Globalization has helped in the growth of the organization in the international markets. However, the long term and short term planning of the businesses contributes to the growth of the businesses. The short term decision making of the organizations is aimed at the fast financial gains which might affect the long term planning of the business undertakings. The bottom line mentality of the management in the different organizations has affected the productivity of the employees. The Bottom line mentality that is being adhered by the organizational managers has affected the integrity of the organizational performance through one dimensional thinking and decision making process which is directed towards short term financial gains.
The motivation and integrity of the employees are affected through the imposition of the mentality on the organizational performance. Most of the organizations and their management teams has taken steps to exploit the employees in order to fulfill the different short term aspirations (Pulakos et al. 2015). The different competing priorities of the organization are compromised through the introduction of the short term gains of the organizations. On the other hand, the sacrificial elements on the ethical values of the organizations affect the proper functioning of the systems of the business while operating in the international markets.
The objectives of undertaking the research are:
The purpose of undertaking the report is to identify the different impacts that are faced by the organizations through the implementation of the bottom line mentality of the managers. The one dimensional thinking of the multivalent systems of the organization barriers the growth objectives of the business while operating in the international scenario.
The Bottom Line Mentality (BLM) can be stated as an one dimensional thinking process in which the management of the organization gets involved in order to support the short term financial profitability of the organization, disregarding the future outcomes. Perera (2013) stated that the application of the BLM could be taken as an attempt to maximize the financial gains of the organization through social undermining and the induction of the unethical practices in the organizational context. However, Decramer et al. (2012) argued that the different BLM approaches of the organization helps in the quick development of the organizational assets. It has helped in maintaining the proficiency of the functions of the business.
The BLM of the managers has affected the productivity of the businesses while operating in the international markets. Blundstone Footwear of Australia undertook steps in order to bring in changes in the internal systems of the processes for maximizing the short term financial objectives of the business. It has affected the functioning of the business as the change adversely affected the productivity of the workforce. Greenbaum, Mawritz and Eissa (2012) stated that the introduction of the new processes to the business contexts often misguides the employees which results to a degradation in the productivity of the same. On the other hand, Kuznetsov et al. (2015) stated that the introduction of the BLM helps organizational management to identify the different ways through which the profitability of the firm can be maximized. However, Thite, Wilkinson and Shah (2012) stated that the induction of the BLM affects the morale of the employees as the management seeks to exploit the employees for the private gains of the same. The short term objectives of financial growth of the organization affects the long term outcomes.
The one dimensional thinking process of the organization affects the growth and expansion as it fails to identify the long term risks that might be faced by the business through the activities of the same. Pulakos et al. (2015) stated that most of the subordinates accept the BLM objectives as the only objective for which they should strive. It creates a barrier between the original aims of the organization and the hypothecated financial gains of the business. The application of the BLM in the practices of the organization affects the productivity as the organizational management neglects the real time consequences of the activities. Klikauer (2014) stated that the exposition of the BLM practices in the organization affects the morale of the employees through exploitation of their interests for the private gains of the organization or the entrepreneurs. The BLM of the managers adversely affects the workflow of the subordinates while performing as per the objectives of the business. The change in the organizational objectives from long term sustainability to short term financial profitability affects the processes of the business. Heikkilä (2013) stated that businesses are most likely affected by the BLM as the employees believe the BLM objective as their long term goals of achieving a successful carrier in the organizations. On the other hand, Manab and Kassim (2012) stated that most of the employees feel exploited due to the enormous amount of workload that is trusted on them on little time, which is made for the private gains of the organizations.
BLM supports the short term financial gains of the organizations which helps in maintaining the proficiency of the organizations to undertake ethical business operations. However, Wood, Brewster and Brookes (2014) stated that the one dimensional thinking process holds the organization in an position of facing different uncertainties in the market which might affect the functioning and the sustainability of the business. Decramer et al. (2012) noted that the employees play a major role in the malfunctioning of the organizational performance as they might feel exploited by the Bottom Line Mentality of the managers in the respective units.
Shen and Benson (2016) stated that the institutional theory of HRM provides with the rules and norms that governs the systems of the organizations in order to look legitimate and thereby sustain in the competitive market scenarios. The concept of institutional isomorphism is however compromised through the organizational BLM activities, as the businesses seem to lack the consistency in the operations as per the environmental needs. De Prins et al. (2014) stated that the BLM activities of the organization affects the smooth functioning of the workforce. The cost cutting techniques and the like offends the morale of the employees, which affects the workflow operations of the business. Therefore, it becomes an opportunity of financial gains for the entrepreneurs. However, the success factors of the business and the welfare of the employees are compromised. The application of the theoretical implication on the organizational contexts helps in identifying the different changes that are faced by the businesses through the application of the BLM for short term profitability of the business or the private gains of the entrepreneurs.
