Organisational Environment

Question: Write an essay on Organisational Environment. Answer: With the progression of industrialization, organisations throughout the world have concentrated more on the attainment of sustainable position within the marketplace. This has in turn created a complicated scenario for the new entrants as well as existing organisations with lower market power (Maduenyi et. al., 2015). Consistent increase in the number of organisations further enhances the opportunities for employees. The search for better career opportunities such as job satisfaction, high salary and diversified environment among others influences the employees to work with a higher level of efficiency. With respect to the concept of an ideal workplace, satisfaction of employees has become a matter of deep concern for the organizations in the accomplishment of their goals with the effective formulation as well as implementation of the strategies (Aydin Ceylan, 2009). Organisations therefore, concentrate more on developing their work environment with the use of innovative techniques and strategies to retain the experienced employees, thereby helping the organisations in achieving their goals within the target period. This ongoing process of creating an ideal work environment has on one hand enhanced opportunities for organisations in the external market, while on the other hand has posed innumerable challenges for them` due to high competition and huge workforce. In the past decades, organisations were found to be facing immense level of challenges not only in maintaining their workforce within the internal environment but also in competing with its rival organisation in the external environment. One of the key reasons behind facing these challenges is the utilisation of lesser effective accounting process and public relation (Frederick, 2014). The report intends to conduct an in-depth analysis on the contemporary issues that the organisations have been facing in the fields of accounting, management as well as public relation. The report further highlights the discussions related to the effective strategies so that organisations can manage these issues in order to ensure the attainment of its objectives. To provide a transparent understating of the stated issues, the report further includes the overview of management and other strategies that need to be adopted for avoiding the issues to the best possible extent. Overview of Organisational Environment The term 'organisation' refers to the method of managing a group of individuals to follow a single path for the attainment of a common objective. It also tends to encourage the individuals in enhancing their abilities, thereby maintaining the position of the organisation in the long run (Frederick, 2014). Organisations nowadays have consistently turned to utilize team-work as an essential strategy or management tool for its success. Besides, maintaining appropriate behaviour and culture within the work environment is considered to be the pillar for the management to build the organisational structure. However, due to haphazard communication process, organisations often face problems in achieving their expected outcomes. In this perspective, strategic involvement within the management plays a vital role in developing effectiveness of organisations and in retaining its position in the market (Maduenyi et. al., 2015). Aydin Ceylan (2009) have further elaborated the stated view by considering the organisations to be the most effective environment for the different concepts such as management, strategic tools, public relation and finance among others to contribute significantly in developing the overall organisation culture. Thus, strategic involvement is an essential practice in an organisation through which the management aims at balancing the requirements of external market as well as the organisations objective. Considering the strategic implementation, accounting information is one of those factors, which has significant contribution in developing strategies for organisations. Frederick (2014) supported the fact by affirming that before implementing any strategy, organisations need to evaluate several aspects such as financial position and management process. Therefore, it can be stated that these aspects are correlated with each other, which provides the organisations with an opportunity to a ttain their expected outcomes, thereby helping it to compete with the rival organisations in the external market. Strategies help the management to concentrate on a particular factor although the management first needs to understand the current requirements or issues of the organisation, so that they can implement further strategies in mitigating those issues (Aydin Ceylan, 2009). Professional accounting provides a transparent understanding of the financial capabilities of the organisation based on current situation as well as probabilities for its future growth. In the modern scenario, every organisation initially concentrates on attaining their economic goal by increasing revenue as well as the profit margin. This further helps the organisation in retaining its position in the target market. High market power provides an opportunity to control the market through its different strategies such as cost leadership, differentiation and change management (Ullah, et. al., 2014). However, to achieve the position parallel to maintaining transparent accounting process or evaluating accounting information frequently, adopting appropriate management process is also an important factor. In case the employees are unable to follow the strategy or provide a better outcome, the organisation will not be able to achieve its target in the long run. In this perspective, it can b e stated that