Management An Introduction by David Boddy (5th edition)

Samenvatting Boddy
Chapter 1 Managing in organisations
1
Entrepreneur = someone with a new venture, project or activity, and is usually associated
with
creative thinking, driving innovation and championing change.
Innovation =the process of taking a creative idea and turning it into a useful product,
service or
method of operation.
2
Organisation = a social arrangement for achieving controlled performance towards goals that
create
value.
Value = When resources are transformed into goods or services that are worth more than their
original cost plus the cost of transformation.
3
Management as an universal human activity = occurs whenever people take responsibility
for an
activity and consciously try to shape its progress and outcome
Manager = someone who gets things done with the aid of people and other resources
Management = the activity if getting things done with the aid of people and other resources.
Management as a distinct role = develops when activities previously embedded in the work
itself
become the responsibility not of the employee, but of owners or their agents.
Role =the sum of the expectations that other people have of a person occupying a position.
4
General managers = responsible for the performance of a distinct unit of the organisation
Functional managers = responsible for the performance of an area of technical or professional
work
Line managers = responsible for the performance of activities that directly meet customers
needs.
Staff managers = responsible for the performance of activities that support line management,
Project managers = responsible for managing a project, usually intended to change some
element of
an organisation or its context.
Hierarchy.
Low High
Performing direct operations.
Managing staff on direct operations
Managing managers
Managing the business.
5
Stakeholders = individuals, groups or organisations within an interest in, or who are affected by,
what
the organisation does.
Rosmary Stwerat found 5 profiles of managers.
Emissaries Spent much of their time out of the organisation, meeting customers, suppliers.
Writers Spent most of their time alone reading and writing, had the fewest contacts with other
managers.
Discussers Spent most of their time with other people and with their colleagues
Troubleshooters Had the most fragmented work pattern of all, with many diary entries and
many
fleeting contacts, especially with their subordinates.

Committee members - Had a wide range of internal contacts, and spent much time in
formal
meetings.

10 Managament roles of Mintzberg.

CategoryRole
InformationalMonitor

Disseminator
Spokesperson
Interpersonal

Figurehead
Leader

Liaison
Decisional- need to be creativeEntrepreneur
( being able to combine ideas in
a unique way to make unusual
associations between ideas)
Disturbance handler

Resource allocator
Negotiator

Activity
Seek and receive information,
scan reports, maintain
interpersonal contacts
Forward information, send
memos, make phone calls
Represent the unit to outsiders
in speeches and reports
Perform ceremonial and
symbolic duties, receive visitors
Direct and motivate
subordinates, train, advise and
influence.
Maintain information links in
and beyond the organisation
Initiate new projects, spot
opportunities, identify areas of
business development.

Take corrective action during

crises, resolve conflict, adapt to
changes
Decide who gets resources,
schedule, budget, set priorities
Represent unit during
negotiations with unions,
suppliers, and generally defend
interests.

Luthans says that the behaviour of management influences the level of success and
effectiveness.
There were 4 behavioural categories:
Communicating = Exchanging information and paperwork
Traditional management = Planning, decision making, controlling.
Networking = Interacting with outsiders, socializing, politicking.
Human resource management = Motivating, managing conflict, staffing, training.
6
Managers also influence others by the way they manage the transformation of resources into
more
valuable outputs.
Management tasks = planning, organizing, leading and controlling the use of resources to add
value
to them. (Figure 1.2 )
The organisation depends on the external environment for the resources to sustain them.
Planning deals with the overall direction of the work to be done.
Organising is the activity of moving abstract plans closer to realization, by deciding how to
allocate
time and effort.
Leading is the activity of generating effort and commitment, including motivating individuals
and
teams.

Controlling is the task of monitoring progress, comparing it with the plan, and taking
corrective
action.
7
Managers can also influence others through changing aspects of the context in which they
work.
There are 8 elements that can change the context.
Objectives
Culture
Structure
Technology
Power
People
Finance
Business process
The historical context also influences event, as does the external context.
See figure 1.4

8
Managers should be able to think critical.
Critical thinking = indentifying the assumptions behind ideas, related them to their context,
imagine
alternatives and recognize limitations.
Critical thinkers look for the assumptions the underlie taken-for-granted ideas, beliefs and values
and
question their accuracy and validity.

Chapter 2 Models of management

1
To cope with changes managers have searched for ways to manage their enterprises in a way
that
adds value.
2
Model = a complex phenomenon by indentifying the major elements and relationships.
It helps to understand the complexity and how change affects it. The most useful models are
those
who accurately identify the main variables in a situation.
Alan Foxs managers frame of reference:
Unitary perspective : Believe that organisations aim to develop rational ways of achieving
common
interests.
Pluralist perspective: Believe that the complex division of labour in modern organisations
creates
groups with distinctive interests.
Radical : Challenge both unitary and pluralist models, arguing that they ignore the fact that
the
horizontal and vertical division of labour sustains unequel social relations within capitalist
society.
Gareth Morgans images of organisation:
Ways of seeing organisations:
Machines : mechanical thinking and the rise of the bureaucracies
Organisms: recognizing how the environment affects their health.
Brains: an information-processing, learning perspective
Cultures: a focus on beliefs and values.
Political systems: a view on conflicts and power.
Psychic prisons: how people can become trapped by habitual ways of thinking.
Flux and transformation: a focus on change and renewal.
Instruments
of domination: over members, nations and environments.
3
Competing values framework
4 segments:
1. Human relations model.
2. Open systems model.
3. Internal process model.
4. Rational goal model

Figure 2.2

4 Rational goal models ( Taylor, Gilbreth)

Goal: Maximisation of output.
Scientific management: The school of management called scientific attempted to create a
science of
factory production.
Taylor:
Focus on the relationship between the worker and the machine-bases production systems.
5 principles:
1. use scientific methods to determine the one best way of doing a task.
2. select the best person to do the job.
3. train, teach and develop the worker to follow the defined procedures precisely.
4. provide financial incentives to ensure people work to the prescribed method.
5. move responsibility for planning and organizing from the worker to the manager.
Operational research = a scientific method of providing managers with a quantitative
basis for
decisions regarding the operations under their control.
Helps to run complex civil organisations.
See table 2.1 for modern applications of the rational goal model.
5 Internal process model ( Weber, Fayol)
Goal: continuity.
Bureaucracy: a system in which people are expected to follow precisely defined rules and
procedures
rather than to use personal judgment.
Characteristic of bureaucratic management:
Have to follow rules and regulations.
Impersonality.
Division of labour, everybody works on specialized tasks.
Hierarchical structure, ranked by the amount of authority to make decisions.
Authority structure.
Rationality
Administrative management = the use of institutions and order rather than relying on personal
qualities to get things done.
Fayols principles of management
Division of work
Authority and responsibility.
Discipline
Unity of command
Unity of direction
Subordination of individual interest to general interest
Remuneration of personnel
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corps.
See table 2.2 for modern applications of the internal process model.

6 Human relations model ( Follett, Mayo)

Goal: develop human resources.

Follet: group are an intermediate institution between the solitary individual and the abstract
society.
People are motivated by social needs, and managers who recognize these will secure
commitment,
Practices include considerate supervision, participation and seeking consensus.
The human relations approach = a school of management that emphasis the importance of
social
processes at work.
7 Open systems model
Goal: expansion, change.
Basic idea: do not think of the organisation as a system but as an open
system
System= a set of interrelated parts designed to achieve a purpose.
Open system = a system that interacts with its environment.
System boundary = the line that separates the system from its environment.
See figure 2.4
Feedback = refers to the provision of information about the effects of an
activity
Subsystem = the separate but related parts that make up the total system.
Variant of the systems theory = the sociotechnical system
The sociotechnical system = a system in which the outcomes depend on the interaction of both
the
technical and social subsystems.
Contingency approaches = approaches to organisational structure that is based on the idea that
the
performance of an organisation depends on having a structure that is appropriate to its
8
environment.
New ways of management thinking involve non-linear systems.
Non-linear system = systems in which small changes are amplified through many interactions
with
other variables so that the eventual effect is unpredictable.
See table 2.4
9
The theories in this chapter are developed to improve performance.

