Background of the Study
Organizational development is vital to small and medium enterprises (SMEs) mainly because of the trickle-down effect on business competence. Since the advent of technology and social media, consumer purchasing behavior advanced due to the intensified acquisition of information. The evolution fostered the importance of organizational development among micro-businesses. The standard feature of micro-businesses is the employability of fewer than twenty-nine employees due to the limited scale of enterprise operations. The Ghanaian government significantly elevates micro-business performance due to the apt contribution to the local economy (Ofori, 2020). National economic growth and development rely on the profound flow of goods and services, attributing to the significant sharing of accrued benefits.
The operation of a micro-business regards proficiency in managing financial and human resources. In this case, researchers establish that it is the responsibility of the business owner to develop balance sheets and record and pay income taxes to the respective government agencies. Therefore, the foundation of organizational development encompasses the capacity to articulate distinctive aspects of promoting the growth of micro-businesses (Nyarku & Oduro, 2018). Expertise among entrepreneurs contributes to the significant essence of the sustainable interplay of the internal and external environmental variables. Although different enterprises pose variant profit margins, considering elements such as knowledge and skills expertise among the employees contributes to organizational development. Ideally, organizational development entails the articulation of dynamic business values and the importance of enhancing coordination to boost the performance quotient.
Organizational development is a multifaceted phenomenon that significantly affects the balance between the growth and performance of large and small-scale businesses. Research indicates that the corporate culture steers the nature of the relationship between all workers and the employer (Nyarku & Oduro, 2018). In this case, it is vital to establish a teamwork environment in micro-businesses mainly because of the necessity of the workers to pool the resources for an apt performance in the service delivery system. Ghana’s government established policies that support the micro-business environment despite the imposition of moderately high-income tax quotations (Ofori, 2020). A business owner aims to increase the profit margin and operations with minimal interference from external environmental factors. One of the demonstrations is running the clothing and accessories enterprise in Tema, Ghana. The entrepreneur’s mandate involves learning the business policies within the region and the legal obligations. As a result, the counterpart fosters the development of a sustainable business operation in a competitive environment.
The engine of economic growth for developing countries is micro-businesses mainly because of the practical trickle-down effects. Over the decades, the business scale of the sector significantly contributed to the intensified employment opportunities and the reconstruction of the competitive business environment. According to Peprah et al. (2020), the micro-business sector proficiently contributes to Ghana’s government revenue mainly because of the incorporated income tax administration. The assessment of the tax compliance fosters an in-depth understanding of the issues within Ghana’s micro-business sector. The researchers establish that the vital issues hindering tax compliance among Ghanaian micro-business entrepreneurs entail a lack of adequate tax education, lower income levels, higher tax rates, and a relatively higher household consumption rate (Peprah et al., 2020). The challenges demonstrate the adept problem within the micro-business sector lies in the inefficient knowledge and skills expertise among the business owners and investors. The conceptual framework renders the significant issue regarding the entrepreneurs’ lack of expertise as a foundational element to the hindrance to an interplay with a crucial external environmental factor, government tax regulations.
In a different spectrum, the Ghana business environment highly constitutes the influence of distinctive government policies concerning the operational standards. According to Peprah et al. (2020), apart from the lack of insights from Ghana micro-business owners, the tax administration features a phenomenal effect on the mainframe. The associated dynamic issues include poor coordination among the tax agencies, political influence, the public’s negative attitude, lesser institutional capacity, and inadequate resources. The effectiveness of tax administration intensifies the engagement of the micro-business owners in the adherence to the tax regulatory framework. An example of a micro-business that encounters the tax obligation issue is a clothing and accessories micro-business in Tema, Ghana. Although the market poses a profound opportunity for business growth, poor tax administration risks the performance of the enterprise mainly because of the violation of the law and the incurrence of lower profit margins after compliance. The initiative fosters the necessity of micro-businesses to establish effective organizational development based on cultural, managerial, and institutional frameworks within the Ghanaian enterprise environment.
