CMA4003 Commercial and Organisational Environment Assignment Sample

Introduction

In the current era, it is crucial for each organization to hire and retain talented employees as to manage the overall cost and working of the business entity. Recruitment refers to the process of identifying, influencing, interviewing, hiring and on-boarding worker within the organization. Training & development implies for the process of up-skilling apprentices by establishing the adequate sessions. Both recruitment and training are crucial process that aids in the attainment of goals effectually within the construction organization. GBS is the construction company which aiming at developing the country’s accommodation infrastructure by building cheap houses outside the M25 London highway. The aim of the GBS construction is to offer affordable accommodation to the all income class groups as to benefit the community. The main objective of GBS construction is to provide high quality homes which assists in meeting up the customer’s needs. Firm also aims at carrying out operation without negatively impacting the environment and creating an effective workplace environment for the employees.

Vision of GBS construction is to become the leading company of UK by effectively meeting the need of both customers and society. The construction industry of UK is rapidly changing and currently high focus placed over sustainability aspects (UK’s construction industry, 2024). Further, the construction industry is shifting towards automation as all the operations are carrying out with the updated technology and by trained employees. In this context, GBS is aiming at initiating effective activities by which sustainability could be managed and also focuses on providing regular T&D session for developing the employee’s skills. Along with this, GBS is aligning with the requirement of National Housing Federation UK which denotes a scarcity of affordable housing in UK. GBS construction is concentrating over building high quality building and affordable houses in the country that result into the development of country’s infrastructure. Galliford Try and Wilmot Dixon construction are the two medium sized construction organizations and the biggest competitor of GBS construction.

Wilmot Dixon is also aiming at building high quality and affordable houses in UK but they are not capable in managing sustainability while carrying out all the operations (Wilmot Dixon construction, 2024). On the other hand, GBS construction is focusing over managing sustainability in their operation which in turn creates competitive edge. Galliford Try is another construction organization that focuses on providing highly efficient houses. The company is unable to provide the houses at an affordable price which could not be purchased by all income class group (Galliford Try, 2023). GBS construction prioritizes CSR activities and society welfare whereas other firms do not consider the same in their operations. The current essay will describe the significance of recruitment & training session in attaining the needs of the organization effectively. It will also include the importance of performance management, CSR, commercial awareness and economic principle for overall working of the apprentices. Additionally, report will also include the manner in which apprentices will support GBS construction in building cheap houses by carrying out the sustainable, ethical and responsible practices.

Main Body

Performance management implies for the on-going and continuous process of communicating job responsibility, expectation, priorities and regular feedback so that expected goal could be achieved. Performance management within construction industry is related to developing an effective workplace environment so that subcontractor and employees could effectively carried out their activities. It is the most crucial process within the organization as it helps in clarifying the expected role from employees and includes continuous monitoring for efficiently achieving the goal (Alkilani and Loosemore, 2022). Further, this helps in identifying the training need of workers based on which the most accurate sessions could be arranged that lead achievement of the organization’s goal effectively. Key performance indicators (KPIs) are the measurable values based on which performance of organization or employees are evaluated. It is very crucial for GBS to set KPIs based on which employee’s performance could be effectively evaluated.

There are large number of KPIs that are used within construction industry with the aim of effectively attaining firm’s goals and objective. Project schedule, cost, quality, safety, customer satisfaction and waste and sustainability are six crucial KPIs that are used within UK’s construction industry. Project schedule KPI is the method in which manager decide the particular time period for completion of each activity so that firm’s goal could be smoothly achieved. GBS construction uses project schedule KPI which helps in tracking the progress of particular project and supports in ensuring that work is carrying out on appropriate time. Under this, manager of GBS focuses on identifying the amount of work completed, total amount of work in progress and total leftover task which provides overall idea related to the project (Ansari et al, 2022). This information supports in determining whether progress is aligning with the set targets or not. For measuring the project schedule, Manager is involved towards closely observing the overall working of the project. Managers are focused over tracking starting and ending period of each task and comparing the same with the set timeline. Further, GBS construction uses charts, computer software & tool for planning and organising the projects prominently. Organization is also focused towards creating a particular schedule so that goal could be effectively achieved. GBS is involved towards closely tracking the firm’s working that helps in identifying the possible delay so that effective appropriate actions could be taken on time for the success of project.

