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Impact of Effective Business Management Policies on British Red Cross

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[Degree Title], [University], 20XX

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[Name of University]
[Date of Submission]

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their
support and guidance without which this research would not have been possible.

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Declaration

I [type your full first names and surname here], declare that the contents of this
dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not
previously been submitted for academic examination towards any qualification. Furthermore, it
represents my own opinions and not necessarily those of the University.

Signed __________________

Date _________________

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Abstract

British Red Cross is a non-profitable organisation, which requires designing, developing, and
implementing effective business management policies for ensuring that the various functions
like, operations, finance and HRM are managed effectively.This research aims to understand the
impacts of effective business management policies on performance of British Red Cross.
Moreover, the study also involves understanding the different methods through which British
Red Cross Company can implement its effective policies. For this the researcher has adopted
mixed method research using both qualitative interviews and quantitative surveys. The data from
survey was used for testing the hypothesis, which revealed that the relationship between training
& development and employee empowerment strategies is highly significant. Interviews were
conducted from management of British Red Cross, which revealed that the management is also
in favour of business management policies for effective business performance.

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Table of Contents
Acknowledgement...........................................................................................................................ii
Declaration.....................................................................................................................................iii
Abstract...........................................................................................................................................iv
Chapter 1: Introduction....................................................................................................................1
1.0.

The Area under Investigation............................................................................................1

1.1.

The Organisational Context..............................................................................................1

1.2.

Strategic Significance of the Area under Investigation.....................................................3

1.3.

Research Questions and Objectives..................................................................................6

Chapter 2: Literature Review...........................................................................................................8


2.0.

Introduction.......................................................................................................................8

2.1.

Business Management Policy...........................................................................................9

2.1.1.

Employee Retention.................................................................................................11

2.1.2.

Increased Competency.............................................................................................11

2.1.3.

Training and Development......................................................................................12

2.2.

The Frame Work of Management...................................................................................13

2.3.

Benefits of Successful Implementation of Business Management Policies...................13

2.4.

British Red Cross Business Management Policies.........................................................14

2.5.

Management of Uncertain Conditions............................................................................15

2.6.

Performance Management and Business Management..................................................15

2.7.

Significance of Planning for Non-Profit organisations...................................................17

2.7.1.

Morale and Motivation of the Staff.........................................................................18

2.7.2.

Hiring of the Volunteers...........................................................................................19

2.7.3.

Effective Management Framework.........................................................................19

2.8.

Importance of Change Management in Organisations....................................................20

Chapter 3: Methodology................................................................................................................22
3.0.

Research Process.............................................................................................................22

3.1.

Research Philosophy.......................................................................................................22

3.1.1.
3.2.

Interpretivism...........................................................................................................22

Research Approach.........................................................................................................23

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3.3.

Research Strategy............................................................................................................24

3.4.

Research Design..............................................................................................................24

3.5.

Data Collection...............................................................................................................25

3.5.1.

Surveys....................................................................................................................25

3.5.2.

Interviews................................................................................................................25

3.5.3.

Relevance.................................................................................................................25

3.6.

Sampling.........................................................................................................................26

3.7.

Data Analysis..................................................................................................................26

Chapter 4: Analysis........................................................................................................................28
4.0.

Overview.........................................................................................................................28

4.1.

Questionnaire Analysis...................................................................................................28

4.1.1.

Frequency Distribution............................................................................................28

4.1.2.

Regression Analysis.................................................................................................36

4.2.

Interview Analysis...........................................................................................................37

4.2.1.

British Red Cross Business Management Policies & Success of Organisation......37

4.2.2.

Effective Business Management Policies & British Red Cross Performance.........38

4.2.3.

Measurement of Effective of Business Management Policy of British Red Cross. 39

4.2.4.

Implementation of Business Management Policies at British Red Cross................39

4.2.5.

Improvements in Business Management Policy of British Red Cross....................40

Chapter 5: Conclusion...................................................................................................................41
5.0.

Conclusion......................................................................................................................41

5.1.

Recommendations...........................................................................................................43

5.2.

Implications for future Research.....................................................................................44

References......................................................................................................................................45
Appendix........................................................................................................................................50
Survey Questionnaire.............................................................................................................50
Interview Questions................................................................................................................53

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Chapter 1: Introduction

1.1.

The Area under Investigation


In this study the area under investigation is the analysis and evaluation of the effective

business management policies on the performance of the British Red Cross. British Red Cross is
a non-profitable organisation, which is highly recognised because of its swift disaster based
planning and controlling, disaster management and most importantly its management of the
overall organisational operations and functions (Council, 2012). Since the British Red Cross is a
non-profitable organisation, its major aim is to administer the workforce and budgeting in a
highly proficient manner in order to ensure that the organisation is capable of tackling disasters
in an effective manner.
It is essential for organisations like British Red Cross to design, develop, and implement
effective business management policies in order to ensure that the various functions like,
operations, finance and human resources are managed effectively (Singleton, 2012). This would
ensure competent performance of the business as a whole, since all departments will work in a
highly synchronised environment. With pre-defined policies all the departments will have predefined boundaries and goals and will work towards the achievement of those goals, which in
turn will result in enhancing the organisations performance (Bryson, 2011).
1.2.

The Organisational Context


British Red Cross is among the leading charitableorganisation of United Kingdom. The

organisation works internationally and domestically and provides health and social care services
to the vulnerable individuals of the society with the aim of the building resilience. British Red
Cross has strong global presence, as it is part of the worlds largest humanitarian organisation,