Chapter 3 Organisation cultures and contexts.

1
Four environmental forces
1. Internal environment = consists of elements within the organisation such as its
technology,
structure or business process.
2. Competitive environment = the industry specific environment comprising the
organisations
customers,suppliers and competitors.
3. General (macro) environment = factors that affect the organisations, political, economic,
social,
technological, environmental and legal factors.
4. External environment = the elements beyond the organisation.
2
Organisation culture = a pattern of shared basic assumptions that was learned by a
group .
Shared values Shared beliefs Norms

Reinforcing Individual and group behaviour

Components of cultures
1. Artefacts
2. Beliefs and values
3. underlying assumptions.
3
There are three main ways of describing and comparing cultures.
1. Competing values framework.
See figure 3.3 and chapter 2
2. Charles Handys cultural types
4 cultures
1. Power = peoples activities are strongly influenced by a dominant central figure
2. Role= peoples activities are strongly influenced by clear and detailed job descriptions.
3. Task = the focus of activity is towards completing a task using whatever means are
appropriate.
4. Person = activity is strongly influenced by the wishes of individuals who are part of the
organisation.
3. Multiple cultures
Three perspectives towards a culture.
1. Integration : a focus on identifying consistencies in the data and using those common
patterns to
explain events.
2. Differentiation : a focus on conflict, identifying different and possibly conflicting views of
members towards events.
3. Fragmentation: a focus on the fluid nature of organisations and on the interplay and change
of
views about events.
4
Competitve environment, five forces of porter.
1. Potential new entrants.
2. Intensity of rivalry amongst competitors.
3.Bargaining power of buyers.
4. Bargaining power of suppliers.
5. Subsitutes

Analyse the general environment by using PESTEL

Political
Economic
Socio-cultural
Technological
Encironmental
Legal

6
See figure 3.6
Actively waiting:
Keeping priorities clear to avoid dissipating energy and resources.
Conducting reconnaissance to identify.
Keeping a reserve of cash to fund major opportunities when they emerge.
Using lulls push through operational improvements.
Declaring that an opportunity is the companys main effort to seize faster than its rivals.
7
Stakeholder mapping = identifying the views and influence of stakeholders and the major issues
that
need to manage.
Stakeholders:
Shareholders
Suppliers
Government
Customers
Employees
Lenders

Chapter 4 Managing internationally

1
International management = practice of managing business operations in more than one
country.
This can mean:
Working as an expatriate manager in another country
Joining or managing an international team with members from several countries
Managing a global organisation.
2
There are different factors driving globalization in an industry:
Market factors
Environmental factors
Competitive factors
Economic factors
Pull factors include saturation and excessive competition in the home market. The managers
want to
grow the business but believe that the only way is by going beyond tradition markets.
Push factor include lower wages and less rigorous environmental regulations.
3
There are several ways of extending international operations.
Exporting and importing
Foreign direct investment
Licensing / Franchising ( = giving other organisations the right to use the brand name in return
for a
fee)
Joint venture ( = alliance in which the partners agree to form a separate, independent
organisation
for a specific business purpose.)
Strategic alliances
There are different forms through which to conduct an international business.
Multinational companies = are managed from one country but have significant production
and
marketing operations in many others.
Transnational companies = operate in many countries and delegate many decisions to legal
managers.
Global companies = work in many countries, securing resources and fining markets in
whichever
country is most suitable.
4
The political context has a major influence on business. Managers adapt their policies to
prevailing
ideology.
Ideology= a set of integrated beliefs, theories and doctrines that helps to direct the actions of a
society.
Political systems like democracy and totalitarianism influence economic systems.
Democracy = a system of government in which the people decide what is to be done.
Totalitarianism = a system of government which one individual or political party maintains
complete
control and either refuses to recognize other parties or suppresses them.
Business affected through political systems:
The balance between state-owned and privately owned enterprises.
The amount of state intervention to encourage some kinds of business by subsidies and
favourable
regulation, or to discourage it by taxes and regulation.
Policies towards foreign companies trading in the country, with or without local partners.
Policies on employment practices, working conditions and job protection.
Two dimmensions of corruption:

Pervasiveness = the extent to which a firm is likely to encounter corruption in the course of
normal
transactions with state officials.
Arbitrariness = The degree of ambiguity associated woth corrupt transactions.
5
The economic context of a country includes :
Stage of economic development.
Income per head of population.
System of markets.
Current economic situation
Inflation
Exchange rates
Levels of debt
6
Technological context includes all kinds of infrastructures.
A poor infrastructure is an opportunity for those supplying such
facilities.
7
The environment depends on the natural resources available. There can be made a
distinction
between renewable and not renewable resources.
8
Each jurisdiction has its own regulations affecting business practice, which they expect
companies
operating in the country to meet. The most significant developments in the legal environment
are
those associated with international trade agreements and regional economic alliances.
GATT( General agreement on tariffs and trade)
WTO ( World trade organisation)
European Union
9
Different cultures have different ways of communicate with each other, how they respond
to
authority and in many other aspects of social life.
High-context culture = Culture in which information is implicit and can be only fully understood
by
those with shared experiences in the culture.
Low-context culture = Cultures in which people are more psychologically distant so that
information
needs to be explicit if members are to understand it.
Attitude to conflict and harmony
10Comparison of national cultures
Power distance = the extent to which the less powerful members of organisations within a
country
expect and expect that power is distributed unevenly.
Uncertainty avoidance = the extent to which members of a culture feel threatened by
uncertain or
unknown situations
Individualism/ Collectivism
Individualism = pertains to societies in which the ties between individuals are loose.
Collectivism = a society in which people, from birth onwards, are integrated into strong,
cohesive in
groups which protect them in exchange for unquestioning loyalty.
Masculinity/Feminity
Masculinity = societies in which social gender roles are clearly distinct.
Feminity = societies in which social gender roles overlap.

Long-term / Short-term
11
Whitleys elements of national institutional features
State structure and policies:
Dominance of the state and its willingness to share risk with private
owners.
State antagonism to institutions enabling cooperation between firms.
Extent of formal regulation of entry to and exit from markets.
Financial system:
Capital market or credit based.
Skill development and control system:
Strength of public training system and of state-employer-union
collaboration
Strength of independent trade unions
Strength of labour organisation based on certified expertise
Centralisation of bargaining.
Trust and authority relations
Strength of institutions governing trust relations and collective loyalties
Predominance of paternalist authority relations
Importance of communal norms governing authority relations.
12
Advances in communications techonology were increasingly inspiring consumers around the
world to
want the same thing.
Benefits of globalization:
Growth
Economic development
Wider choice for consumers
Costs include loss of income by local producers.
Management issues include balancing local needs with company styles and methods.

Chapter 5 Corporate responsibility

1
Companies become conscious of business ethics when there is a problem.
Discussions of corporate responsibility often focus on working conditions in developing countries,
the
environment and human rights.
2
Philanthropy = the practice of contributing personal wealth to charitable or similar causes.
Enlightened self-interest = the practice of acting in a way that is costly or inconvenient at
present, but
which is believed to be in ones best interest in the long term.
Applied ethics = the application of moral application of moral philosophy to actual problems,
including those in management.
3
Three domains of human action
Domain of codified law ( legal standard)
Domain of ethics ( social standards)
Domain of free choice (personal standards)
Four criteria for justifying an actions as ethical
Moral principles
Utilitarianism
Human rights
Individualism
Ethical relativism = the principle that ethical judgments cannot be made independently of the
culture
in which the issue arises.
Ethical decision making models = examine the influence of individual characteristics and
organisation
policies on ethical decisions.
Trevino sees ethical action as the result of individual and situations components.
See figure 5.3
4
Criteria of corporate social performance
Economic responsibility ( make a profit)
Legal responsibility ( obey the law)
Ethical responsibility ( do what is right)
Discretionary responsibility ( contribute to community)
Friedmans view that the only function of business is to act legally in the interest of
shareholders.
Social contract = consist of the mutual obligations that society and business recognize they
have to
each other.
5
Corporate responsibility = the awareness, acceptance and management of the wider
implications of
corporate decisions.
Ethical invertors = people who only invest in businesses that meet specified criteria of ethical
behaviour.
Ethical consumers = consumer who take ethical issues into account in deciding what to
purchase.

