Binder 3

CHAPTER 1
THE CHALLENGE OF
MANAGEMENT
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus 1
Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.
Lecture outline
• Overview of management
• What managers actually do
• Managerial qualities
• Management job roles
• 21st century management
Overview of management
‘Management is the achievement of
organisational goals by engaging in the four
major functions of planning, organising,
leading and controlling.’
• Planning
The process of setting goals and deciding how best to
achieve them.
• Organising
The process of allocating human and non-human resources
so that plans can be carried out successfully.
• Leading
The process of influencing others to engage in the work
behaviours necessary to reach organisational goals.
• Controlling
The process of regulating organisational activities so that
actual performance conforms to expected organisational
standards and goals.
Achievement of organisational goals via:
1. Planning
2. Organising
3. Leading
4. Controlling
The management process
To be successful, the functions of planning,
leading, organising and controlling need to be
linked to:
• Work agenda.
• Work methods and roles.
With reliance upon an organisational pool of
knowledge and management skills, which leads to:
• Organisational performance.
What managers actually do
Henry Mintzberg’s study of managers
concluded:
• They perform great quantity of work at
unrelenting pace.
• Work typically varied, fragmented, brief.
• Prefer to deal with current, specific, ad hoc
issues.
What managers actually do
• Effective managers at the centre of a network
of contacts.
• Prefer verbal communication—especially via
phone.
• Control of own activities—good information
essential for this control.
Managerial roles
• Interpersonal
• Informational
• Decisional
• Negotiator
Interpersonal role
• Figureheads: Projecting a set of values,
communicating an image.
• Leader role: Needs to be informed, as well
as informing. Leadership skills commonly
lacking in managers.
• Liaison role: Developing channels of
communication, especially informal channels
with other corporate directors, political
connections, media, public figures.
Informational role
• Monitor: Sifting, sorting, selecting information
(to help set the agenda)—phone, meetings,
memos, social functions, mail, public
gatherings.
• Disseminator: The passing of relevant
information to subordinates.
• Spokesperson: Has to be able to express it,
have solid verbal skills—right message at
right time.
Decisional
• Entrepreneurial: Ability to identify
opportunities and threats — able to do this in
diverse situations—work or leisure.
• Disturbance handler: More information
available, likely correct decision made.
• Resource allocator: To divisions or
departments, managers need to have an
understanding of what resources are needed
for effective functioning (e.g. budget
gamesmanship).
Negotiator
Managers need precise and relevant
information to facilitate this role. Therefore, the
best managers:
• Place themselves at the centre of a vast
network of contacts that are social, political,
occupational, organisational, international.
• Can sift, sort, select valuable information.
• Have secretaries who network, who filter and
edit information to avoid overload.
Managerial knowledge,
performance & skills
• Knowledge base
Knowledge of industry, product, market, technology
etc.
• Skills base
Technical, human & conceptual.
• Performance goals
Effectiveness & efficiency.
Vertical differences in
management roles
Top managers —planning, conceptual skills
Middle managers —mixed skill needs
First line managers/supervisors —leading, technical skills
Operational level staff
Horizontal differences in
management roles
• Entrepreneurial managers
Growth focus
• Functional managers
Specific, technical focus
• General managers
Broad, whole of organisation/unit responsibilities
• Project managers
Integrative, team focus
21st century management
• Change & innovation
• Markets & technology
• Diversity: markets, products & staff
• Globalisation
• Quality & organisational development
Lecture summary
• Overview of management
– Management function (PLOC).
• What managers actually do
– Roles: interpersonal, decisional, informational, negotiator.
– Work agenda & methods.
• Managerial knowledge, skills & performance
– Management job types.
– Vertical & horizontal differences in management roles.
• 21st century management
– Change, innovation, diversity, globalisation, quality &
organisational development.
CHAPTER 2
PIONEERING IDEAS IN
MANAGEMENT
Lecture outline
• Early management ideas
• Classical theorists
• Behavioural theorists
• Quantitative approach
• Contemporary ideas
• Innovation & management theory
Early management ideas
• Robert Owen (1771–1858)
Identified the importance of working and social
conditions for employees.
• Charles Babbage (1792–1871)
Ideas on work specialisation, production efficiency,
incentive and profit-sharing plans.
• Henry R. Towne (1844–1924)
Called for a ‘management science’ that would
establish ‘principles’ of management.
Early management ideas
Assessing the early contributions:
• Uncoordinated efforts.
• Contributions tended to relate to specific problems.
• Did not see ‘management’ as a separate field or skill
(until Towne).
Classical theorists
‘This viewpoint emphasises managing work
and organisations more efficiently.
It comprises three different management
approaches: scientific, administrative and
bureaucratic.’
Classical theorists
• Scientific management
F. W. Taylor, F. & L. Gilbreth, H. Gantt
• Bureaucratic management
M. Weber
• Administrative management
H. Fayol
Scientific management
‘Scientific management is an approach within
classical management theory emphasising
the scientific study of work methods to
improve worker efficiency.’
Frederick W. Taylor
Four principles of ‘scientific management’:
• Select & train the best.
• Determine the most efficient work methods.
• Co-operate with workers to ensure best
method is used.
• Divide work/responsibility between workers &
managers.
• Frank & Lillian Gilbreth
– Time & motion studies
– Human implications of Scientific Management
• Henry Gantt
– Pay incentives
– Gantt chart
Bureaucratic management
‘Approach emphasising the need for
organisations to operate in a rational manner
rather than relying on owner’s and manager’s
arbitrary whims.’
Weber’s Ideal Bureaucracy
• Specialisation of labour
• Formal rules & procedures
• Impersonality
• Well-defined hierarchy
• Advancement on merit
Hierarchy Advancement
of on merit
positions
Specialisation
of labour
Max Weber
Formal rules &
procedures
Administrative management
‘Approach focusing on principles used by
managers to co-ordinate the organisation’s
internal activities.’
Henri Fayol’s Principles of management
• Division of work • Centralisation
• Authority • Scalar chain
• Discipline • Order
• Unity of • Equity
command/direction
• Low turnover
• Primacy of general
interest • Initiative
• Remuneration
• Esprit de corps
Organising
Planning
Commanding
Henri Fayol
Co-ordinating
Controlling
Behavioural theorists
‘Perspective on management emphasising the
importance of attempting to understand
various factors affecting human behaviour in
organisations.’
Early theorists:
• Hugo Munsterberg
Creating optimal psychological conditions, behaviour
shaping
• Mary Parker Follett
Importance of group functioning
• Hawthorne studies
Importance of supervisory style
Human relations movement
• Abraham Maslow
Hierarchy of Needs
• Douglas McGregor
Theory X & Y
Maslow’s Hierarchy of Needs
Self-actualisation
Esteem
Social
Safety
Physiological
McGregor’s Theory X & Y
Theory X Theory Y
Work avoiding Work is natural
Need to control Capable of self-direction
Avoid responsibility Seek responsibility
Workers seek security Can make good decisions
Quantitative management
viewpoint
‘Focuses on mathematics, statistics and
information aids to support managerial
decision making and organisational
effectiveness.’
Quantitative management
viewpoint
• Management science
‘Approach aimed at increasing decision effectiveness through use
of sophisticated mathematical models & statistical methods.’
• Operations management
‘Function or field of expertise primarily responsible for managing
production & delivery of an organisation’s products and services.’
• Management information systems
‘Field of management focused on designing & implementing
computer-based information systems for use by management.’
Contemporary viewpoints
• Systems theory
‘Approach based on the idea that organisations can
be viewed as systems.’
• Contingency theory
‘Viewpoint arguing that appropriate managerial
action depends on the particular parameters of the
situation.’
Contemporary viewpoints
• Theory Z
‘Concept combining positive aspects of American
and Japanese management into a modified
approach aimed at increasing managerial
effectiveness while remaining compatible with the
norms and values of American society and culture.’
• Total Quality approach
‘Approach highlighting collective responsibility for
product and service quality, and encouraging
individuals to work together to improve quality.’
Promoting innovation
Each management viewpoint provides a
contribution to managing innovation:
• Classical
• Behavioural
• Quantitative
• Contemporary
Lecture summary
• Early management ideas
Generation of ideas leading to identification of
management as a significant field of inquiry.
• Classical theorists
Emphasised finding ways to more efficiently
manage work and organisations.
• Behavioural theorists
Emphasised the importance of trying to understand
factors affecting human behaviour in organisations.
Lecture summary
• Quantitative approach
Focuses on mathematics, statistics and information aids
supporting managerial decision making and effectiveness.
• Contemporary ideas
Views of organisations as systems, importance of
contingency factors & amalgamating Japanese & American
management practices.
• Innovation & management theory
Each approach provides insights, knowledge & practice
regarding the management of innovation in organisations.
CHAPTER 3
UNDERSTANDING INTERNAL &

EXTERNAL ENVIRONMENTS
Lecture outline
External environment Internal environment

(culture)
• Types of external
environment • Nature of organisational.
culture
• Analysing the environment
• Manifestations of culture
• Managing the environment • Promoting innovation
• Changing organisational.
culture
• Leadership & cultural
change
External environment
‘Major forces outside the organisation with