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the international Red Crescent and the international Red Cross movement, comprising of more
than 180 national societies (Hanlon, 2011). British Red Cross is a prominent and dynamic
member of the movement and it is strongly committed for strengthening the IFRC Secretariat,
with the aim of building the capacity of the various national societies included in the movement
and providing resilient support to the various projects, tasks and policies of ICRC (International
Committee of the Red Cross).
The 2010-2015 corporate strategy of British Red Cross supports the ICRC movement
with the aim of improving the effectiveness of the humanitarian response to natural disaster or
conflicts and wars. Along with that, it also aims towards the reduction of the risks of global
warming all over the world and providing care to the extremely vulnerable groups and
individuals of the society (Singleton, 2012). These aims are achieved through the provision
material and financial resources, along with human and technical expertise. Furthermore, the
British Red Cross also provides support while working in close coordination with other societies,
which in turn helps in shaping the movement strategy, along with humanitarian and policy
diplomacy (Christopher et.al, 2014).
In the international Red Crescent and the international Red Cross movement, the British
Red Cross is acknowledged as one of the leading National societies possessing the capacity,
experience and the technical expertise, which are essential for the effective management of a
disastrous situation (Waikayiet.al, 2012). British Red Cross is working on the development of its
regional as well as global response system in order to ensure pertinent response to the disastrous
situation. The aim is to establish a strong link between the disaster preparedness, disaster
response, and more importantly recovery efforts (Blaikie et.al, 2014). British Red Crosshas also
played a crucial role in the development of the resilience approach of the movement, which is
aimed towards the reduction of risks and taking precautionary measures before the disaster

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strikes. This aim is achieved by British Red Cross through working in close coordination with
the National Societies and ensuring the successful delivery of the programs that strengthen the
resilience of the communities towards crises (Waikayiet.al, 2012).
British Red Cross provides technical support and funding in areas such as sanitation, first
aid, water and community based health, security and shelter, with a major focus over the
addressing of the fundamental causes of vulnerability to humanitarian crisis. As one of the active
participants of humanitarian policy field and leading player of the National Society in
International Humanitarian Law (IHL), British Red Cross plays a significant role in the
promotion, development and dissemination of IHL, both internationally and nationally (Carlos
et.al, 2014, p. 374). British Red Cross is dedicated towards the improvement of the environment
for the vulnerable groups and individuals residing within the society through the promotion of
the humanitarian principles and through influencing people with the help of an on-going
research, analysis and negotiation. British Red Cross also works as a humanitarian support for
the public authorities of United Kingdom under which it provides training, support and legal
advice to the national and the international stakeholders (Hanlon, 2011). The humanitarian
policiesand activities of the British Red Cross include development of civil military relations and
principles for the development of humanitarian resilience under disastrous circumstances.
1.3.

Strategic Significance of the Area under Investigation


Strategic significance is the method of evaluating the importance of the particular part of

the plan, which is being implemented by the organisation for ensuring efficient management.

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Figure 1: Strategic Significance for British Red Cross


Planning holds high strategic significance for a non-profit organisation like British Red
Cross. The importance of planning is high, specifically because, it enables the organisation to
develop effective plans for tackling with disastrous circumstances and taking precautionary
measures even before the disaster occurs (Bryson, 2011). British Red Cross has a well-developed
planning structure, through which they ensure that various operations and functions of the
organisations are performed in an appropriate manner to provide care to the vulnerable group of
the societies (Bryson, 2011).
British Red Cross understands the strategic significance of planning and they devised and
developed their strategies around the disaster, poverty and healthcare issues. At British Red
Cross, the organisational plans are developed by keeping the needs of the organisation and its
human resources under strict consideration. Thus, the plans of the British Red Cross works in
close coordination with their mission and vision (Waikayi et.al, 2012). The visions and mission
of British Red Cross involves working for the benefit of the humanity, ensuring their safety and

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providing the vulnerable group of the society with an environment in which their basic needs are
addressed (Hanlon, 2011).
Like planning, programing also holds strategic significance for British Red Cross. For
non-profit organisations, programing is closely linked with mission and vision of the
organisation. It is essential that programing and planning works in close coordination within the
company (Head & Alford, 2013). British Red Cross has a strong hierarchy and they perform their
planning and programing activities based on teams. Thus, in order to ensure effective programing
and planning activities, possible clients are associated in the preliminary planning and
programing process (Obel, 2014). This helps in building the acquaintances for the fundraising
and donation programs. Programing is also significantly important for British Red Cross as it
adds value to the business management policy. It is a crucial method that serves as an essential
tool for the management of the various features of the organisation (Waikayi et.al, 2012).
Similarly, budgeting for various projects also holds strategic significance for British Red
Cross. Since the British Red Cross is a non-profit organisation, it is completely dependent on
donations by the public and the private sectors (Cunningham et.al, 2014). Furthermore, for nonprofit organisations, like British Red Cross, the budgeting engrossed within the crisis and the
charitable management activities can result in lifting the overall monitory resources of
theorganisation. Kazilinas(2011) concluded that the non-profit organisations like the British
Red Cross have proved to be proficient and successful in performing various societal activities;
thus, enabling them to generate financial resources in the form of fundraisers and charities.
Lastly, performance management and management control also plays a significant role in
the British Red Cross. Since the management is responsible for the measuring of the
performance of the organisation, its employees and take counter-measures forremedial actions
(Chenhall et.al, 2012), this ensures that the performance of the organisation remains in
coordination with its goals and objectives. Thus, the strategic significance of performance

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management and management control is very high for an organisation like British Red Cross,
specifically because the overall performance of the organisation is dependent on it.
1.4.

Research Questions and Objectives


A research question could simply be explained as the statement that is used for the

identification of the phenomenon that is to be studied. Appropriate answer to the research


question helps in addressing the research problem in an adequate manner (Creswell, 2013).
Following are the research questions, which are addressed by the researcher in this study:

What are the impacts of effective business management policies on performance of

British Red Cross?


What are the different methods through which British Red Cross Company can
implement its effective policies?
The objectives of the study are designed by the researcher for answering the research

questions. They emphasise on how the aims of the research are to be accomplished. Objectives
must be highly feasible and focused and appropriately address the overall outcomes of the
project (Creswell, 2013). Following are the objectives of this researcher study:

To identify the influences of effective business management policies on performance of

British Red Cross.


To determine the efficiency of the British Red Cross business management policies.
To assess and presentthe unconventional business management policies on the
performance of British Red Cross.

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Chapter 2: Literature Review

2.1.

