Foundation of Organisation Coursework Example | Topics and Well Written Essays - 2000 words

Foundation of Organisation - Coursework ExampleOne major job that arises due to first growth is poor coordination. With a huge workforce working for the organisation and a lot of resources being utilised to secure high productivity, there are high chances of poor coordination setting in. Although the political party susceptibility record increased sales, this does not automatically mean that the company is becoming more profitable. The organization may in fact be spending more to achieve less. In this respect, there are chances that lack of proper coordination could lead to cash flow shortages, which at first may be subtle and patrician to ignore but with time, expenses will start exceeding revenues at a higher pace with each new month of rail line growth. Under this circumstance, the company then begins to haemorrhage and becomes less profitable. Although hiring more employees go aways in increased production, it could negatively affect its performance. This is mainly beca use as the number of employees increases, the company and its principles begin to loose take on with the key employees, most of whom are more experienced, well trained and are more depended on by the company. Such employees will suffer greatly from way out of job satisfaction, become demotivated and could even quit the company. Having many employees could also lead to unproductive divisions that could strain its profitability and performance. As they try to control increased business sector activities and increased employee base, the management could lose track of the business functions that are more essential and this directly impairs its performance. The other potential problem that fast growing firms could light upon as they grow is lack of proper business planning. This problem mainly arises because the decision to expand in such companies is driven by the desire for personalised/company satisfaction and the need to take advantage of available business opportunities instead of economic analysis, market studies and sound financial evaluation. As a result of this, the management of the company will end up creating for themselves a challenge beyond their capability and experience. Because of the improper motivations, such firms end up making flower decisions and break awaying projects or buy machinery that may not necessarily increase the profitability and performance of the company. Such projects or machinery could block the ability of the company to develop more appropriate projects or purchase more effective machinery due to incompatibility with the rashly established projects or acquired machinery. It could even lead to incompletion of these projects due to the problem of underfunding and this will have used funds for setting up more appropriate projects. Question 2 Solutions Solutions to loss of clear insight into the performance of the business and its profitability The companys management must ensure that all its undertakings aim at supporting t he core activities of the business. This means that the company must ensure that all the activities of various functions are properly coordinated. Good governance also plays a great role in the success of companies experiencing fast growth. The management of the organization should see to it that good decisions are made and that policies created by management apply throughout the organization. The company should limit all new projects to those it has the capacity and experience of handling. If not, it should prosecute people who are experienced and competent enough to handle such projects. This solution is crucial in