potential to influence significantly a product or
service’s likely success.’
External environment
External environment is made up of:
• The Mega-environment
The broad conditions and trends in societies
in which an organisation operates.
• The Task environment
Specific outside elements with which an
organisation interfaces in the course of
conducting its business.
The Mega-environment
Technological Economic
element element
Legal–political
The element
organisation
International Sociocultural
element element
Five major elements:
• Technological element
Current state of knowledge regarding production of
products & services.
• Economic element
Systems of producing, distributing & consuming
wealth.
• Legal-political element
Legal & governmental systems within which an
organisation must function.
• Socio-cultural element
Attitudes, values, norms, beliefs, behaviours &
associated demographic trends characteristic of a
given geographic area.
• International element
Developments in countries outside of an
organisation’s home country with potential to
influence the organisation.
The Task environment
Competitors
Government &
regulators Customers
The /clients
Organisation
The
employment Suppliers
market Public pressure
groups
Five elements:
• Customers and clients
Individuals and organisations purchasing
products/services.
• Competitors
Other organisations either offering (or a high
potential of offering) rival products/services.
• Suppliers
Organisations and individuals supplying resources
an organisation needs to conduct its operations.
• Labour supply
Individuals potentially employable by an
organisation.
• Government agencies
Agencies providing services and monitoring
compliance with laws and regulations at local, State
or regional and national levels.
Analysing the environment
Perspectives on environment:
• Population ecology model
Argues that environmental factors cause
organisations to survive or fail.
• Resource dependence model
Highlights the dependence of organisations on
environment but attempt to manipulate the
environment to reduce this dependence.
Environment characteristics:
• Uncertainty
Condition in which future environmental
circumstances affecting an organisation cannot be
accurately assessed and predicted.
• Complexity
Number of elements in an organisation’s
environment and their degree of similarity.
• Dynamism
Rate and predictability of change in the elements of
an organisation’s environment.
• Bounty
Extent to which the environment can support
sustained growth and stability.
Managing the environment
Three approaches to managing the
environment:
• Adaptation
Involves changing internal operations & activities to make
the organisation and its environment more compatible.
• Favourability influence
Involves trying to alter environmental elements to make them
more compatible with the organisation’s needs.
• Domain shifting
Changing product/service mix to create favourable interface.
Adaptation
• Buffering
Stockpiling either inputs into or outputs from a production or
service process to cope with environmental fluctuations.
• Smoothing
Taking actions aimed at reducing the impact of fluctuations,
given the market.
• Forecasting
Predicting changing conditions & future events that
significantly affect an organisation’s business.
• Rationing
Providing limited access to a product or service in high
demand.
Favourability influence
• Advertising & public relations
• Boundary spanning
• Recruiting
• Negotiating contracts
• Co-opting
• Strategic alliances
• Trade associations
• Political activity
Domain shifting
• Move out of a current product, service or
geographic area into a more favourable
domain
• Expand current domains through
diversification or expansion of
products/services offered
Internal environment
Nature of organisational culture:
• ‘A system of shared values, assumption, beliefs and norms
uniting organisational members’ (Smircich 1983; Kilman
et al. 1986).
• ‘The way we do things around here.’
• The ‘glue’ binding the disparate parts (or the oil that keeps
them moving).
• The interpretive part of organisational behaviour: It explains,
gives direction, sustains energy, commitment, and cohesion.
Manifestations of culture
• Symbols
Object, act, event or quality serving as a vehicle for
conveying meaning.
• Stories
Narrative based on true events, which may be embellished
to highlight intended value.
• Rites
Relatively elaborate, dramatic, planned set of activities
intended to convey cultural values to participants and,
usually, an audience.
• Ceremonies
System of rites performed in conjunction with a single
occasion or event.
• Strategic
Focussed on identifying opportunities.
• Committed to seizing opportunities
Willing to make major, fast changes.
• Commitment of resources
Many stages with risk assessed for each stage.
• Control of resources
Rental or outsourcing of resources for flexibility.
• Management structure
Few levels with informal communication.
Changing organisational culture
Because they involve fairly stable values,
assumptions, beliefs & norms, organisations can
be difficult to change.
An approach to changing culture:
• Surfacing actual norms
• Articulating new directions
• Establishing new norms
• Identifying culture gaps
• Closing culture gaps.
Leadership and cultural change
• Crisis identification
• Communication of a new vision
• Motivation of key staff to lead cultural change
by implementing the new vision and its
corresponding strategy
Lecture summary
External environment:
• Types of external environment
Mega environment; Task environment
• Analysing the environment
Models: Ecology & Resource dependence
• Managing the environment
Adaptation, Favourability influence & Domain shift
Lecture summary
Internal environment (culture):
• Nature of organisational culture
System of shared values, assumption, beliefs and
norms uniting organisational members.
• Manifestations of culture
Symbols, stories, rites and ceremonies.
• Promoting innovation
Requires strategically oriented organisations with
ability to change quickly.
Lecture summary
Internal environment (culture):
• Changing organisational culture
Difficult because of need to change values &
behaviour.
• Leadership & cultural change
Leaders convey need for change, provide new
vision & motivate key staff.
CHAPTER 4
SOCIAL RESPONSIBILITY &

ETHICS IN MANAGEMENT
Lecture outline
• Organisational social responsibility
• Organisational social responsiveness
• Managing an ethical organisation
Organisational social
responsibility
‘The obligation of an organisation to seek
actions protecting and improving society’s
welfare along with its own interests.’
responsibility
Major perspectives:
• Invisible hand
A view holding that the entire social responsibility of
a corporation can be summed up as ‘make profits
and obey the law’.
• Hand of government
A view holding that the interests of society are best
served by having the law and political process guide
the corporation’s activities.
responsibility
Major perspectives:
• Hand of management
A view stating that corporations and their
managers are expected to act in ways that
protect and improve society’s welfare as well
as make profit.
responsibility
Hand of management
Incorporates these arguments:
• Anti-freeloader argument.
• Capacity argument.
• Enlightened self-interest argument.
Social responsibilities of
managers
• Economic and legal
Responsibility to make a profit and obey the law
(invisible hand, hand of government, hand of
management).
• Ethical and discretionary
Ethical behaviour expected by society (invisible
hand, hand of government).
Difficult to determine, identify.
Social stakeholders
• Shareholders
• Employees
• Customers
• Local community
• Society
Social stakeholders
Employees
Shareholders
Customers
The organisation
International
community
Local community
Society (regional & national)
Does social responsibility pay?
• Evidence is mixed.
• Strategically beneficial.
• Likely, profit  socially responsible
management.
• Shareholders sensitive to extent it affects
profit.
responsiveness
‘A term referring to the development of
organisational decision processes where
managers anticipate, respond to and manage
areas of social responsibility.’
Two aspects:
• Monitoring social demands and expectations.
• Internal social response mechanisms.
Monitoring social
demands/expectations
• Social forecasting
• Opinion surveys
• Social audits
• Issues management
• Social scanning
Internal social response
mechanisms
• Individual executives
• Temporary task forces
• Permanent committees
• Permanent departments
• Combination approaches
Being an ethical manager
‘The difficulties and concerns with business
ethics raises three important issues about
being a manager.’
• Types of managerial ethics
• Ethical guidelines for managers
• Ethical career issues
Types of managerial ethics
• Immoral management
Lacks ethical principles, concern for profit only.
• Amoral management
Ignores or oblivious to ethical issues.
• Moral management
Conscious attention to ethical standards and issues.
Ethical guidelines for managers
• Obey the law.
• Tell the truth.
• Show respect for people.
• Stick to the Golden Rule.
• Above all, do no harm.
• Participation not paternalism.
• Responsibility requires action.
Ethical career issues
• Assessing values and protecting yourself
– Seek advice and support from trusted sources.
– Take action to change what you see as not
being ethical.
– Take actions to protect yourself.
• Anticipating ethical conflicts
– Pre-employment checks: Is this an ethical
company?
– Is the industry marked by patterns of unethical
behaviour?
– Avoid ethical compromises.
Managing an ethical
organisation
Situational factors influencing ethical behaviour:
• External factors
Competitiveness, high/low opportunities for
success, dependency on other organisations.
• Internal factors
Push for high performance, labour unrest,
delegation, quests for innovation.
Managing an ethical
organisation
Increasing awareness of diversity
Top-management commitment
Codes of ethics
Ethics committees
Ethics audits
Ethics hotlines
Ethics training
Lecture summary
• Organisational social responsibility
– Major perspectives: invisible hand, hands of government
and management.
– Social responsibilities of managers.
– Social stakeholders: shareholders, employees,
customers, local and international community, society.
– Does social responsibility pay? Evidence mixed.
• Organisational social responsiveness
Monitoring social demands and expectations: forecasting,
opinion surveys, social audits, issues management,
social scanning, Internal social response mechanisms.
Lecture summary
• Being an ethical manager
– Types of managerial ethics: immoral, amoral, moral.
– Ethical guidelines for managers.
– Ethical career issues: assessing & anticipating ethical
conflicts.
• Managing an ethical organisation
– Situational factors influencing ethical behaviour external
and internal.
– Mechanisms for ethical behaviour.
CHAPTER 5
MANAGERIAL DECISION MAKING
Lecture outline
• Nature of managerial • Group decision making
decision making • Creativity in decision
• Managers as decision making
makers
• Effective decision
making
• Barriers to effective
decision making
Decision making
Decision making
‘The process by which managers identify
organisational problems and try to
resolve them.’
Nature of managerial decision
making
Types of problems faced:
• Crisis problems
Serious. Requires immediate action.
• Non-crisis problems
Requires resolution but not both immediate and
important.
• Opportunity problems
Opportunity for organisational gain IF appropriate
action taken.
Nature of managerial decision
making
Decision making situations:
• Programmed decisions
Routine, repetitive, well-structured situations by use
of pre-determined decision rules.
• Non-programmed decision making
Pre-determined decision rules are impractical due to
novel &/or ill-structured situations.
• The element of risk
Possibility that a chosen decision could lead to
losses rather than intended results.
Managers as decision makers
Models of managerial decision making:
• Rational model
Model suggesting managers engage in completely rational
decision processes, ultimately making optimal decisions, and
possess and understand all information relevant to their
decisions at the time they make them.
• Non-rational models
Models suggesting information gathering and processing
limitations make it difficult for managers to make optimal
decisions.
Non-rational models
• Satisficing model
Managers seek alternatives only until they find one
which looks satisfactory, rather than seeking an
optimal decision.
• Incremental model
Managers make the smallest response possible to
reduce the problem to at least a tolerable level.
• Rubbish bin model
Managers behave in virtually a random way in
making non-programmed decisions.
An optimal decision
is possible
All relevant information

is available
All relevant information is Rational

understandable
decision
All alternatives are known making
All possible outcomes known
Time constraints
Limited ability to
understand all factors
Inadequate base ‘Satisficing’

of information
decision
Limited memory of
decision-makers
making
Poor perception of factors
to be considered
in decision process
Effective decision making
Steps to effective decision making:
• Identify the problem
Scan for change, categorise as problem/non-problem,
diagnose nature and cause.
• Generate alternative solutions
Uncritically brainstorm to develop alternatives, combine &
improve ideas.
• Evaluate & choose an alternative
Feasibility, quality, cost, reversibility, ethics, acceptability.
• Implement and monitor
Plan and implement, evaluate effect on others, monitor.
Identification
Steps in decision-making
of the problem
Generate alternative solutions
Evaluate alternatives Evaluation

of decision
effectiveness
Choose
an alternative
Implementation and monitoring

of the chosen alternative
Barriers to effective decision
making
• Complacency
Individuals either do not see signs of danger/opportunity or,
avoid them.
• Defensive avoidance
Individuals either deny the importance of a danger
/opportunity or deny any responsibility for taking action.
• Panic
Individuals become so upset they frantically seek a way to
solve the problem.
• Deciding to decide
Decision makers accept the challenge and follow an effective
decision-making process.
Barriers to effective decision-
making
Complacency
Defensive
avoidance
Panic
Decision making bias
• Framing
Tendency to make different decisions depending on
how a problem is presented.
• Prospect theory
Decision makers find the prospect of an actual loss
more painful than giving up the possibility of a gain.
• Representativeness
Tendency to be overly influenced by stereotypes in
making judgements about the likelihood of
occurrences.
Decision making bias
• Availability
Tendency to judge the likelihood of an occurrence on the
basis of the extent to which other like instances can easily be
recalled.
• Anchoring & adjustment
Tendency to be influenced by an initial figure, even when the
information is largely irrelevant.
• Overconfidence
Tendency to be more certain of judgements regarding the
likelihood of a future event than one’s actual predictive
accuracy warrants.
Decision escalation
‘Escalating commitment
and accelerating losses’
Non-rational escalation: increased