To manage company ethics to managers can use several methods:

Leading by example
Code of ethics
Ethical structures and reporting
Ethical audits = the practice of systematically reviewing the extent to which an organisations
actions
are consistent with its stated ethical intentions.
Inclusion in the FTSE4Good index series

Chapter 6 Planning
1
Planning offers a systematic way to cope with changes in external
forces.
Formal plans: written down, express the goals of the company.
Informal plans: not written down, nor widely or consistently shared.
2
Planning = the task of setting objective, specifying how to achieve them, implementing the plan
and
evaluating the results.
Planning involves establishing the goals.
Goals = a desired future state for an activity or organisational unit..
Benefits of well done planning:
Clarifies direction
Motivates people
Helps to use resources efficiently
Provides a way to measure progress.
Planning supports new ventures by :
Enabling quicker decisions
Providing a tool for managing resources to minimize bottlenecks
Identifying actions to achieve broader goals in a timely manner.
3
Business plan = a document that sets out the markets the business intends to serve, how it will
do so
and what finance they require.
Strategic plan = sets out the overall direction for the business, is broad in scope and covers all
the
major activities.
Strategic business units = a number of closely related products for which it is meaningful to
formulate
a separate strategy.
Operational plans = detail how the overall objectives are to be achieved, by specifying what
senior
management expects from specific departments.
Corporate strategy = concerned with the firms choice of business, markets and activities and
thus it
defines the overall scope and direction of the business.
4
See tablesystem
Planning
6.1
= refers to the processes by which the members of an organisation produce
plans,
including their frequency and who takes part in the process.
See figure 6.3
5
Planners draw information from the general and competitive environments using tools as
Porters
five forces analysis. The can do this within the framework of a SWOT analysis, or use
forecasting,
sensitivity analysis, critical success factors and scenario planning techniques
6
Mission statement = a broad definition of an organisations operations and scope, aiming to
distinguish it from similar organisations.
Goals turn the generalities of mission statement into specific commitments.
A way of relating goals to each other is to build them into a hierarchy, in which the overall
goals are
transformed into more specific goals for different parts ot the organisation.

Effective goal setting involves balancing multiple goals, considering whether they meet the
SMART
criteria, and evaluating their likely motivational effects.
Stated goals = those goals that are prominent in company publications and websites.
Real goals = those goals which people give the most attention
Specific
Measurable
Attainable
Rewarded
Timed
Practical uses of goal-setting theory:
Goal difficulty= set goals for work performance at levels that will stretch employees but are
just
within their ability
Goal specificity = express goals in clear, precise and if possible quantifiable terms, and avoid
setting
ambiguous or confusing goals.
Participation= where practicable, encourage staff to take part in setting goals to increase their
commitment to achieving them.
Feedback = provide information on the results of performance to allow people to adjust their
behaviour and perhaps improve their achievement of future plans.
7
Identifying actions and communication the plan:
Figure 6.5 The wheel provides a model for recalling the likely areas in an organisation that a
plan
should cover.
Comprehensive plan: clear-cut change in direction.
Incremental plan: uncertain conditions
Selective plan: best way forward.
Communicating:
Ensure that everyone understands the plan
Allow them to resolve any confusion and ambiguity
Communicate the judgment and assumptions that underlie the plan
Ensure that activities around the organisation are coordinated in practice as well as on
paper.
8
The value of a plan depends on people implementing it. That also depends on the
experience of
those implementing it and the receptivity if the organisation to change.

Chapter 7 Decision making

1
Decision making involves:
Identifying the type of decision.
Identifying the conditions surrounding the decision.
Using one or more models to guide the approach.
Selecting a decision-making style.
Working through the process and implementing the decision.
See figure 7.1

2
Decision = a specific commitment to action ( usually a commitment of resources)
Decision making = the process of identifying problems and opportunities and then resolving
them.
See figure 7.2 for the tasks in decision making.
Recognising a problem and setting objectives.
Problem = a gap between an existing and a desired state of affairs.
Opportunity = the chance to do something not previously expected.
Setting and weighting the decision criteria.
Decision criteria = the factors that are relevant in making a decision.
Developing alternatives.
Compare alternatives and choose.
Decision tree = a tool that helps someone to make a choice by progressively eliminating
options as
additional criteria or events are added to the tree.
Implement chosen alternative.
Evaluating the decision.
3
Programmed decision = a repetitive decision that van be handled by a routine
approach.
Non-programmed decision = a unique decision that requires a custom-made solution
when
information is lacking or unclear.
For a programmed decision there usually is a procedure, rule or policy.
Procedure =a series of related step to deal with a structured problem
Rule = sets out what someone can or cannot do in a given situation.
Policy = a guideline that establishes some general principles for making a decision.
Another way to categorise decisions is in terms of their link to other decisions. Are the
dependent or
independent.
4
Decisions arise within a wider context and the conditions in this context materially affect the
decision
process.
There are 4 major conditions influencing the decision.
Certainty = the situation when all the information the decision maker needs is available.
Risk =refers to situations in which the decision maker is able to estimate the likelihood of the
alternative outcomes.
Uncertainty =when people are clear about their goals but have little information about which
course
of action is most likely to succeed.
Ambiguity = when people are uncertain about their goals and how best to achieve them.
5

Tompshon distinguished two dimensions in decision making:

Agreement or disagreement over goals.
The beliefs that makers hold about the relationship between cause and
effect.
See figure 7.7
1. Computational strategy (Agree on goals and certainty about cause-and-effect relationships)
Rational model of decision making : assumes that people make consistent choices to maximise
economic value within specified constraints.
The assumptions underlying this model are that the decision maker:
Aims for goals that are known and agreed, and that the problem is structured.
Strives for conditions of certainty, gathering complete information and calculating the likely
results of
each alternative.
Selects the alternative that will maximise economic returns.
Is rational and logical in assigning values, setting preferences and evaluating alternatives.
2. Judgmental strategy (Agree on goals and uncertainty about cause-and-effect relationships)
Administrative model of decision making = describes how people make decisions in uncertain,
ambiguous situations.
Bounded rationality = behaviour that is rational within a decision process which is limited by an
individuals ability to process information.
Satisficing =the acceptance by decision makers of the first solution that is good enough.
According to the administrative model ,managers:
Have goals that are typically vague and conflicting, and are unable to reach a consensus on what
to
do.
Have different levels of interest in the problems or opportunities facing the business.
Rarely use rational procedures, or use them in a way that does not reflect the full complexity of
the
issue.
Limit their search for alternatives.
Usually settle for a satisficing rather than a maximising solution.
Incremental model = a model that people use when they are uncertain about the consequences.
They
search for limited range of options, and policy unfolds from a series of cumulative small
decisions.
3. Compromise strategy (Disagree on goals and certainty about cause-and-effect relationships)
Political model = people will pursue goals relating to personal an sub-unit interest, as well as
those of
the organisation as a whole.
Assumes that:
Organisations contain groups with diverse interest, goals and values
Information is ambiguous and incomplete.
Managers engage in the push and pull of debate to decide goals and discuss
alternatives.
4. Inspirational strategy (Disagree on goals and uncertainty about cause-and-effect relationships)
Garbage can model = identifies four independent streams of activities that enable a decision
when
they meet.
Participants.
Problems.
Solutions
Choice opportunities

6
Heuristics = simple rules or mental short cuts that simplify making
decisions.

4 types of biases can be made:

Prior hypothesis bias = results from a tendency to base decisions on strong prior beliefs, even if
the
evidence shows that they are wrong.
Representativeness bias = results from a tendency to generalize inappropriately from a small
sample
or a single vivid event.
Illusion of control = is a source of bias resulting from the tendency to overestimate ones ability
to
control activities and events.
Escalating commitment = a bias that leads to increased commitment to a previous decision
despite
7
evidence that it may have been wrong.
According to Vroom & Yetton deicion-making styles in a group should reflect the situation.
There are 5 styles of involving subordinates in a decision.
Autocratic
Information seeking
Consulting
Negotiation
Group
Groupthink = a mode of thinking that people engage in when they are deeply involved in a
cohesive
in-group, when the members striving for unanimity overrides their motivation to realistically
appraise alternative courses of action.

