Management assignment: Case Study & Financial Management Report
Question
Task:
Management Assignment TASK 3:
Case study: You have been appointed as HR Officer, and have been requested by the Director to discuss the role of HR managers in motivating employees (recruiting employees/ culture of the organization/orientation). Based on the case scenario, answer the following questions:
a. Define HR - What is HR?
b. What is motivation?
c. Talk about 2 motivational theories for example Maslows Hierarchy of needs, Herzbergs 2 way theory, Mcgregors X and Y Theory etc - put in diagrams, charts to show the theory.
d. Give some background (information) about the company you are researching about
= case study
e. How is the company of your case study motivating their employees? What steps have they taken/are taking to ensure employers remain motivated?
TASK 4:Financial management Report – individual work
1. 1000 words report – Individual work
2. Importance of finance functions
3. Discuss the role of Financial management/managers
4. Discuss sources of finance
Answer
TASK 3- HR: Case Study
Introduction
HR is one of the integral parts of the organization that is responsible for managing the human resource that is the employee life cycle of the business involving various activities such as recruiting, hiring, onboarding and others. Human resource is referred to as the people that work in the organization as well as the department that is responsible for managing the employees that is one of the valuable resources of the business . Thus, it is defined as the entire workforce of the business as well as the group that conducts function of managing the humans in the workplace.
defines motivation as the power within the people to achieve high performance by overcoming obstruction and bringing effective change in the business. It is a feeling that drives guidance, control and persistence within the human. Motivation can be intrinsic that comes from within a person and extrinsic that comes from external pressure such as rewards, wages and others. Further, defines motivation as an emotional factor within a person that influence a person to engage actively in work
The purpose of the essay is to elaborate on two important theory of motivation such as Maslows Hierarchy of needs and Herzbergs2-way theory that helps in showing the way employees are motivated.
Motivational Theories
Maslow’s Hierarchy of Needs
Maslows’ hierarchy of needs theory helps in explaining that the employees begin to engage in work when they are satisfied that their needs are met because needs help in impacting the positive psychology of a person. The theory is put forward by Maslow that states that people are motivated based on five needs categories such as psychological, safety, love, esteem and self-actualization. Moreover, it has been proposed that needs are designed in hierarchy where the needs in the lowest part of the hierarchy are simple needs such as psychological, love and belonging and safety needs and needs in the upper parts of the hierarchy are complex needs such as esteem and self-actualization . This is because need for psychological, safety and love and belonging are common needs such as food, safe environment and respect and people has mostly looked for such needs in an organization. On the other hand, the needs for esteem and self-actualization is about feeling confident and working in an organization and feeling that one is using all its potential in work.
Herzbergs 2-way Theory
Herzberg has also introduced motivational theory that argues that two factors that can be adjusted in the organization to motivate the employees such as motivational factors and hygiene factors or intrinsic and extrinsic factors. The motivational factor is intrinsic to employment, while hygiene factor is extrinsic to employment. Motivational factors are the one that increase job satisfaction such as advancement, growth potential, recognition and others. On the other hand, hygiene factors help in reducing job dissatisfaction such as interpersonal relationship, salary, policies and working conditions . The more the employees receive these factors the more satisfied and motivate they are to work.
Case Study Company
Nestle is known as the good food good life company that believes in enhancing the lives of people through good food. The firm is operating globally with its headquarters in Switzerland and grown as the largest manufacturer of consumer goods. The company presently owns 2000 brands spread all over the world and operates in 187 countries. The company has been expanding in their sustainable goals and aiming to become a highly sustainable brand through activities such as helping 50 million children, help improve livelihoods of 30 million communities and zero impact on environment . This has been possible with the efforts of more than 300,000 people that is working with Nestle and has contributed to the success of the brands.
The long-term success of Nestle largely depends on the way it attracts, motivate, retain and develop their employees to ensure that they grow continuously. Nestle focus in recruiting employees based on personal attitudes and professional skills to ensure long term relationships with staff. Moreover, the company believes in developing work-life balance to ensure that employees can manager their professional and private effectively. This is done through flexible working conditions and motivate employees to be active even outside work. This enhances loyalty from employees and motivate them to be productive in their work by valuing their personal needs along with professional responsibilities. Moreover, Nestle stimulates fair remuneration structures and offers attractive packages to the employees. This shows that the company motivates its employees by effectively meeting their hygiene factors and need of love, belonging and esteem. In addition to this, Nestle motivates its employees by fulfilling their safety needs and offering them safe and healthy work environment by implementing Nestle Occupational Safety and Health Management System . Nestle also meets the motivation factors of the employees by making learning and growth as a part of their company culture through training programs.
In addition to this, Nestle also ensures that its employers remain motivated by recognizing the critical role of senior managers and offering them the environment to implement strong leadership. Moreover, each manager in the firm is given the duty to act as a mentor for the employees and take decisions. The Nestle Management and Leadership Principles play an important role in motivating employers by effectively generating positive relation between the staffs and the managers.
Conclusion
In conclusion it can be stated that employees in business are motivated to work due to number of factors such as hygiene factors and motivation factors that includes potential of growth, rewards, recognition and others. Moreover, the company can also motivate its employees by making them feel love and protected in their working environment. Nestle is seen to motivate its employees through its human policies and code of conduct that is applied all over the business to keep the staffs feel valued, loved and respected working with the brand. Nestle is seen to implement a human centered approach that keep the employees motivated.