commitment of resources beyond rational limits
Sunk costs: not recoverable, and

should not influence decision-making
Group decision making
Advantages: Disadvantages:
• More information • More time consuming
available • Disagreement/time
• Wide range of problems
ideas/approaches • Open to individual
• Improved acceptance dominance
of decision • Groupthink may arise
• Develops group
members’ skills
Group decision making
Advantages Disadvantages
More information available Time consuming
More
Delays & ill feeling possible
alternative solutions
Increases solution Domination by individuals

understanding & acceptance
Builds member Risk of groupthink

knowledge & skill base
Enhancing group decision
making
• Heterogenous membership
• Communication/social skills
• Devil’s advocates
• Dialectical inquiry
• Groupware
Techniques to improve group decisions
Member diversity
Expert members Better

group
Devil’s advocates
decision
Dialectic inquiry making
Groupware use
Creativity in decision making
‘Creativity is the cognitive process of

developing an idea, concept, commodity or
discovery viewed as novel by its creator or
target audience.’
Creativity requires both:
• Divergent thinking
Attempting to move logically to a problem solution.
• Divergent thinking
Generating new ways of viewing a problem and
seeking novel alternatives.
Three basic ingredients necessary for creativity:
• Domain-relevant skills
Expertise in a field relevant to the problem.
• Creativity-relevant skills
Skills in generating novel ideas, approaches, modes
of thinking about problems.
• Task motivation
Interest in the task for its own sake, a desire to
resolve the problem.
Enhancing group creativity
• Brainstorming
• Nominal group technique
• Delphi technique
• Scenario analysis
TECHNIQUES TO ENHANCE GROUP CREATIVITY
Brainstorming
Nominal group
technique
Better
group
Delphi
technique creativity
Scenario analysis
Lecture summary
• Nature of managerial decision making
Problem types, problem situations.
• Managers as decision makers
Rational and non-rational models.
• Effective decision making
Ideal decision making process.
Lecture summary
• Barriers to effective decision making
Complacency, defensive avoidance, panic
Decision making bias, decision escalation.
• Group decision making
Advantages-disadvantages, enhancing group
performance.
• Creativity in decision making
Divergent and non-divergent thinking, necessary
skills, enhancing group creativity.
CHAPTER 6
ESTABLISHING
ORGANISATIONAL GOALS &
PLANS
Lecture outline
• The planning process
• The nature of organisational goals
• How goals facilitate performance
• Linking goals & plans
• Management by objectives
The planning process
• Mission
The organisation’s purpose or fundamental reason
for existence.
• Goal
Future target or end result an organisation wishes to
achieve.
• Plan
Means devised for attempting to reach a goal.
Goal attainment
(organisational
mission goals plans efficiency
& effectiveness)
‘Setting goals & developing plans leads to

goal attainment and ultimately, to
organisational efficiency & effectiveness.’
Organisational mission
‘Essentially, planning builds on the

organisation’s mission, the organisation’s
purpose or fundamental reason for existence.’
Organisational mission
Mission statement may:

• Be unwritten.
• Address customers, products/services,
location, technology, concern for survival,
philosophy, self-concept, concern for public
image, concern for employees (David 1989).
Nature of organisational goals
• Benefits of goals
– Increases performance
– Clarifies expectations
– Facilitates control
– Increases motivation
• Levels of goals
– Operational goals (base)
– Tactical goals (mid)
– Strategic goals (top)
Levels of goals
• Top managers
Organisational perspective strategic strategic
goals plans
• Middle managers
tactical tactical
Departmental perspective goals plans
• 1st level managers

operational operational
Unit/individual perspective goals plans
Goals and performance
Key aspects:
• Goal content
• Goal commitment
• Work behaviour
• Other process components
• Possible problems
Goal content
Content should be:
• Challenging
• Attainable
• Specific/measurable
• Time limited
• Relevant
Goal commitment
Influenced by:
• Supervisory authority
• Peer & group pressure
• Public display
• Expectations of success
• Incentives & rewards
• Participation
Goals & work behaviour
Goals & commitment affect work behaviour:
• Direction
• Effort
• Persistence
• Planning
Goals & other process components
Job process components affect performance:
• Job knowledge & ability
• Task complexity
• Situational constraints
Goals & possible problems
Possible problems with goals:
• Excessive risk taking
• Increased stress
• Undermined self-confidence
• Ignored non-goal areas
• Excessive short-run thinking
• Dishonesty & cheating
Linking goals & plans
• Levels of plans
• Extent of recurring use
• Time spans of goals & plans
• Plans & innovation
Linking goals & plans
Levels of plans: Time span of goals
• Strategic /plans:
• Operational • Short
• Tactical • Intermediate
Recurring use: • Long range
• Single use
Innovation supported by:
• Standing plans-
policies, • Mission statement
procedures, rules • Goal content & process
• Planning content & process
Possible obstacles to planning
Environmental change
Manager hostility
Pressure of day-to-day work
Low levels of manager skill & knowledge
Domination by specialists
Management by objectives
‘Process through which specific goals are set
collaboratively for the organisation as a whole
and every unit within it; the goals are then
used as a basis for planning, managing
organisational activities, and assessing and
rewarding contributions.’
Steps in the MBO process:
• Develop organisational goals
• Establish specific goals for departments
• Formulate action plans
• Implement & maintain ‘self-control’
• Review progress periodically
• Appraise performance
Strengths: Weaknesses:
• Helps link goals & plans • Needs strong, enduring
• Clarifies priorities, commitment
expectations • Requires training of
• Fosters organisational managers
communication • May be misused
• Builds member motivation (i.e. for punishment)
• Risk of dominance of
quantitative goals
MBO assessed:
• Can heighten organisational performance
• Short-term focus of US, Australian & NZ
organisations limits application
• 20–25% success rate
Lecture summary
• The planning process
– Major components
– Organisational mission statement
• The nature of organisational goals
– Benefits of goals
– Levels of goals
– Goals & performance
– Work behaviour
– Other work processes
– Possible problems with goals
Lecture summary
• How goals facilitate performance
– Direction, effort, persistence & planning
• Linking goals & plans
– Levels, recurrent use, time spans, promoting
innovation
– Possible obstacles to planning
• MBO: Management by objectives
– The key steps in MBO process
– Strengths & weaknesses
CHAPTER 7
STRATEGIC MANAGEMENT
Lecture summary
• The concept of strategic management
• Role of competitive analysis in strategy
formulation
• Formulating corporate level strategy
• Formulating business level strategy
• Formulating functional level strategy
• Strategy implementation
Concept of strategic
management
‘Large-scale action plan for interacting with the
environment to achieve long-term goals.’
management
• Strategic management process
• Importance of strategic management
• Levels of strategy
management
Strategic management process:
‘Process through which managers formulate
and implement strategies geared to
optimising strategic goal achievement, given
available environmental and internal
conditions.’
management
Strategic management process:
• Strategy formulation
– Identify mission & goals
– Competitive situation analysis (external & internal)
– Develop/formulate strategies to achieve identified goals
– Implement plans
– Control/monitor execution of plans
Strategic management process
Environmental
analysis
Formulate
Conduct SWOT Strategy Strategy Strategic
mission &
analysis formulation implementation control
strategic goals
Internal
(organisational)
assessment
Importance of strategic
management
Important because:
• Helps organisations develop a competitive
advantage (significant edge over competition in
dealing with competitive forces).
• Provides a sense of long-term direction for
organisation members.
• Highlights need for innovation.
• Process involves members and fosters
understanding of goals/strategy.
Importance of strategic
management
Direction for
Competitive advantage
the organisation
Builds manager
Supports innovation
commitment
Levels of strategy
Corporate level
Business level
Functional level
Levels of strategy
Corporate level strategy:
‘Type of strategy addressing what businesses
the organisation will operate, how strategies
of those businesses will be co-ordinated to
strengthen the organisation’s competitive
position, and how resources will be allocated
among businesses.’
Levels of strategy
Business level strategy:

‘Type of strategy concentrating on the best
means of competing within a particular
business while also supporting corporate
level strategy.’
Levels of strategy
Functional level strategy:

‘Type of strategy focussing on action plans for
managing a particular functional area within a
business in a way that supports business
level strategy.’
Competitive analysis in strategy
formulation
Before managers devise an effective strategy
for getting a competitive edge, they must
analyse the organisation’s competitive
situation.
This is done through:
• Environmental analysis (external)
• Organisational assessment (internal)
Environmental assessment
Competitor
Industry & Analysis
Market
Analysis Political &
Regulatory
The Analysis
organisation Social Analysis
Economic Human Resources

Analysis Analysis
formulation
SWOT analysis:
Method of analysing an organisation’s
competitive situation involving assessing
organisational strengths (S), weaknesses
(W), environmental opportunities (O) and
threats (T).
formulation
Environmental assessment:
Five competitive forces model (Porter):
1. Rivalry
2. Bargaining power of customers
3. Bargaining power of suppliers
4. Threat of new entrants
5. Threat of substitute products/services.
formulation
Organisational assessment:
• Value
Do the firm’s resources & capabilities add value by enabling it to exploit
opportunities or neutralise threats?
• Rareness
How many competing firms already possess these valuable resources &
capabilities?
• Imitability
Do firms without a resource or capability face a cost disadvantage?
• Organisation
Is the firm organised to exploit competitive potential of its resources &
capabilities?
Formulating corporate level
strategy
Corporate level strategy is the overall strategy
an organisation follows. Its development
involves selecting a grand strategy and using
portfolio-strategy approaches to determine the
various businesses making up the organisation:
• Grand strategy
• Portfolio-strategy approaches.
strategy
Grand strategies:
• Growth • Defensive
Concentration Divestiture
Vertical integration Bankruptcy
Diversification Liquidation
• Stability
Harvest
Turnaround
strategy
Portfolio strategies:
Method of analysing an organisation’s mix of businesses in
terms of both individual and collective contributions to
strategic goals.
• BCG growth–share matrix
Compares businesses in an organisation’s portfolio on the
basis of relative market market share and market growth
rate.
• Product–market evaluation matrix
Compares businesses’ strength against product/market life-
cycle.
BCG growth-share matrix
Relative competitive position (market share)
High Low
Question
Stars marks
Dogs
Cash cows
Product-market evaluation
matrix
Business unit’s competitive position
Strong Average Weak
Product/ Development
Market Growth
Life cycle Shakeout