The positive relationship between leadership and psychological or physical wellbeing of the subordinates has helped in identifying the position of the employees with their exposition to the BLM of the managers of the business. Thite, Wilkinson and Shah (2012) stated that the BLM is aimed at enhancing the chances of the short term profitability of the businesses. Therefore, huge amount of work load is infested on the employees, which affects the mental and the physical health of the same while operating as per the changed objectives of the business. Heikkilä (2013) stated that the unnatural work pressure on the employees due to the BLM activity of the organization affects the mental and the physical health of the employees adversely resulting to different poor lifestyle habits. The short term gains of the organization through the application of the BLM affects the long term sustainability of the workforce. The growing turnover rates in the organizations due to their focus on the short term financial profitability has affected the productivity of the organizations in the long run. The sustainability of the organizations in the long term is compromised through the growth in the rates of turnover. However, Klikauer (2014) stated that the turnover rates actually does not affect the profitability of the organization as the organization might take steps to undertake huge recruitments. Although Wang, Tseng and Yen (2014) argued that the growth in the turnover rates of the organization affects the organizational functioning as the business loses its skilled workforce. The knowledge of the skilled workforce would have helped the organization in undertaking a profitable venture through a growth in the long term assets.
The BLM of the managers might create intense pressure on the employees, which might lead them to face different health related issues related to a sick lifestyle. Cardiovascular disease, high blood pressure and the like is induced through the heightened work pressure. It affects the organizational objectives of retaining the skilled workforce to support their long term goals of expansion and sustenance. On the other hand, Pulakos et al. (2015) stated that the BLM activities of the managers brings in cause of headaches and depression among the workforce. The Bottom line thinking process being one dimensional fails to identify the different negative consequences that might be faced by the organization due to its aspirations of short term profitability. The intensity of the work pressure and the manner in which the organization demands the involvement of the employees in the processes of maximizing the profits for the entrepreneurs affects the motivation of the employees. Sykes et al. (2012) stated that the different rewards and punishments that are imposed by the organization while undertaking a BLM activity affects the morale of the employees and gives rise to different controversies in the workplace. The simplistic thinking process of the organization through the BLM hinders the managers from identifying the issues that are faced by the employees in the workplace. Kuznetsov et al. (2015) stated that the communication systems of the organization and the open door policy of the same is often compromised through the BLM policy of the organization of increasing the profit margins. On the other hand, the lack of managerial cooperation with the workforce affects the inter- trust factors between the management and the employees. It affects the productivity of the organization through the lack of coordination between the leaders and the subordinates (Manab and Kassim 2012).
The bottom line thinking process, being a simplistic and one dimensional method, omits the study of different risks that might be faced by the organization while operating on its prospects of short term profitability. Robertson (2014) stated that managers and leaders of the organization must take steps to involve the employees in the processes that are planned by the business. The involvement of the employees in the processes of the business helps in maintaining the proficiency of the business functions while operating on the short term financial profitability of the organizations. Disowning the values of ethical business undertaking is infested by the application of the BLM activity of the managers. Horsager (2012) stated that the values and the ethical considerations play a major role in shaping the proper functioning of the systems of the business. It helps in maximizing the productivity of the workforce. However, the managers often compromise the ethical backdrop in order to attain the short term goals of financial profit making. Therefore, the productivity that is delivered by the employees normally is disturbed through the change in the policies of the organization.
The different policy and regulations that are imposed by the managers while working on the short term objectives of the business affects the workflow. Marcelino-Sádaba, González-Jaen and Pérez-Ezcurdia (2015) stated that punishments that are imposed by the organization on the different actions that are undertaken by employees which is not relevant to the BLM activities affects the morale of the same while operating in the corporate culture. On the other hand, Greenbaum, Quade and Bonner (2015) stated that the imposition of the work pressure on the employees without entitling them with a proper remuneration affects the morale of the same.
