Management Assignment: Five Contextual Factors Influencing Business Competition
Question
Task:Write a short 150 word introduction discussing why the contextual factors are important to organisational decision making. The introduction is 150 words in total not 150 words per article.
Dang, R., Houanti, A. L., Le, N. T., & Vu, M.-C. (2018). Does corporate governance influence firm performance? Quantile regression evidence from a transactional economy. Applied Economics Letters, 25(14), 984-988. DOI: 10.1080/13504851.2017.1390309
The main contextual factor discussed in this journal article is organisational governance. Specifically the authors applied a new research and analysis approach to studying the relationship between governance structures and firm performance in Vietnamese organisations. Three aspects of governance were examined: board independence, CEO duality and board size. The research found that the higher the proportion of independent directors on the board, that is directors who neither work for the firm nor have extensive dealings with the company, the lower the performance of the firm. Likewise, when CEO duality is present, that is the CEO also serves as the board chair the lower the performance of the firm. However, the research found no relationship between the size of the board and the performance of the firm. In this research, firm performance or return on assets was measured by calculating operating income before depreciation divided by total assets.
The implications of this research is that firms should carefully consider the structure of their boards if they want high performing organisations. Specifically, the board directors should have some association with the firm as it appears that when a director works for the frim or has regulator contact with the firm, this intimate knowledge and understanding improves the performance of the firm. In addition, firms should carefully consider keeping the board chair position separate from the management structure of the firm; in particular, the CEO should not be the chair of the firm.
Write 4 more summaries that cite the reference first following by a description of the main contextual factor being discussed in the journal article, the new findings in relation to the contextual factor, and what these findings mean for managers in organisations.
Write a short 200 word conclusion recommending one specific contextual factor as most important to CQUniversity’s organisational performance. Explain your reasoning.
Answer
Introduction: In this management assignment, annotated bibliography is done to focus on discussing five main contextual factors which have to be considered by the business to be able to survive in the existing situations in which the competition level is very high. The topics of discussion taken are organization governance, business practices, environment of business relating to political environment, risks present in the business and the diverse functions of business. The journals have been chosen of the recent dates and they also belong to the list of journals given. This management assignment discusses the summary of each journal and how this has benefitted the managers.
Organization governance
Abdullah, S., Ku Ismail, K., & Nachum, L. (2014). Does Having Women on Boards Create Value? The Impact of Societal Perceptions and Corporate Governance in Emerging Markets. Strategic Management Journal. doi: 10.2139/ssrn.2538595
The study has focused on how gender diversity in the organizations results in Board of director’s efficiency and independence. The presence of the female director sin the Board of directors of the company leads to effectiveness of the Board and the forms tend to adjust more in the complex working environment. The female directors overall lead to the positive signal in the encouraging of the ethical behaviors of the business. The journal has highlighted that how gender diversity has become an important corporate governance issue in the today’s times (Abdullah, Ku Ismail & Nachum, 2014). The performance of a firm would be positive only if the Board of a company is gender diversified. the corporate governance codes address the issue that the Boards have to consists of the independent directors.
This contextual factor of corporate governance has assisted in knowing that to what extent the management must try to incorporate the corporate governance in their strategic decisions and this also includes the composition of the board. So this has helped in understanding that how important is this issue and if the management needs to get correct signs regarding the effectiveness of the Board then they have to consider this honestly. This is also understood that the independence of the Board meme’s is also not important if the gender diversity is not maintained in the board. So the management while hiring the people in the concern before giving important positions must indulge themselves in sustainable business practices. The study in the journal has been made by linking for the political risks which were faced by the companies like Google and Yahoo after the conducted their activities in China. Using the format given below will help you in drafting the annotated bibliography in management assignments in a descent way
Environment forces
Stevens, C., Xie, E., & Peng, M. (2015). Toward a legitimacy-based view of political risk: The case of Google and Yahoo in China. Strategic Management Journal, 37(5), 945-963. doi: 10.1002/smj.2369
The article has highlighted the need to have a holistic approach towards the political risks faced by the concerns. The political risk has changed in its nature but the importance of this has almost remained same. The journal explains that how the firms can control or mitigate the political risks faced by them. This happen to firms as a result of the bargaining position but due to the actions of the firms and this influences their legitimacy, bargaining power and political institutions in which they exist (Stevens, Xie & Peng, 2015).
The managers have come to know from this article that the many societal and governmental factors influence the motivation for government to interfere in the activities of the firms. This has provided an insight about the holistic understanding the political risks present in the market. This has aided in knowing about the dynamics which work between the forms and the government bodies. The companies must adopt an overall holistic view or approach towards the political risks and they must be dealt in a careful way. There is a need to build a legitimacy based view about the political risk and that there is a lack of understanding between how government ‘s motivation is influenced by the societal factors. The managers got to understand about new lenses through which they can know about the political risks
Risks to firms
Mukwasi, C., & Seymour, L. (2012). Enterprise Resource Planning Business Case Considerations: A Review for Small and Medium-Sized Enterprises. Journal Of Management , 1-15. doi: 10.5171/2012.752328
The journal has highlighted the enterprise risk management issue which is a risk management technique used of addressing all the risks present in the functional areas. They have discussed the various reasons due to which risk management is not being done by the enterprises in a proper manner and this is the reason that Enterprise risk management is mostly used by the large corporations. The journal has highlighted the role played by Enterprise risk management and how this leads to lowering the cost of capital and in mapping of risks (Mukwasi & Seymour, 2012). This overall provides framework regarding the continuous process of adjustment and change. The focus is to implemented a culture of ERM- culture in the organizations on a large scale and at the same time the tools must be used to evaluate that whether the ERM has been implemented properly or not.