Growth Maturity
Saturation
Decline
Formulating business level
strategy
• Business level strategy is concerned with how
a particular business competes.
• The best known approach for strategy
development is based on Porter’s research.
strategy
Generic business strategies:
Porter outlined three generic business level
strategies to gain competitive advantage over
other firms operating in the same industry.
strategy
Generic business strategies (Porter):
• Cost leadership strategy
Emphasises operational efficiency i.e. overall costs are lower
than competitors.
• Differentiation strategy
Attempts to develop products/services viewed as unique in
the industry.
• Focus strategy
Concentration on a segment, portion of a market.
Strategy Examples Implications for
organisations
Overall cost High volume, Quantitative

leadership low cost goods targets, high
– McDonalds, volume, low
video tapes margins, cost
controls, low
skilled
production
workers
Differentiation Low volume, Focus on quality,
high cost goods not quantity,
– aircraft, reliance on
prestige skilled workers,
electronics & R&D focus
vehicles
Focus A mix of the Mixed approach
above
strategies –
commercial
quality video
tapes, niche
market software
Formulating functional level
strategy
Functional level strategies spell out specific
ways that functional areas can bolster business
level strategy.
For example:
• Under a product differentiation strategy, the R & D
dept. may accelerate the innovation process to
provide new products in advance of competitors.
Strategy implementation
Strategy implementation involves

management activities needed to put the
strategy in motion, institute strategic controls
for monitoring progress, and ultimately
achieve organisation goals.
Strategy implementation
Carry out plans:

Strategy •Technology
formulation •Human resources Maintain control:
•Reward systems •Control systems
•Decision processes •Adjustments
•structure
Lecture summary
• Concept of strategic management
– Process
– Importance
– Levels
• Competitive analysis in strategy formulation
– SWOT analysis
– Environmental assessment
– Organisational assessment
Lecture summary
– Grand strategy
– Portfolio strategies
• Formulating business level strategy
– Porter generic strategies: cost, differentiation & focus
– Control systems & adjustments
CHAPTER 8
FOSTERING AN INNOVATIVE
ORGANISATION
Lecture outline
• The nature of change & innovation

• Organisation life-cycles
• Key organisational change components
Nature of change & innovation
Change Innovation
Any alteration of the New idea applied to
status quo. initiating or improving a
process, product or
service.
Nature of change & innovation
Forces for change & innovation:
External: Response to opportunities

and threats from the market, regulators
and other elements of the environment
Internal: Strategy & plans, employees’

behaviour, change & innovation decisions,
cultural change, restructures,
technological & leadership change
Organisational life cycles
Life cycles:
Predictable stages of development
organisations typically follow.
Intrepreneurial stage
Collectivity stage
Formalisation and control stage
Elaboration of structure stage
Methods of organisational termination:
• Bankruptcy
• Liquidation
• Merger
• Acquisition
• Take-over
Recognition of opportunity
or a problem Prepare to overcome resistance
Line up powerful sponsors Plan for & reward visible progress
Develop and communicate

Consolidate improvements &
a vision
facilitate further change
Empower others to
act out the vision Monitor & institutionalise change
• Organisational development
• Innovation for competitive advantage
• Product development
• Intrepreneurship
Organisational development
Diagnosis
Intervention; 4 techniques
•Process consultation
•Team building
•Third party intervention
•Technostructural activities
Evaluation
Innovation for competitive advantage:
1) Hard for competitors to imitate
Four factors 2) Meeting significant customer needs

needed to
ensure 3) Fit of innovation to organisation’s time
advantage advantages
4) Innovation needs to rely on capabilities

accessible to the organisation, but less so
to competitors
Product development principles:

• Establish a stage-gate development funnel
• Establish cross-functional teams
• Use concurrent engineering
• Involve both customers & suppliers
Intrepreneurship:
Encourage the take-up of entrepreneurship
roles by organisation members e.g:
• Idea generator
• Idea champion
• Idea sponsor
• Idea orchestrator.
Organisational change
components
• Structural
• Technological
• Human resource
• Cultural
• Component inter-relationship
components
Structural component:
• Job definitions
• Job groupings
• Teams
• Delegation
• Reporting relationships
components
Technological component:
Technology may drive change/innovation by:
• Requiring new work methods.
• Providing/removing competitive edge.
components
Human resources is the vehicle for changing
knowledge, skills, perceptions & behaviours
needed for a job. It utilises:
• Recruitment & selection
• Training
• Performance appraisal
• Reward systems.
components
Major organisational changes often require
concomitant changes to organisational culture.
‘Organisational culture can be defined as a

system of shared values, assumptions,
beliefs and norms linking an organisation’s
members.’
components
Inter-relationship amongst components:
Change to one component creates tensions on
other components until they are adjusted accordingly.
• Minor change
May relate to only one component.
• Major change
May relate to all four components.
Lecture summary
• Nature of change & innovation

– Distinguishing change from innovation.
– External & internal forces for change &
innovation.
• Organisation life cycles
– Life cycle stages.
– Termination.
Lecture summary
– Organisational development (OD)
– Innovation for competitive advantage
– Product development
– Entrepreneurship
• Organisational change
– Key components
CHAPTER 9
BASIC ELEMENTS OF
ORGANISATIONAL STRUCTURE
Lecture outline
• Nature of organisational structure
• Job design
• Types of departmentalisation
• Methods of vertical co-ordination
(methods of horizontal co-ordination)
Nature of organisational
structure
Formal pattern of interactions and
co-ordination designed by management to
link the tasks of individuals and groups in
achieving organisational goals.
structure
Four elements:
1. Assignment of tasks and responsibilities
to individuals and units.
2. Clustering these to form a hierarchy.
3. Mechanisms for vertical co-ordination.
4. Mechanisms for horizontal co-ordination.
structure
• The organisation chart
– Line diagram depicting broad outlines of an
organisation’s structure.
• Principles chart design
– As few hierarchical levels as possible.
– Charts should show who has authority over who.
– Charts should show official lines responsibility &
communication.
structure
ABC INC.
C.E.O.
DIRECTOR DIRECTOR DIRECTOR

H.R.M. FINANCE SALES
MANAGER
FINANCE
SUBORDINATE
Job design
• Job design
Specification of task activities associated with a
particular job.
• Design jobs to enhance motivation
Job simplification: breaking jobs into small elements.
Job rotation: moving through sets of tasks in sequence.
Job enlargement: wider range of similar tasks.
• Alternative work schedules
Managing work diversity.
Managing diversity & work
schedules
‘… balancing work and personal life’.
Flexitime: core hours

to be worked, others
at employee discretion Job sharing: two or
more people sharing
a full-time job
Compressed work
week: longer
hours worked
per day, shorter
working week
Types of departmentalisation
Departmentalisation:
Clustering of individuals into units and units
into departments and larger units to facilitate
achievement of organisational goals.
• Functional
• Divisional
• Hybrid
• Matrix.
Types of departmentalisation
Functional: based on
Divisional: based on
expertise,
product
skill & similarity
or market similarities.
of work activity.
Hybrid: some
Matrix: Superimpose
activities
horizontal divisional
grouped by function,
over hierarchical
some
functional structure.
by products or markets.
Methods of vertical
co-ordination
Linking of activities at the top of the organisation
with those at the middle and lower levels to
achieve organisational goals.
• Formalisation
• Span of management
• Centralisation vs de-centralisation
• Delegation
• Line & staff positions.
Methods of vertical
co-ordination
Formalisation:
• Degree to which written policies, rules,
procedures, job descriptions and other
documents specify what actions are(not) to
be taken under a given set of circumstances.
• Extent of formalisation tends to grow with
age & size.
Methods of vertical
co-ordination
Factors influencing span of management:
– High competence levels.
– Low interaction requirements.
– Work similarity (between organisational peers).
– Low problem frequency and seriousness.
– Physical proximity.
– Few non-supervisory duties of managers.
– Considerable available assistance.
– High motivational possibilities of work.
Methods of vertical
co-ordination
Centralisation
Extent to which power & authority are retained at the top
organisational levels.
De-centralisation
Extent to which power & authority are delegated to lower
levels.
Factors favouring centralisation
• Large organisational size
• Geographic dispersion
• Technological complexity
• Environmental uncertainty.
Methods of vertical
co-ordination
‘… extent to which power and authority will be retained at
upper levels’. Influenced by:
Large size: larger Geographic dispersion:

organisations more dispersed likely to be
likely to be more decentralised, to enable
Decentralised. control at a number of sites.
Technological complexity:
Environmental uncertainty:
with more complex
with rapid change, need for more
technology,need to devolve
employees to be involved in
authority to lower levels.
responding to challenges.
Methods of vertical
co-ordination
Delegation
Assignment of part of a manager’s work to others, along with
both responsibility & authority necessary to achieve
expected results.
Factors restraining delegation
• Fear subordinate failure.
• Time to train subordinates.
• Enjoy doing tasks.
• Release of authority.
• Concern for task performance.
• Fear subordinate competence.
Methods of vertical
co-ordination
Configuration of line and staff positions:
• Line authority
Authority following the chain of command
established by the formal hierarchy.
• Functional authority
Authority of staff over others in the organisation in
matters related directly to their respective functions
e.g. HRM dept.
Methods of horizontal
co-ordination
Horizontal co-ordination:
Linking of activities across departments at similar
levels.
• Need for information processing across the
organisation.
• Promotes innovation through dissemination of
ideas & information.
Methods of horizontal
co-ordination
Horizontal co-ordination promoted by:
• Slack resources
Cushion of resources that facilitates adaptations to
internal/external pressures, as well as initiation of
changes.
• Information systems
One information source for many users.
• Lateral relations
Direct contact, liaison roles, task forces, teams.
Lecture summary
• The nature of organisational structure
– Definition
– Organisation chart
– Job design.
• Job design
– Designing for motivation:
• Job enlargement, rotation, enrichment, simplification.
• Types of departmentalisation
– Functional, divisional, hybrid, matrix.
Lecture summary
• Methods of vertical co-ordination
– Formalisation
– Span of management
– Centralisation vs de-centralisation
– Delegation
– Line & staff authority.
• Methods of horizontal co-ordination
– Slack resources
– Information systems
– Lateral relations.
CHAPTER 10
STRATEGIC ORGANISATION
DESIGN
© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus
Lecture outline
• Overview: Organisation structure design

• Assessing structural alternatives
• Weighing contingency factors
• Matching strategy & structure
Organisation structure design
• Strategy & structure: which comes first?
– Strategy & structure are closely linked with each
other.
– Mismatches in strategy/structure lead to
difficulties.
• Factors influencing organisation design
– Contingency factors: technology, size,
environment.
– Need to promote innovation: roles, differentiation,
transfer processes.
Organisation structure design
Contingency factors
•Technology
•Size
•Environment
Organisational goals
Organisation structure
•Functional (efficiency &
Strategy effectiveness)
•Divisional
•Hybrid
•Matrix
Structural methods for
promoting innovation
•Roles
•Reservations
•Differentiation
•Transfer processes
Assessing structural
alternatives
• Functional structure
• Divisional structure
• Hybrid structure
• Matrix structure
• Emergent structure
alternatives
Functional structure
Structure in which positions are grouped according
to their main functional (or specialised) area.
CEO
Manager, Manager, Manager,