organisations need to adopt appropriate management process and consider accounting information effectively to acquire knowledge on its financial capabilities, which will together raise the organisation at a higher position (Maduenyi, et. al., 2015). Identification of Contemporary Issues Accounting Issues Concentrating on the accounting information of an organisation, Maduenyi, et. al., (2015) have highlighted certain aspects such as return on investment (ROI), return on asset (ROA), revenue growth, profit margin, and stock price among others based on which an organisation can determine its financial position. The stated aspects will also lead to the evaluation of the limitations that can likely arise in near future. Considering the strategic involvement, these aspects not only help in determining the financial abilities of an organisation but also in examining the requirements of changing the management process and other strategic tools (Gney Bozkurt, 2012). In current situations, the organisations are mostly facing ethical issues in the process of examining accounting information such as accounting scandals, which is a matter of concern in managing the work process with appropriate strategy implementation (Mojgan, 2012). Gney Bozkurt (2012) have also stated that the increasing rate of accounting scandals and corruptions within the system has an impact on the auditing body of organisations. Jackling, et. al., (2007) have illustrated the fact by stating that the organisations recently have largely concentrated on gaining competitive advantages among other competitors for which they are consistently increasing their abilities and workforce. This factor further creates a complicated situation within the organisational environment, which influences several unethical activities within the work process. It has further been reported by Maduenyi, et. al., (2015) that a wide range of organisations is continuously facing problems for not disclosi ng their accounting policies. Concerning the stated fact, organisations need to follow certain regulations while auditing or managing the work process. Violating these regulations might lead the organisations towards a challenging phase, where the rival organisations might tend to dominate those organisations for gaining higher position in the market (Ullah, et. al., 2014). Lusher (2012) has evaluated the significance of accounting examination in maintaining the organisation flow, with the help of the following diagram (Figure 1). It indicates that within the past five decades, the accounting system has visibly evolved from a strict financial statement illustration to an ideal model by including external as well as internal environmental issues, government issues and Corporate Social Responsibility (CSR) report. Thus, it has been apparent that for current organisations, the accounting system is a collaboration of social, political and economical issues as well as opportunities through which organisations can expand their business in the target market (Unegbu, 2014). With respect to the issues within the organisation environment, since organisation management process completely depends on the accounting reporting procedure therefore issues or complications can become a barrier to the organisation growth (Hoque, 2006). Lusher (2012) has further reported that accounting scandals can emerge from the methodological errors rather than from judgemental mistakes. In most organisations, the management fails to prepare the accounting report in a transparent manner with every minute data, which therefore has an impact on its judgement process. Jackling, et. al., (2007) have highlighted the real examples of organisations that are currently facing legal issues as a result of audit-failure, corporate collapse as well as a lack of ethical consideration within the process. This can be properly understood with the examples of World Com based in the US and HIH Insurance based in Australia. Jackling, et. al., (2007) have further stated that these kinds of scandals result towards the breakdown of public relation as the accountants or auditors do not focus on public interest. Organisations although mainly focus on economic growth, but they have to consider social development and public interests as a part of the organisational goal (UNCTAD, 2013). Management Issues Management from the organisation's perspective concentrates on a wide range of people from different cultures, who work within a particular environment to attain a common objective (Heath Palenchar, 2008). Bedi (2014) has highlighted workforce diversity as an increasing challenge that organisations are facing in the contemporary market. In the present era, people from different cultural backgrounds work together to enhance the organisational capabilities, which further provides better opportunities to organisations in its target market (Heath Palenchar, 2008). However, Bedi (2014) has considered workforce diversity as a challenge for current organisations in managing the work process. Responsibilities of the management include providing guidance to the employees for following a particular flow. However, managing employees from different cultures and influencing them to perform using similar strategy might become a serious concern for the management (Singh, 2014). Naghibi Baban (2011) have highlighted change management as another issue that the organisations tend to face specifically in this competitive era. High competition therefore influences the market to shift towards more complicated phase with the frequent changes in the requirements. Bronn Bronn (2002) have supported the view by stating that in most cases the organisations do not include employees while implementing any decisions or changing the work process although they