Introduction
Business Policy characterises the degree or extent to which employees within

anorganisation can take decisions (Daft, 2015). It allows the lower management level to manage
the issues and problems without counselling top management level for making decisions each
time. Business procedures andpolicies are the rules created by a company to supervise its
activities (Daft, 2009).Head & Alford (2013) describes the boundaries of decision making, which
must be followed. Likewise, business policy manages the attainment of organisational resources,
which are essential for achieving organisational objectives. Business policies are the exploration
of the top management level responsibilities, the substantial issues influencing success and
achievement of the organisation and the decisions that may influence the organisation in longterm (Daft, 2015).
Regardless of the sector anorganisation operates in, i.e. public or private
sector,management of business policy is crucial and turning out to be the most significant factor
(Hitt et.al, 2012). An investigation led by The Economist's Intelligence Unit regarding 211 public
sector as well as private sectorcompanies found that 89 %of the government participants and 81
% of the private participants have experienced a negative effect due to the absence of effective
management of business policy (Hitt et.al, 2012).

2.2.

Business Management Policy


Managing a business is an administrative approach, which is utilised to ensuresimple

managerial practices by means of building up different policies and strategies to handle the

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uncertainconditions that will eventuallyoccur. Business management policies are the operative
guidelines that could be forwarded on with the intention to support the order, security, stability or
future objectives of both profit based and non-profitbasedorganisations. For example, acompany
may have management policies against hiring the relatives of existingemployees for higher level
position. Each time when the situationascends, the workers may make reference to the
management policies, rather than making their own decisions (Chenhall et.al, 2010).
In todays competitive business environment, the management policies of companies are
utilised as amanagement technique and procedure throughout the system or functions that
comprises of numerous users. Management policies of companies involves policy-based
administration and control of the enterprise, which controls the system, the application of the
defined policies and strategies forcontrolling and managing the access for the engagement of the
resources (McLean & Smits, 2012).
Management policies of multiple user companies actually includedeveloping procedures
for such activitiesso as to get accessibility to the document or delete particulardocument, the
exterior and foundations of single desktops users etc. There are different softwarepackages
available forautomation of a feworganisational processes. Overall, the way these software
packages perform are management policies of business, which are contributes towards the
products or services (Beautement et.al, 2009).
Business management policy serves as an efficient managerial approach, which is
integrated within the management, operational and the functional aspect of the organisation
(Wheelen&Hunger, 2011). These policies are the functioning rules that perform the task of
sustaining the direction, maintenance of operations, and continuity of processes within the
organisation. Today, the business management policies are employed by organisations as a
management technique and tool throughout the organisation (Wheelen& Hunger, 2011).
According to Tripathi&Agrawal (2014), the business management policies captivate policy

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based management that is responsible for controlling the network, implementation of the
described policies for effective management and controlling the access for the employment of
resources.
Organisations, like British Red Cross, can enjoy various benefits through the successful
implementation of Business Management Policies, the benefits include:

Figure 2: Factors of Effective Business Management Policy

2.1.1. Employee Retention


Implementation of effective business management policies results in decreasing the
employee turnover rate for organisations (Ganesan, &Badrinath, 2012). With well-defined
policies and procedures in place, the employees work towards the achievement of vision of the
organisation. According to Shen et.al (2009), good organisations know the value of their human
resources and determine their management policies keeping the human resources under
consideration. Thus, they ensure that the human resources working within the organisation are
well aware of the organisations vision and mission (Swayne et.al, 2012). Since, employees are

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well aware of their organisations vision and mission, they work in accordance with their defined
policies, which results in the successful achievement of the organisational goals in the longer run
(Swayne et.al, 2012).
2.1.2. Increased Competency
With adequate business management policies in place,organisations can develop training
and development program for the managers in order to ensure a high level of competency (De
Vos et.al, 2011). It is crucial for organisations to possess managers that are competent and
proficient, because they are the decisions makers of the organisations (Tripathi, &Agrawal,
2014). For organisations, like British Red Cross, it is essential to possess a team of highly
competent managers, because its NGO centres are located all around the world and they need to
ensure that the high level of quality, care and management of disastrous situation is guaranteed in
all the countries.

2.1.3. Training and Development


The organisations with strong business management policies in place are capable of
designing and developing various training and development programs for the employees at
various levels (Noe, 2014, p. 101).The organisations, like British Red Cross,emphasise over the
training and development programs for the non-managerial and the managerial employees. It is
essential to provide training to the non-managerial employees because they are the ones who
have to work in the field with the vulnerable population. Verma (2013) stated that it is crucial
that these employees are capable of identifying and addressing the needs of the individuals in an
adequate manner on humanitarian grounds. Additionally, training and development of managers
is also highly crucial, as managers are the ones responsible for making the strategic decisions

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associated with the various functional operations of the organisation (Tripathi&Agrawal, 2014).
It is essential to develop the skills and expertise of the employees in the organisation as this helps
the organisation in attaining the strategic priorities of the society.
Senyucel (2009) explained that it is essential for the management of organisations to
manage their employees, volunteers and the fundraising and charity programs in an effective
manner. NGOsraise funds through various resources, which is possible due to the highly
motivated individuals working within the organisation, who are dedicated towards ensuring that
the organisation achieves a stable flow of financial remittances from various individuals,
government funds and organisations (Shen et.al, 2009). Currently, the overall fundraising
activities carried out by British Red Cross are adequate enough and have enabled the
organisation to provide healthcare services to people all over the world in an effective manner.
They are ensuring that the organisation fulfils the standards of the International Committee of the
Red Cross (ICRS) movement.
2.3.

The Frame Work of Management


The management framework involves the British Red Cross management policy. It

additionally clarifies that the expectations of managers with respect to society (Daft, 2015).
Framework of the British Red Cross management practices and activities are required for the
effectiveand efficient organisational performance. It demonstrates the dedication of the British
Red Cross towards the development ofmanagers throughout the community. At last, it
encourages the senior management to take the responsibility asapositive role model for other
managers and employees as well (Daft, 2015).
2.4.

Benefits of Successful Implementation of Business Management Policies


Advantages of effective application of organisational management policies include:

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More skilled managers and competent decision makers at each organisational level at

British Red Cross (David, 2010).


Improved abilities for achieving the strategically selected targets of the society.
Increased development improvement prospects and more accentuated training and

development opportunities for employees at management and non-management level.


Improved retention management and non-management level volunteers and employees.
Promotion of culture thatcomprises ofindividual as well asorganisational learning and

development (David, 2010).