Manufacturing Distribution Administration
Functional structure
• In-depth expertise • Slow response re:
development. multifunction problems.
• Clear career path within • Decision backlog at top of
function. hierarchy.
• Efficient use of resources. • Bottlenecks re: sequential
• Economies of scale tasks.
(possible). • Inexact measures of
• Ease of co-ordination. performance.
• Technical advantage on • Narrow training of future
competition. managers.
alternatives
Divisional structure:
Structure in which positions are grouped
according to similarity of products, services
or markets.
alternatives
CEO, Alpha Industries
Chief General
Chief General Manager
Manager Photographic Chief General
Copier products products Manager Computer
Storage products
Chief General
Chief General Manager Chief General
Manager Industrial Manager
Scanner products Imaging products Marine Electronic products
Divisional structure
• Fast response to environmental • Resource duplication in each
change division
• Simplified co-ordination across • Reduction of in-depth expertise
functions • Competition amongst divisions
• Simultaneous emphasis on • Limited sharing of expertise
organisational goals between divisions
• Strong customer orientation • Innovation restricted to each
• Accurate measurement of division
performance • Neglect of overall goals
• Broad training in management
skills
alternatives
Hybrid structure:
Structure adopting both functional and
divisional structures at the same
management levels.
Hybrid structure
• Alignment of corporate • Conflicts between
& divisional goals. corporate departments
• Functional expertise & divisions.
&/or efficiency. • Excessive
• Adaptability & flexibility administration
in divisions. overhead.
• Slow response to
exceptional situations.
alternatives
Matrix structure:
Structure superimposing a horizontal set of
divisional reporting relationships onto a hierarchical
functional structure.
Appropriate when:
• Need for a strong focus on both functional &
divisional dimensions.
• Need to quickly process information & co-ordinate
activities.
• There is pressure for shared resources.
alternatives
GM, GM, GM, GM,
Transport Sales HRM Finance
Manager,
Business A Transport, Sales, HRM, Finance,
Business A Business A Business A Business A
Manager,
Business B Transport, Sales, HRM, Finance,
Business B Business B Business B Business B
Manager,
Business C Transport, Sales, HRM, Finance,
Business C Business C Business C Business C
Manager,
Business D Transport, Sales, HRM, Finance,
Business D Business D Business D Business D
Manager,
Business E Transport, Sales, HRM, Finance,
Business E Business E Business E Business E
Matrix structure
• Decentralised decision- • High administrative costs.
making. • Confusion over authority &
• Strong product co- responsibility (potential).
ordination.
• Improved environmental • Excessive focus on internal
monitoring. relations.
• Flexible use of human • Overemphasis on group
resources. decision making.
• Efficient use of support • Slow response to change
systems. (possible).
• Fast response to change.
alternatives
Emerging structures:
• Process structure
Type of departmentalisation where positions are grouped by
a complete flow of work.
• Networked structure
Form of organising where many functions are contracted out
to other independent firms & coordinated by use of
information technology networks to operate as if they were
within a single corporation.
Weighing contingency factors
The best structure for an organisation depends
on contingency factors such as:
• Technology
• Size
• Environment.
Technology:
• Technological complexity (Woodward)
– Unit & small batch production
– Large batch & mass production
– Continuous process production
• Technological interdependence (Thompson)
– Pooled interdependence
– Sequential interdependence
– Reciprocal interdependence
• Four trends
With growth: With growth:

more departments, more staff positions
shift from functional to assist senior
to divisional form management
With growth:
With growth:
tendency to decentralise
additional rules
(enabled by
& regulations
formalisation)
(formalisation)
Stable environments, Unstable/uncertain
mechanistic environments, organic
• Narrow tasks, prescribed • General tasks, tasks subject to
tasks, hierarchical control, continuous negotiation, network
decision-making levels, control, decision making rests with
communication vertical, those with knowledge,
instructions by superiors, communication across & between
loyalty to organisation & levels, ‘supervision’ is information &
obedience to superiors advice, commitment to
organisational goals, possession of
expertise
• Lawrence & Lorsch: Balance of differentiation & integration
Matching strategy & structure
Managers must match strategy & structure to
achieve effectiveness e.g:
Niche Cost leadership:
differentiation: –organisational
efficiency,
–narrow target market lower prices
Innovative Market differentiation:

differentiation: – advertising, prestige
–complex product pricing &
or service innovations market segmentation
Structure’s ability to support strategy can be

enhanced by using structural means to
encourage innovation.
Innovation is critical to various differentiation
strategies.
Four major means of using organisation
structure to facilitate innovation are:
• Vital roles
Idea champion, sponsor, orchestrator.
• Reservations
Organisation units devoted to the generation of innovative
ideas.
• Differential paradox
Separating innovation process decreases chance of
implementation.
• Transfer process
The difficulty of translating ideas into products/services.
Lecture summary
• Overview: Organisation structure design
– Strategy & structure closely linked.
– Factors influencing design: contingency factors, need for
innovation.
• Assessing structural alternatives
– Functional, divisional, hybrid, matrix, emerging
structures.
• Weighing contingency factors
– Technology, size, environment.
Lecture summary
• Matching strategy and structure
– Structure must match chosen strategy for effectiveness.
– Structure may enhance innovation.
– Key factors: vital roles, reservations, differential paradox,
transfer process.
CHAPTER 11
HUMAN RESOURCE
MANAGEMENT
LECTURE OUTLINE
• The HRM framework

• Establishing the employment relationship
• Maintaining the employment relationship
• HRIS, Internet, intranets & extranets
• Terminating the employment relationship
The HRM framework
Those management functions concerned

with attracting, maintaining and
developing people in the employment
relationship.
The HRM framework
HRM functions
Identifying HR needs
Attracting human resources
Maintaining human resources
Terminating the relationship
The HRM framework
Principles of HRM
• Proactive approach, link to strategic planning
& cultural change.
• View of people as capital, not cost.
• Possibility of mutually beneficial relationship
between stakeholders.
The HRM framework
Regulatory framework
• Australia & New Zealand, long history of
government support for union involvement.
• Since early 1990s, major shift toward enterprise or
individual agreements.
• Increasing reliance on civil law processes.
• Growth of regulation relating to human rights,
discrimination, EEO, OH&S, environmental matters.
Establishing the employment
relationship
• Human resource planning
• Job analysis
• Recruitment
• Selection
• Interviews
relationship
Human resource planning
Determining future human resource needs in
relation to an organisation’s business
objectives or strategic plan.
relationship
Job analysis
The systematic collecting and recording of
information about the purpose of a job, its major
duties, the conditions under which it is performed,
the required contacts with others and the
knowledge, skills and abilities needed to perform
it effectively.
relationship
Job analysis
– Outcomes:
• Job descriptions and job specifications.
– Impacts upon:
• Recruitment & selection
• Remuneration
• Training & development
• Job design & redesign.
relationship
Job analysis-methods
• For existing jobs, interviews with employees.
• Interviews with supervisors.
• Observation.
• Combination, interviews & observation.
• Structured questionnaires.
• Employee journals/logbooks.
relationship
Recruitment
‘The process of finding and attracting job candidates

capable of effectively filling job vacancies.’ (Wether
& David, Schuler & Huber.)
Recruitment
3 Objectives
Maximising the
Ensuring
pool of applicants
compliance
at minimum cost.
by organisation
with government
Regulations. Attracting suitably
qualified &
skilled applicants.
Establishing the employment relationship
Methods of recruitment
Executive recruitment
Internal promotion (‘head hunters’)
Advertisements Campus interviews
Employee referrals Contractors
Employment Internet job

agencies & career sites
relationship
Selection process:
The decision-making system used to identify which
job applicants are best suited to the vacant position.
Key aspects:
– Reliability
– Validity
– Selection devices.
relationship
Key aspects of selection:
Reliability
The degree to which the
decision making process
will measure the same
Consistently. Validity
Whether the decision
Selection devices process actually measures
• Application form
• Written tests what it sets out to measure.
• Selection interview
• Assessment centre
Maintaining the relationship
• Remuneration
The financial payment to employees for their work.
• Training
The process of equipping people with skills and
competencies.
• Development
Broad preparation employee for future opportunities
through the acquisition of new knowledge, skills.
Judgemental assessment of employee performance.
Remuneration & benefits:

• Linked to job analysis
• Governed by regulatory framework
• Internal pay equity
• External pay equity
Training & development:
Choices:
– Buy skills, build them, or a mixed approach.
Strategic rationales for training:
– Proactive
– Reactive
– Enhancement of employee motivation,
commitment & retention.
PERFORMANCE APPRAISALS
MOULD EMPLOYEE
BEHAVIOUR TO IMPROVE QUALITY
COMPANY NORMS OF SALARY REVIEWS
BUILD CONSISTENCY OF
IMPROVE HR PLANNING
EMPLOYEE ACTIONS &
TRAINING & SUCCESSION
ORGANISATION GOALS
PROVIDE RECORD FOR DISMISSAL,

DEMOTION, GRIEVANCE, APPEAL
Performance
appraisal
360o feedback —
non-hierarchical method
HRIS, Internet, Intranets &
Extranets
• HRIS
Human Resource Information System.
• Internet
Global connection of computer servers through which users
can access stored information from their PCs.
• Intranets
Closed networks of information databases & systems within
an organisation.
• Extranets
Closed networks of information systems between
organisations.
HRIS, Internet, Intranets &
Extranets
Enhanced distribution
of HR policy,
Better internal news, information
communication
Widespread
electronic Multi-site collaborative
systems work teams, electronically
linked
Employee maintenance Performance appraisal,

of own HR records including 360O feedback
The future of work
• Fewer core employees
• Increased part-time, casual & temporary staff
• Tele-working
• Hot-desking
• Temporary agency work, short-term labour
hires, on-call & contract workers
• Personnel supply firms
• Idea of employee as an independent contractor
The future of work
Flexible employing organisations:
• Need for strategic, vs. cost reduction focus.
• Reliance on staffing agencies.
Flexible employees:
• Self-employed.
• Use of staffing agency.
• Maintain skills base.
• ‘Portfolio’ worker.
• Retrenchment
The forced termination of the employment relationship due to
financial, technological or organisational circumstances.
• Redundancy
A forced termination of the employment relationship resulting
from the permanent deletion of specific positions.
• Dismissal
The employer gives the required notice to terminate the
employment relationship.
Key aspects:
• Regulatory requirements.
• Exit interviews.
• Use of out-placement consultants.
• Effect on HR & other functions of the organisation.
Lecture summary
• The HRM framework
– Functions
– Principles
– Regulatory framework.
• Establishing the employment relationship
– HR planning
– Job analysis
– Recruitment
– Selection.
Lecture summary
• Maintaining the relationship
– Remuneration
– Training & development
– Performance appraisal.
• HRIS, Internet, intranets & extranets
• Terminating the employment relationship
– Retrenchment
– Redundancy
– Dismissal.
CHAPTER 12
MOTIVATION
Lecture outline
• Nature of motivation
• Needs theories
• Cognitive theories
• Reinforcement theory
• Social learning theory
Nature of motivation
Motivation is the force energising or, giving

direction to, behaviour.
It is a complex interaction of behaviours,

needs, rewards/reinforcement and cognitive
activities.
Nature of motivation
ability X motivation x environmental =

performance
conditions
Needs theories
• Hierarchy of needs theory (Maslow)

