Issues Faced by Ceres Organics
Leadership is practical skill and ability of the people which is helpful to lead the businesses, individuals, teams and the whole organizations (R?ducan & R?ducan, 2014; Renz, 2016). An effective leader can easily guide the entire team to deal with the issues and achievement of the objectives. The current report is based on the leadership and management in context of Ceres organics which is based in New Zealand. The organization is facing several issues including lack of communication, food waste and operational issues on the aspect of internal and external environment. At this point, solutions have been provided to manage the issues such as effective inventory management, cross-cultural training and technological advancement. At this juncture, a cross-cultural leadership style has been proposed to apply the solutions in the organization as well as to reduce the effects of identified issues.
On the basis of current scenario of the Ceres organics, the organization faces following issues which create the barrier in the continuous improvement of the organization.
- Food waste- The Ceres organics faces issue from the food waste due to high production and relatively less sales of food products. Thus, the company does not able to deliver their products to the distributer on the right time. Owing to this, their products reach at the stage of expiry in the company warehouse. Thus, it the one of the key issues of the Ceres organics.
- Operational issue in technology- On the basis current situation of the Ceres organics, the company faces barrier in the regular operation due to low technological advancement in the production process. In this context, the company have complication related to the scanner system.
- Low communication- The poor communication in the Ceres organics is the one of the reasons of the company failure. However, appropriate degree of communication is important in order to meet the objectives of the business. .Yet, the company is facing the issue of poor communication because cultural diversity.
According to the above discussed issues the company needs to overcome these challenges. In this regard, the following solutions would help company to increases the effectiveness of the operational process.
- Effective inventory management-The inventory management helps organization to manage their inventory effectively. In the same manner, the Ceres organics can use an effective inventory management system such as lean management to improve the efficiency of the stock management.
- Technological advancement-Ceres organics can upgrade the technology of production process so as to increase the efficiency of the production process. This is because the production process of the company is affected due to the problem of the scanner. Further, the technological innovations also increase the organizations’ effectiveness for the inventory management. Thus, the technological innovation is potential solution for the current problems.
- Cross cultural training-The cross-cultural training increases the communication among the employees of the organization. Owing to this, the company can provide this training to its employee and decrease the loss of information in the sharing process. Thus, this training helps employees to understand the main objective of information and transfer to other employee in an accurate form.
According to several studies the technological advancement is the main driver for the enhancement of the production by creating the essential changes in the present operation of the system (Rüßmann et al. 2015; Mahalik, & Nambiar 2010; Bocken, Short, Rana & Evans 2014). Similarly, the advanced technology increases outcome of the production operations for the business (Hitomi 2017). At the same time, the technological innovation enhances the competitive edge of the business in the global market (Phan, Abdallah, & Matsui, 2011). Thus, the latest technology is imperative for the business to elevate the growth rate of the business. On the contrary, Gnyawali, & Park (2011) asserted that the technological advancement increases the organization capital expenditure of the company. Further, it requires employees’ training for effective utilization of the latest technology toward the company growth (Kukulska-Hulme 2012). However, the technological upgradation helps the company in the operational function but it requires high amount of financial resources with the trained human resources.
On the other hand, the effective inventory management system decreases the quantity of dead stock for a manufacturing business (Ignaciuk & Bartoszewicz 2012). Similarly, the stock management processes of a business increase the profitability of business by creating down flow in the production wastage (Ogbo & Ukpere 2014). It shows that the inventory management process is essential for food manufacturing business. However, the inventory management process occupies the high amount time which in turn increases the requirement of human resources in the organization to effectively manage the stock (Drabek 2012). In this context, Zhu, Mukhopadhyay, & Kurata (2012) asserted that usage of latest technology decreases the human resources requirement in the managing warehouses effectively. Therefore, the inventory management through the advanced technology increases the competence of the management to manage inventory in the successful manner and decrease the financial losses rise from dead stock.
Solutions to Manage Issues
As per the above discussion Ceres organics can improve their operational performance by improving the leadership aspect of the business. In this context, the following several leadership styles enhance the productivity of the working environment.
- Transactional leadership- The transactional leadership style set the focus on the organization groups in the company. This leadership style clearly communicates for the commands in the followers. This influences leader interacts with followers or employees and make them aware of the organizational objectives. By using, this strategy corporation can effectively integrate employees and accomplish the set objectives of the business.
- Transformational leadership- Ceres organic should apply this kind of leadership style in the organization. This is because it is the most preferred leadership style which increases the motivation for change in the employees. Further, this leadership style effectively communicates and create healthy relational between the management and the staff member. Therefore, it creates an effective working environment wherein the organization and employees enhance their job performance by updating their skills.
- Cross-cultural leadership- The cross-cultural leadership is helpful wherein leaders put efforts to set the common culture of the business on the basis of understanding of different culture. This helps in reducing the issues arising in the team and support business in ensuring free flow of communication between different parties. In this context, the diversify leadership increase the working capabilities of the employees in the different environment. Therefore, it is the most suitable leadership style which prevents communication barrier in the organization.
According to recommend leadership styles, every leadership style has its advantages and disadvantages. Here, Voon, Lo, Ngui & Ayob (2011) the transactional leadership continuously motivate employees on the basis of their performance evaluation. This serves as the effective approach sine it facilitates to manage the employees and accomplish the set targets of the business. Similarly, this type of leadership style effectively communicates the command and eliminates the chances of confusion for commands (Harrison 2011). On the contrary, Rukmani, Ramesh & Jayakrishnan (2010) asserted that the transactional leadership style depends upon the leader due to this if the any problem rises then the corrective actions is required from the leaders. Owing to this, the high dependencies on the leaders decrease the creativity of other team members. Therefore, the transactional leadership has many of the advantages but also have some disadvantages.
