we have thousands of such people with critical analytical skills working with such precision and accuracy, being granted utmost empowerment and freedom of expression, also such employees being held accountable to their job, such people when present solutions and ideas for accompany that is when a company excels and there exists the vibrant culture of excellence and perfection in a workplace.
Moreover transparency holds equal importance with freedom. In one of the papers written, kit has been mentioned that there was once a seminar of a company where a young recruit asked the company’s CEO if whether there was something he would like to change if given a chance to go back in time. To this question that young recruit was not called stupid or asked to sit down or told that he was not the right person voicing his opinion asking such a thing from the company’s head. Instead he was encouraged and well that is how things need to be dealt. Like every idea, every thought on any or every subject matter that is relevant just be encouraged. This is how the young employees are empowered to work to the best of their abilities to bring food fortune to the companies that they work for. To that question however the company’s CEO answered that whatever decision he took for the company while it was young and they were the emerging years of the company, all those decisions felt like the right thing to do at that point. But now that I look back at them, I feel like giving employees their freedom of actions and expression not only boosts their confidence to a whole next level encouraging them to make even better and the best use of their analytical skills but always brings vast fortune for the company. Adding to it he mentioned how the employees should never be stopped from voicing their legit opinions because that is what helps the company grow and bloom.
Also, diversity in freedom and with freedom once again holds great importance in a work place. In such contexts however the employees should exercise the power and freedom to confront particular organizations blind spots and critically examine their decisions and speak without any fear of being fired from the company. Moreover transparency and openness in communication are vital factors that need to be worked on in an organization. For efficient two way communication the managers or authoritative figures in a company must make sure that their employees are happy and content with the agenda and policies of the workplace and that they can become fully aware of through appropriate feedback from them. A feedback from employees helps to bridge the gap between them and their employers. And not only will their feedback help the managers to create a better working environment for their employees but also, it is critical and valuable for the growth of the company itself as it is the employees who are the closest to customers and suppliers and in that case external stake holders. Hence the employees are the people who can turn in the most valuable and efficient feedback for the better growth of company.
Summarizing the above mentioned account, let us conclude by mentioned the key note worthy factors as of how and why is freedom such a crucial concept to be exercised in an organizational behavior. The job of the manager is control which means setting targets, working on the right agenda and creating an ideal work environment for his employees. Now the thing that matters here the most is how can the employees output of work be strengthened and improved to the extent that the company uses it to their benefit. Well that can be ensured by implementing the right strategies and enabling the employees to practice their freedom of expression and to get out of the fear I holding their thoughts because an efficient and vibrant workplace is that which gives full autonomy to its people working whether they are the people working in any kind of sales, or in accounts, or in human resource or even at the reception or the warehouse. The opinion of each and every employee regardless of what big or small position he holds in a work place is very important. So that being said, a liberated company allows its employees complete sense of freedom and responsibility to take the actions they think and decide are best and foremost for a company’s vision and growth, and what is important here is that they own personal opinions and not their managers’. Concluding, it is hereby mentioned that freedom plays a crucial role in organizational behavior.
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