• Two-factor theory (Herzberg)
• ERG theory (Aldefer)
• Acquired needs theory (McClelland)
Needs theories
Hierarchy of needs theory (Maslow):
• Theory arguing that individual needs form a

five-level hierarchy.
Needs theories
Self-actualisation
Esteem
Belongingness
Safety
Physiological
Needs theories
Two-factor theory (Herzberg)
Herzberg’s theory that hygiene factors are

necessary to keep workers from feeling dissatisfied
but, only motivators can lead workers to feel
satisfied and motivated.
Needs theories
Hygiene factors Motivators
Pay Achievement
Working Responsibility
Conditions Work itself
Supervisors Recognition
Company
Growth
Policies
Fringe
Advancement
benefits
These factors help prevent These factors promote
dissatisfaction. satisfaction.
Needs theories
ERG theory (Aldefer)
Alternative to Maslow’s hierarchy of needs

theory, which argues that there are three
levels of individual needs.
Needs theories
Existence needs Relatedness needs
Physiological (food, water) Relationships with family,
Pay work and professional
Benefits groups
Working conditions
Growth needs Satisfaction-progression

Creativity principle
Innovation Frustration-regression
Productivity principle
Needs theories
Acquired needs theory (McClelland)
Theory stating that our needs are acquired or

learned on the basis of our life experiences.
Needs theories
Acquired needs theory
Developed by David McClelland —
cites the need for achievement, power,
and affiliation as major motives in work
Need for achievement —drive to excel

Need for power—influence others behaviour
Need for affiliation—desire for friendly
and close interpersonal relationships
Cognitive theories
• Expectancy theory
• Equity theory
• Goal-setting theory
Cognitive theories
Expectancy theory (Vroom)
Theory arguing that we consider three main

issues (effort-performance, performance-
outcome, valence) before we expend effort
necessary to perform at a given level.
Cognitive theories
• Effort-performance expectancy
Our assessment of the probability our efforts will lead to the
required level of performance.
• Performance-outcome expectancy
Our assessment of the probability our successful
performance will lead to desired outcomes.
• Valence
Our assessment of anticipated value of various outcomes or
rewards.
Cognitive theories
Equity theory (Adams)
Theory arguing that we prefer situations of balance
or, equity.
Implications for managers:
– Communication essential to assess
equity/inequity perceptions in employees.
– Complimentary to Expectancy theory.
Cognitive theories
Goal-setting theory
Goal-setting theory [technique] works by
focussing attention & action, mobilising effort,
increasing persistence, & encouraging the
development of strategy to achieve goals.
Cognitive theories
Reinforcement theory
Theory arguing that our behaviour can be
explained by consequences in the
environment.
Cognitive theories
Types of reinforcement:
• Positive
Uses pleasant, rewarding consequences to encourage desired
behaviour. Use of shaping.
• Negative
(unpleasant) stimuli so an individual will engage in the desired
behaviour to stop the stimuli.
Cognitive theories
Types of reinforcement:
• Extinction
Stopping previously available positive outcomes from a
behaviour to decrease the behaviour.
• Punishment
Providing negative consequences to decrease or discourage
a behaviour.
Reinforcement theory
Fixed interval: Fixed ratio: Using
given on fixed time given after fixed number reinforcement
schedule. Uneven of cases of desired behaviour. theory:
responses, extinction High response rates, rapid encourage desired
rapid if reinforcement extinguishment if stopped behaviour, be clear
late, or stops even temporarily.
on what is desired.
Use variable interval
Variable interval: Variable ratio: & variable ratio
given on variable or given on variable or reinforcement.
random time basis. random frequency Punish moderately
High, steady of behaviour basis. severely & promptly.
response rate, slow High response rate,
extinguishment, very slow extinguishment
if stopped
Social learning theory
Social learning theory (Bandura)
Theory arguing that learning occurs through

continuous reciprocal interaction of our
behaviours, various personal factors and
environmental forces.
Social learning theory
Learning occurs by continuous interaction
between our behaviours, personal factors and
environmental forces, viz:
• Symbolic processes
• Self-control/regulation
• Vicarious learning.
Lecture summary
• Nature of motivation
– Motivational process
– Motivation & performance.
• Needs theories
– Hierarchy of needs
– Two-factor
– ERG
– Acquired needs.
Lecture summary
• Cognitive theories
– Expectancy
– Equity
– Goal-setting.
• Reinforcement theory
Positive, negative, extinction, punishment as
reinforcement.
• Social learning theory
Symbolic processes, self-control, vicarious learning.
CHAPTER 13
LEADERSHIP
Lecture outline
• How leaders influence others

• Searching for leadership traits
• Identifying leadership behaviour
• Developing situational theory
• Transformational leadership
• Are leaders necessary?
Leadership
Process of influencing others to achieve

organisational goals.
How leaders influence others
Sources of leadership power:
• Legitimate power
Power stemming from a position’s placement in the managerial
hierarchy.
• Reward power
Power based on the capacity to provide valued rewards to
others.
• Coercive power
Power based on the ability to punish others.
How leaders influence others
Sources of leadership power:
• Expert power
Power based on the possession of expertise valued by
others.
• Information power
Power based on access and control over the distribution of
information.
• Referent power
Power resulting from being liked, admired or identified with.
Sources of leadership power
Legitimate
power/ Reward power Coercive power
formal authority
Information Referent power

Expert power
power
Effective use of power
Likely reaction to use of power:
Coercion = Resistance
Legitimate
Information = Compliance
Reward
Referent = Commitment
Expert
Leadership traits
Distinctive internal qualities or characteristics
of an individual, such as physical and
personality characteristics, skills, abilities and
social factors.
• Early research identified no common
leadership traits.
• Current research is inconclusive.
Leadership behaviour
Theoretical approach based on the idea that

specific behaviours may make some leaders
more effective than others.
Leadership behaviour
Iowa, Michigan & Ohio studies:
• Iowa
Looked at leadership styles (autocratic, democratic, laissez faire)
Workers preferred democratic style but this not best for performance.
• Michigan
Employee centred leaders superior to Job centred leaders.
• Ohio
Suggested that the ideal was for leaders to combine job-centred-ness
with an ability to build mutual trust with subordinates.
Leadership grid
(1, 9) Country Club (9, 9) Team
Management Management
Concern for people
(5, 5) Middle of the

Road Management
(1, 1) Impoverished (9, 1) Authority–

Management compliance
1 2 3 4 5 6 7 8 9
Concern for production
Gender & cultural differences
• Gender
There are few substantial differences between male
and female leaders.
• Culture
Japanese: group focus, long-term, humanistic.
European: individual focus, more humanistic
than US.
USA: individual focus.
Developing situational theory
Situational theory:
Theories of leadership taking into

consideration important situational factors.
Fiedler’s contingency theory
Theory:
Effective groups depend on match between a leader’s style
of relating with subordinates & the extent to which the
situation gives control to the leader.
Leader’s style:
• High member relations leader is concerned with people
• Task-structure leader reduces ambiguity — ‘Do I know what I
am supposed to do?’
• Position power — how well supported is the leader by his/her
superiors?
Normative leadership model:
Model that assists leadership assess critical situational
factors that affect the extent to which they involve
subordinates in particular decisions.
Range of options is from:
A1: autocratic decision making
-
-
G11: democratic decision making
Developing leadership theory
Situational leadership model

Theory based on the premise that leaders
need to alter their behaviours depending on
one major situational factor—the readiness of
followers.
Situational leadership model
High
Low High task

relationship and
R and Selling low
E
L low task relationship
A Participating
T
I High High task
O relationship and
N and high
S Delegating Telling
low task relationship
H
I
P
Low Task High
Path–goal theory
Theory attempting to explain how leader

behaviour can positively influence the
motivation and job satisfaction of
subordinates.
Path–goal theory:
Environmental contingency factors
• Task structure, formal authority, work groups
Leader behaviour
• Directive Outcomes:
• Supportive • Performance
• Participative • Satisfaction
• Achievement
Subordinate contingency factors

•Personality, experience, abilities, needs
Transformational leadership
Transformational leaders
Leaders who motivate individuals to perform

beyond normal expectations by inspiring
subordinates to focus on broader missions
transcending their own self-interests.
Transformational leadership
Motivate others
Vision beyond self-interest

Key
Seek intrinsic higher level goals
characteristics
of
transformational
Seek performance beyond expectations leaders
Have charisma
Are leaders necessary?
Neutralisers:
Situational factors preventing leader behaviour from
influencing subordinate performance/satisfaction.
These include:
• Subordinate high need for independence.
• Low subordinate valence for available rewards.
• Physical distance of leader from subordinates.
Are leaders necessary?
Substitutes:
Situational factors making the impact of leadership
impossible or unnecessary.
These include:
• Satisfying work.
• Able and experienced subordinates.
• Professional orientation of subordinates.
• Routine work, clearly specified methods/feedback.
Leadership & the organisational
cycle
Entrepreneurial
Transformational
Collectivity Transactional
Formalisation &
control Transactional
Elaboration of
structure Transformational
Lecture summary
• How leaders influence others
– Sources of power
– Use of power
• Searching for leadership traits
– Inconclusive results
• Identifying leadership behaviour
– Iowa, Michigan, Ohio studies
– Leadership styles, employee versus job-
centredness
Lecture summary
• Developing situational theory
Fiedler Contingency model, Normative model, Situational
leadership model, Path–Goal theory
• Transformational leadership
Charisma, Individual consideration & Intellectual stimulation
• Are leaders necessary?
Neutralisers, substitutes
CHAPTER 14
MANAGERIAL
COMMUNICATION
LECTURE OUTLINE
• Nature of managerial communication