Another crucial KPI is related to the project cost that aims at managing overall finance and funds of the business entity. There is various cost KPIs such as cost performance index, cost variance, budget creating cycle time and planned values that are used by GBS with the aim of managing overall cost of the project (Performance management KPIs, 2024). These KPIs focuses over carefully monitoring the movement of funds within project and aims at determining whether the task has been completed within the budget limit or not. These KPIs also act as the basis for the future budget planning as managers are able to identify the expected funds that required to carry out the particular task. For effectively measuring the cost key performance indicators, project expenses and budget are monitored. Under this, manager set up the expected amount that should be spend towards labour and material by analysing the past data. The actual cost required towards the raw material and labours are compared with the set standard which aids in managing the financial aspects of the organization’s (Aslam, Huang and Cui, 2020). Along with this, project management tools, accounting software’s and expenses monitoring system is used to effectively measure the project cost. Further, to control the cost of the organization, GBS is involved towards negotiating with the suppliers, reviewing budget and enhancing employees efficiency. By regularly reviewing the project cost KPI’s and comparing the actual performance, GBS is able to formulate effective policies which ultimately support the adequate financial management.

The major focus of each construction project is to provide high quality product and services which helps in managing the long term customer loyalty. Quality KPI helps in identifying the firm’s ability in providing the expected product within the given budget and time. GBS uses this KPI which denotes the firm’s dedication to provide the best services to its customers. This KPI supports GBS in ensuring that project is completed with the set standard which aids in avoiding any type of future expenses (Avotra et al, 2021). Under this, client satisfaction and labour productivity are effectively evaluated with the motive to determine the overall quality of the project. For identifying the quality of construction, GBS is involved towards analysing the number of issues that encountered in the site inspection, checklist, punch lists. With the help of this KPI, organization would be able to take necessary actions on timely basis which aids in carrying out the project in limited time and budget successfully. Thus, KPI’s are very crucial for apprentices as mangers are able to determine the training that should be provided to the employees for managing the overall work quality. Further, based on this quality KPIs, manager will be able to identify the skill required for the workers based on which recruitment process could be initiated (Bao and Lu, 2020). The actual product is analysed against the standards that has been set which contributes in measuring the product quality to the large extent. QA software, inspecting report and checklist are used by GBS construction for evaluating the overall quality of the projects. For effectively regulating quality KPIs, GBS construction is involved towards frequently carrying out the quality control inspection, employing high quality materials and hiring efficient workers.

Another crucial type of construction KPIs includes ensuring the overall safety of the project. It is the crucial KPI which helps in managing the health and safety of worker and support in successfully carrying out the project. GBS constructions use this KPI with the aim of identifying the type of training session and technology that should be initiated within firm as to manage overall safety of the project (Best and J, 2019). Safety KPIs support in detecting any issue that could be raised in the future and support in taking actions on time as to avoid occurrence of such issues. In this context, injury severity, project schedule effect, frequency and project accident are taken as Safety KPIs by GBS construction. The organization is taking responsibility to manage safety of the employees and emphasising over minimizing any risk that impact the quality of overall project. For measuring the project safety, training logs, safety tracking system and incident reports are used by the organization. GBS construction uses safety KPIs with the aim of identifying any type of safety issue within the project. In this regard, firm is involved towards initiating the extensive safety procedure and practices which support in reducing the severity rate in the business entity (Brook, 2016). With the help of this KPI, GBS is able to develop the trust within apprentice as it defines the firm’s responsibility towards providing the utmost safety to its workforce. This helps in attracting the most competent employees and supports the attainment of organization’s goals successfully.