Chapter 8 Strategic management.

1
Strategic management = the set of decisions and actions intended to improve the longrun
performance of an organisation.
Strategy links the organisation to the outside world.
2
Benefits of setting strategy:
Reduces uncertainty.
Links long term and short term.
Clarifies and unifies purpose.
Enables control.
Strategy = concerned with deciding what business an organisation should be in, where it wants
to be
and how it is going to get there.
Competitive strategy = concerned with the basis on which on organisation might achieve
competitive
advantage in its market.
Value for money service = one that is provided economically, efficiently and effectively.
Institutional advantage = when a not-for-profit body performs its tasks more effectively
than
comparable organisations.
3
There are 6 steps in the strategic management process.
Identifying current mission, goals and strategies.
Mission statement = a broad statement of an organisations scope and purpose, aiming to
distinguish
it from similar organisations.
It shoul clarify
Principal business or activities
Key aims or objectives
Key beliefs and values
Main stakeholders.
External analysis
Internal analysis
Strategic capability = the ability to perform at the level required to survive and prosper, and
includes
resources and competences.
Tangible resources = physical assets.
Intangible resources = non-physical assets.
Unique resources = resources that are vital to competitive advantage an which others cannot
obtain.
Competences = the activities and processes through which an organisation deploys resources
effectively.
Core competences = the activities and processes through which resources are deployed to
achieve
competitive advantage in ways that others cannot imitate or obtain.
The ability to compete effectively depends on :
The resource base.
The competence base.
Value chain = divides a firm into the discrete activities it performs in designing, producing,
marketing
and distributing its product. It is the basic tool for diagnosing competitive advantage and finding
ways to enhance it.
Primary activities:
Inbound logistics.
Operations.
Outbound logistics.

Marketing and sales.

Service.
Support activities:
Firm infrastructure.
Human resource management.
Technology development.
Procurement.

Formulate strategy
Implement strategy
Evaluate results
4
Managers in large companies develop strategies at corporate, business and functional
level.
At corporate level the strategy reflects the overall direction of the organisation. Sometimes it is
necessary to change/renew the strategy. Managers can decide how to achieve their chosen
option by
using the product/market matrix. See figure 8.5
Business level strategy focuses on how to compete. Porter indentified two basic types of
completion.
Low cost or differentiation. A firm can have 3 strategies:
Cost leadership ( Lower cost, broad target) = a firm uses low price as the main competitive
weapon.
Differentiation strategy ( Differentiation, broad target) = the company offers a product or service
that
is perceived as unique or distinctive on a basis other than price
Focus ( Narrow target, differentiation or lower cost) = when a company competes by targeting
very
specific segments of the market.
5
Corporate and business strategies can be delivered by:
Internal development : rearranging the way resources are deployed
Acquisition
Alliance.
6
There are three perspectives on the strategy process:
The planning view:
Prescriptive.
Assumes pure rationality.
Everything is planned in advance.
Use : stable environment.
The learning view:
Descriptive.
Based on bounded rationality.
Plans are made but not realized.
Use: complex, dynamic, unpredictable environment.
The political view:
Descriptive.
Based on bounded rationality.
Plans are made but often couched in ambiguous terms to secure
agreement.
Use : Stable/Dynamic but complex environment.

Chapter 10 Organisation structure

1

Managers create a formal structure when they decide how to divide and coordinate the work of
the
organisation. These decisions in part reflect their interpretation of contingencies affecting the
business, and in part the views of stakeholders. Together with many informal arrangements,
these
decision create a structure that balances mechanistic and organics forms, which affect
organisational
2
performance.
Organisation structure = The structure of an organisation is the sum total of the ways in which
it
divides its labour into distinct tasks and then achieves co-ordination among them
Organisation chart = Shows the main departments and senior positions in an organisation and
the
reporting relations between them.
Formal structure = the official guidelines, documents or procedures setting out how the
organisations activities are divided and coordinated.
Formal structure shows:
Tasks
Subdivisions
Levels
Lines of authority
Informal structure = the undocumented relationships between members of the organisation
that
inevitably emerge as people adapt systems to new conditions and satisfy personal and group
needs.
Vertical specialization = refers to the extend to which responsibilities at different levels are
defined.
Horizontal specialization = is the degree to which tasks are divided among separate people or
departments.
Formal authority = the right that a person in a specified role has to make decisions, allocate
resources or give instructions.
Responsibility = refers to a persons duty to meet the expectations others have of them.
Delegation = when one person gives another the authority to undertake specific activities or
decisions.
Span of control = the number of subordinates reporting directly to the person above them in
the
As
a business grows the hierarchy becomes more complex, but it is often possible to see 3
hierarchy.
levels.
Corporate
Divisional
Operating.
Centralisation = when a relatively large number of decisions are taken by management at the
top of
the organisation
Decentralisation = when a relatively large number of decisions are taken lower down the
organisation in the operating units.
Formalisation = the practice of using written of electronic documents to direct and control
employees.
Woodward said that an appropriate structure depends on the type of production system: unit,
small
batch, continuously process
3
5 types of structure
Specialization by function
Functional structure= when tasks are grouped into departments based on similar skills and
expertise.
Specialization by divisions
Divisional structure = when tasks are grouped in relation to their outputs, such as products or
the
needs of different types of customer.
4

Matrix structure
Matrix structure = when those doing a tasks report both to a functional and a project or
divisional
boss.
Teams structure
Network structure
Network structure = when tasks required by one company are performed by other companies
with
expertise in those areas
5
There are 5 wives of coordinating the activities of people working on different
tasks.
Direct supervision
Hierarchy
Standardizing inputs and outputs
Rules and procedures
Information systems
(Direct personal contact)
6
Mechanistic structure = a high degree of task specialization, peoples responsibility and
authority are
closely defined and decision making is centralized.
Organic structure = structure in where people are expected to work together and to use their
initiative to solve problems. Job descriptions and rules are few and imprecise.

Mechanistic
Specialized tasks
Hierarchical structure of control
Knowledge located at top of hierarchy
Vertical communication
Loyalty and obedience stressed

Organic
Contribute experience to common tasks
Network structure of contacts
Knowledge widely spread
Horizontal communication
Commitment to goals more important

Burns and Stalker found that an appropriate structure depend on uncertainty of the
organisations
environment :
Mechanistic in an stable environment.
Organic in an unstable environment.
Contingencies = factors such as uncertainty, interdependence and size that reflect the situation
of the
organisation.
These factors are :
Strategy
Technology= the knowledge, equipment and activities used to transform inputs into outputs.
Environment
Size and life cycle
Lawrence and Lorsch: units within an organisation face different environment demands, which
implies that there will be both mechanistic and organic forms within the same organisation,
raising
new problems of coordination.
Differentiation = the state of segmentation of the organisation into subsystems each of which
tends
to develop particular attributes in response to the particular demands posed by its relevant
external
environment.