Organisational management policies simply do notbenefit the management, but the
effective management framework implementation helpsin guaranteeing training and
development opportunities for everyone in order to achieve the improvement they
desirefor their occupation. Such opportunitiesexist in their personal development and
growth in the long-run (David, 2010).
Leaders of the British Red Cross mustappropriately manage their workers, volunteers,

philanthropy projects and donations, if they are to achieve the unique sense of individualism
(Snell et.al, 2015). The British Red Cross uses a combined method of funding that is desirable by
majority of the philanthropy projects. As indicated by the higher management levelmember of
the British Red Cross, they are satisfied with the charitable amount that they are able to generate
as revenue; however,the higher management level member additionally expressed that it entails
having a decent contract for a few elements of its work (Snell et.al,2015).

2.5.

British Red Cross Business Management Policies


Numerous authors have elaborated on the importance of effective business management

policies for the organisation. British Red Cross has worldwide operations in various countries
and they are looking to expand even further; hence, it is necessary for them to have effective and
efficient business management policies(Hanlon, 2011). Even though, the organisation is not

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involved in selling services and products for generating revenues, but the organisation certainly
requires proper management efforts to manage their large workforce and to tackle emergency
and disaster based situations like floods and hurricanes etc. Furthermore, the current global
economic situation creates a much stronger impact on non-governmental organisations like
British Red Cross (Singleton, 2012).
British Red Cross is a non-profit organisation that needs to have effective management
policies. The organisation needs to have maximum capacity in reaching out to all those issues
where there are problems(Hanlon, 2011). The experts have conducted very clear identification
that at present all those non-profit organisations, which deal in disaster management, must be
more dynamic and even active as well. This is especially the case for some very difficult regions
like Africa, where there is a need to be more dynamic in order to meet the needs of the citizens as
well (Waikayiet.al. 2012).
Up till now, British Red Cross has been able to expand itself as an association having an
effectual policy of business management in order to remain more dynamic and successful in their
disaster management activities globally (Singleton, 2012). It is certainly observed that British
Red Cross seems to consider the decentralised structure of the organisation with their offices and
divisions. This has helped them in maintaining proper business management policies for their
organisations (Hanlon, 2011). Though, a detailed review of the literature related to the business
management policies for British Red Cross will be conducted throughout the research study.

2.6.

Management of Uncertain Conditions


The contemporary approach of management in all non-governmental organisations and

even profit oriented companies has changed significantly. Organisations are even working in

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conditions where there are high probability and uncertainty and steps are taken in order to meet
the sudden situation(Dennis, 2009). There are several experts who have explained the concept of
risk management for conditions in which the organisations are now involved in uncertain
activities occurring in the external environment (Head & Alford, 2013).

2.7.

Performance Management and Business Management


The significance of the performance management matters considerably for many

organisations. In the modern world, where both the profit-earning companies and more
specifically, non-profit companies are operating, performance management is certainly a vital
feature that is associated with risk management and advancement of information technology(Hitt
et.al, 2012). At present, most of the non-profit organisations actually consider their volunteers as
their assets and well-wishers as well. It is usually seen that the performance associated with the
volunteer is measured in several ways. According to Xavier (2013), the factors, such as
teamwork, dedication, production, communication mechanism and overall attitudes towards
welfare of the humanity,are associated with performance management and business management.
Such kind of contemporary exercises of management policy has completely changed the
management practices (Kaplan et.al, 2010).
The success of the non-profit companies is usually measured by both efficacy and
efficiency with which they are able to address the needs of different stakeholders. Even all the
profit oriented companies have acknowledge the fact that depending on financial measures only
is simply not enough for carrying out the performance measurement and management. However,
financial reports prove to be very useful in measuring the past performance and providing very
little amount of information on value creation in the long-run(Xavier, 2013). According to

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McLean & Smits (2012), performance measurement for the non-profit companies is very much
extensive but is certainly not very much conclusive in totality. The main reason is that
organisations usually lacks the elegance and simplicity of financial measures like profitability or
returns for stakeholders, which profit making organisations normally use for making evaluation
of the performance (Xavier, 2013).

2.8.

Significance of Planning for Non-Profit organisations


For every kind of welfare program that are there in the non-profit organisation, like the

British Red Cross, it started with the suitable level of planning. Planning is vital both the nonprofit companies and profit making organisations as well. For example, there was one incident
in which British Red Cross had strong high alert that the Hurricane Sandy is going to come and
hit and its consequences will be disastrous for many families. This is the reason why
organisation has started planning exact by starting with their welfare programs and management
policies in order to create donations and then generate charities as well (Rahim, 2015).
Moreover, the Hurricane Sandy program has been appropriately separate from the
mission, goals and overall vision of the organisation as well. There were large numbers of
volunteers who had earlier enrolled and were even offered training in order to help the societies
that were affected because of the natural disaster. The company was then able to manage large
number of volunteers (in thousands) in affective manner because of the effective management
policy of the organisation. The counteractive steps had been taken throughout during this

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situation and large amount had been spent on the hurricane victims and after this welfare
program in order to remain successful in the future welfare programs as well (Senyucel, 2009).
In addition, budgeting had been planned by the Red Cross with the help of donations.
There was large amount collected in this regard and then were spent on several kind of subprograms below the program of Hurricane Study. Performance management programs had been
started by the management teams that belonged to Red Cross so that it can help in demonstrating
to both stakeholders and investors as well. It is vital in observing the managerial resemblance
that has occurred between the non-profit oriented and profit making companies (Podsiadlowski
et.al, 2013).
Furthermore, there are large number of differences among all the non-profit oriented and
profit making companies from revenue generation, target market, selling etc.; but in terms of the
internal management, there are usually similar kinds of management policy making decisions
that includes training, development, hiring, planning, decision making, measurement of both
performance and assessment. A non-profit oriented company usually has a very strong vision and
mission statement as well that assists in directing them for their projects and welfare programs
as well. British Red Cross has the main mission in serving the mankind and therefore they are
usually very active in participating in the charity programs. The managerial aspects of the nonprofit oriented companies usually have very little difference from other similar companies
(Lunenburg, 2010).
To start with, the vital support obtained from emergency assistance and organisations for
human service during and later than the disaster has been somehow vital for the organisations
since several years. The non-profit companies try to assist the individuals, society and the entire
country as well that have got affected from the natural disaster with the help of essential services

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like medical assistance, food supplies, clothing etc. In the following paragraphs, all the vital
factors will be highlighted that is going to assist in conducting an insight of the managements
policy of the famous company, British Red Cross. Their vital business management policy
factors comprises of the following:

2.7.1. Morale and Motivation of the Staff


A positive morale and also the motivation of the volunteers along with the employees are
supposed to be vital intrinsic keenness of both volunteers and workers in order to enable
execution of the tasks at the workplace. The motivation and morale of the employees certainly
matters in all those situations where there is a need to work effectively during natural disasters
(Daft, 2009).