Kagan, Thornton and Cunningham (2017) stated that the reduction on the operating costs of the organization helps in supporting the BLM activity of the managers. The minimization of the operation cost, however, affects the interests of the customers while operating as per the objectives of the business. Bonner, Greenbaum and Quade (2017) also stated that the Bottom level thinking process of the organizations negotiates on the terms of reducing the operation costs of the business operations. It affects the proper functioning of the systems of the business while operating in the different market scenario. On the other hand, Fry and Nisiewicz (2013) argued that the BLM activity that is undertaken by the managers of the organization helps in upholding the profitability of the business firm. Willard (2012) also added that the BLM activities has helped in maintaining the efficacy of the workforce. However, Kiron et al. (2013) argued that the company’s focus on the short term financial gains of the same affects the productivity and the long term aims of the business of sustaining in the international markets. The proficiency of the workforce is often debarred by the short term financial gains of the organization resulting to a loss in the productivity. The physical challenges that are faced by the employees while operating on their job roles where the leaders have applied the BLM has affected the rate of their outputs adversely. The reduction of the operation costs of the organizations affects the rate of wage and overtime that is provided to the employees. It affects the personal interests of the employees while working on the profit making of the entrepreneurs. It affects the sentiments and the motivational aspirations of the employees which results to a loss of productivity of the organization (Ardichvili 2012).
The institutional theory focuses on the sustenance of the organizations in the competitive market scenario. Therefore, it aims at upholding the long term aspects of the organizational progression (Kiron et al. 2013). The application of the institutional theory in the BLM context will be helping the organization to retain the trust between the management and the employees through proper imposition of governance and legislation. On the other hand, it also considers the interests of the employees thereby reassuring a path for the organization to retain the skilled workforce. The proper functioning of the systems of the business while operating in the international markets are based on the performance of the workforce. The implementation of the BLM on the organizations affects the employee engagements in the different processes that are planned by the managers due to the psychological barriers. Greenbaum, Mawritz and Eissa (2012) stated that the one sided policy framing of the management affects the morale of the employees to be productive in the context of organizational profit making.
The recommended actions that might be considered by the organizations are being discussed in this section of the analysis:
Creation of employee friendly working environment
The organizations might take steps to create an employee friendly working environment, which will not be affected by the changes in the working patterns. The creation of proper working environment will be helping the management of the organization in minimizing the work load off the employees. It will be helping the organization in maintaining the proficiency if the functions as per the objectives of the business. The introduction of the BLM activities of the organizational management will be supported through the steady support the employees. Therefore, in order to maximize the support of the employees, the organizations must tae steps to get the people involved in the processes more vividly. It will be helping the organization in undertaking the smooth functioning of the systems of the business as per the financial profit making and productivity is concerned.
Departmentalization as per the specialization
Departmentalization in the organizational sections as per the specializations of the people will be helping the organizations in upholding the efficacy of functioning while operating as per the Bottom Line Mentality objectives. Dividing the different sections of the company’s workforce in the diverse departments, as per the specializations, will be helping the organization in focusing on the quality of the products and the maximization of the productivity of businesses.
Focusing on the long term objectives
The organizations must take steps to focus more on the long term objectives of the business undertakings rather than simply coveting on the short term financial benefits. The long term objectives of the business will be helping the same in maintaining the sustenance of the organizations while operating in the international scenario. The sustainability of the organization will be helping the same in upholding the goodwill of the business. on the other hand, it will helps in the growth and expansion of the organizations in the international markets.
Implementing strategic leadership
Implementing strategic leadership on the business model helps in risk assessment and management of the same in order to undertake safe functioning of the enterprise. On the other hand, it will be helping the organizations in enumerating the different issues that are faced by the employees while operating as per the short term objectives of the business. Application of strategic leadership structure helps in forging innovation in the processes that are planned by the business in order to compete and bring forth financial profitability of the firm. The identification of the issues that are faced by the workforce will be helping the organizational management in mitigating the problems and thereby promote smooth functioning among the workforce for the profitability of the enterprise.
Conclusion
Therefore, from the above analysis it can be stated that the BLM aspires for achieving the one dimensional aspect of the business profitability. The different processes that are undertaken by the organizations and the various issues that are faced by the employees due to the Bottom Line Mentality of the managers is being stated as a part of the literature review. The short term financial profitability is one of the major concerns of the managers for undertaking the BLM concept. The discussion and the analysis section, enumerated in the report, delve deeper into the issues that might be faced by the employees through the introduction of the BLM by the managers of the organization. The recommendations that follow the analysis will be helping in strategizing different steps in order to bring in changes in the concurrent systems of the businesses in order to maintain their profitability and sustenance at the same time.
References
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