Integration = the process of achieving unity of effort amongst the various subsystems in
the
accomplishment of the organisations task.
Determinism = the view that an organisations structure is determined by its environment
Structural choice = the scope management has for deciding the form of structure, irrespective
of
external conditions.
John Child: contingency theory implies too great of a degree of determinism, managers have
greater
degree of choice over structure than contingency theory implied.
7
Learning organisations are those that have developed the capacity to continuously learn, adapt
and
change. This depends on evolving learning-friendly processes for looking in, looking out,
learning
opportunities, strategy and structure.

Chapter 11 Human resource management

1
Human resources management = the effective use of human resources in order to
enhance
organisational performance.
Four main areas:
Employee influence
Work systems
Human resource flow
Reward management
2
External fit = when there is a close and consistent relationship between an organisations
competitive
strategy and its HRM strategy.
Internal fit = when the various components of the HRM strategy support each other and
consistently
encourage certain attitudes and behaviour.
5 HRM competency domains:
Knowledge of business.
Delivery of HR practices
Management of change
Management of culture
Personal credibility
3
Human resource planning focuses on the size and naure of the workforce required to fulfill the
strategy.
This can be done by forecasting.
Two types of forecasting.
Forecasting human resource demands : refers to the number of staff required to meet expected
needs.
Forecasting human resource supplies: examines skills required for the portfolio of jobs and
analyses
whether current staff can meet these demands.
Succession planning = the use of a deliberate process to ensure that staff are develop who are
able
to replace senior management as required.
4
Job analysis = the process of determining the characteristics of an area of work according
to a
prescribed set of dimensions.
Competencies = refers to knowledge, skills, ability and other personal characteristics for
good
performance of a specific job.
5
Validity : is there a statistically significant relationship between a predictor and measures of onthejob performance.
The goal of recruitment is to produce a good pool of applicant and select the best of these to fit
the
job.
The three most used techniques to do this are:
Interviews
Selection tests
Assessment test

Hiring for the organisation rather than the job

Benefits :
More favourable employee attitudes
More desirable individual behaviour
Reinforcement of organisational design
Problems:
Greater investment of resources in the hiring process
Relatively undeveloped and unproven supporting selection
technology
Individual stress
Lack of organisational adaption
6
Common methods of reward management:
Time rate
Payment by results
Skill-based results
Performance-related pay
Flexible benefits packages
Performance-related pay = involves he explicit kink of financial reward to performance
and
contributions to the achievement of organisational objectives.
Another option is a flexible reward sytem
7
-

Chapter 12 Information technology and e-business

1
A pure e-business is a company that is built around information technology e.g. Google.
Companies
that were created before the internet, now use the internet to support their activities. E.g.
ABNAmro.
Information needs:
Inputs: about materials, staff and equipment
Transformation: schedules, efficiency
Outputs: prices, satisfaction
2
Data = raw unanalyzed facts, figures and events.
Information = data that has been processed so that it has a meaning for the person receiving
it.
Knowledge = Builds on information and embodies a persons prior understanding, experience
and
learning.
Data

Data transformation Information Knowledge.

Persons prior learning and experience.

3
Information system = A set of people, procedures and resources that collects and transforms
data
into information and disseminates this information.
Is not always electronic.
Human information systems: human communication
Paper-based IS: writing and printing.
Computer-based IS: Use of electronic devices.
Information systems management: the planning, acquisition, development and use of these
systems.
4
Information systems became more important since the mid-1980s. Is was brought to the
foreground
by rapid technical developments.
E.g.
The telephone
The television
The networked computer
The internet(= a web of computer networks linked together for exchanging data)
Intranet= a version of the internet that only specified people within an organisation can
use.
Extranet = a version of the internet that is restricted to specified people in specified
companies.
5
Classifying IS by their complementarities
Functional ( technologies that make the execution of stand-alone tasks more efficient)
Network ( system that helps people to communicate with each other)
Enterprise ( system that allows companies to restructure interactions amongst groups of
employees
or with business partners)
Classifying IS by their reach
Individual
Local/departmental
Organisational
Inter-organisational systems
Community systems

6
Enterprise resource planning = An integrated process of planning and managing all resources
and
heir use in the enterprise.
Figure 12.7
ERP gives management direct access to current operating information and so enables
companies to:
Integrate customer and financial information
Standardize manufacturing processes
Improve information for management
Although it looks like ERP gives a competitive advantage this isnt always the truth. For example
a
accompany may not benefit from market changes.
7
Knowledge management = system that are a type of IS that intent to support people as they
create,
store, transfer and apply knowledge. Purposes of KM:
Code and share best practices.
Create corporate knowledge directories.
Create knowledge networks.
Table 12.3
8
Customer relationship management = the process of maximizing the value proposition to
the
customer through all interactions, both online and traditional.
Effective CRM advocates developing one-to-one relationships with valuable customers.
Promise of CRM:
Gather customer data swiftly
Identify and capture valuable customers while discouraging less valuable ones
Increase customer loyalty
Reduce costs of serving costumers
Make it easier to acquire similar costumers.
Implementing CRM depends on the strategy.
9
E-commerce = the activity of selling goods or services over the internet.
E-business = the integration through the Internet of all an organizations processes from its
suppliers
through to its customers.
Disintermediation = Removing intermediaries such as distributers or brokers that formerly
linked a
company to its customers.
Reintermediation = creating intermediaries between customers and suppliers, providing
services
such
10 as supplier search and product evaluation.
IS and the tasks of managing.
Planning: Deals with the overall direction of the business.
Organizing: Moving abstract plans closer to reality.
Leading: Generating effort and commitment towards meeting objectives.
Controlling: Check the performance of an operationSee Figure 12.10

Chapter 13 Managing change and innovation

1
Managers have great difficulty in implementing major organisational changes
successfully.
2
There is a need for change if enough people perceive a gap between desired and actual
performance.
To close the gap managers try to change one or more aspects of the internal context. The
outcomes
of the change effort will be affected by practical issues of design and implementation. See figure
External
context = the elements beyond the organisation such as competitors, or the wider
13.1
PESTEL
factors.
Perceived performance gap = a gap that arises when people believe that the actual
performance of a
unit or business is out of line with the level they desire.
If the gap isnt closed this will eventually cause the business to fail.
Performance imperatives= aspects of performance that are especially important for an
organisation
to do well.
Two most important performance imperatives are:
The need for flexibility
The need for innovation
Organisational change = a deliberate attempt to improve organisational performance by
changing
one or more aspects of the organisation.
Aspects that can be changed:
Objectives
Technology
Business processes
Financial resources
Structure
People
Culture
Power
Change in one of the elements usually stimulates change in other areas
3
Interaction model = a theory of change that stresses the continuing interaction between the
internal
and external contexts of an organisation, making the outcomes of change hard to predict.
Receptive contexts = context in which features of the organisation appear likely to help change.
Non-receptive contexts = context in which the combined effects of features of the organisation
appear likely to hinder change.
People introduce change to alter the context, but the context affects the ability to change.
4
There are four models of change.
Life cycle model = model that views change as an activity which follows a logical, orderly
sequence of
activities that can be planned in advance.
Emergent model = model that emphasise that in uncertain conditions a project will be affected
by
unknown factors, and that planning has little effect on the outcome.
Reflects the uncertainty of the environment.
Participative model = a model that beliefs that if people are able to take part in planning a
change
they will be more willing to accept and implement the change.
Political model = model that views that organisations are made up of groups with separate
interests,
goals and values, and that these affect how they respond to change.

