Concept of explanation: Management 2

Question 1. Macro- level environment of business management

A macro-level environment develops when a manager lets employees do their jobs with minimum supervision and does not give them enough support or feedback to do their jobs effectively. Technology and structure and power and politics in organizations and organizational culture are two important topics in macro- level management. Technology and structure are essential in macro-level environment as this form of management provides minimum supervision. Technology provides remedy for limited support or feedback in order to increase productivity of an organization (Gavin, B., 1995).

Macro level environment in business management depends on innovation, responsiveness and responsibility of the staff. Enhancing these issues requires focus on a number of leadership, power and influence issues. The political frame of a company influences the developing teams at the strategic level and also managing organizational processes that relate to the values and ethics, organizational culture, vision, and the management of change (Gavin, B., 1995).

The understanding and effective administration of a stable internal political frame and efficient technology and structure will allow a company in Wichita to improve its management system. It gives a company competitive advantage over the other businesses in Wichita. These topics are both potential opportunities and threats. It all depends on the capacity of a business to effectively maximize on the political frame and technology and structure to increase productivity (Gavin, B., 1995).

Question5. Merits and demerits of profit

Profit refers to any financial gain made by an organization for the sale of goods and services it provides. Every profit- business starts to earn profit as its main agenda for the survival and growth of the business. It raises concerns, however if profit should be the main objective of an institution. The following are some of the reasons profit should or should not be the main goal for any business. Profit acquired in an organization forms surplus that is essential for the growth of that organization. Profit also acts as a reward for human effort and inspires additional effort (Brigham, E., 1979).

The company also depends on the production of profit that meets expenses incurred during periods of recession. It means that profit is mandatory for the survival of the company. Profit also helps the organization evaluate its standards of productivity and performance. The expansion and diversification of a company rely on the profits received by a company (Brigham, E., 1979).

Although the profit as the main purpose of an organization has its merits, it also has demerits. It leads to over-exploitation of the workers in order to achieve maximum productivity. It also leads to over-exploitation of the customers to maximize sales. Emphasizing on profit encourages reduction in corporate social responsibility and provides room for corrupt practices. It also leads to a state of social inequality in society. Based on the merits and the demerits discussed earlier in this essay, I consider profit vital for any organization (Brigham, E., 1979). Profit should be the main objective of any organization. However, while aiming to increase profit the company should be open to other factors such as customer satisfaction and business ethics.

Question 8. Organizational change

Organizational change occurs every day in businesses due to an ever changing business environment. A good example of management change is the unsuccessful change of the internal structure of Google by the co-founding CEO Larry Page. Page hated the concept of additional manager, people who could meet with him and other senior executives. The additional managers could also assign the engineers prioritized orders and deadlines. He believed that the extra layer of supervision was not necessary since Google hired only the most talented engineers.

Larry created a VP of engineering named Wayne Rosing who reported directly to him. Larry Page was able to control the projects done by the organization, as well as some engineers thriving under minimum supervision. The reorganization did not last as problems arose. Problems such as; redundancy became an issue; projects that needed resources didn’t get them; and the engineers desired feedback. Larry Page eventually rehired project managers. If I were in Larry Pages’ shoes, I would do the thorough consultation before making any changes. I would also do an extensive visibility study of the potential opportunities and the consequences of making the change.

Reference

Brigham, E., (1979). Financial Management: Theory & Practice., New Delhi., Atlantic Publishers & Distributors.

Gavin, B., (1995). Competitive and cooperative macro- management: the challenges of structural interdependence., Northampton., Edward Elgar Publishers

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