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Sample Essay on Questions for both Presentation, Two Research Papers Included In the Attachment and Paper Instruction

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Sample Essay on Questions for both Presentation, Two Research Papers Included In the Attachment and Paper Instruction

1.0  Introduction


Businesses have a lot to consider for them to prosper. Some basic knowledge concerns the organizational purposes, the economies in which they operate in, and policies and regulations that affect them. This essay has discussed all these issues. It has discussed the purposes of different types of organizations, how the organizations can meet the needs of different stakeholders, and organizational responsibilities and strategies that such organizations can use to accomplish their responsibilities. Section two has discussed economic systems, the impact of fiscal and monetary regulations, and the effect of competition policy.

1.1 The Purposes of Different Types of Organisations

Organizations are social institutions with certain common features. There are certain common features of organizations that define their differences. An organization must have a goal or goals. An organization must also have leaders and directors who influence its direction and its purpose. This explains the existence of different kinds of organizations. There are commercial organizations, public sector organizations, non-for-profit organizations and co-operatives. Commercial organizations mostly aim at making profits. This goal drives the development of its structure, and the stakeholders involved. Non-for-profit organizations are also a variety. There are mostly organizations that seek to improve the well-being of the people, for example; civil society organizations, charity organizations and trade unions (Mukherjee, 2005).

The public sector covers several different organizations. These are formed depending on the government functions. An example is to protect the people. The aim of security organizations in the public sector, are, therefore, to provide protection. There are health care organizations that ensure the citizen’s well- being. There are economic organizations that ensure the economic well-being of the nation. This can comprise of the banks, businesses, financial institutions, and many more (Mukherjee, 2005). Non-governmental organizations are those working for cultural, social, educational, economic, and religious cause (Abraham, 2011). Co-operatives are organizations that are managed mutually by its members. These organizations in size, the degree of permanence, processes, structure, complexity, resource use patterns, functions and so on (Mukherjee, 2005).

1.2    The Extent to Which an Organisation Meets the Objectives of Different Stakeholders

Stakeholders are different, and they also have different objectives. These are accomplished through the functions of the organization. Management of stakeholders requires prioritizing them. Mersino (2013) indicates that there are stakeholders who can stop the progress of a project, for example, a sponsor. In such a case, their objectives should be given priority. The organization meets the objectives of the sponsor by engaging in activities that will accomplish the needs of the sponsor. If it is a non-governmental organization, and the sponsor wants funds to reach the poor, the managers will have to initiate projects that will ensure such funds reach the targeted people. The management also has to show accountability of the funds (Mersino, 2013).

Stakeholders are those entities that are involved in the achievement of organizational objectives. They include; customers, shareholders, suppliers, local communities and employees. The objectives of these stakeholders are met by different management functions of the organizations (Sharma & Starik, 2004).

The objectives of the employees are to exercise their knowledge, skills and experience for the productivity of the organization. In return, they should get job satisfaction, good wages, protection of their rights and a good working environment among others. This is all accomplished by the human resource management function of any organization. The suppliers seek to sell their goods and services to the organizations. Organizations provide a market for them by buying these products and services. Shareholders provide the funds for investment.  The organizations have to work to achieve a targeted return on investment to improve shareholder value (Sharma & Starik, 2004).

There are different ways through which shareholder value can be improved. There can be new projects initiated to make more profit; the management can change its leadership style to motivate employees, and it can also change some of its processes to increase productivity.  Customers receive the product or service that the organization produces. For businesses, these are goods and services that they expect the customer o buy. The goods and services have to meet the needs of the customer. For other organizations, it depends on the purpose of the organization. In the case of trade unions, for example, the customers are the members who enjoy the products of collective bargaining by the trade union (Friedman & Miles, 2006).

The local communities benefit from the organizations differently. Mostly, it is the products of the organizations that they enjoy. Business organizations have social responsibility projects which benefit the local communities. In the case of non-governmental organizations, the public sector organizations, the services they provide are consumed by the local communities (Friedman & Miles, 2006).

1.3 Responsibilities of an Organization and Strategies Employed To Meet Them

Organizations have different responsibilities that are defined by their goals. A non-governmental organization cannot have the same goals as a car manufacturing organization that intends to make profit. These goals influence the kind of structures and strategies that they employ to perform their responsibilities. Organizations have legal, economic, social and ethical responsibilities among others. Legal responsibilities are the expected commitments in laws and regulations that the organizations are supposed to meet. Under economic responsibilities, organizations have the responsibility of ensuring that their financial and cost-effective functions are met. Ethical responsibility entails the ability of the organization to abide by the accepted principles of moral and immoral while carrying out their business operations (Aquinas, 2009).

Organizations employ different strategies in ensuring these responsibilities are performed. They can use different models of structures that are compatible with their functions to accomplish those functions. There are, however, four main management functions that determine the strategies that can be used. These are; “planning, organizing, leading and controlling” (Mukherjee, 2005, 49). Planning strategies are used to determine the future goals of the organization and how it will accomplish them. The strategies help in identifying the resources and tasks needed to accomplish the organizational missions. Organizing strategies are those used to implement the activities of the organization according to plan. If the plan says there is a project to be implemented in December 2014, the management has to identify which departments will carry out which activities and how (Mukherjee, 2005). It has to assign duties and resources to various departments and people in the organization.  Leading strategies are those that managers and other leaders in the organization use to influence employees to accomplish the goals of the organization. Controlling strategies are those used to monitor the activities of the employees and the direction of the organization towards achieving its goals (Mukherjee, 2005).