Task 4- Financial Management Report
Introduction
Finance referred to as the department of the business that is concerned with managing money of the firms including both inflows and outflows. Finance is that function of the business that is responsible for earning funds, managing fund and planning expenditure of the business. Firms designate a manager to implement all the financial operations of the business and day to day cash needs for various activities. The report discusses the meaning of financial management and the importance it holds in business. Further, the report highlights the role of financial manager and the sources of finance available for a company for their short term and long-term financial needs.
Financial Management
Financial management is defined as the function that is concerned with efficient use of economic or financial resources such as capital funds of the business. Further, states that financial management is a function that deals with procurement and utilization of funds in the business. Various other scholars have defined financial management as the area of financial decision making where the personal responsible takes decision of obtaining and effectively utilizing the capital funds received in different operations . Thus, financial management is largely related to effective management of funds in the firm that can be used for the benefits of the business.
Importance of Financial Management
Financial management is one of the integral functions of the business because it helps in efficient utilization of finances for the growth and benefit of the company. Financial management is important for the entities because it helps the business to gain profit maximization and wealth maximization. Moreover, financial management is essential for the business organization because it helps in efficient financial planning, acquisition of funds, proper use of funds, financial decision, improve profitability, increasing value of firm and promoting savings. This means financial management enables smooth functioning of the business through effective management of their funds and in turn help in carefully meeting the goals of the firms. This is because by efficiently managing the funds a business will not only be able to acquire ample amount of fund, however, it can also use the funds in important and required operational areas. Financial management is important for increasing the overall value of the firm because with efficient use of funds the businesses will be able to increase the wealth of investors by increasing the overall profit of the business . This means that financial management is important at any time at any situation in a firm.
Role of Financial Manager in a Company
Financial manager has multiple roles to play in an organization because finance deals with all other functions of the business such as personal function, marketing function, production function and R&D department. Financial manager is expected to have knowledge about areas of accounting, management, finance and economics. This is because a financial manager is responsible for forecasting financial requirements, acquiring essential capital, investment decision, cash management and interrelation with further departments. Forecasting financial requirements is an important role of the financial manager where they estimate financial requirement of the business . Further, financial managers are also seen to acquire necessary capital that is important for accomplishing various business objectives.
Sources of Finance
Sources of finance refers to the various areas from where the finance needs ate mobilized by the organization. The company uses this finance to meet both long term and short-term requirements such as for purchasing fixed assets and raw materials, maintaining office building and other expenses. The sources of finance are divided based on period such as long term and short term, ownership, generation and mode of finance. Various sources of finance have various impacts on the business along with helping them meet financial needs. Moreover, the businesseshave more right to control on some kinds of finance such as internal sources and shares and obligations are less when finances are sourced internally than from loans.
Based on period the sources of finance are both long term and short term. Long term sources of finance are equity shares, preference shares, debenture, long term loans and fixed deposits. Short term sources of finance are bank credit, customer advances, trade credit, factoring, public deposits and money market instruments.
Based on ownership it is seen that sources of finance are shares capital, earnings, retained earnings and surplus and profits. Moreover, based on ownership there are borrowed capital as well such as debenture, bonds, public deposits and loans from bank and financial institutions.
Sources of finance used by the business also depends on generation such as internal and external sources. Internal sources are the ones that is received from inside of the organization such as retained earnings, depreciation funds and business surplus. Moreover, funds that are sourced from outside of the organization are from share capital, debenture, public deposits and bank loans.
Lastly finance is also sourced from various mode of finance such security finance like shares capital and debenture, retained earnings and depreciation funds and loan financing mode. Security finance are the one that is issued from securities such as shares and debenture. Organizations are also seen to source their financial needs from ownership securities like capital stock . This shows that organizations receive funds from various sources and some help in increasing their liabilities, while some are sourced from their own earnings and surplus without much liabilities.
Conclusion
From the above analysis it can be concluded that financial management is an integral part of the business it helps the organization to effectively maximize their profit and wealth. Moreover, financial management helps the business to indulge in effective financial planning, acquisition of funds, financial decisions and increasing overall value of the funds. The process of implementing financial management depends on the financial manager who is responsible to forecast the financial requirement of the business and acquire necessary funds from different sources such as internal sources, external sources, long term sources, short term sources and other mode of finance. It is with their efforts the overall liability of the business is decided.
References
Chandra, P., Financial management. Tata McGraw-Hill Education, 2011.
Ferraris, A., Erhardt, N. and Bresciani, S., ‘Ambidextrous work in smart city project alliances: unpacking the role of human resource management systems’. The International Journal of Human Resource Management, vol. 30, no. 4, 2019, pp.680-701.
Karami, A., Dolatabadi, H.R. and Rajaeepour, S., ‘Analyzing the effectiveness of reward management system on employee performance through the mediating role of employee motivation case study: Isfahan Regional Electric Company’. International Journal of Academic Research in Business and Social Sciences, vol. 3, no. 9, 2013, p.327.
Mansaray, H.S., ‘The Role of Human Resource Management in Employee Motivation and Performance-An Overview’. Budapest International Research and Critics Institute (BIRCI) Journal, 2019, pp.183-194.
Nestle, "The Nestlé Human Resources Policy", in Nestle.com, , 2021,
Paramasivan, C. and Subramanian, T., Financial management. New Age International, 2020.