2.7.2. Hiring of the Volunteers


The recruitment policy usually provides strong reference towards hiring of new
volunteers for available vacancy in British Red Cross organisation. Though, at present, there is
an implementation of various kinds of methods for ensuring hiring of prospective candidates.
The problem is that not all of them are considered suitable for every non-profit company. This is
the reason why a non-profit company can work on assuming methods of recruitment in
considering need of the organisation through effective management policies (McLean & Smits,
2012).

2.7.3. Effective Management Framework

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The effective and suitable management framework comprises of the management policy
of the British Red Cross. It is even useful in explaining about the managers expectations related
to the society. The framework of the British Red Cross management activities and tasks has the
need for the effectual performance of the organisation. It certainly shows the commitment level
of the British Red Cross for the developing managers all through the society. Finally, it will
prove very effective in providing motivation to the senior managers in having a constructive role
model for all other managerial staff working in the organisation (Daft, 2015).

2.9.

Importance of Change Managementin Organisations


Change management plays a crucial role in the success of the organisation. Changes

within the organisation are usually initiated by the higher management and they are the ones
responsible for the successful integration of new set of policies and procedures within the
organisations (Hayes, 2014). It is their responsibility to ensure that change is accepted by all the
employees working within the organisation, because they are the ones who will work for the
achievement of organisational goals. According to Cameron, & Green (2015) organisational
culture plays an essential in the implementation of change within the organisation. Organisations
with traditional cultures are rigid towards change, whereas organisations with contemporary
culture are flexible and they adapt and change their culture as per the circumstances. British Red
Cross is an organisation with traditional culture, thus, there culture is not flexible towards the
changing circumstances, and as a result the organisation is struggling to achieve its goals of
ensuring the provision of quality health and care facilities to humanity. It has now become
essential for the top management of British Red Cross to devise certain improvement decisions

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keeping the changing environmental conditions under considerations in order to continue its
successful run in the ICRS movement.
In past few years British Red Cross has struggled to change its traditional structure;
however they have failed to develop and implement the new welfare services and programs due
to the reduction in donations and fundings due to the high rate of inflation, and global financial
crisis. Thus, development and implementation of effective change management policies within
organisations like British Red Cross could serve as the key towards the achievement of success
(Swayne et.al, 2012). British Red Cross is required to adapt to the environment and keep on
making changes in their business management policies in order to cope-up with the changing
needs of the people, specifically the vulnerable population. British Red Cross and its employees
are dedicated to ensure that high level of care, and services are provided to the people suffering
from disasters or other issues such as poverty, increasing inflation, and healthcare costs. British
Red Cross is trying its level best to utilise the available resources in an adequate manner to
reduce the sufferings of the people all over the world.

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Chapter 3: Methodology

3.1.

Research Process
This section of the study provides an overview of the research process that was adopted

by the researcher while conducting this study. It begins with the introduction and explanation of
the research philosophy that was utilised by the researcher for the study. This section also
provides a brief illustration of the research approach taken by the researcher is order to conduct
the study. After this the researcher briefly describes the research strategy and the design adopted
by the researcher in order to collect and analyse the data for achieving the desired outcomes.
Lastly, in this chapter, the researcher has provided a brief overview of the data collection and
analysis methods, along with the relevance of the selected methodology for this study.
3.2.

Research Philosophy
Research philosophy could simple be explained as the belief about the manner in which

data regarding a specific phenomenon should be gathered, analysed and then utilised for the
study (Tolman, 2012). There are different research philosophies that are used by researchers and
a few of which are post-positivism, positivism, pragmatism, realism, post-structuralism,
interpretivism, critical theory and constructivism.
3.1.1. Interpretivism
For this research study the researcher has selected interpretivismapproach. Interpretive
philosophy helps the researcher in comprehending the human experiences of the respondents. It
views that the reality is socially-constructed and is fluid in nature. Influenced by cultural and
social relationships between people, this reality seeks to adopt a change that is why it is

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21

considered fluid or alterable.The researcher used the interpretivism methodology approach and
the rationale for selection of this philosophy is that it provides a rich data on construction of
social reality from participants on the effectiveness and vulnerabilities present in the business
development policies of British Red Cross.
3.3.

Research Approach
Gioia et.al, (2013) explained thatthe research approaches are classifiedinto two different

categories. These categories were inductive and deductive approach. In the inductive approach,
the research is initiated through the collection of relevant data that is related to the selected
phenomenon and research problem identified by the researcher.Once the data is collected, the
next phase is data analyses to evaluate the overall results of the study (Gioia et.al, 2013).
Whereas, on the other hand in deductive approach the research usually begins with a social
generalised theory linked with the selected phenomenon and then its implications are evaluated
through the collection of data.
In this study, the researcher adopted inductive approach, since the researcher has
collectedinformation from the management and the employees of British Red Cross and after
that the researcher concludes the research by developing a general theory, which focuses on the
main aims of the study. Thus, this approach enables the researcher to move from specific
phenomenon to a much more general one. The analysis conducted through inductive approach is
purely based on the data collected from the respondents.

3.4.

Research Strategy
In simple words research strategy is the approach that is utilised by the researchers in

order to conduct the research. Some of the frequently used research strategies include surveys,

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interviews, experiments and case studies etc. For this study, the researcher has selected
questionnaire survey and interviews (Creswell, 2013). Utilising the survey and interviews
strategy, the researcher has developed survey and interviews keeping the research topic under
consideration, since the questions provide the essential information that could be used for
achieving the results of the research study.
3.5.

Research Design
For this study, the researcher has utilised a mix of both qualitative and quantitative

research methodology. Quantitative research could simply be explained as the phenomenon of


collecting numerical data, which is analysed by the researcher through mathematical based
methods, particularly statistical tests (King, 2012). Qualitative design aims on subjective
evaluation of opinions, attitudes and behaviours of the research participants and respondents. In
this study, the researcher collected that data from the management and the employees in order to
analyse the effectiveness and vulnerabilities present in the current business development policies
of British Red Cross. The researcher collected the data through survey questionnaire and
analysed the data using statistical tool SPSS17.0 to determine the results of the study. The data
collected from interviews was analysed using thematic analysis.