Waste and sustainability is another pivotal KPI within the construction industry which helps in describing the firm’s ability in carrying out the operations in an effective manner. To carry out the operations in an ethical manner, GBS construction has established waste and sustainable goals based on which all the activities are carried out. This KPI is aiming at measuring the environmental impact that has been caused due to the firm’s operations. In this, GBS uses factors such as the amount of carbon emission, energy usage, waste creation and recycling that has been undertaken by the business entity (Chappell, 2021). GBS is very dedicated towards protecting the environment due to which firm has established a sustainable goal and emphasised on the attainment of same. GBS uses the carbon footprints, trash creation, energy usage and recycling as the KPIs for determining the overall wastages and sustainability of the business entity. For the effective measurement, company uses the waste management, sustainability evaluation and energy monitoring tools. If the organization determines that there is an increasing amount of wastage then firm is involved towards taking adequate actions which assist in safeguarding the country’s resources (Çimen, 2021). For the effectual attainment of the goals, GBS construction is involved towards using eco-friendly raw material and enhancing employee’s efficiency which aids in reducing the wastages.

Lastly, customer satisfaction is the major KPI which aids in determining the overall success of the particular project. Under this, GBS measures the customer’s satisfaction level and focuses on identifying the factors that may influence their overall motivation. In this context, customer satisfaction KPI’s include the net promoter score which helps in identifying the customer’s loyalty over the years (Daoud et al, 2021). Along with this, customer effort score has also been used by GBS which assists in ensuring the ease with which customers are able to use the firm’s product. Customer Satisfaction Score or CSAT is another metric which helps in depicting customer’s satisfaction from the product and services of the company. For measuring customer’ satisfaction level, GBS is involved towards conducting survey that helps in determining the customer’s perception. In this regard, customer will be asked questions related to the quality and cost of the product which helps in identifying their perspective. After critically analysing all the gathered data, GBS is able to identify their satisfaction level based on which necessary actions could be undertaken by the firm (Eberhardt, Birkved and Birgisdottir, 2022). This entire KPIs together helps manager in determining the performance of apprentices and supports in identifying the overall efficiency of the workers. These KPIs also help in detecting all the safety, quality and sustainable issues in the project which guides manager in taking action to overcome the same.

There is large number of fair trade and economy principle which GBS should follow for carrying out operation in an effective manner. Through alignment with all the current and future fair trade principle supports in creating an effective workplace environment that aids in attracting and retaining the large number of employees (Current Fair trade practice 2024). Current fair trade principles include creation of opportunity for economically disadvantage producer, fair trading practices, transparency, accountability and fair payment practices. Under this, GBS should focus on working with the marginalized construction firm which will help in providing them with the change of growth and independence. Along with this, fair trade practices include providing an equal chance to each employee to take part in the decision making process which further helps in developing the trust and confidence among apprentice (Ecem Yildiz, Dikmen and Talat Birgonul, 2020). Further, construction firm should respect the contractual obligation and maintain ethnicity in their practices. Moreover, manager in GBS should ensure that fair compensation is provided to all the workers, subcontractor and suppliers which indicate the firm’s commitment towards the fair payment.

Additionally, there are various future principles that should be followed by GBS for enhancing the overall performable of the apprentices. This includes no child labour, ensuring good working condition, commitment towards the gender equality and respect for the environment (Future trade practice, 2024). For instance, company should align with the UN convention in relation to the child and labour law which indicates that no child has been involved in the construction process. It also ensures that there is no coercion or forces applied on other employs of the company. Further, GBS should not undertake any type of discrimination at the work place and each employee’s should be provided with equal growth opportunity (Finch, 2011). Along with this, construction organization should concentrate over providing an adequate workplace condition and environment to all the employees. This includes providing an environment of collaboration, safety, honesty and growth which aids in enhancing worker’s satisfaction. The most crucial principle includes safeguarding country’s environment by promoting sustainability and ethical working in the firm‘s operations.