Project Objectives
The first project objective entails assessing the relationship between organizational development and the competence of micro-business in Tema, Ghana. In this case, the researcher will also evaluate the impact of external and internal environmental variables attributing to the inherent concept of productivity and the establishment of strategic management initiatives as the second project objective. The third project objective enshrines the evaluation process significantly contributing to the derivation of crucial entities to boost the balance between growth and competence of the micro-businesses.
Statement of the Problem
Micro-businesses encounter dynamic challenges due to the prominence of enhancing effective organizational development. One of the key challenges is balancing a quality service delivery system and the essence of growth. Research establishes that the small-scale operability of the enterprises fosters the limitation of financial and human resources based on the projected profitability margins (CEO Entrepreneur, 2021). The higher the expenses, the lower the profit margin incurred. As a result, it is the responsibility of the distinct entities to ensure the significant growth of the business activities within the limited scope of the available resources. The relativity fosters the profound difficulty in boosting the scalability of the operations. Formal enterprises often have a registered office and employees on their payroll. Social Security and National Insurance Trust (SSNIT) and Pay as You Earn (PAYE) contributions are made for employees. Four pillars that constitute the structure of this business are the owner-manager, the product or service, the customer, and the company, hence the scope of this study.
The dynamic stakeholders aptly influence the rate of growth and competence of a business. The secondary challenges to the success of a micro-business include legal constraints, inadequate managerial skills, poor systems and processes, dysfunctional vision strategy, and unidentified value proposition. An aspect of human resource management is Organizational Development. Organizational Development (OD) engages people to accomplish better organizational performance. OD represents a purposeful and meaningful change for the better to elevate the growth scale. Cumming and Worley (2009) introduced OD as a planned change discipline concerned with applying behavioral science knowledge and practices to help organizations achieve greater effectiveness. Deploying OD in micro-businesses will address the constraints listed; Micro-businesses will gain clarity and be guided through steps towards sustainability and growth. OD transforms a micro-business from reacting to daily challenges to an organization with a mission to accomplish and a strategy to align with. This project will focus on a case study on one micro-business to outline challenges and constraints and share the impact of OD in the transformation process, formulating organizational strategy, effective ways to engage employees, and cultivating effective corporate culture and organizational performance.
The interplay of internal and external environmental factors significantly impacts small and medium enterprises (SMEs). One of the features of small and medium business outlets is limited financial resources. The condition trickles down to the lack of qualifying features for accessing the stock market. The limitation of expertise in micro-business emanates from the essence of reducing expenses while optimizing growth and profitability-based opportunities (“National micro, small, and medium enterprises”, 2019). The limited scaling of the concepts fosters the centralization of activities and decision-making within the micro-business. Establishing a clothing and accessories micro-business demands the in-depth assessment of the market, consumer behavior, and the competent organizational development index. As an enterprise in the service industry, the competitive advantage lies in enhancing workers’ performance based on the quality of relationships with the customers, affecting the service experience. The manager’s responsibility is to ensure an apt teamwork environment for the workers through the planning and development of functional and sustainable policies.
The interference of the external environmental factors impacts the operability of SMEs. An excellent example is the determination of a children’s clothing and accessories retail micro-business in Tema, Ghana. The optimal involvement of all stakeholders in the management and execution of initiatives elevating the suitability of the business environment contributes to the boost in operational performance for the micro-businesses. Research by Donkor et al. (2018) establishes that the solution to poor financial performance for micro-businesses engulfs innovative capabilities and reconstructs strategic goals. Although there is a limited workforce and pool of resources to facilitate the employment of highly skilled personnel, the dynamic technological resources bridge the gap due to the adept provision of effective managerial strategies.