2.1 How Economic Systems Attempt To Allocate Resources Effectively

There are three types of economic systems through which resources can be allocated effectively. There is a command economy, the free market economy, and mixed economy.

2.1.1Command Economy

This is where all the resources are owned and controlled by the government. The allocation of resources is done by the government. They command what resources, the amount and the place where such resources should be allocated. An example of such resource allocation is when the government decides which areas should receive a specific amount of funds for the building of hospitals or schools. This type of allocation of resources is efficient when it comes to dealing with situations of scarcity. For example, when there is a war, or a natural disaster (Grant & Vidler, 2008; Tucker, 2008).

2.1.2 Free Market Economy

This type of resource allocation is totally different. The individuals and not the state are responsible for resources allocation. They own all the resources, and they are the economic decision makers. There are self-directed and free market forces that control resource allocation. In this case, the state does not intervene in determining what is to be produced, how, and who consumes it. Instead, the producers determine how to produce, and the consumers determine what is to be produced. The consumers’ purchasing power determines who gets the product (Grant & Vidler, 2008; Tucker, 2008).

 2.1.3 Mixed Economy

This type of economy involves a combination of a command and free market economy. Resource allocation is through the government and free market forces. In this economic system, there are certain private sectors where market forces influence resources allocation. There are also discrete public sectors where resource allocation is purely by the government. Most economies are a combination of the two. There are sections controlled by the government, and there are areas that the free market ensures effective resource allocation (Grant & Vidler, 2008; Tucker, 2008; Faul, 2008).

2.2 The Impact of Fiscal and Monetary Policy on Business Organisations and Their Activities

Fiscal policies are rules guiding government decisions on taxation and spending. The government can decide to increase spending in order to stimulate economic growth. In such a case, the demand for goods and services will e high, and this will make organizations increase their production. Increased production improves the performance of the organization depending on its market position and other external factors. Taxation practices also affected organizations. High taxes on certain products may mean the government is cutting on production to achieve specific goals in the economy. If this happens, the organizations involved will be negatively affected, especially if such a taxation move was not expected (Ghuman, 2010; Khan & Jain, 2007).

Monetary policy is a strategy by the government for controlling interest rates and money supply. This may affect the purchasing power of the consumers for certain products. Monetary policy affects the economic money supply. When the government wants more money supplied in its economy, it will buy securities from its citizens. When the government intends to reduce the money supply, it put up the securities for sale. This control affects the rate of cash flow and consumer spending. It in turn affects the consumption of goods and services from organizations (Ghuman, 2010; Khan & Jain, 2007; Khan & Jain, 2005)


2.3 The Impact of Competition Policy and Other Regulatory Mechanisms on the Activities of a Selected Organisation

Efficient working of the markets is determined by the competition in them. This is why the competition policy and other regulatory mechanisms are meant to safeguard and promote competition among firms. This then ensures reduced misallocation of resources that may result from the market power. Take the example of a well-established shoe company that intends to control the market because of its size, position in the market, and resources. Availability of competition policy and other regulatory mechanisms prevents such firms from being monopolistic. Such a firm may discourage entry of new firms in the market, hence take control of the quality of shoes that the customers get. It may also control the suppliers to receive goods and services from and the prices in the market. Competition and other regulatory mechanisms ensure that the market provides the consumer with the best in terms of price, quality and variety. It also improves the competitiveness of the market internationally (Symeonidis, n.d; Voigt, n.d; Department for International Development, 2008).

3. 0 Conclusion

This discussion shows that business management entails diverse issues. The type of business determines its functions, the stakeholder has objectives to be met, and this has to be well managed, and it has to select appropriate strategies for effective management of its responsibilities. Organization performance is also affected by government policies such as competition policies and monetary regulations. An economic system in which an organization also operates has to be analysed. There are economies that have a high proportion of resource allocation determined by the government. There are those that are mostly determined by the private institutions. In all these economies, organizations have to select the most suitable for its operations.




















4.0 References

Abraham, A., 2011, Formation and Management of NGOs: Non-governmental Organisations, New Delhi: Universal Law Publishing.

Aquinas, P. G., 2009, Organization Structure and Design, New Delhi: Excel Books India.

Department for International Development, 2008, Why is Competition Important for Growth and Poverty Reduction? Paper Presented for OECD Global Forum on Investment.

Faul, 2008, Business Environment: Test & Cases 2E, New Delhi: Tata McGraw-Hill Education.

Friedman, A. L. and Miles, S., 2006, Stakeholders: Theory and Practice, Oxford: Oxford University Press.

Ghuman, K., 2010, Management: Concepts, Practice & Cases, New Delhi:Tata McGraw-Hill Education.

Grant, S. and Vidler, C., 2008, Economics in Context, Portsmouth, New Hampshire: Heinemann.

Khan and Jain, 2005, Basic Financial Management, New Delhi: Tata McGraw-Hill Education.

Khan and Jain, 2007, Financial Management, New Delhi: Tata McGraw-Hill Education.

Mersino, A., 2013, Emotional Intelligence for Project Managers: The People Skills You Need to Acheive Outstanding Results, New York: AMACOM Div American Mgmt Assn.

Mukherjee, S., 2005, Organisation & Management And Business Communication, New Delhi: New Age International.

Sharma, S. and Starik, M., 2004, Stakeholders, the Environment and Society, London: Edward Elgar Publishing.

Symeonidis, G., n.d, Competition Policy.

Tucker, I., 2008, Survey of Economics, 6th Ed., Mason, OH: Cengage Learning.

Voigt, S., n.d., The Economic Effects of Competition Policy – Cross-Country Evidence Using Four New Indicators.



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