The managers after studying the contextual factor have come to know that how enterprise risk management can help in managing various risks which are faced by the concerns. This works as a disciplined and comprehensive process on how the small scale enterprises can take their step forward towards the growth. then the application of ERM is not just important but at the same time this needs to be implemented properly so that the failure rates can be reduced. This would increase the growth and sustainability of the small scale enterprises. This way the managers can try to make use of the business environment of successful SME’s to successful economy.
Sustainable business practices
Ortiz-de-Mandojana, N., & Bansal, P. (2015). The long-term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631. doi: 10.1002/smj.2410
The journal has explained that how the companies which adopt the sustainable business practices tend to get better benefits in the future. This has been examined by studying the environmental practices of USA based firms and then the long term effects of such practices was assessed. They have asserted that how environmental and social practices contribute to the resiliency of the organizations and results in getting at the long term outcomes which are lower financial volatility, better chances of survival and higher growth rate of the companies. This way they have concluded that the business for achieving long term perspective must indulge themselves in responsible business practices (Ortiz-de-Mandojana & Bansal, 2015). In the case of the family businesses this helps in alignment of the family values to the firm and to social well -being. Then in this the short term returns must not be given importance over long term benefits.
The managers after studying the contextual factor have been able to know the importance of the sustainable business practices. They tend to benefit both the short term and the long term results accrued to the corporations but still the long term results are better than the short term ones. So the managers have helped in understanding the relevance of the corporate governance and the evaluation of such practices in the long term period. In the times to come the firms would have to indulge in such sustainable practices. this way the journal has explained about the benefits derived from the sustainable business practices relating to organization resilience.
Functions of diverse firms
Leroy, H., Anseel, F., Gardner, W., & Sels, L. (2012). Authentic Leadership, Authentic Followership, Basic Need Satisfaction, and Work Role Performance. Journal Of Management, 41(6), 1677-1697. doi: 10.1177/0149206312457822
The journal has helped in finding that the authentic leadership helps in strengthening the relationship between the follower need sanction and the attach followership. They have tested the self-determination theory to test the relationship between the leadership and followership and has aided in highlighting the implications of the performance in the authentic leadership. It also suggests that the performance advantages form a leadership can be known by considering the basic needs. So overall self -determined motivation of work is not determined by the working of a leader or follower (Leroy, Anseel, Gardner & Sels, 2012). This instead arrives from the synergistic effects in which both leader and follower combine to get the desired results.
The mangers through this journal have become aware about the new approach to leadership which is inherent to the turbulent and current work environments. The results have helps the managers in getting guidance as to how the employees can find the motivation levels to indulge in adaptive, proactive behaviors which helps them in better performance in the turbulent and current work environments.
Conclusion
After a comprehensive discussion about all the journals, in this management assignment it can be summed up that the most important of all which seems to be important for CQ University is the sustainable business practices. The University is dual sector University of Australia and it is based at Queensland ("Home - CQUniversity", 2018). The sustainable business practices can be applied to it as such kind of practices would become imperative for the success of the businesses in the coming times. They can choose any type of sustainable practices like in relation to environment, employment or any other. This would be good for the environment as the sustainable business practices would help the University to do good of the environment. This would help the University to attract and motivate the employees. The happy employees tend to be most productive employees. Then lastly this would eventually result in increasing the rotation for the University. More students are drawn to the business which have sustainable practices.
The good reputation of the university would get spread throughout the communities where ever the branches of the University would be found. This has actually become a new reality and the businesses can’t afford to overlook these sustainable business practices in the times. So sustainable business practices are recommended for CQ University. You can observe that in this management assignment a detailed analysis of peer reviewed journals is being conducted which helped us to arrive at this conclusion. The student had consigned us with this task because it was a Management Assignment holding very demanding deliverables.
References
Abdullah, S., Ku Ismail, K., & Nachum, L. (2014). Does Having Women on Boards Create Value? The Impact of Societal Perceptions and Corporate Governance in Emerging Markets. Strategic Management Journal. doi: 10.2139/ssrn.2538595
Home - CQUniversity. (2018). Retrieved from https://www.cqu.edu.au/
Leroy, H., Anseel, F., Gardner, W., & Sels, L. (2012). Authentic Leadership, Authentic Followership, Basic Need Satisfaction, and Work Role Performance. Journal Of Management, 41(6), 1677-1697. doi: 10.1177/0149206312457822
Mukwasi, C., & Seymour, L. (2012). Enterprise Resource Planning Business Case Considerations: A Review for Small and Medium-Sized Enterprises. Journal Of Management , 1-15. doi: 10.5171/2012.752328
Ortiz-de-Mandojana, N., & Bansal, P. (2015). The long-term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631. doi: 10.1002/smj.2410
Stevens, C., Xie, E., & Peng, M. (2015). Toward a legitimacy-based view of political risk: The case of Google and Yahoo in China. Strategic Management Journal, 37(5), 945-963. doi: 10.1002/smj.2369