3.6.

Data Collection
Data collection is regarded as one of the most essential elements of the research study,

specifically, because data collection has a direct impact over the results of the study. In this study
the data was collected using survey questionnaires and interviews.
3.5.1. Surveys

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The reason behind the selection of survey questionnaires is that they are easy to attempt,
low-cost, accurate and can be analysed by the researcher swiftly and easily. Survey
questionnaire is one of the most effective tools of collecting large amount of data in a time
efficient manner. As the main aim of the study is to analyse the importance of effective
management policies; therefore,data from large number of respondents need tobe collected,
which can only be gathered through survey questionnaire.
3.5.2. Interviews
Additionally, interviews were also conducted for this research because it helps to understand
the perception and opinion of the participants and stresses on a certain point in order to maintain
the focus over the central theme of the research. Management of British Red Cross were
interviewed for the purpose of acquiring the inside news of the organisation and how these
managers implement different business policies within the company.
3.5.3. Relevance
The selected research design is relevant to the current research phenomenon, as
quantitative researchvalidates the answers for a larger sample. The mixed method research was
conducted in order to obtain precise and quantifiable dataalong with qualitative data to generate
broad themes based on the responses of the participants. Since quantitative research is a
structured process, it enabled the researcher to obtain highly objective and reliable data for the
researcher. The questions of the survey were close ended; thus, they ensured that the researcher is
provided with definite answers to the questions, which were asked from the participants.
Qualitative research helped in gathering the opinions and provides the researcher with details
about human behaviours of the participants.

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3.7.

24

Sampling
Sampling is the method, which involves the selection of elements from an ordered

sampling frame. There are two types of sampling methods probability and non-probability used
for research purposes. For this study, the researcher selected non-probability sampling technique,
which is further classified into availability or convenience sampling. The reason behind choosing
convenience sampling is that it allows the researcher to save cost and time for conducting the
process while provides a facilitative choice in selecting relevant participants for the study. The
target population for the study consists of the management and the employees working within the
British Red Cross.
3.8.

Data Analysis
Data analysis is another crucial element of the research methodology. It is a plan, which

guides the researcher in the process of analysing the collected data for the research through
different methods and techniques. Since in this study the researcher has collected primary data
through questionnaire survey as well as interviews, the researcher applied different analysis
methods for both designs. The analysisfor quantitative data included frequency distribution and
regression, which were performed using SPSS. While, the qualitative data collected from
interviews was analysed using thematic analysis.

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Chapter 4: Analysis

4.1.

Overview
Chapter four of this study comprises of analysis and findings from questionnaire survey

as well as interviews. The researcher analysed surveys by conducting regression analysis to test
the research hypothesis and the interview responses were analysed using thematic analysis. The
study aimed to understand and evaluate the effective business management policies on the
performance of the British Red Cross.

4.2.

Questionnaire Analysis
The survey data for this research was gathered from 70 employees of British Red Cross

using Likert scale questionnaire. The aim was to understand the impact of effective business
management policies on the performance British Red Cross. The researcher chose to test the
hypothesis using Regression Analysis on SPSS.

4.1.1. Frequency Distribution


The frequency distribution chart generated on SPSS is presented below.
Table 1: Frequency Responses for Question 1

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Regarding the question related to employee reaction , Management has introduced


employee empowerment strategies in the company to increase retention, 7.1 percent of
employees strongly disagreed to the statement, 32.9 percent of employees disagreed, 22.9
percent of employees replied neutral, 17.1 percent of employees agreed, and the remaining 20.00
percent respondents strongly agreed. This means that employees believe empowerment and
delegation of authority helps in satisfaction towards work, which eventually results in retention.
Table 2: Frequency Responses for Question 2

For the question Management is concerned about the needs of employees in order to
increase retention, 11.43 percent of employee strongly disagreed to the statement, 40 percent of
employees disagreed, 15.71 percent of employees replied neutral, 20 percent of employees
agreed, and the remaining 12.86 percent respondents strongly agreed. Hence, majority of
employees believe that their managers are concerned about their employees and develop various
strategies to retain them.

Table 3: Frequency Responses for Question 3

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For the question Has there been an excessive turnover of the supervisory personnel,
7.14 percent of employee strongly disagree, 27.14 percent disagreed to the statement, 25.71
percent of employee replied neutral, 25.71 percent of employees agreed, and the remaining 14.29
percent respondents strongly agreed.
Table 4: Frequency Responses for Question 4

For the question The job descriptions of the employees are clearly established and
communicated to the employees, 5.71 percent of employees strongly disagreed to the statement,
28.57 percent of employees disagreed, 27.14 percent of employees replied neutral, 24.29 percent
of employees agreed, and the remaining 14.29 percent respondents strongly agreed.Hence,
majority of employees believe that in British Red Cross the employees have well-defined job
descriptions that are clearly communicated.

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Table 5: Frequency Responses for Question 5

Regarding the question Does it appear that management, accounting, and information
technology personnel are sufficiently competent to perform their assigned responsibilities, 2.8
percent of employees strongly disagreed to the statement, 40 percent of employees disagreed,
21.43 percent of employees replied neutral, 25.71 percent of employees agreed, and the
remaining 10 percent respondents strongly agreed.Hence, majority of employees believe thatin
British Red Cross the employees in the management, accounting, and information technology
departments are well qualified and highly competent and help in achieving better performance.