This principle together result in changing the working of the GBS construction as firm is involved in carrying out all the operations in an ethical and sustainable manner. By aligning with all the current and future principle, GBS would become able to provide an adequate working environment to its employees which supports in enhancing the overall satisfaction. Firm is promoting equality, sustainability, safety, honesty and openness in their operations which helps in building good reputation and goodwill in the industry (Ginga, Ongpeng, and Daly, 2020). These principles also help in describing the fair trade and ethical principle to the managers that helps them in creating a welcoming environment for all the employees. By aligning with all the principle and guideline, organization is able to predict the fair practices that have been carried out in the business organization which lead high satisfaction level. Further, apprentice are aware of all the policies and producers that need to follow which assists in making them responsible in all the areas leading to developing an efficient professional in the construction industry.

Commercial awareness refers to the knowledge regarding the manner in which business entity operates, face challenges and manages relation with the clients, customers and suppliers. While initiating the project of constructing affordable houses within UK, GBS construction will be involved in sourcing funds from the various sources. This project has been initiated with the aim of overcoming the accommodation issues of UK which aids in sourcing funds from the government (Guerra and Leite, 2021). Along with this, bank also provides discount on loan and various other institutional investors will be contacted to fulfil the funding requirement. Private investors will be interested in funding the project as it will help them in gaining the higher profits. For making optimum utilization of the funds, budget will be prepared on the basis of past data and after considering the inflation rate within the country. This also includes effectively managing overall cost of the operations so that houses could be offered at the affordable prices. 

There are two type of tendering method that used for deciding the contractor of the particular project. Open tendering is the method in which all the contractor have opportunity to bid for the particular project. Selective tendering is another method in which experienced and capable contractors are chosen to initiate the task that ensures high quality of the services. GBS will be focused over using selective tendering as it will help in ensuring the quality of the project and support in controlling overall cost of the project (Harris et al, 2021). Due to the selective method, company will be able to hire experience contractor which helps in initiating task with higher efficiency leading to managing financial stability of the project. However, tendering method will be changed according to the needs and demand of government and financial investors.

Multiple source procurement and single source procurement are two procurement methods by which all the required material could be sourced. GBS construction will use single source procurement method in which all the raw material and services will be sourced from single supplier. This method will be used as organization is having effective relationship with suppliers that help in sourcing high quality material. Single source procurement will help GBS in sourcing material at lower cost, faster purchasing time and support in gaining high quality product. However, this procurement method will also be influenced by the perception and demand of the government and other investors (He et al, 2021). Information regarding funding, tendering and procurement will help in enhancing knowledge and understanding of the apprentices. This process will help them in identifying the process of selecting most effective funding sources for the project. Funding process will also guide them regarding the necessity of evaluating cost of the funds before raising the same. Further, with the knowledge of tendering method apprentices will able to identify all the positive and negative impact of each method so that most effective method could be selected in future. Apprentice will able to understand the significance of competitive pricing which support them in selecting most accurate contractor (Kim et al, 2021). Along with this, by exploring all the procurement method, apprentice will able to identify the effective method in upcoming time. They will be involved towards effectively analysing the schedule of the project based on which optimum suppliers could be chosen.

Corporate social responsibilities implies to the business model in which organization integrate environment and social concern while carrying out business operation. This concept is based on the belief that organization should not only focus over increasing profit rather also concentrate over welfare of society and environment. This guides manager to formulate decision that will help in reducing harm to society and environment (Significance of CSR, 2023). CSR activities support in enhancing overall brand image and reputation of the business entity leading to creating competitive edge. Organizations that are involved in CSR activities denotes firm’s dedication towards protecting environment and welfare of society which result in creating positive brand image. Due to positive brand image, apprentice of GBS construction will develop trust and confidence within company which help in long term growth of the business entity.