• Individual communication & Interpersonal
processes
• Group communication
• Organisational communication channels
Managerial communication
• Communication:
Exchange of messages between people to
achieve common meanings.
• Verbal:
Written or oral use of words to communicate.
• Non-verbal:
Communication by means of elements and
behaviours that are not coded into words.
Managerial communication
Communication process
Noise Sender/receiver Noise
Encoding message
Feedback Medium Feedback
Decoding message
Noise
Noise Sender/receiver
Individual communication
Interpersonal processes
• Perceptual processes
• Attribution process
• Semantics
• Cultural context
• Communication skills
Perceptual processes
Process individuals use to acquire and make sense
out of information from the environment.
• Three stages:
Selecting, organising, interpreting
• Distortions:
Stereotyping, Halo effect, Projection, Perceptual
defence
Attribution process
Theory attempting to explain how individuals make
judgements or attributions about the cause of another’s or,
their own, behaviour.
• Fundamental attribution error:
Tendency to underestimate situational influences & to
overestimate dispositional influences.
• Self-serving bias:
Attributing oneself as responsible for successes & others for
failures.
Semantics:
• Semantic net
Network of words and word meanings a given individual has
available for recall.
• Semantic blocks
Blockages or communication difficulties arising from word
choices.
Cultural context:
Low-context cultures
High-context cultures ‘…emphasis is on
‘…emphasise information exchange
establishing & & less focussed on
strengthening building
relationships relationships by
in communication Communication’
while exchanging Examples: Germany, NZ,
Information’ Australia
Examples: Asia, China
Communication skills:
Active listening: ‘…listener
actively participates in
attempting to grasp facts &
the speaker’s feelings’ Effective
Feedback: both giving &
communication
receiving is important.
Deal with ‘…specific,
observable behaviour,
not generalities.’
Importance of seeking
customer feedback
Group communication networks
Communication network:
Pattern of information flow among task-group

members.
Group communication networks
Chain Y Wheel
X
Centralised X X
Decentralised All-channel
Circle
Organisational communication
channels
Communication channels:
Patterns of organisational communication flow
representing potential established conduits through
which managers and other organisation members
can send and receive information.
• Vertical communication
• Horizontal communication
• Informal communication
channels
Vertical communication:
Lateral or diagonal message exchange either
within work unit boundaries, involving peers,
reporting to the same supervisor, or across
work-units boundaries, involving individuals
who report to different supervisors or, across
work unit boundaries.
channels
Vertical communication:
• Downward communication
– Can be distorted by faulty message due to sender error.
– Managers overuse downward communication.
– Filtering (deliberate or accidental).
• Upward communication
– Can be distorted by ‘only’ favourable messages going up.
– Managers don’t encourage upward flow.
channels
Horizontal communication:
Lateral or diagonal message exchange within work-unit
boundaries, involving peers reporting to the same supervisor, or
across work-unit boundaries, involving individuals who report to
different supervisors.
Impeding factors:
• Rivalry
• Indifference to work of others
• Low motivation due to discouraging of horizontal
communication
channels
Informal communication:
Communication which takes place without regard to
hierarchical or task requirements.
Problems:
• Can carry gossip/distorted information.
Benefits:
• Valuable tool for continuation/propagation of culture.
channels
Electronic mail
Groupware
Electronic Internet
communication
Videoconferencing
Voice mail
Teleconferencing
Lecture summary
• Nature of managerial communication
– Verbal, non-verbal
• Individual communication & interpersonal
processes
– Attribution process
– Semantics
– Cultural context
– Communication skills
Lecture summary
• Group communication
Networks
• Organisational communication channels
Vertical
Horizontal
Informal
CHAPTER 15
MANAGING GROUPS
Lecture outline
• Foundations of work groups

• Work-group inputs
• Work-group processes
• Task forces and teams
Foundations of work groups
Work group:
Two or more interdependent individuals
interacting and influencing each other in
collective pursuit of a common goal.
Types of work groups:

• Formal
Group officially created by an organisation for a
specific purpose.
• Informal
Group established by employees (not the
organisation) to serve members’ interests or social
needs.
Formal groups:
Group officially created by an organisation for a
specific purpose.
• Command/functional
• Task groups:
– Permanent
– Temporary.
Informal groups:
Group established by employees (not the
organisation) to serve members’ interests or
social needs.
• Interest groups
• Friendship groups
Work group inputs
• Group composition
Heterogenous/homogenous
• Group roles
Task, maintenance, self-oriented
• Group size
Size & interaction, size & performance
• Leader emergence
Formal or informal
Work group inputs
Group composition:
• Homogenous
Pluses: easily formed/maintained
Minuses: Lack of diversity/innovation
• Heterogenous
Pluses: Innovative/diverse
Minuses: Co-ordination & consensus difficult
Work group inputs
Group roles:
• Task roles
Initiator, info-seeker, info-giver, co-ordinator, orientor, energiser
• Maintenance roles
Encourager, harmoniser, gatekeeper, standard setter, observer,
follower
• Self-oriented roles
Aggressor, blocker, recognition-seeker, dominator
Work group inputs
Group size:
• Size and group interactions
• Size and group performance
Work group inputs
Leadership of groups:
• Formal leader
• Informal leader
Work group processes
• Group norms
• Group cohesiveness
• Group development
Group norms:
Expected behaviours sanctioned by a group that
regulate and foster uniform member behaviour.
• Explicit statements
• Critical events
• Carry-over behaviours
Group cohesion:
Degree to which members are attracted to a group,
are motivated to remain in it and, are mutually
influenced by one another.
Key aspects:
• Values, attitudes, external threats, accessibility,
size.
Group development:
Forming
Storming
Norming
Performing
Adjourning
Task forces & teams
Task force:
Temporary task group formed to recommend on a specific
issue.
Team:
Temporary or ongoing task group with members charged to
work together to identify problems, identify approach and
implement necessary actions.
May be: Entrepreneurial, self-managing, virtual.
Task forces & teams
Virtual teams:
Physically dispersed work group using
information technology as a means to
interact, but rarely, if ever, meeting physically.
Task forces & teams
Virtual teams require:
• Appropriate reward systems
• Continual training
• Clear team processes
• Strong technological support
• High level, cultural diversity & trust
• Leaders modelling technology use and high
performance.
Lecture summary
• Foundations of work groups
– Formal
– Informal
• Work-group inputs
– Composition
– Roles
– Size
– Leader emergence
Lecture summary
• Work-group processes
– Norms
– Cohesiveness
– Development
• Task forces & teams
– Task force
– Team
– Virtual team
CHAPTER 16
CONTROLLING THE
ORGANISATION
Lecture outline
• Control as a management function

• The control process
• Types of control
• Managerial approaches to control
• Assessing control systems
Control as a management
function
Controlling:
Process of regulating organisational activities

so that actual performance conforms to
expected organisational standards and goals.
function
Role of controls:
• Coping with uncertainty
• Detecting irregularities
• Identifying opportunities
• Handling complex situations
function
Levels of control
Strategic planning Strategic control
Tactical planning Tactical control
Operational planning Operational control
The control process
Steps in the control process:
Determine areas to control
Establish standards
Measure performance
Control
Compare performance
process
Recognise positive
steps performance
Take corrective action
Adjust standards
The control process
Deciding what to control:
High dependence on the resource
Chance that expected resource flow will

be unacceptable
Determining Control-process feasibility
strategic
control Cost acceptability
points
Alternatives to control
•Change dependence relationships
•Change nature of dependence relationships
Types of control
Types of control:
• Major types by timing
• Multiple controls
• Cybernetic & non-cybernetic controls
Types of control
Types by timing:
Transformation
Input Outputs
processes
Concurrent Feedback
Feed-forward control.
control. control.
Attending to Correcting
Anticipating problems after
problems problems as product/ service
they occur is produced
Types of control
• Multiple controls
Systems using two or more of the feedforward, concurrent
and feedback control processes and involving several
strategic control points.
• Cybernetic
Self-regulating control system which, once operating, can
automatically monitor the situation and take corrective action
when necessary.
• Non-cybernetic
Control system relying on human discretion as a basic part of
its process.
Managerial approaches
• Bureaucratic control
• Clan control
• Market control
• Control & innovation
Bureaucratic control:
Managerial approach relying on regulation
through rules, policies, supervision, budgets,
schedules, reward systems and other
administrative mechanisms aimed at ensuring
employees exhibit appropriate behaviours
and meet performance standards.
Clan control:
Managerial approach relying on values,
beliefs, traditions, corporate culture, shared
norms and informal relationships to regulate
employee behaviours and facilitate reaching
of organisational goals.
Market control:
Managerial approach relying on market
mechanisms to regulate prices for certain
clearly specified goods and services needed
by an organisation.
Control & innovation:
Four levers for strategic control/innovation—
• Belief systems
Mission, core values
• Boundary systems
Risk avoidance, policies, rules, procedures
• Performance management systems
Critical goals, evaluation & feedback
• Interactive monitoring systems
Opportunity focus, networking, continuous search & learning
Assessing control systems
Behavioural
displacement
‘behaviour
Operating delays
encouraged inconsistent
‘actions needed by
with organisational Game playing
feedforward &
goals’ ‘managers improve
concurrent controls’
their standing …by
manipulating resource
usage &/or data’
Negative attitudes
Induced by excessive &
poorly designed controls
Over-control versus under-control:
Over-control
‘limiting individual job autonomy
to the point where it seriously inhibits
job performance’.
Under-control
‘...giving autonomy to an employee to
where the organisation loses the ability
to direct efforts’.
Characteristics of effective control systems
• Future oriented • Timely
• Multi-dimensional • Monitorable
• Cost-effective • Acceptable to organisational
• Accurate members
• Realistic • Flexible
Lecture summary
• Control as a management function
– Significance of the control process
– Role of controls
– levels of control
• The control process
– Steps in the process
– Strategic control points
• Types of control
– Types by timing, multiple, cybernetic, non-cybernetic
Lecture summary
• Managerial approaches to control
– Bureaucratic, clan, market
– Control & innovation
• Assessing control systems
– Dysfunctions
– Over-control/under-control
– Characteristics of effective control systems
CHAPTER 17
MANAGING ORGANISATIONS
THROUGH CHANGE AND
CONFLICT
Lecture outline
• Managing change
• Managing resistance to change
• Managing conflict
• Relationship between conflict & change
Managing change
competition
economy
technology politics
External culture
change Internal
jobs The
factors change
organisation
factors
structure
regulations employees imports
technical
development
Managing change
The change cycle
8. 1.
Evaluation Performance
gap 2.
against
Identify a
desired
desired future
outcomes
3,
7. Recognise
Implementation need for
change
6.
Selection of 4.
appropriate Problem
alternatives 5. diagnosis
Development
of
alternatives
Managing resistance to change
Individual resistance to change:

• Self-interest
• Misunderstanding
• Lack of trust
• Differential assessment
• Ability to adjust
THREE-STEP PROCESS:
UNFREEZE
UNFREEZE CHANGE REFREEZE
Overcoming resistance to change
Force Field Analysis (Kurt Lewin)
‘a method involving analysing the two types of forces,
driving forces and restraining forces,
that influence any proposed change then
assessing how best to overcome resistance.’
Driving forces Restraining

forces
Factors pressuring
for a Factors
particular pressuring
change against a change
Overcoming resistance
Participation &
Education &
involvement
communication
Facilitation &
support
METHODS
(Kotter & Schlesinger)
Explicit &
implicit coercion Negotiation &
Manipulation & agreement
co-optation
Managing conflict
• Between individuals & organisation

• Causes of conflict
• Benefits and losses from conflict
Managing conflict
CONFLICT between individuals/ organisations:
‘Perceived difference between two or more

parties resulting in mutual opposition’.
‘Many job structures conflict with a healthy

personality’s basic growth needs.’
Managing conflict
Conflict between individuals/organisations:
Very mature employees
Highly Fragmented
structured Conflict is and
organisations strongest mechanised
with jobs
Formalised rules and procedures
Managing conflict
Conflict between individuals/organisations:
Conflict occurs: Leave