Table 6: Frequency Responses for Question 6

About the question Is there an effective employee performance evaluation system


present for identifying incompetent or employees?, 1.4 percent of employees strongly disagreed

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to the statement, 34.3 percent of employees disagreed, 30 percent of employees replied neutral,
20 percent of employees agreed, and the remaining 14.3 percent respondents strongly agreed.The
frequency distribution chart generated on SPSS is presented above. Hence, majority of
employees believe thatdespite companys efforts, the performance evaluation system at British
Red Cross is still not efficient and streamlined.
Table 7: Frequency Responses for Question 7

About the question Management provides adequate training opportunities for


employees, 11.4 percent of employees strongly disagreed to the statement, 15.7 percent of
employees disagreed, 14.3 percent of employees replied neutral, 58.6 percent of employees
agreed.Hence, majority of employees believe that the training programs at British Red Cross are
adequate for employees.
Table 8: Frequency Responses for Question 8

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For the question Professional development is given high value in this organisation,
21.43 percent of employees disagreed to the statement, 22.86 percent of employees replied
neutral, 41.3 percent of employees agreed, and the remaining 14.29 percent respondents strongly
agreed.Hence, majority of employees believe that theBritish Red Cross gives high value to
professional development and for this they provide necessary training and development
programs.

Table 9: Frequency Responses for Question 9

For the question Does the organisation link training and development with the business
strategy of the company, 7.14 percent of employees strongly disagreed to the statement, 17.14
percent of employees disagreed, 21.43 percent of employees replied neutral, 40 percent of
employees agreed, and the remaining 14.29 percent respondents strongly agreed.Hence, majority
of employees believe that the British Red Cross has incorporated training and development of
employees as part of their organisational strategy in order to ensure operational efficiency.
Table 10: Frequency Responses for Question 10

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For the question Organisational performance is dependent on the performance outcomes


of the human resources which includes; such skills, attitudes and behaviour, 2.9 percent of
employees strongly disagreed to the statement, 25.71 percent of employees disagreed, 14.29
percent of employees replied neutral, 37.14 percent of employees agreed, and the remaining 20
percent respondents strongly agreed.
Table 11: Frequency Responses for Question 11

For the question HRM policies are developed in line with the business management
policies are developed, 11.4 percent of employees strongly disagreed to the statement, 11.4
percent of employees disagreed, 18.57 percent of employees replied neutral, 41.53 percent of
employees agreed, and the remaining 17.54 percent respondents strongly agreed.Hence, majority
of employees believe that the British Red Cross human resource policies are in synergy with
business strategies of the company.

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Table 12: Frequency Responses for Question 12

For the question Participation, compensation, incentives, training and development are
kept in consideration while developing the business management policy, 11.4 percent of
employees strongly disagreed to the statement, 20 percent of employees disagreed, 10 percent of
employees replied neutral, 47.14 percent of employees agreed, and the remaining 11.43 percent
respondents strongly agreed.
4.1.2. Regression Analysis
For testing the hypothesis of the study, the researcher applied regression analysis using
SPSS software. The aim was to understand the impact of business policies on performance of
British Red Cross. The regression analysis was used based on the following equation of linear
regression:
y = a + bx

Hypothesis: Business Policies impact on performance of employees


The following table presents the regression analysis showing the impact of business
policies on the performance of employees.

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Table 13: Regression Analysis

The above table explains that relationship between training & development and employee
empowerment strategies. Since the p value is 0.000, which is greater than 0.05 (p>0.05), it can be
concluded that the relationship between training & development and employee empowerment
strategies is highly significant. Thus, the regression equation is:
y = a + bx

Therefore,
Employee Performance = 0.254+ 0.681 (x)

4.3.

Interview Analysis
The interview analysis is based on the qualitative information obtained from different

employees of other organisations. These responses are evaluated by thematic analysis and are
discussed below.

4.2.1. British Red Cross Business Management Policies &Success of Organisation


As mentioned above in the literature review and analysis, skill development and business
decision policies are important aspect for an organisation success and enhance the expertise of

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the employees. In the interview, the participants responded that organisations need to invest more
time and money in carrying out different training programs for the employees, which will benefit
them in the long run. Other participants responded that strong business policies are valuable to
secure human capital and gain competitive edge in the market. Other participants also responded
that strong business policies will develop a favourable perception among employees about the
organisation and this will result in better work performance.

4.2.2. Effective Business Management Policies & British Red Cross Performance
Researchers explain that effective business management policies are directly related to
the work abilities and productivity of the employees. In the case of British Red Cross, one of the
participants responded that effectiveness of business management policies are based on the
employees training, which should be dependent on the current need of employees. These
activities must be interlinked with the job of the employee and organisations expectations and
goals. Another participant responded that HRM policies are also an important aspect in the
motivation of employees, which impacts the performance. Therefore, HRM policies should be
designed with active participation and contribution of the employees. British Red Cross is more
interested in achieving their expectations instead of analysing the employees need.
British Red Cross needs to train the employee as per their skills and area of knowledge so
that different needs of employees are met. Conventional modes of training are only related to the
imposition of a single package of activities over all the employees of an organisation.

4.2.3. Measurement ofEffectiveof Business Management Policy of British Red Cross

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Employees and researcher mentioned the importance of internal communication system


to analyse the effectiveness of business management policy. The interview also revealed
important opportunities for improvement in the current business management policy. Internal
communication is of significant importance as it connects the enterprise executive level
leadership and employees to promote new business management policy. Few respondents
mentioned the importance of conducting periodical internal audits for the assurance of policy
compliance. Internal audit committee should be assigned to uncover any difficulties in
compliance of business management policy. Likewise an integrated policy management plan
should be implemented in order to achieve effective compliance program. One of the participants
mentioned the importance of measuring the volume of regulations impacting the current business
operations and to modify or merge the old policies to form new regulations. Organisations that
are more connected according to the compliance framework are prepared to minimise any
systematic risk and perform better in every situation.

4.2.4. Implementation of Business Management Policies at British Red Cross


From the responses of employees it can be concluded that British Red Cross needs to
manage itshuman resources effectively and enhance its management policies in order to add
value to the organisation. However, the employees are overall satisfied with the management
policies. The ultimate aim of the management policies is to make sure that organisation deliver to
its business strategy. It is the main focus of HR to achieve the goals in alignment with the
business strategy. HR policies need to be aligned with the organisation structure and employees
for better management and development.
4.2.5. Improvements in Business Management Policy of British Red Cross

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According to the responses recorded from the participants, employees were unified about
the concept of better training and development process,as this increases the productivity level
and increases the prospects of future growth for employees. One of the participant explained that
personal and professional training will enable them for better productivity level and provides
them with career growth based on their performance and enhance expertise. Few employees
were more concerned about incentives and reimbursements rather than training and development,
since, better incentives will provide them with chances of engaging in off job educational
activities, which will led to their career and personal development.