CSR activities also support in attracting and retaining large number of employees within organization that result in managing overall cost of the business entity. Due to CSR initiating Company will able to create a positive working environment and also concentrate over fulfilling employees’ needs leading to higher satisfaction (Hristov et al, 2022). With the help of CSR activity, GBS construction will able to attract socially responsible and talented employees which results in effectively attaining organization’s goal. Due to effective workplace environment, apprentice will likely to stay in the organizations that result in higher retention rate. Further, apprentice will feel connected to the business entity as manager value and respect their perception that eventually leads to manage overall firm’s turnover. With the help of CSR initiative, organization will able to mitigate all the legal and reputational risk leading to effectively carrying out all the operations.

CSR activities include determining all the potential issue related to environment and society and concentrate over identifying the most accurate solution to them. For example: GBS construction is concentrating over using updated technology in construction process which aid in managing safety of employees and also support in reducing carbon emission that results in effectively aligning with entire rules and legislation (Hughes et al, 2013). CSR activities also support in enhancing community engagement and creating positive impact on the society. The motive of GBS construction is to create affordable houses in UK that help in providing accommodation facility to population leading to overall welfare of the society. Further, CSR activities support in developing competitive edge in the industry as investors and customer are generally attracted to firm that are working for the benefit and development of the society. This helps company in attracting large number of customer leading to high profitability position (Huynh, Pham and Le-Hoai, 2021). With the help of CSR activities, apprentice will able to identify the manner in which they need to work as to protect society and environment. In future, apprentices will able to make decision while considering community and natural resources which aids in effective working of the organization.

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Conclusion

By summing up the report, it has been identified that effective training should be provided to apprentice for long term stability of the business entity. GBS construction is aiming at building affordable housing within country which aids in infrastructure development within the country. There are six crucial performance management KPIs that help in effectively measuring overall quality of the project. Under project schedule adequate timeline has been determined at the initial stage so that project could be completed in accurate time period. For measuring project schedule, company is involved towards closely tracking each activity and taking necessary actions at the time of deviations. Another KPI is related to project cost in which accurate cost has been set for each activity and focus is paid over completing the task within the allotted budget.

Project expenses and budget are closely monitored for identifying the deviation in the expected and actual cost based on which derivative actions are taken by the organization. The third KPI is related to ensuring high quality of the project which could be determined which the customer’s satisfaction and labour productivity level. For measuring the same, inspecting report, QA and checklist has been used by the manager of GBS construction. Safety is another project management KPI which aids in determining the focus paid towards overall health and injuries of the employees. For measuring the same, safety tracking system, training log, incident report will be used by the manager. Waste and sustainability and customer satisfaction are two other type of performance management KPIs used within the construction industry.

Firm focuses over reducing overall wastage in the environment which helps in safeguarding country’s natural resources. For effectively measuring the waste and sustainability of project, energy monitoring, sustainability evaluation and waste management tool have been used by the business entity. Satisfaction level of customer could be adequately measured through net promoter score, CSAT and customer effort scores. Fair trading practices, fair payment, accountability and transparency are the current trade fair practices. Future trade fair practices include commitment towards gender equality, effective working condition, respecting environment and no child labour. GBS construction will finance its funding from government, Loan and institutional investors. Single source procurement and selective tendering method has been used by GBS for sourcing raw materials. CSR activity supports in enhancing brand image, attracting employees, creating competitive edge and aids in mitigating risk. Due to effective knowledge regarding CSR activity, tendering, procurement method and KPIs apprentice will able to take effective decision result in overall development of the business entity.

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Online

• Current Fair trade practice. 2024. Online. Available through: < https://www.fairtrade.net/en/why-fairtrade/what-we-do/what-is-fairtrade.html>
• Future trade practice. 2024. Online. Available through: < https://www.schwab.com/learn/story/7-tips-every-futures-trader-should-know#:~:text=With%20futures%2C%20you%20can%20sell,the%20market%20you're%20trading.>
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