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The other concept in the area of dynamic business environment is changes in government policies and regulations. Governments change regulations and business policies to regulate business activities. Such regulations may include high taxes imposed on businesses, changes in business registration requirements and policies for reduction in carbon emissions.
Failure to observe these changes in government policies may lead to increased conflicts between the government and the firms thus destabilising business operations. Critical business functions An organization is divided into operation units that perform different functions. Such functions include human resource, sales and marketing, information technology, production or operation, research and development, finance and accounting and customer service.
These functions are undertaken in different levels of management in the organization. These functions are interconnected in different ways. For example, the human resource trains people to work in customer service. The quality of customer service affects the sales generated by the firm. Research and development, generates new methods of production and operation.
Information technology affects the extent to which the sales and marketing teams reach the customers in the market. The accounting and finance departments must work to ensure that the human resource receive their salaries in time as a way of motivating the human resource to perform their duties with dedication.
In this regard, the concepts above are intertwined and they generate a positive effect in the long run if the management does not create barriers between the departments represented by the functions above. Integration of individuals and systems Boone and Kurtz noted that a smooth flow of activities can be achieved in the organization through proper co-ordination between the workers and the organizational management. The three types of communication flow that must be taken into consideration to enhance better business management include; a upward communication; b Horizontal flow of communication and c downward communication flow.
Upward communications refer to communication between subordinates and managers. Managers should create a free and fair environment that allows them to welcome any worker with an issue. Upward communication enhances the relationship between the managers and the workers which make the workers feel as part and parcel of the firm.
Horizontal communications refer to positive relations between people of the same level. This means that departmental managers should develop positive relations in order to increase the connection of service delivery between the departments. This will allow effective information flow between the departments.
In downward communication, messages and information flow from the managers to subordinates. Effective and timely delivery of information from the manager to the subordinates enhances the time within which activities are undertaken in the firm.
A delay in the flow of information from the manager delays every other activity being undertaken in the firm. Therefore, all persons from the manager to the subordinates must work together to achieve the desired objectives. Ethical and social responsibilities that confront a business Ethical responsibilities refer to the acceptable code of conducts that guide the behaviour of people in the organization.
Ethical responsibilities may be determined by the government, customers, competitors and the business environment at large Weybrecht, For example, courtesy in dealing with customers may be an important consideration in beating competitors. The dressing code may be determined by the government to enhance smartness during service delivery both in private and public held institutions. For example, producing high quality products and selling the products at an affordable price is a social responsibility Weybrecht, Additionally, adopting green production methods to reduce emission of green house gases is another social responsibility.
Providing a safe and healthy working environment is another example of social responsibility. Treating customers with courtesy and paying the pending debts in time is another important concept in the area of social responsibilities that confront a business. Positive behaviour concept in the organization includes relating with other people positively and following proper channels of dispute resolution.
It also involves dressing smartly in the office in order to gain respect particularly from the customers. Ethical and social responsibilities are important considerations in the organization without which the business may not yield the desired objectives. Conclusion In the above sections, different areas that touch sufficiently on operations in the firm have been discussed.
They include dynamic business environment where concepts such as economic changes, market conditions and changes in business regulations and policies.
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