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Chapter 5: Conclusion

5.1.

Conclusion
The main focus of the research is to analyse and evaluate the impact of effective business

management policies on the performance of the British Red Cross. According to Chenhall et.al
(2012), effective business policies act as boundary between the relationships of managerial layer
with lower level employees. It is regarded as the pre-determined guideline that aims on
successfully achieving the business aims and objectives. It has been researched that effective
business policies have become an integral part for many organisations including British Red
Cross. Organisation are findings new ways to design, develop and implement effective business
policies for the purpose of integrating effective integration between various departments of the
company such as human resources, finance and operations. As per the survey conducted with the
employees of British Red Cross, it can be concluded that the company has introduced new
employment empowerment strategies, whichnot only aims on increasing employee satisfaction
but also improves employee retention. However, it was also reported that the management of
British Red Cross has introduced effective policies but its implementation has not been effective.
Majority of the employees are of the opinion that the management does not care about their
needs and development. As per the interview findings and survey analysis, it can be concluded
that majority of the employees are in the favour of having internal audit surveys in each
departments for the purpose of ensuring proper compliance and quality. According to Bryson
(2011), organisations that are more prone towards compliance framework are more likely to
minimise and reduce all types of systematic risks; thus, having an opportunity to perform better
in different situations.

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Moreover, it has also been found that the employees of British Red Cross has
recommended to introduce new intrinsic and extrinsic rewards for their performance, which
would automatically enhance job performance and satisfaction; thus, benefiting the company for
long-run. Through interviews and questionnaire it was also concluded that the employees of
British Red Cross demanded for more training and development opportunities to be offered by
the company. According to the respondents of the study it can be concluded that employees at
British Red Cross were unified regarding better training and development process as it would
enhance the productivity level and also provide high chances for future growth of the employees.
Furthermore, professional and personal training allows employees to perform better productivity
and assist them in achieving high career growth.
According to Chenhall et.al (2012), there is a highly significant relationship between
training and development and employee empowerment strategies. When organisations are able
to offer effective training and development policies, it automatically increases employee
satisfaction and employees can better perform their work related tasks; thus, benefiting the
organisation in return. Moreover, it has also been found that effective business policies help in
training future managers through which organisation members can be connected with one
another in order to improve business efficiency. It can be concluded that British Red Cross
Company has drastically expanded its operation by having effective business management
policies for the purpose of developing dynamic strategies of disaster management worldwide.
However, it has also been researched that company should consider the decentralised
organisational structure of their head office and different operational divisions. This would assist
them in developing appropriate policies for organisational growth.
5.2.

Recommendations

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Following are some of the important recommendations for British Red Cross Company
for the purpose of implementing effective business policies and ensuringorganisational
performance.

Employee Training and Development: One of the most important recommendations for
the company is to develop effective training and development sessions for its employees.
British Red Cross should design training sessions that would not only ensure quality
work performance but would also motivate the employees to develop new skills and
techniques. According to Bryson (2011), in todays modern and competitive market,
employees are not only looking for high paid salary but are also aiming to improve their

skills through effective training and development opportunities.


HRM Policies: Human resource management is one of the most vital departments of the
organisation. Due to this reason, HRM needs to be managed through an effective manner
in order to ensure high organisational growth. British Red Cross Company should design
effective HRM policies that would not only benefit the organisation but also the current
employees including new recruits. An effective HRM policy does not only motivate

employees but also helps in retaining them.


Employee Involvement Policies: Another important recommendation for British Red
Cross company is to ensure high employee involvement in their decision making process.
Through employee involvement, an organisation does not only obtain new ideas but also
helps in creating employee ownership; thus, enhancing performance and employee

satisfaction.
Workforce Diversity Policies: The Company is recommended to promote workplace
diversity within the organisation. An accurate implementation of diversity policies
improves human and organisational capital and assets, which can act as a competitive
edge for the organisation to generate more capital. An effective workforce diversity

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policy would enhance British Red Cross reputation. This would also assist the company
in attracting and retaining talented employees within the organisation.

5.3.

Implications for future Research


The implications for future researches are as follows:

The future research should be covering the different business policies except for training,
development, HRM and Standardisation. Some new factors that have a direct impact on

business policies should be analysed on an in-depth level.


The current research has focused on a charity organisation to conduct the research. Future
researches can analyse the same point of view by focusing on different profit-based
companies that aims on generating higherrevenue for the company and shareholders. By
analysing the different nature of the firms, future researches can fill the gap that has been
left unaddressed in the current research or the elements that were beyond the scope of this
research.

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Appendix

Survey Questionnaire
Impact of Effective Business Management Policies on Performance of British Red Cross

DEMOGRAPHICS
Age

Gender

Male
Female

15-25
26-35
36-45
Above 45

SURVEY QUESTIONS

No.

Questions

Strongly
Disagree

Disagree

Neutral

Employee Retention

Management has
introduced employee
empowerment
strategies in the
company to increase
retention
Management is
concerned about the
needs of employees in
order to increase
retention
Has there been an
excessive turnover of
the supervisory
personnel
Increased Competency

Agree

Strongly
Agree

Business Management

The job descriptions of


the employees are
clearly established and
communicated to the
employees
Does it appear that
management,
accounting, and
information
technology personnel
are sufficiently
competent to perform
their assigned
responsibilities
Is there an effective
employee performance
evaluation system
present for identifying
incompetent or
employees?
Training and Development

Management provides
adequate training
opportunities for
employees
Professional
development is given
high value in this
organisation
Does the organisation
link training and
development with the
business strategy of
the company
Organisational Performance

10

Organisational
performance is
dependent on the
performance outcomes
of the human
resources which

46

Business Management

11

12

includes; such
skills, attitudes and
behaviour
HRM policies are
developed in line with
the business
management policies
are developed
Participation,
compensation,
incentives, training
and development are
kept in consideration
while developing the
business management
policy

47

Business Management

48

Interview Questions

What are the core British Red Cross business management policies that have proven to be

successful for the organisation?


Do you think effective business management policies influence the performance of

British Red Cross?


How can you measure the effectiveness of business management policy of British Red

Cross?
Has British Red Cross been successful in implementing its business management

policies?
What future improvements can be made in business management policy of British Red
Cross?

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