Unit 2 Business Operation Level 5 HND Diploma Business

TASK 1

1.1 Importance of accounting for business success

Accounting is very essential for an organisation so as to run their business in an effective manner. It helps the company in making appropriate decisions because without a proper management and adequate data this could not be possible (Aronoff and Ward, 2016). Accounting provides details about the financial statements in terms of profit and loss, cost and earning that is gained in one financial year. Therefore, it is used in order to evaluate the money that was spent for business organisation this will assist them in taking key decisions as it will give an overview about the financial statement of the organisation. Through this firm can expand and increase their capital base by implementing appropriate methodologies in having proper accounting.

1.2 Different functions performed by Human Resource Department

Human resource department is very efficient and provides basic facilities to the organisation so that a structure and systematic procedures can be followed. New recruitment is the main function that is performed by the Human Resource Department, and they hire eligible candidates who are best suited for the vacant position. For this, company usually give advertisement in televisions, newspapers, magazines and many more. Other than this, they try to provide job safety to individuals who are working in a particular company in terms of health and safety they make sure that all the people are given a proper environment where they can work in an appropriate manner along with this

1.3 Key features of employment legislations

For maintaining a minimum standard of employment in a company, regulatory bodies of a nation has formulated various laws so that every body is treated equally. This includes certain elements like minimum wages, working hours, leave, and many more. These laws are developed with the help of jurisdiction. Hennes & Mauritz has included laws for having a peaceful environment (Finch, 2016). Equality Act of 2010 is assisting the organisation in giving equal chance to people who are working in the company so that all the no discrimination is done on the basis of caste, gender, colour, race etc., H&M has also incorporated laws that are related to health and safety, for example: if the person has suffered with a serious injury or death while working for the firm than company is providing compensation to the family.

TASK 2

2.1 Information on profit and loss account

Interpretation: As per above mentioned graph it can be concluded that the net income of company is 16184000 in 2017 which is lesser as compare to previous year.

TASK 3

3.1 Analysis to determine your own and others' roles within a team

For attaining the goals in an effective manner it is important that a string team is builds so that they can perform the task in order to achieve a common goal. Every individual in squad sin important as they perform their activities so as to complete the task. In a group my role is to manage the team allocate the roles and responsibilities according to the capabilities a person acquires. Through this, attaining the objectives will be much easier (Foss and Saebi, 2017). For this, I usually monitor the performance of person who are working in an organisation, it help me out in evaluating the strong and weak points of an individual and based on that the work is allotted respectively. Other than this, I suggest appropriate paths through which the goals and objectives can be accomplished.

3.2 Notes which can be used to support future training events

A strong team always provides a better results so that company can attain a superior position at market area. For this there are certain steps that are to followed in order to have an effective team.

Stages of team development: As per the theory given by Tuckman there are basically four stages for developing a team and these are given below:

Forming: For developing a new team orientation is required so that leader can have an idea about the nature of individual and accordingly team can be build. In this, all the members who are assigned are very polite and humble as this is the initial step of team development.

Storming: This is t he next move in which people starts pushing their limits and perform the activities it is one of the reasons why most of the organisation fail in developing a team. In this conflicts and issues arise and leaders search for appropriate path for resolving these clashes (Chung, Yang and Huang, 2015).

Norming: Under this, people tries to interact with each other and try to resolve the issues and differences. Employees start giving respect to leaders and their subordinates respectively. An overlap between storming and norming can be seen.

Performing: After going through all the stages mentioned above this step come into being. Team perform the task for attaining a common goal and leaders monitor the entire squad so as to analyse whether the team is working appropriately.

Different types of motivational theory

Maslow's Need Hierarchy theory: This is the basic theory that are adopted by most of the organisation in order to motivate their employees so that they can perform the task effectively (Buhmann, 2016). The theory includes basic human needs which every company should consider like physiological, safety and security, social, esteem, self actualisation. It help the firm in encouraging the employees.

Herzberg's motivational theory: It is classified into two factors intrinsic and extrinsic motivation. Job satisfaction and dissatisfaction is concerned in this, is that a linear relationship can be maintained.

McClelland's Need Theory: This theory is categorised into three elements i.e. achievement, affiliation and power. Under this, the theorist has explained about how and individual can achieve their targets with the use of above mentioned three elements.

Various kind of leadership styles:

There are different kind of leadership styles that have been optimised by the company H&M. It depends upon the the circumstance which company is facing for example: if the organisation wants a increase in productivity and sales in a particular time frame than they will incorporate Autocratic style of leadership. Other than this, democratic style of leadership is also adopted by H&M and it is helping them in sustaining the loyalty of employees.

3.3 Appropriate use of different motivational theories in business activities

It is important that leader and managers encourage their employees on a regular basis so that company can run their business in an effective manner. Therefore, for motivating their employees Hennes & Mauritz is using Maslow's hierarchy theories so as to provide facilities according to the basic needs. They are providing safety and security to their employees by giving them compensation, job security and many more (Carayannis, Sindakis and Walter, 2015). Esteemed and self actualisation is needs are also fulfilled as it motivates and individual in pushing their limits for achieving their targets.

3.4 Impact of various leadership styles on employees

Autocratic leadership styles can sometimes create problem between superiors and employees as worker may not agree to work under the rigid system of the organisation. H&M has incorporated democratic leadership style and employees who are working there are very happy about this. This is helping them in having a proper interaction between employees and superiors. Thus, all the workers are having a healthy environment at workplace (Demuijnck and Fasterling, 2016).

Conclusion

From the above report it has been concluded that, business environment plays an important role in operating their firms in an effective manner. Department of HRM also help the organisation in some or the other manner as they hire fresh candidates for different departments who are skilled in their respective fields. Therefore, for an effective growth leaders optimise different leadership and motivational theory so as to encourage their worker. As a result an increase in company's sales and productivity can be seen.

References

• Trevino, L. K. and Nelson, K. A., 2016.Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
• Aronoff, C. and Ward, J., 2016.Family business values: How to assure a legacy of continuity and success. Springer.
• Finch, B., 2016.How to write a business plan. Kogan Page Publishers.
• Foss, N. J. and Saebi, T., 2017. Fifteen years of research on business model innovation: how far have we come, and where should we go?.Journal of Management. 43(1). pp.200-227.
• Chung, H. F., Yang, Z. and Huang, P. H., 2015. How does organizational learning matter in strategic business performance? The contingency role of guanxi networking.Journal of Business Research. 68(6). pp.1216-1224.
• Buhmann, K., 2016. Public regulators and CSR: The ‘Social Licence to Operate'in recent united nations instruments on business and human rights and the juridification of CSR.Journal of business ethics. 136(4). pp.699-714.
• Carayannis, E. G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of organizational sustainability.The Journal of Technology Transfer. 40(1). pp.85-104.
• Demuijnck, G. and Fasterling, B., 2016. The social license to operate.Journal of Business Ethics.136(4). pp.675-685.
• Pereira, B. A. and Caetano, M., 2015. A conceptual business model framework applied to air transport.Journal of Air Transport Management. 44. pp.70-76.

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