A different problem that emanates from the ineffective managerial strategy is the lack of insights concerning micro-business compliance with income tax. Research by Peprah et al. (2020) establishes that the core responsibility of the government entails ensuring tax compliance among all enterprises. However, it is challenging mainly because of the business owners’ lack of knowledge and skills concerning tax compliance. The researchers establish that the vital traits of tax administration encompass fairness, efficiency, the economic principle of taxation, and the equity essence. It is difficult to implement policies based on the profound concept of poor managerial practice among business owners. The vital skills necessary among the Ghanaian entrepreneurs include financial record-keeping, annual income calculations, and the employment of skilled workers. The pooling of professionals in the workplace proficiently fosters the achievement of higher competition standards, alleviating the core challenges of administrative practice. It is the responsibility of all relevant stakeholders in the business sector to implement strategies that enhance organizational inclusivity.
Significance of the Study
The significance of the study enshrines the apt use of insights to demonstrate the importance of strategic management to business growth. The study focuses on micro-business challenges, hence rendering the core aspect of improving business performance. Different external and internal environmental variables impact the coordination of the operations. The study fosters the investigation of the variables and the natural means of promoting interdependence. Therefore, this study contributes to the existing literature concerning micro-business and dynamic managerial initiatives. The majority of the businesses collapse due to the lack of adequate financial resources to facilitate their operations, unlike the large companies that monetize assets.
Organizational development is a multidimensional phenomenon that significantly affects the interplay of internal and external environmental variables. The internal environmental variables that impact organizational development encompass human resource management and corporate culture. The vital external environmental variables enshrine the supply chain managerial entities and the inherent government regulations. This study focuses on assessing the interplay of the two dimensions with a projected outcome of high production, competence, and workers’ expertise in the service experience delivery system. Ideally, the insight fosters the acquisition of the deductive solution to the managerial issues among entrepreneurs in Ghana’s micro-business environment.
Human resource management influences the efficacy of organizational development based on distinctive strategies. One of the strategies is the integration of initiatives that elevate workers’ cooperation and coordination in completing tasks. The lack of a profound framework risks the discordance and acquisition of optimal benefits mainly because of the disparity in skills expertise. According to Otoo and Mishra (2018), effective human resource management encapsulates affirming the matching of skills during the selection and recruitment of candidates while elevating the performance appraisal to motivate their engagements. The managerial strategy among the employees lies in the reconstruction of effective pillars that amplify working environment sustainability and advanced customer satisfaction index.
Planning is essential in supply chain management mainly because it enhances the profound layout of initiatives and perspectives to boost performance outliers. According to research, planning as a multifaceted phenomenon is highly affected by the accuracy of sales forecasts and the matching of supply and demand (Blanchard, 2021). The determination of a plan involves focusing on sales projection to realize the weaknesses and strengths. As a result, employees and the managerial team establish inherent measures of rating performance level. It is vital to intersect planning and logistics management within an organization’s supply chain as the foundation for elevating competitive advantages.
Decision-making is an essential factor within an organization due to the necessity to align operations upon attaining the business goals and improving the value. Over the decades, integrating technological advancements with an institution’s activities and engagements with employees fostered dynamic elevation in the quality of services. An excellent example of an industry that encounters a proficient increment in service delivery is the entertainment industry. The utilization of the dynamic components fosters improved performance among the staff in the delivery due to providing in-depth and objective details regarding the alternative solutions to certain problems (Miskiewicz, 2017). The involvement of the employees in the decision-making process profoundly contributes to establishing an inclusive corporate culture. A company’s values dictate the type of management and relationship-building among the employees.
Diversity management practices encompass integrating dynamic activities that empower personnel with the necessary skills and knowledge. An effective diversity management practice should feature proactive measures. In this case, there are three phases in promoting diversity management practices. The first step enshrines the ability to recruit employees and managers with skills from various backgrounds. The second step is the gearing of an organizational culture toward a diverse climate, and the last phase involves eradicating discriminatory behavior (Boella, 2017). Over the decades, the evolution in the business environment fostered the intensification of the level of competence. As a result, the employees emerged as a critical organizational asset due to customer service experience. Therefore, discriminatory behavior within a company threatens its competence level in the environment (Sim, 2020). The concept of diversity management practice is an issue that demands further exploration mainly because of the dynamic influence on employees’ performance and contribution to the evolutionary process.