are bound to follow them. Therefore, due to a lack of transparent communication the management fails to communicate with the employees regarding the changing process, which impacts negatively on the overall organisational environment (Naghibi Baban, 2011). Abdullah (2009) has further illustrated that with the development of education system as well as training opportunities in organisations, well-trained employees are increasing along with other experienced or existing employees. This factor has become a major concern for the management in managing the internal environment of organisations. Based on the stated issues, it can be ascertained that organisations mostly face issues due to increased workforce, high competition and failure in maintaining diversified work environment, which needs to be overcome for enhancing their abilities in the market (Naghibi Baban, 2011). Issues in Maintaining Public Relation Public relation is the most effective part in current business context, which provides opportunities to the organisation in gaining competitive advantages. Venter Louw (2012) have defined public relation as the communication process that organisations maintain to retain their internal and external stakeholders. The public relation practitioner aims at enhancing the reputation of an organisation and concentrates on the maintenance of valuable relationship among the employees, customers and other stakeholders through well-maintained communication process (Tran Tian, 2013). According to the view presented by Mehta Xavier (2009), this practice is essential for the organisational growth based on which the management can increase its overall market power. Nowadays, people have huge range of options due to consistent increase in the new entrants in the market. Therefore, enhancing valuable relation with the stakeholders will help organisations to retain them effectively, which reduces th e competition as well (Venter Louw, 2012). It has been apparent from the stated fact that maintaining proper public relation provides huge opportunities to the organisations in this competitive marketplace. However, Venter Louw (2012) contradicted the fact by stating that organisations nowadays do not consider this practice seriously, which continuously has an impact on the goodwill of the organisation and increases the level of competition in the market. High competition can be considered as the major reason due to which organisations are unable to concentrate on maintaining proper public relation. Maduenyi, et. al., (2015) have elaborated the fact by affirming that in several situations, organisations implement diverse strategies to reduce competition and gain higher market value. However, maintaining proper relation with the stakeholders by providing quality product or service, job satisfaction and high ROI will help the organisation to reduce competition (Naghibi Baban, 2011). In current decades due to high competition, most of the organisations ignore the public relation while implementing any strategic change within the work process, which is an increasing concern for global industry (Walsh, et. al., 2003). Stating precisely, organisations mostly concentrate on increasing the revenue and profit for which they at times compromise the requirements of their stakeholders. This can further create conflicts among the stakeholders largely. Company goodwill is the most valuable asset specifically for expanding the business in the international market. However, without involving public relation in the organisations, as a strategic priority, maintaining company goodwill or high brand value will become a serious challenge for the organisation in this world of high competition (Mathew Ogedebe, 2012). Application of Knowledge The above sections have highlighted several issues faced by organisations in current era within accounting reporting system, management and maintaining public relation. To mitigate these concerns, organisations nowadays have applied huge range of techniques, which although provide profitable outcome to them in certain purviews however in case of international market managing certain dimensions along with high profit (Naghibi Baban, 2011). Concerning the fact, it has been apparent that organisations mostly face problem for being largely involved in competition and neglecting the requirements of the stakeholders or other social responsibilities. In this regard, the public relation is the most vital factor for the organisation to expand, which can be managed through providing high return to the investors so that they can be more interested towards the organisation rather than investing in other competitor organisations. Large number of investors indicates high financial capabilities, w hich provides huge support to the organisation in maintaining competition with profit (Venter Louw, 2012). With regard to the financial perspective, organisations need to be more conscious regarding the disclosure of auditing policies, which will help it to reduce errors in audit reports or accounting system. Since organisations largely depend on the financial reports prior to implementing any strategic change therefore reducing errors within auditing system will also enhance positive outcome to the strategy implementation process (Heath Palenchar, 2008). On the other hand, management is the most essential part of an organisation, which is involved in every aspect such as accounting, maintaining work environment, public relation and in encouraging employees towards achieving its goals. Thus, organisations need to categorise the responsibility of the management regarding these aspects so that the system can follow a transparent method, which will eventually reduce errors or mismanagement within the organisational proceedings (Naghibi