On the other hand, the several studies show that the transformational leadership style increase the employee morale and motivation by elevating their interest towards the organization (Zhu, Riggio, Avolio & Sosik 2011; Hoon Song, Kolb, Hee Lee & Kyoung Kim 2012; Zhang & Bartol 2010). Furthermore, transformational leadership style increases the involvement of every team member in the decision making. In this regard, Pieterse, Van Knippenberg, Schippers & Stam (2010) mentioned that this leadership style increases the creativity of the team member and helps to solve any operational problems through the different view of several employees. Owing to this, transformational leadership increase the engagement of the employees in the decision-making process of the organization. In this context, Van Knippenberg & Sitkin (2013) argued that the transformational leadership style will creates cause for wrong decision for business. This is because the suggestions came from the employees are on the individual level not in the context of whole business. Similarly, the over involvement of the employee in the business operations creates the negative mindset of the employees in the favor of the company (Skakon, Nielsen, Borg & Guzman 2010). Thus, the long working hours to fulfill the business goals emerges the dissatisfaction in the employee and forces them to burn-out.
Moreover, the cross-cultural leadership style increases the effective communication in the organization (Eagly & Chin 2010). Further, it increases the diverse experience through the involvement of the employees from the different culture (Pellegrini, Scandura & Jayaraman 2010). Thus, it creates the innovation in the business ideas and builds effective business strategies. However, the culture of every region is different from one another. Due to this, the effective implementation of cross-cultural leadership requires in-depth knowledge in the leader regarding the different culture so as to set the common cultural set (Groves & Feyerherm 2011). Owing to this, it is a difficult style of leadership needs high skills management.
The effective inventory management, technological advancement and cross-culture training are the solutions which are proposed for the Ceres organics to deal with the issues. Hence, the cross-cultural leadership would be helpful to apply these solutions in the organization by providing the effective cross-cultural training. Further, it would be helpful for the firm to interact with diversified cultural people and to understand the objective of information. On the other hand, technological advancement can also be properly communicated to the employees by providing the creative ideas and that would be possible through the cross-cultural leadership. Further, to resolve the issue of scanner, technological upgradation has been provided but that can be effectively applied through cross-cultural communication leadership. Besides these, for the application of effective inventory management, cross-cultural leadership would be beneficial because in this the leader would recommend the suggestions to maintain the stock as per the demands of the customers.
Role of Technological Advancement in Operational Functions
It is important for the all businesses to adopt the effective leadership styles to manage the problems. In this context, the proposed leadership style is cross-cultural leadership which is suitable for the proposed solutions. In every business, there is need of skilled leader who manages the problems of employees as well as organizations. Apart from this, the management of inventory is necessary for the all business otherwise there would the situation overstock or understock in the firm. Due to this, the organization would not be able to meet the demands of the customers that ultimately affects the revenue of the business. Besides this, every organization need to apply the latest technologies to enhance the volumes and to beat the competitors but that would be possible with the proper guidance of an efficient leader. Further, cross-cultural training is a demanding aspect for the all business because current scenario of businesses is outsourcing in which outsourced resourced requires the additional cultural-communication training to exist in the organization.
The cross-cultural leadership style would be suitable for the Ceres organics because Ceres organics is dealing with communication issue. Employees are associated to different cultures due to this thing the productivity gets affected. This leadership style can overcome the communication barriers and complications of cultural diversity with the help of the effective communication. Further, food waste can also be minimized by cross-cultural communication because through this employee would be able to communicate about the preference, taste and demands etc. In this regard, the cultural issues would be effectively communicated through cross-cultural leadership because in absence of this type of leadership different cultural people cannot be integrated. It would lead the potential conflicts and misunderstandings regarding the business and expectations of the customers that would result in reduction of productivity. Moreover, the knowledge of diverse communication can also helpful to handle the operational issues because through which operational activities can be communicated efficiently. The employees would interact with each other and focuses on the required specialized skilled to solve the operational problem.
According to discussion about the scenario, I would also prefer the cross-cultural leadership because it would be helpful to manage my own business. The effective diversified cultural leader can effectively manage the all employees by dividing into teams. Further, in this regard, as per the requirements of the team members the leader would provide the cultural training to understand the real purpose of the task. In this regard, it would be beneficial for my business to execute the advancements in the operations and technology to attain the specific objectives. Apart from this, I would follow the outsourcing recruitment process because through which it would be easy for me to collaborate with diversified cultural with the help of cross-cultural leadership.
Conclusions:
On the basis of the report, it has been found that the Ceres organics is dealing with the issues of food waste, operational and cultural communication. These issues affect the productivity of the employees and reduces the overall profitability. In this regard, effective management of inventory, cross-cultural training and technological advancement is helpful to deal with these critical issues of the Ceres organics. Further, the involvement of all these solutions are based on the effective cross-cultural leadership style. In this type of leadership, the leader would understand the problems of employees and emphasis on achievement of maximum outputs by providing the appropriate guidance.
Importance of Effective Inventory Management
According to the issues of Ceres organics, it is suggested to adopt the cross-cultural leadership because it is helpful to create the awareness about the cultural diversification of the business. Further, the employees would be efficiently engaged in operational as well as core activities of the firm that would enhance the morale. Further, cultural training would be helpful to train the workers in any aspect and minimizes the loss of information in the sharing process. Culturally trained employees would be dedicated towards the work and transform communicated information to colleagues in exact form.
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