It is crucial to learn and comprehend the dynamism of cultural practices to acquire insights based on the best approaches to utilize during interactions. According to Miller and Garran (2017), racism is a topic that faces significant controversies across different institutions in America. An excellent example is establishing a task force within an organization that trains the staff regarding multicultural diversity and the necessary interaction techniques. Miller and Garran (2017) depict that ethnicity contributes to social identity development. Therefore, the violation of the cultural code of an individual affects their service experience with the company. In this case, it is crucial that staff members, despite recognizing other challenges such as ableism, heterosexism, and sexism, it is vital that the personnel implement the practical aspect of the critical race theory. Although racism is a factor rendering the inequitable distribution of resources and privileges, the core element to enhance is the deep understanding of multicultural diversity and its significance.
The role of the leader is team-oriented, while a manager focuses on the accomplishment of tasks. The disparity between the two renders the profound distinction in their duties and responsibilities in eradicating bullying. On the one hand, a manager mainly develops frameworks and targets for the relevant department to accomplish growth and development. On the other hand, a leader establishes the ideal variables to enhance the coordination among workers to enhance the coordination. Primarily, both entities provide platforms to foster positive change within an organization (Morsiani et al., 2017). A captain’s duties ensure compliance with the regulatory mainframe, setting up policies, and spearheading the transformation. The additional roles include scheduling teams, assigning duties to staff, and career opportunities for the workers and managers (Johnson, 2020). Although both positions dynamically contribute to the nursing profession, their coordination cultivates a significant eradication of bullying by boosting the interrelations among colleagues. Culture is a framework that significantly contributes to an individual’s social identity. Therefore, it is crucial to understand the norms and background of the customs to enhance the personal moral and ethical code.
The vital significance of this study is the derivation of key managerial challenges among micro-business owners and the necessity of incorporating strategic management initiatives for organizational development. It is the responsibility of the manager of the clothing and accessories enterprise in Tema, Ghana, to identify the vital variables that influence the growth of the operations and profit margin. The practice boosts the attainment of insights concerning the significance of internal and external environmental factors. Otoo and Mishra (2018) argue that the measure of human resource management efficiency enshrines the determination of performance index relative to the trained skillset and knowledge baseline. Micro-businesses pose an opportunity for significant economic development and a challenge based on limited managerial skills among the business owners in coordinating the production process.
Research Methodology
Introduction
This study aims at using qualitative and quantitative analysis for the data collected. The researcher will use questionnaires and interview questions as data collection tools for exploratory research. In this case, the researcher gathers, tabulates, analyzes, and presents the information in the form of a project based on the objectives. Therefore, the objectives will steer the process of acquiring prominent insights regarding the interdependence between organizational development and the performance of SMEs. The study is inductive hence the focus on the provision of the vital gaps in the assessment of the framework.
Research Design
The researcher will utilize the survey design and an exploratory approach in analyzing the key objectives of the study. In this case, the main insights onto the relevance of the topical issue involve using semi-structured questionnaires and scheduling interviews with relevant authorities. The two data collection practices prominently intensify the interconnectivity between the interviewee and interviewer. Apart from the interconnection, the practice fosters the adept collection of data used during the research process.
Sample Size and Sampling Procedures
The research will use a sample size of 100 respondents from different departments in Tema, Ghana. Further, the researcher will utilize a stratified random sampling technique to eliminate any form of biasness during the selection of the respondents. Additionally, the researcher will proficiently use a pilot study to demonstrate the efficacy scale of the data collection tools.
Data Collection Methods and Research Instruments
The structure of the questionnaires will involve open and closed questions that assist in the apt gathering of details from the respondents from the analysis. The interview questions will be open-ended to enhance addressing the key issues. Notably, the questionnaires and interview sessions will focus on government representatives, communities, religious entities, and the respective professional bodies.
