Unit 3 How Business Operate

1.1 Importance of accounting for business success

Accounting is one of the important procedures which define day to day operational activities in order to improve the overall performance level of the company. Basically, it summarized as well as analysed all the financial data to attain better at workplace. By preparing accounting, company show quantitative information to investors which contribute in maintaining the positive performance of the company. Apart from this it helps an organisation in some of the activities that are mentioned below:

Evaluating the performance of business: With the help of Balance sheet, determining the growth of the organisation will be easier as it will give a summary of profit and loss that the company had gone through in one financial year.

Managing and monitoring of cash flow: By maintaining a proper accounting firm will have an overview about the cash and capital which are required for handling the whole business in an effective manner.

Helps business to be statutory complaints: Process of accounting helps the organisation For preparing a budget as per the demand and wants as per the situations that are present in the market area (Aronoff and Ward, 2016).

Assist in creating budget and future: It assist the company in making policies and plan of action so that firm can take appropriate decision that can be fruitful in future proceedings also.

1.2 Different functions performed by Human Resource Department

Human resource development department play important role in managing as well as monitoring the overall activities of the workers in most effective manner. In this the main function of HR department is to hire and select skilled and capable candidates who are contribute in attaining desirable goals and objectives. Human resource department tries to maintain a good relation in an organisation by resolving the conflicts and issues that can affect the business operations (Finch, 2016). Compensation and benefits are also provided by them according to the skills and knowledge that are acquired by an individual. Training and development related programmes are are given by them so that new employees can learn the whole process about how the company perform their functions and activities. Therefore, it can be said that department of human resource management is like a backbone for any organisation.

1.3 Key features of employment legislations

For successfully operating business, it is important for company to follow all the acts that formed by government bodies. By this firm improve workers retention at workplace by establishing ethical work environment. Along with this various lows and act are there such as anti discrimination, equality act and may more which helps in improving the productivity level of the workers. Therefore, McDonald has adopted all the laws and while conducting the process of recruitment they are selecting candidates only on the basis of talent along with the skills and knowledge the person has possessed. Thus, company is able to sustain the loyalty of employees as a result they are gaining a better position at market place (Foss and Saebi, 2017).

2.1 Information on profit and loss account

Interpretation: As per above mentioned data, it has been concluded that the profit and loss statement the net income of the company is 5192300 which is high as compare to previous year.

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

Team is a combination of skilled and eligible people who constitute and work for a common goal. Members have same thoughts and views and perform the task for gaining positive outcomes. Therefore, it is developed as per the potential they acquire. Thus, it is important that proper respect is given to all the person who are included in the squad (Chung, Yang and Huang, 2015). As a team leader it is my prime duty to manage and explain all the roles and responsibilities that are required to be performed so that an effective outcomes can be gained. Other than this, I try to maintain a mutual understanding between the members so that all the set targets are achieved in specific time frame.

3.2 Notes which can be used to support future training events

It is important for business organisation to develop an effective as well as strong team which helps in attaining set goals and objectives. In this context, there are some appropriate steps which used by McDonald to developing an appropriate team at workplace:

Stages of team development

It is one of the effective theory which helps in developing an effective team in order to improving the workers performance in a squad. In this leaders play an important role as they guide the entire team for accomplishing the task in an effective manner. Basically, it include various stages like forming, storming, norming and performing. With the help of this manage of the company develop a strong team which contribute in attaining better success at market place.

Different types of motivational theories

Various motivational theories are used by business organization to motivate the staff members in which they easily perform their task in most effective manner. By providing better motivation, manager easily encourage their workers to perform their activities which directly impact on attaining positive outcomes. In this company use various theories such as Maslow's hierarchy needs, Herzberg's hygiene theory and McClelland's need theory. By using all these theories company enhance workers productivity level which contribute in attaining better success at market place.

Various kind of leadership styles

McDonald use leadership styles which may helps in providing better guidance to workers at the time performing their activities. It includes democratic, autocratic and Laissez- faire style. If gives equal change to every individual so as to share their views in front of superiors. Therefore,both the leadership style is providing maximum profits to the company (Buhmann, 2016).

3.3 Appropriate use of different motivational theories in business activities

For attaining better success at market place, it is important for McDonald to understand the market trends and adopt changes accordingly (Demuijnck and Fasterling, 2016). With the help of this company increase the chances of attaining positive outcomes. In context of McDonald, they use different motivational theories within their business fir motivating their workers at the time of performing their activities in effective manner. Like, McDonald adopt Maslow Hierarchy theories which include various stages such as basic needs, physiological, safety, esteem and self actualisation needs. By this workers get encourage towards their work and activities and perform effectively in order to attain positive results in most effective manner. Mainly, company use this theory for encouraging workers to attain better success.

3.4 Impact of various leadership styles on employees

Leadership styles are more important because it help workers to enhance their productivity level. By using this manager of the company provide better guidance to their workers in which they effectively perform their task for attaining set goals and objectives in appropriate period of time (Carayannis, Sindakis and Walter, 2015). It also increase the workers involvement in all the business activities which aid manager at the time of their decision making process.

Read Also: H/616/2698 Organizational Behaviour in International Contexts - Gulf Hotels Company WLL

Conclusion

From the above mentioned report, it can be summarized that, it is important for business organization to understand all the factors at the time of operating their operational activities. This will aid in enhancing the profitability level of the company in most effective manner. Along with this, company also use various motivational theories and leadership theories to develop better workforce at workplace which may leads in attaining better success.

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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