Nature of Virtual Business

Questions: Report structure to be structured around the following headings1.0 Introduction2.0 Definition of the problem (underlying causes) and explanation of the function(s) of management to which it relates.3.0 Analysis of the underlying cause framed by theories, framework and tools learnt in the unit and the function(s) of management that best addresses the underlying cause (i.e. issue) and suitable approaches to overcome it. Include consideration of relevant environmental factors, if any, that may impact on the underlying cause for your virtual business (optional).4.0 Recommendations for your virtual business on a course of action for addressing the underlying cause including explanation of how the recommendations will help the organisation achieve a successful outcome. Answers: 1.0 Introduction With the increase in the globalization, the organizations are focusing on changing their business model. However, sometimes due to some incapability, they are unable to meet the changing objectives and face various issues. For solving issues that the organizations face, there is a need of analytical framework and strategies. This can only be done by effective planning, communication and training. The objective of this report is to discuss the solution for the problem of Crown Departmental store pvt ltd. The staff of the company lacks the require training to maintain the inventory. The functions of organizations that would be discussed in this report would be basic functions of planning and organizing. 2.0 underlying cause As mentioned above, the staff of the company lacks the require training to maintain the inventory.This is the reason that there has been a difference between the actual level of inventory in the store and recorded inventory on books of company. The things that could have been differently to avoid the problems can be discussed as: What should have been done? Inventory management is not an easy and routine task and every employee in the organization cannot perform this task (Sharma Prykop, 2012). It is important that the job given to employees should match their skills. The management of Crown Departmental store pvt ltd could have used trained staff to manage inventory. Inventory management and verification with actual count should be a continuous activity for organization. This should be done as a frequent practice, at least once a month (Cailiu, 2012). Crown Departmental store pvt ltd was doing it once every three months. Ideally, Crown Departmental store pvt ltd should have the provision of auditing inventory levels, once every month. The organizations functions to be used The problem with Crown Departmental store pvt ltd is a classical problem where organization lacks planning. It appears that the problem of inventory mismatch could have been avoided if emphasis was given on the planning function. It can be said that planning is the core and most important organizational function. The effective planning could have address this issues as in the case of effective planning; management could have used only the resources with specific skills of inventory management. Another important management function that could be used here to avoid the problem is organizing function. It can be said that manager didnt plan and organize the training session for employees. This problem could have been avoided if the employees of Crown Departmental store pvt ltd was trained enough to perform the inventory management function. It can be said that the management of Crown Departmental store pvt ltd lacked the basic function of planning and organizing; therefore the company reached this stage. One of the solutions for this problem is to plan for monthly audit. The management should realize that the auditing of inventory levels is an important thing and it should happen on monthly basis rather than on quarterly basis (Corbridge, 2010). One of the recommended solutions for Crown Departmental store pvt ltd is to have regular trainers who would impart training to the employees of the company. There has to be a provision of mandatory training. All the employees from low- level employees to top-level manager should participate in this training program. Other than this mandatory training program for everyone, the company should also have a provision of specific training programs that would be designed to meet the need of employees who performs the function of inventory management. It is also important that the employees of Crown Departmental store pvt ltd should be given a platform where the mistakes can be minimized. The work pressure should not be very high on the employees. It is important that management should focus to create the external environment in which employees can work without any pressure. The improvement in external environment would help to reduce the chances of errors. Employees should also be encouraged to work on their health (VoordePaauwe, 2012). The chances of error would be further minimized if employees were in good health. All these are the planning and organizing measures that should be taken by the management of Crown Departmental store pvt ltd in order to ensure that these issues do no resurface again. 3.0. Recommendation From the above mentioned issues identified, the major issues or challenges of concern that has to be analyzed are: Important Business skills Managerial Techniques Need Assessment Training and development programs Recommendation 1: To mitigate all the above mentioned concern, it is important for the organization to implement Performance-Based Training system which would teach the employees about their job performances and also enable them to understand their job and take up responsibilities accordingly (Friedman et al., 2013). Along with this the company need to implement ADDIE (Analysis, Design, Development, Implementation and Evaluation) model that will permit all the employees to master their attitude, knowledge and skills as the model emphasizes on the specific job that the employee is performing and helps the employee to achieve high standards that are necessary for the job (Branch, 2009). In order to implement successful training and development program, the Crown Departmental store Pvt ltd should consider the following criteria: Understand and analyze the relevant training programs for the employees; Analyze what training program will help to improve their performance; Find out if train ing is creating any difference or not; Differentiate the organizational problem and the training needs for the employees and Develop the job performance by aligning with the organizational goal. Further, for successful implementation of training system, the Crown Departmental store Pvt ltd need to focus on Innovation and creation programs that would give the employees opportunities to develop their skills, increasing knowledge and developing skills will enhance the awareness and also make sure that all the employees are achieving both personal and organizational success, integrate cross-functional communication which would help to promote efficiency and respond to the requirements of the customers by planning properly and carefully, reinforcing the training programs of the organization and make sure that the particular systems are actually delivering the satisfying services to the customers, the customer satisfaction level would be increased and by refining the criteria for approvin g the training program to make sure fairness and consistency for every employee (Biech, 2009). Recommendation 2: Crown Departmental store Pvt ltd, should also implement TQM (Total Quality Management) that would help the employees to understand and analyze their mistakes and provide high satisfaction to the customers. This can be done by encouraging the employees to participate in the improvement of the organizational culture, services, products and processes (Mohammad Mosadegh Rad, 2006). It is the responsibility of the top management to encourage the employees to show their commitment. In order to make the a successful TQM, the organization need to focus on, the managerial techniques also play an important role that will help the Crown Departmental store Pvt ltd to increase the morale in the organization and also their productivity. This technique can include: developing transparency and openness in the organizational environment; Sharing and distributing the information; Focusing on effective team building; developing and leading teams properly; developing both short-term an d long-term planning; to assist and train the people for recognizing the opportunities and make effective suggestions; act like a team leader for directing the subordinates; Practicing delegation through involvement and participation; employees should also encourage different culture to make the organization a diversified cultural organization and the organization should implement reward systems by promoting work-incentives, competitive benefit packages, recognition programs and also profit sharing (Cocks, 2014). 4.0 Conclusion The problems for Crown Departmental store pvt ltd are big but these problems can be resolved with effective planning and efficient organizing. 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