Validity
The study’s validity will involve structuring the questionnaire based on the ability of the respondents to answer all queries. In this case, the researcher will conduct a pilot study to affirm the proficiency essence among the respondents in understanding and answering the inherent questions.
Reliability
The researcher will use the test-retest approach within the questionnaire to affirm the reliability quotient based on the provided answers. The system encapsulates the prominent use of repeat questions by paraphrasing to ensure that the respondent understands and is sincere during the data collection process. Further, the researcher will hire a research assistant whose role involves offering assistance to the respondents to understand the questions and answers. As a result, the process fosters the attainment of minimal spoilt questionnaires for the analysis aspect.
Data Analysis
The data will be collected using the questionnaires and interview sessions, coded, analyzed, and presented through a research paper. In this case, the researcher will utilize quantitative and qualitative aspects to enhance the reliability and objectivity of the process. The researcher will further use inferential and descriptive statistics in the comparative aspects of the interdependent relationships among the quotients. As a result, the researcher integrates the ANOVA tables and figures to comprehend the objectives and the hypothesis better.
Ethical Consideration
The researcher will observe prominent ethical practices during the study. In this case, the researcher will use in-text citations and include a reference page at the end of the paper as evident documentation of the ethical recognition of previous researchers. Additionally, the researcher will consist of the age and signature sections in the questionnaires and interview documents to ensure ethical compliance with the legal consent age of respondents. Apart from the consensual essence, the researcher will ensure the balance of gender representation during data collection as an ethical consideration approach.
References
Blanchard, D. (2021). Supply chain management best practices. John Wiley & Sons.
Boella, M. J. (2017). Human resource management in the hotel and catering industry. Taylor & Francis.
Cumming, T.G & Worley, C. G. (2009) Organizational development and change (9th ed.). USA: Wester Cengage
CEO Entrepreneur. (2021). What are business structures and essential functions | Part 1 The Solopreneur [Video]. Youtube.com. Web.
Donkor, J., Donkor, G. N. A., Kankam-Kwarteng, C., & Aidoo, E. (2018). Innovative capability, strategic goals and financial performance of SMEs in Ghana. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 238-254.
Johnson, A. (2020). Hard Facts – Racial and ethnic disparities in the nine-county greater Rochester area. ACT Rochester: The Community Foundation.
Miller, J. L., & Garran, A. M. (2017). Racism in the United States: Implications for the helping professions. New York, NY: Springer.
Miskiewicz, R. (2017). Knowledge transfer in merger and acquisition processes in the metallurgical industry. PWN
Morsiani, G., Bagnasco, A., & Sasso, L. (2017). How staff nurses perceive the impact of nurse managers’ leadership style in terms of job satisfaction: A mixed method study. Journal of nursing management, 25(2), 119-128.
National micro, small and medium enterprises (MSME) policy, Ghana, January 2019. Web.
Nyarku, K. M., & Oduro, S. (2018). Effect of legal and regulatory framework on SMEs growth in the Accra Metropolis of Ghana. The International Journal of Entrepreneurship and Innovation, 19(3), 207-217.
Ofori, E. (2020). Contribution of tax morale and compliance costs to tax compliance of micro and small scale enterprises in Ghana. International Journal of Arts and Commerce, 9(8), 33-52.
Otoo, F. N. K., & Mishra, M. (2018). Measuring the impact of human resource development (HRD) practices on employee performance in small and medium scale enterprises. European Journal of Training and Development, 42(7/8), 517-534
Peprah, C., Abdulai, I., & Agyemang-Duah, W. (2020). Compliance with income tax administration among micro, small and medium enterprises in Ghana. Cogent Economics & Finance, 8(1), 1782074.
Sim, S. H. (2020). Workplace sexual harassment and labor inspection: Focused on labor inspectors’ experience of dealing with sexual harassment cases. Economy and Society, 128, 235–265.