5
Lewin:
Driving forces are trying to change the situation in directions they favour.
Restraining forces push the other way to prevent change.
Lewin observed that while increasing the driving forces could produce change in the desired
direction, it could also increase tension amongst those forces to change. He suggested that
trying to
reduce the forces restraining change is usually the wiser route.
6
Forms of resistance:
Making no effort to learn
Using older systems whenever possible
Not attending meetings to discuss the project
Excessive fault finding and criticism
Deliberate misuse
Saying it has been tried before and did not work then
Counter implementation = refers to attempts to block change without displaying overt
opposition.
Sources of resistance:
Self-interest
Misunderstanding
Lack of trust
7
Organisation development = a systematic process in which applied behavioural science
principles and
practices are introduced with the goal of increasing individual and organisational performance.
Common techniques for organisation development:
Sensitivity training = a technique for enhancing self-awareness and changing behaviour though
unstructured group discussion.
Changing structure.
Process consultation= an OD intervention in which an external consultant facilitates
improvements in
an organisations diagnostic, conceptual and action planning skills.
Survey feedback = an intervention in which the results of an opinion survey are fed back t
respondents to trigger problem solving on the issues the survey identifies.
Team building.
Intergroup development.
Grid organisation development.
8
Creativity = the ability to combine ideas in a unique way, or to make unusual associations
between
ideas.
Innovation = the process of taking a creative idea and turning it into a useful product.
Factors that can support innovation
Culture for innovation
HR policies for innovation
Structure for innovation
See figure 13.7
Idea champion = an individuals who actively and enthusiastically supports new ideas, builds
support,
overcomes resistance and ensure that ideas are implemented.
Chapter 14 Influence and power

1
All managers face the challenge of influencing others. Whatever their role, people only add
value to
resources by influencing others.
Influence = the process by which one party attempts to modify the behaviour of others by
mobilizing
power resources.
See figure 14.1
2
Leadership = the process of influencing the activities of others toward high levels of goal
setting and
achievement.
Leading is usually seen as referring to activities that bring change, whereas managing brings
stability
and order.
Managers can influence in 4 directions:
Superiors
Calleagues
Subordinates
People outside the organisation
3
Traits = a relatively stable aspect of an individuals personality that influences behaviour
in a
particular direction
The big five = trait clusters that appear consistently to capture main personality traits:
Openness
Conscientiousness
Extraversion
Agreeableness
Neuroticism
Transactional leader = a leader who treats leadership as an exchange, giving followers what they
want if they do what the leader desires.
Transformational leader = a leader who treats leadership as a matter of motivation and
commitment,
inspiring followers by appealing to higher ideals and moral values.
4
Behaviour = something a person does that can be directly observed.
Ohio state University model :
Initiating structure = a pattern of leadership behaviour that emphasises the performance of the
work
in hand and the achievement of production or service goals.
Consideration = a pattern of leadership behaviour that demonstrates sensitivity to relationships
and
to the social needs of employees.
University of Michigan model:
Job-centred supervisor ( initiating structure)
Employee centred supervisors ( considerate)
Managerial grid : See figure 14.3
5
Situational model = model in which leadership attempts to identify the contextual factors that
affect
when one style will be more effective than another.
Tannenbaum & Schmidts three forces of leader behaviour:

Forces in the manager.

Forces in the subordinates.
Forces in the situation.
Houses path-goal model identifies 4 styles of leader behaviour:
Directive
Supportive
Achievement oriented
Participative
See figure 14.5
6
Power = The capacity of individuals to exert their will over
others.
Sources of power:
Legitimate power
Reward power
Coercive power
Referent power
Expertise power
See table 14.5
Power is only effective if the target recognizes the power source as legitimate and
acceptable.
Responses to power:
Resistance
Compliance
Internalisation
7
Three lines of power:
Supply
Information
Support
Political behaviour = the practical domain of power in action, worked out through the use
of
techniques of influence and other tactics.
Delegating = when one person gives another the authority to undertake specific
activities or
decisions.
8
Influence tactics:
Rational persusion
Inspiration appeal
Consultation
Ingratiation
Exchange
Personal appeal
Coalition
Legitimating
Pressure
9
Networking = individuals attempts to develop and maintain relationships with others who have
the
potential assist them in their work or career.
Types of network:

Practitioners
Privileged power
Ideological
People oriented
Strategic
Chapter 15 Motivation
1
Motivation = the forces within or beyond a person that arouse and sustain their commitment
to a
course of action.
Motivation arises within people, managers have to ensure that people can satisfy their needs
through work. But all people have different motivations.
2
All people need food, social contacts, or a sense of achievement, which motivate behaviour to
satisfy
that need. If the action leads to a satisfactory outcome we experience a sense of reward. The
feedback loop shows that we then decide whether the behaviour was appropriate and worth
repeating.
The social context influences how we act, that includes:
The job
The organisation
The environment
Psychological contract: the set of understanding people have regarding the commitments made
between themselves and their organisation.
This expresses the idea that each side has expectations of the other regarding what they will
give and
what they will receive in return.
Some element of this contract are written down, but most are tacit and informal.
Perception: the active psychological process in which stimuli are selected and organised
into
meaningful patterns.
3
Behaviour modification = a general label for attempts to change behaviour by using
appropriate and
timely reinforcement.
Skinner: If we receive a reward for doing something, we tend to do it again. If the consequences
are
unpleasant, we do not.
Behaviour modification techniques focus on specific observable behaviours rather than on
attitudes
and
feelings.
Komakie
developed the following steps to encourage safe working practices:
Specify desired behaviour
Measure desired performance
Provide frequent, contingent positive consequences
Evaluate effectiveness
Content theories: theories that attempt to understand the rewards a person will
value.
4
Maslow: hierarchy of needs
Self actualization (desire for self-fulfillment, and realizing
potential)
Esteem (self respect and the respect of others)
Belongingness and love (place in the group)

Safety (security, stability, protection, dependency )

Physiological (needs that must be satisfied to survive)
It is a hierarchy so first the physiological needs need to be achieved before going to the next
level.
Maslow believes that people are motivated to satisfy their needs.
Alderfer ERG theory
Existence needs : a persons requirement for material and energy
Relatedness needs : a desire for relationships with significant other people.
Growth needs : needs that impel people to be creative or to produce an effect on themselves or
their
environment.
McClelland
Three categories of human needs:
Need for affiliation to develop and maintain interpersonal relationships.
Need for power to have control over ones environment.
Need for achievement to set and meet standards of excellence.
Herzberg two factor theory
Motivator factors = aspects of work its self that Herzberg found influenced people to
superior
performance and effort.
Hygiene factors = aspects surrounding the task that can prevent discontent and
dissatisfaction but
will not in themselves contribute to psychological growth and hence motivation.
Hygiene factors factors important in bad times, if they are not there employees are
dissatisfied.
With these factors they are not dissatisfied anymore.
Motivator factors create satisfaction. Without these motivators the employees are not satisfied.
Satisfaction is created by motivator factors.
Dissatisfaction is created by not having the hygiene factors.
Hygiene factors are external factors
Motivator factors are internal, mostly intangible factors.
5
McGregor:
Theory X:
Average human being has an inherent dislike for work and will avoid it if at all possible. People
must
be controlled and directed and threatened with punishment to get them to put effort towards
the
achievement of organisational objectives. Average human beings prefer to be directed, avoids
responsibility, has little ambition and wants security.