Baban, 2011). The illustration provided above (Figure 2) can be considered as the preferable structure for an ideal organisation through which the management can control the system effectively. It clearly indicates a transparent process of work management including Strategic Apex involved in decision making process after evaluating the reports presented by Techno-Structure, the analysts of financial aspects. Middle-line managers and support staff are the management that is involved in processing the changes taking place within the work environment. They also encourage the employees to follow the strategies in which operative core elements are the employees, who actually complete the task by following the change within work process (Lunenburg, 2012). Hence, it can be ascertained that organisations need to follow a transparent work procedure by providing different responsibilities to management, thereby reducing mismanagement within the diversified work environment (Heath Palenchar, 2008). Strategies to Overcome Considering the above mentioned applications, certain strategies can be suggested to organisations for managing accounting system and public relation in this competitive market. In case of accounting reporting system, the System Theory is the most effective theory through which organisations can maintain the relation between external environment and organisations (Mehta Xavier, 2009). It has been apparent above from Figure 1 that in 21th century the financial report does not only include financial results or illustration of organisations, it further includes internal and external environment issues, CSR report and other governmental or ethical issues. Therefore, through System Theory the report can further provide more transparent result on the external environmental issues and implement strategies accordingly (Brnn Brnn, 2002). As per the external environment and public relation, Tim Hortons can be considered as a perfect example for maintaining its quality and public relation con sistently. The company is serving since 36 years with high revenue and has expanded the business across the world (Nelson, 2007). Since the establishment, the company has concentrated on building relation with its stakeholders by providing better quality products and high return which has put the company into a higher position in the international market (Lunenburg, 2012). Decision making process is another vital concern while focusing on the reduction of errors or mismanagement within the work process. In most situations, organisations involve several employees or managers into a single responsibility such as preparing financial forecast, annual statement and sustainability report among others. Involving excess number of employees influences complication regarding calculations, thereby increasing the level of errors in auditing. This might in turn lead towards strategic implementation failure in the future course of actions (Heath Palenchar, 2008). The diagram (Figure 3) shown below can be considered as a model for appropriate management system within an organisation (Brnn Brnn, 2002). Thus, it can be inferred that providing responsibilities to one particular management will increase the speed and will provide a transparent outcome. Additionally, providing better facilities to the stakeholders including employees on one hand enhance the public relation, while on the other hand encourage employees to work hard for attaining organisation goal (Brnn Brnn, 2002). In this perspective, it can therefore be suggested that organisations need to consider ethical aspects and social responsibilities within the organisational process with centralised decision-making, which will eventually increase its efficiency in the market (Heath Palenchar, 2008). Conclusion From the above discussions and evidences, it can be ascertained that due to high competition, organisations nowadays concentrate immensely on gaining competitive advantages. However, this practice can further put the organisations into a challenging phase since the international market involves a wide range of competitors as well as huge market to operate in. Accounting issues are one the most important concerns in comparison with other problems evident within the organisational operations. The management considers the financial report or sustainability report for evaluating the current position of the organisation as compared to the other rival companies. Therefore, errors in the report might lead the organisation towards mismanagement or even failure to operate in the internal market. Another increasing concern that has been highlighted from the issues includes lack of transparency within the communication process which enhances conflict among the stakeholders and organisation. Bas ed on these issues, the suggested strategies can further be considered as the most effective solutions through which the organisations can reduce their financial errors within auditing process as well as maintain positive public relation along with high profit. Hence, it can be concluded that although high competition forces organisations towards gaining huge market power, concentrating on satisfying the stakeholders can provide more successful outcomes in terms of company goodwill or sustainability. References Amisha Mehta and Robina Xavier, Public Relations Management in Organisations (2009) An Introduction to Public Relations: from Theory to Practice 190. Angus O. Unegbu, Theories of Accounting: Evolution Developments, Income-Determination And Diversities In Use (2014) 5 Research Journal of Finance and Accounting 1. Anna L. Lusher, What is the Accounting Profession's Role in Accountability of Economic, Social, and Environmental Issues? 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