Employees must
choose to Defend
Disassociate
Find distraction
Form alliances
Managing conflict
Causes of conflict
• Communication factors • Personal behaviour factors
• Structural factors • Communication styles
• Size • Workforce diversity
• Participation • Differences in goals
• Line staff distinctions • Reward structures
• Reward systems • Differences in perceptions
• Resource interdependence • Increased demand for
• Task interdependence specialists
• Power
Managing conflict
Benefits & losses from conflict
Energy
Productive
Benefits Losses diversion
task focus
Cohesion & Distorted

satisfaction judgement
Power & Loser affects

feedback
Poor
Goal co-ordination
attainment
Managing conflict
Reducing/resolving conflict:
• Change situational factors
• Appeal to superordinate goals
• Interpersonal conflict handling techniques
– Avoidance
– Accommodation
– Competition
– Compromise
– Collaboration
Relationship: conflict & change
Managing inter-group conflict
Problem solving
Intergroup training
Expansion of
resources
Intergroup conflict
Confrontation & resolution
negotiation
Smoothing
Limited communication Bureaucratic

authority
Relationship: conflict & change
• Types of inter-group conflict
– Functional
– Dysfunctional
• Changing views on conflict
– Traditional view—conflict is destructive & unnecessary
– Modern view—conflict is inevitable, & may
– produce better organisational performance
• Stimulating conflict
Build group diversity, communicate to provoke change,
encourage competition
Lecture summary
• Managing change
– Diagnosing need
– Change cycle
• Managing resistance to change
– Introducing change
– Resistance to change
– Managing resistance
– Individual-organisational conflict
– Causes
Lecture summary
– Individual-organisational conflict
– Causes
– Types of inter-group conflict
– Changing views on conflict
– Stimulating conflict
CHAPTER 18
INTERNATIONAL MANAGEMENT
Lecture outline
• Nature of international management

• Assessing the international environment
• Gauging strategic issues
• Organising international business
• Adapting to cultural differences
• Social responsibility & ethical issues
Nature of international
management
• International business
Profit related activities conducted across
international boundaries.
• International management
Process of planning, leading, organising and
controlling in organisations engaged in
international business.
management
Organisations engaging in international
management:
MULTINATIONAL CORPORATION (MNC)
‘Organisations engaging in international

management vary in size and the extent
that their business activities cross
international boundaries’.
management
Orientations towards international management:
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric
management
Orientations towards international management:
Ethnocentric Polycentric
(home-country) (host-country)
orientation orientation
Regiocentric Geocentric
(regional) (world)
Assessing the international
environment
Assessing the international environment:
• Environmental elements
– Economic
– Legal-political
– Socio-cultural
– Technological.
• Competitive advantage of nations
Concept that environmental elements within a nation can
foster innovation in certain industries, thereby increasing
prospects for the success of home-based companies
operating internationally.
environment
Less developed
countries (LCDs)
Developed countries
Newly industrialised
countries (NICs)
Exchange
Rate
Economic
Element
Infrastructure
Balance of
Trade Balance of
payments
environment
Expropriation
Political risk
Indigenisation
laws
Legal-Political
Element
Administrative
protections Import Tariffs
quotas
environment Power distance
Cultural differences
Individualism- Sociocultural
collectivism element
Achievement-
nurturing
Technological orientation
element
Long-term Short-term
Technological
transfer
Gauging strategic issues
• Methods of international entry
Exporting, licensing, strategic alliances, wholly-owned
subsidiaries
• Multinational corporation strategies
– World-wide integration
– National responsiveness
– Regional responsiveness
– Multifocal emphasis
Gauging strategic issues
Methods of
Exporting Methods of
international Globalisation
international
Entry entry
Licensing National
responsiveness
Strategic
Regional
alliance
responsiveness
Wholly-
owned Multifocal
subsidiary emphasis
Organising international
business
• World-wide functional divisions
• World-wide product divisions
• International divisions
• Geographic regions
• Global matrix
• Networked structure
Adapting to cultural differences
Assignment policies
Managing
Repatriation international
human Recruitment
resources
Adjusting
Leadership
Selection & training styles
Social responsibility & ethical
issues
political
Questionable payment payments
issues bribes
extortion
sales
International commissions
Social
responsibility expediting
payments
Lecture summary
• Nature of international management

Orientations: ethnocentric, polycentric, geocentric,
regiocentric
• Assessing the international environment
Environmental elements, competitive advantage of nations
• Gauging strategic issues
Methods of international entry, multinational strategies
Lecture summary
• Organising international business

Divisions: functional, product, international
Global matrix, network structure
• Adapting to cultural differences
International human resources
Adjusting leadership style
• Social responsibility & ethical issues
International social responsibility
Questionable payments
CHAPTER 19
THE REGIONAL CONTEXT
Lecture outline
• The regional context
• Focus on Singapore
• Focus on New Zealand
• Focus on Indonesia
• Focus on Malaysia
• Focus on Thailand
• Japan’s impact on region
• Australia’s position in SE Asia
The regional context
‘Over the past 10 years many multinational
companies invested heavily in Asian countries and
transferred technologies there only to discover it is
harder to transfer management techniques’.
Major religions are represented
East-Asian Politically known as ‘democratic’

Pacific
Region Half of the world’s population
Strong cultural roots
Cultural ties influence management
Focus on Singapore
Economic Productivity and

Restructuring quality of work life
Human resource
Tight development
labour market & management
Focus on Singapore
Singapore’s Vision: to be ‘the intelligent island’
Develop a global hub
Boost Enhance
Four
economic Strategic thrusts individual
engine (Birch 1993) potential
Improve quality of life
Focus on New Zealand
Customers &
Economic reforms clients
Competitors
Suppliers
Labour supply
Focus on New Zealand
Skill Levels
ISSUES
CONFRONTING Labour Relations
NZ
MANAGERS Workplace reform
Social Problems
Supported by Government
RELATIONSHIP Top 10 Export customers
WITH
ASIA Significant imports
Significant investment
Focus on Indonesia
The following 5 principles are built into every organisation
and reflected in the principles and practices
of management in every aspect of Indonesian society.
Belief in God
Humanism
Nationalism
Sovereignty
Focus on Indonesia
Diverse range
Improve
of cultural settings
infrastructure
Culture:
modern v traditional Improve
technology
ISSUES Society -hierarchical
FOR FUTURE
& honor oriented. Improve
MANAGERS DIRECTIONS
training
People avoid
conflict Improve
industrial relations
Harmony is
important
Focus on Malaysia
Multiculturalism
Maintaining Industrialise
face
Management
issues
Future
directions
Indirect Program transfer

approach
Upgrade Conserve
technology natural resources
Focus on Thailand
CHARACTERISTICS SOCIAL TENDENCIES
14% Chinese Love freedom
95% Buddhist Avoid conflict
Richly endowed with Keep relationships
natural resource peaceful
Central point in Asia
Incompatible business law

ISSUES Demand for infrastructure
CONFRONTING
THAI
MANAGERS Under-educated workforce
Cheap labour base
Japan’s impact on region
Second largest
Export oriented
economy
country
in the world
Source of new
Undergoing major
management
economic
practices
restructure
Australia’s position in SE Asia
Country Relationship w ith Australia
Singapore  8 th largest export market (ABS Catalogue

5422.0)
 Invest heavily in Australian property
 Developing strategic alliance
 Becoming competitive w ith Australia
New  NZ’ s biggest export market and source of
Zealand imports.
 Close cultural, sporting and economic ties.
 Reduced costs of manufacturing has seen a
number of companies relocate from Australia
to NZ
Indonesia  Increased interest in Indonesia due to
proximity and market potential.
 Due to Australia’ s involvement in East Timor
most business interactions have slow ed or
halted.
Country Relationship with Australia
Malaysia  Business relationship broadened recently

 Moderate trade, less that other Asian nation
 Increased demand for technology transfer
Thailand  12th largest export market
 Welcome Australian Investment
 Good potential business exchange in training and
quality control.
Japan  Energy and raw material trade between countries.
 Australia’s largest trading partner
 Important source of tourism revenue.
Economically Culturally
Australia’s position in
South-East Asia
Geographically
Politically
Lecture summary
• The regional context
– Religious diversity, 1/2 world’s population, strong cultures.
• Focus on Singapore
– Issues confronting Singaporean managers—restructuring,
QOL, HRD, labour market issues.
– Directions for the future—global hub, economic
performance, QOL.
• Focus on New Zealand
– Economic reforms—clients, competitors, labour supply.
– Issues confronting New Zealand managers—skill levels, IR,
social change.
– Relationship with Asia—govt. support, strong trade
relationship.
Lecture summary
• Focus on Indonesia
– Issues confronting Indonesian managers—cultural
diversity, conflict avoidance.
– Directions for the future—improve infrastructure,
technology, training, IR.
• Focus on Malaysia
– Issues confronting Malaysian managers—
maintaining face, multiculturalism, program
transfer, indirect approach.
– Directions for the future—industrialise, natural
resource protection.
Lecture summary
• Focus on Thailand
Issues confronting Thai managers —business law,
infrastructure, work force skills, cheap labour base.
• Japan’s impact on the region
Export orientation, 2nd largest economy, economic
restructure, source management practices.
• Australia's relationship with Asian countries
• Australia’s position in South-East Asia

Binder 3

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Binder 3

Загружено:

Авторское право:

Доступные форматы

CHAPTER 1

Middle managers —mixed skill needs

First line managers/supervisors —leading, technical skills

Operational level staff

Work avoiding Work is natural

Need to control Capable of self-direction

Avoid responsibility Seek responsibility

Workers seek security Can make good decisions

UNDERSTANDING INTERNAL &

External environment Internal environment

‘Major forces outside the organisation with

SOCIAL RESPONSIBILITY &

MANAGERIAL DECISION MAKING

All relevant information

All relevant information is Rational

Inadequate base ‘Satisficing’

Generate alternative solutions

Evaluate alternatives Evaluation

Implementation and monitoring

Non-rational escalation: increased

Sunk costs: not recoverable, and

More information available Time consuming

Increases solution Domination by individuals

Builds member Risk of groupthink

Expert members Better

‘Creativity is the cognitive process of

‘Setting goals & developing plans leads to

‘Essentially, planning builds on the

Mission statement may:

• 1st level managers

Pressure of day-to-day work

Low levels of manager skill & knowledge

Business level strategy:

Functional level strategy:

organisation Social Analysis

Economic Human Resources

Life cycle Shakeout

Overall cost High volume, Quantitative

Strategy implementation involves

Carry out plans:

• The nature of change & innovation

External: Response to opportunities

Internal: Strategy & plans, employees’

Formalisation and control stage

Elaboration of structure stage

Line up powerful sponsors Plan for & reward visible progress

Develop and communicate

Four factors 2) Meeting significant customer needs

4) Innovation needs to rely on capabilities

Product development principles:

‘Organisational culture can be defined as a

• Nature of change & innovation

DIRECTOR DIRECTOR DIRECTOR

Flexitime: core hours

Large size: larger Geographic dispersion:

• Overview: Organisation structure design

Manager, Manager, Manager,

With growth: With growth:

• Lawrence & Lorsch: Balance of differentiation & integration

Innovative Market differentiation:

Structure’s ability to support strategy can be

• The HRM framework

Those management functions concerned

Attracting human resources