Theory Y:
Average human being learns not only to accept but also to seek responsibility. Commitment
to
objectives is a function of the rewards associated with their achievement. Nowadays the
potentialities of the average human being are only partially utilized.
6

Process theory: theory that tries to explain why people choose one course of action
towards
satisfying need rather than another.
Vroom:
Expectancy theory : argues that motivation depends on a persons belief in the probability that
effort
will lead to good performance, and that good performance will lead to them receiving an
outcome
they value.
The theory assumes that individuals:
Have different needs an so value outcomes differently.
Make conscious choices about which course of action to follow.
Choose between alternative actions based on the likelihood of an action resulting in an outcome
they
value.
Three main components:
F= (E P)* (P O ) *V
F= degree of motivation a person had towards an activity. That motivation is influenced by two
beliefs.
Making effort leads to performance (E P),
That level of performance will lead to an outcome they value (P O)
Subjective probability = a persons estimate of the likelihood that a certain level of effort will
produce
a level of performance which will then lead to an expected outcome.
Instrumentality = the perceived probability that good performance will lead to valued rewards,
measured on a scale from 0 (no chance) to 1 (certainty)
Valence = the perceived value or preference that an individual has for a particular outcome.
Adams:
Equity theory : the perception of unfairness leads to tension, which then motivates the
individual to
resolve that unfairness.
Input (a): Input (B)
Reward (a)Reward (B)
Locke:
Goal-setting theory : that motivation is influenced by goal difficulty, goal specificity,
participation in
setting goals and knowledge of results.
Self efficacy = an individual that beliefs that he or she is capable of performing a
task.
7
Extrinsic rewards: valued outcomes or benefits provided by others, such as promotion, a pay
increase
or a bigger car.
Intrinsic rewards: valued outcomes or benefits that come from the individual, such as feelings of
satisfaction, achievement and competence.
Job enrichment model = represents the idea that managers can change specific job
characteristics to
promote job satisfaction and so motivate employees.
The model indentifies three psychological states:
Experienced meaningfulness
Experienced responsibility
Knowledge of results.
Can be influenced by five job characteristics:

Skill variety
Task identity
Task significance
Autonomy
Feedback.
Motivating the potential of job can be done by implementing 5
concepts:
Combine tasks.
Form natural workgroups.
Establish customer relations.
Vertical loading.
Open feedback channels.
8
Empowerment refers to a range of practices that give more responsibility to less senior staff.
Advantages:
Quicker responses.
More job satisfaction
Greater customer contact
Building customer loyalty and repeat business.
Bowen and Lawler:
Empowerment is related to the degree of which four ingredients of the organisation are shared
with
front-line employees:
Information about the organisations performance,
Rewards based on the organisations performance,
Knowledge that enables employees to contribute to organisational performance,
Power to make decisions that influence organizational direction and performance.
Levels of empowerment : Suggestion involvement, job involvement, high involvement.
See figure 15.8

Chapter 16 Communication
1
A lot of managers face communication issues, like how to communicate the vision of the
company
and how to reach a mutual understanding about the future of the company.
Until people meet they cannot develop the mutual trust and shared knowledge essential for
true
communication.
2
People in an organisation need to communicate about:
Inputs
Transformation
Outputs
Communication = the exchange of information through written or spoken words, symbols
and
actions to reach a common understanding.
3
Message = what the sender communicates.
Coding = translating information into symbols for communication.
See figure 16.3
Decoding = the interpretation of a message into a form with meaning.
Noise = anything that confuses, diminishes or interferes with communication.
Feedback =as the receiver expresses his or her reaction to the senders
message
Five principles for coding a message accurately:
Relevance
Simplicity
Organisation
Repetition
Focus
The quality of information depends on four criteria:
Reliability
Timeliness
Quantity
Relevance
Non-verbal communication = the process of coding meaning through behaviours such as
facial
expression, gestures and body posture.
Selective attention = the ability, often unconscious, to choose from the stream of signals in
the
environment, concentrating on some and ignoring others.
Perception is the proves by which individuals make sense of their environment by selecting
and
interpreting information.
Stereotyping = the practice of consigning a person to a category or personality type on the
basis of
their membership of some known group.
4
Channel = the medium of communication between a sender and a receiver.
Information richness = the amount of information that a communication channel can carry,
and the
extent to which it enables sender and receiver to achieve common understanding.

Depends on:
The ability to handle many cues at the same time.
The ability to support rapid two way feedback.
The ability to establish a personal focus for the communication.
Lengen and Daft :
High information richness

Low information richness

Face to-face communication

Spoken communication electronically transmitted
Personally addressed written communication
Impersonal written communication.

Information overload = when the amount of information a person has to deal with exceeds
their
capacity to process it.
Blogging = a form of two-way communication characterized by an informal tone and frank
discussion.
Blog = a frequently updates, interactive website through which people can communicate
with
anyone who has access to the medium.
Five types of blogs:
Individual/personal
News/commentary
Advertising/Promotional/Customer service
Business/Professional
Internal/Knowledge management
5
Centralized communication networks in groups:
Chain
Y
Wheel
Centralized communication networks in groups:
Circle
All channel

Centralized networks work well on structures, simple tasks, but are less suitable for complex
tasks as
the centre becomes overloaded.
Decentralized network work well on complex tasks, as information flows between those best
able to
contribute. On simple tasks this is likely to cause confusion.
See figure 16.7:
Management uses downward communication when they try to ensure coordination by issuing a
plan
and expect those lower in the hierarchy to follow it.
Upward communication refers to systematic methods of helping employees to pass on their
views
and ideas to management.
Horizontal communication crosses departmental or functional boundaries, usually connecting
people
at
6 broadly similar levels within the organisation.
Groupware =a system that provides electronic communication between members of
geographically
dispersed teams.
The convergence of vision, voice and data technologies has greatly enhanced the ability to
communicate data and information with little regard to distance.

Mutual understanding of information and knowledge depends on senders and receivers having a
shared context. Using information systems to support mutual understanding still depends on
dealing
with the human context of the process.
7
Communication skills for senders:
Send clear and complete messages
Encode messages in symbols the receiver understands
Select a medium appropriate for the message
Select a medium that the receiver monitors
Avoid noise
Communication skills for receivers:
Pay attention
Be a good listener
Stop talking
Put the speaker at ease
Aim is to understand
Personal prejudices
What the speaker is not saying
Ask questions
Be empathetic
8
Some factors in the context will affect the mutual understanding:
Culture
Structure
Power

Chapter 17 Teams
1
Teams are a way of bringing people with skills that are needed for a particular project
together.
Teams bring together people with different ideas and perspectives to solve difficult
problems.
2
Benefits to members:
Fulfilling social needs.
Benefits to performance:
Teams bring complementary skills beyond those of any individual.
Reduce costs.
Blur professional boundaries.
Why effective teams contribute to business performance:
Provide a structure within which people with a range of skills and perspectives work
together.
Provide a forum in which issues can be raised and dealt with
Enable people to extend their roles, so possible improving responsiveness and reducing
costs.
Encourage acceptance and understanding by staff of a problem and the solution proposed
Promote wider learning by encouraging reflection, and spreading lessons widely.
3
Structure = the regularity in the way a unit or group is organized, such as the roles that are
specified.
Working group = a collection of individuals who work mainly on their own but interact socially
and
share information and best practices.
Team = a small number of people with complementary skills who are committed to a common
purpose, performance goal, and approach for which they hold themselves mutually
accountable.
Aspects of a team:
Small number
Complementary skills
Common purpose
Common approach
Mutual accountability.
4
Hackman:
Seven types of teams:
Top management teams to set organisational directions.
Task forces- for a single unique project.
Professional support groups providing expert assistance.
Performing groups playing to audiences.
Human service teams taking care of people.
Customer service teams selling products and services.
Production teams turning out the product.

Formal teams = a team that management has deliberately created to perform specific tasks to
help
meet organisational goals.
Informal groups = a group that emerges when people come together and interact regularly.
Self-managing team = a team that operates without an internal manager and is responsible for
a
complete area of work.
Virtual teams = teams in which the members are physically separated, using communications
technologies to collaborate across space and time to accomplish their common task.

5
Stages of group development:
Forming starting up a team.
Storming conflicts occur
Norming members now know how to work with each other.
Performing the group is working well
Adjourning the group completes its task and disbands. Evaluation.
Hackman:
Three ways of evaluating team effectiveness:
Has it met performance expectations?
Have members experienced an effective team?
Have members developed transferable teamwork skills?
Team bases rewards = payments or non-financial incentives provided to members of a
formally
established team and linked to the performance of the group.

Team performance depends on effort, knowledge/skill and performance

strategies.
Effort can be encouraged by removing coordination problems and rewarding teamwork.
Knowledge/skills can be fostered by education, training and coaching.
Performance strategies can be encourages by relevant technologies being available and by
providing
feedback.
6
Belbin:
Team roles:
Implementer
Coordinator
Shaper
Plant
Resource investigator
Monitor-evaluator
Team worker
Completer
Specialist
Preferred team role = the types of behaviour that people display relatively frequent when
they are
part of a team.

7
Team processes can help the team by accomplish their common purpose:
Common approach
Attending to the dominant type of communication.
Observing team practices.
Observation = the activity of concentrating on how a team works rather than taking part in
the
activity itself.
Content = the specific substantive task that the group is undertaking.

8
Disadvantages:
Take on their own purpose
Use too much time

Allow an individual to dominate

Succumb to groupthink
Groupthink = when members become so committed to maintaining group cohesiveness, they
may no
longer look critically at alternatives.
Concertive control = when workers reach a negotiated consensus on how to shape their
behaviour
according to a set of core values.

Chapter 18 (20) Managing operations and quality

1
The role of the operations function often incorporates the management of the whole
integrated
supply chain. The function has a major strategic dimension where it can hinder od help the
achievement of corporate goals.
2
Craft production = a system in which the craft produces everything. With r without customer
involvement they design, source materials, make, display, sell.
Factory production = broke down the integrated nature of the craft workers approach and
made I
possible to increase the supply of by dividing tasks into simple and repetitive sequences.
Two techniques needed to enable high-volume production:
Standardization and interchangeability.
Inventory = materials and parts that are held in anticipation of need by customers along a
chain of
supply from raw materials through to final consumption.
Transformation types:
Form.
Possession
Place
Personal attitude
Characteristics that differentiate operational systems:
Output volume.
Nature of processing
Outputs are continuous or discrete
Specificity to actual customer requirements.
Physical layout.
Line layout =completely specified by the sequence of activities needed to transform materials
into a
product or a natural sequence of treatments to provide a service.
Functional layout = groups similar physical processes together and brings materials an
customers to
these areas.
3
Five key operations activities:
1. Capacity
2. Standards
3. Materials
4. Scheduling
5. Control
4
Operations can contribute in the following areas:
Innovation
Quality = the perception of a customer that what has been provided is at least what was
expected for the price he or she paid.
oTotal quality management = a philosophy of management that is driven by customer
needs and expectations and focuses on continually improving work processes.

o Principles of total quality management:

Philosophy: waste reduction through continuous improvement.
Leadership: committed and visible from top to bottom of the organisation.
Measurement : costs involved in quality failures, the cost of quality.
Scope: everyone, everywhere across whole supply chain.
Methods: simple control and improvement technique implemented by teams
oSEVRQUAL = a generic framework for analyzing and delivering service quality to
customers.
oFive dimensions of service quality
Tangibles appearance of physical facilities, equipment, personnel and
communication materials.
Reliability ability to perform the promised service dependably and
accurately.
Responsiveness willingness to help customers and provide prompt service.
Assurance knowledge and courtesy of employees and their ability to
convey trust and confidence.
Empathy caring, individualized attention the firm provides its customers.
oSources of quality costs:
Prevention getting the system right.
Appraisal measuring how the systems are performing.
Internal failure faults found during checks inside the operation.
External failure faults found by users.
Delivery = related to the achievement of all promises made by any supplier to a
customer.
oDemand lead time = the elapsed time that a customer is prepared to allow between
placing an order and actually receiving it in certain situations this time is effectively

zero.
oSupply lead time = the total elapsed time between the decision to obtain the basic
input resources to the final delivery of the product to the customer.
Cost = expresses in money units the effect of activating or consuming resources. It is an
internal control process of the producing organisation and is not visible to outside parties.

5
The functional approach organizes activities vertically within distinct functional
specializations,
between communication can be difficult. An alternative is to focus on horizontal flows of
business
processes that are directed at meeting customer needs. Important processes are those aimed
at:
Generating orders: creating a capturing a customers intent to buy a product.
Fulfilling orders : delivering the product to the customer.
Managing money: getting and giving payments, and keeping transaction records for
reporting.
Keeping customers afterwards: maintaining service.
6
Partnering = a business relationship based on taking a long-term view that the partners wish to
work
together to enhance customers satisfaction.
Order winner = a feature of the product that so positively differentiates it, that customers want
to
buy it in preference to competing products.
Order qualifier = a necessary but not sufficient requirement to be considered by a customer.

Chapter 19 (18) Performance measurement and control.

1
Control = the process of monitoring activities to ensure that results are in line with plan, and
acting to
correct significant deviations.
Control is the counterpart of planning, helping to ensure that actions add value, and enabling
corrective action.
2
Control process = the generic activity of setting performance standards, measuring actual
performance, comparing actual performance with the standards, and acting to correct
deviations or
modify standards.
Control system = the way the elements is the control process are designed and combined in a
specific situation.
Control process:
Setting objectives and standards
measuring performance

Acting to correct deviation

comparing with standard
Or change objectives
Setting objectives gives direction to an activity and sets standards of acceptable performance.
Measuring involves deciding what measures to use and how frequently.
Comparing involves selecting suitable objects for comparison, and the time period over which
to do
it.
Correcting aims to correct a deviation form plan either by altering activities or changing the
objectives.
Performance = the result of an activity
Common sources of information for measuring performance:
Personal observation
Oral reports
Written reports
Online information systems
Range of variation = stets the acceptable limits within which performance can vary from
standard
without requiring remedial action.
Immediate corrective action = action that aims to correct problems at once to get performance
back
on track.
Basic corrective action = action that aims to understand the deeper sources of performance
failure,
and tries to correct them.
3
A generic issue in control is to ensure that the measures chosen are consistent with the
situation of
the unit being measured. So controls are likely to reflect strategy.
Organisational performance = the accumulated results of all the organisations work processes
and
activities.
Balanced scorecard = a performance measure that looks at four areas: financial, customer,
internal
processes and innovation which contribute to organisational performance.

Efficiency = a measure of the inputs required for each unit of output.

Effectiveness = a measure of how well an activity contributes to achieving organisational
goals.
Feedforward control = focuses on preventing problems as it takes place before the work
activity.
Concurrent control = takes place while an activity is in progress
Feedback control = when information about performance is gathered when an activity is
complete.
Tools of control are Output control, behavioral control and cultural control
4
Output control: the activity of measuring the quantity of output for a definable area.
Mechanisms of control:
Financial measures
oProfit ratios
oLiquidity ratios
oActivity ratios
Operational measures:
oTargets for output
oWaste reduction
oEnergy use
oLabour costs
Operating budgets ( make a numerical plan for allocating resources between activities)
5
Behavioural control : attempts to influence behaviour.
Mechanisms of control:
Direct personal control
Organisation structure
Rules and procedures
Management by objectives = a system in which managers and staff agree their
objectives,
and then measure progress towards them periodically.
Control through machinery

6
Cultural control = attempts to influence behaviour by the design of the rewards system,
and by
encouraging internal compliance through the values and beliefs of the organisation.
HRM control
oSelection procedures
oAppraisal and rewards
oValues and beliefs
oSocialization
oReinforcement
7
Lawler:
Three potential problems with formal control systems:
1. Rigid bureaucratic behaviour, encaorages behaviour that is not in the best interest of the
organisation.
2. Inaccurate data, to supply the system with inaccurate information.
3. Motivational effects, people will resist controls that they feel threaten their ability to satisfy
their needs from work.

Controls may:
Automate human skill and expertise
Measure performance accurately and comprehensively
Create competition and suspicion
Reduce autonomy
Simons
Four levers of control:
Diagnostic control
Beliefs systems
Boundary systems
Interactive control systems

8
Mechanistic control involves the extensive use of rules and procedures.
Organic control involves the use of flexible authority.
Mechanistic approaches are likely to be suitable in stable environments or in support of cost
leadership strategies.
Organic approaches are likely to be suitable in unstable environments or in support of
differentiation
strategies.