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Organisational structure, leadership, MANAGEMENT AND SUPERVISION. Theories of leadership, responsibility and power concepts. Teamwork A team is a formal group, it has a leader, a distinctive culture and is geared towards a final result.
Organisational structure, leadership, MANAGEMENT AND SUPERVISION. Theories of leadership, responsibility and power concepts. Teamwork A team is a formal group, it has a leader, a distinctive culture and is geared towards a final result.
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Organisational structure, leadership, MANAGEMENT AND SUPERVISION. Theories of leadership, responsibility and power concepts. Teamwork A team is a formal group, it has a leader, a distinctive culture and is geared towards a final result.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PDF, TXT или читайте онлайн в Scribd
1. THE BUSINESS ORGANISATION The need for organisations Types of organisation Profit seeking organisations Not for profit organisations Main objective is wealth maximisation Do not see profit as their main objective which can be expanded into • seeking to satisfy particular needs of • to continue in existence (survival) their members or the sectors of society • to maintain growth and development that they have been set up to benefit • to make a profit • include hospitals, charities, government organisations and mutual organisations The roles of organisational functions Planning Levels 2. ORGANISATIONAL STRUCTURE Different Structural Types Type Rationale Entrepreneurial Typical in small owner managed companies. Functional Departments are based on common specialisation. Best suited to companies operating in a stable environment with few products.
Divisional Each product or group of
products set up as a separate division. Geographical Activities are grouped according to location. Matrix A combination of the functional and divisional. Dual reporting lines Centralisation/Decentralisation Centralised structure Decentralised structure The upper levels of an organisation’s The authority to take decisions is hierarchy retain the authority to make passed down to units and people at decisions lower levels. Can lead to extra costs in obtaining information Better motivation due to increased training and career path 3. ORGANISATIONAL CULTURE Organisational Culture Handy’s cultural Types Schein – 3 levels of culture Hofstede - 5 cultural traits 2.LEADERSHIP, MANAGEMENT AND SUPERVISION Theories of management Authority, responsibility and power concepts • Authority is a legitimate right to give orders • Responsibility is an obligation placed on a person to fulfil a task • Power is an ability to exert influence. Sources can be legitimate, reward, coercive, referent or expert • Delegation is a process of transferring authority to a subordinate Leadership 5. INDIVIDUAL AND GROUP BEHAVIOUR IN BUSINESS ORGANISATIONS Individual and Group Behaviour 6. TEAM FORMATION, DEVELOPMENT AND MANAGEMENT Teamwork • A team is a formal group, it has a leader, a distinctive culture and is geared towards a final result • The purpose of a team is to solve complex problems • Teams provide synergy, cooperation and coordination of activities Team v Group Team Theories - Belbin Leader Co-ordinator Shaper Promotes activity - dominant
Plant Thoughtful and thought
provoking Monitor evaluator Criticises other ideas Resource-investigator Extrovert, networker The company worker Administrator, organiser The team worker Concerned with relationships within the groups
The finisher The progress chaser
The expert As required by the project Team theories - Tuckman 7.MOTIVATION Overview of Motivation • Motivation is the internal psychological process of initiating, energising, directing and maintaining goal directed behaviour (Buchanon and Huczynski, 1997) • It is the urge to achieve goals or the drive to excel • Satisfaction on the other hand is about being content and not seeking new achievements Content theories of Motivation • Maslow’s hierarchy of needs – individuals have a hierarchy of personal needs that can be satisfied in a set order of priority in the workplace • Herzberg two factor theory – hygiene factors deal with non-job related features e.g. working conditions, policies and procedures. Motivators are mostly non financial and will encourage people to work harder Maslow’s hierarchy of needs Herzberg’s two factor theory of motivation McGregor’s Theory X and Y Process Theories • The Vroom expectancy model • Force = Valence x Expectancy • Force is the strength of a persons motivation • Valence is the strength of an individual’s preference for an outcome • Expectancy is the probability of success Incentive Schemes • Reward systems should attract and retain staff, encourage desirable behaviour and reflect the nature of the job • Financial motivators include salary and bonus • Non financial motivators include feedback, participation and autonomy 8. INFORMATION TECHNOLOGY Information and Data • Data is a collection of symbols, raw facts and transactions that have been recorded but not yet processed. It could be quantitative or qualitative • Information is data that has been processed in such a way that it becomes meaningful • Information is used for decision making at the strategic, tactical and operational levels Qualities of good information Computerisation • Intranet • Extranet • Database • Spreadsheet Sources of information • Internal information includes customer records, employee records, inventory and product specifications • External information includes invoices, letters, statements from 3rd parties etc • External information can also be obtained through marketing research, legal updates and government data Types of information system 9.POLITICAL AND LEGAL FACTORS Political Factors Political environment includes: • the political system and ideology • the role of the government in the economy • the risk of political instability • foreign trade relationships Political systems operate on a global, national and local level Legal Factors 10. MACROECONOMIC FACTORS Economic factors • Microeconomics is the study of the economic behaviour of individual consumers, firms and industries • Macroeconomics considers aggregate behaviour and the study of the sum of individual economic decisions. Factors affecting the level of business activity • consumer and business confidence in the economy • aggregate demand: AD = C + I + G + X – M • availability of capital • use of resources such as technology • government policy on spending and taxation • exchange rate movements Trade Cycle • A series of fluctuations in the rate of growth of real (inflation adjusted) GDP over its long-run trend • Recession • Depression • Recovery • Boom • Government tries to smooth pattern out Key economic terms • Economic growth • Inflation • Unemployment • Balance of payments • Fiscal economic policy • Monetary policy 11. SOCIAL AND TECHNOLOGICAL FACTORS Social Factors • Population (e.g. birth rate and growth) • Wealth (e.g. high disposable income) • Education (e.g. skilled staff thrive in knowledge economy) • Health (e.g. obesity, HIV) • Cultural trends (social structure, buying patterns, values, attitudes, tastes) • Affected by government policy Technological factors Impact of technology on: • organisational structure (e.g. downsizing, outsourcing) • products (e.g. sophisticated features) • production processes (e.g. automation) • society (e.g. ecommerce, home- working) 12.COMPETITIVE FACTORS Competition – Porter’s generic strategies • Cost leadership: to become the lowest cost producer and enjoy a superior margin • Differentiation: demanding a premium for perceived added value of the product • Focus: Serving a niche market Being ‘stuck in the middle’ is a recipe for disaster Porters 5 Forces Porter’s Value Chain – primary activities Activity Description Inbound logistics Receiving, storing and handling raw materials Operations Transformation of raw materials into finished goods Outbound logistics Storing, distributing and delivering finished goods to customers Marketing and sales Market research and the 4 P’s Service All activities occurring after the point of sale e.g. training, repair Porter’s value chain – Support activities Activity Description Firm infrastructure How the firm is organised
Technology How the firm uses
technology HRM How people contribute to competitive advantage Procurement Purchasing, not just limited to materials 13. STAKEHOLDERS Stakeholders Mendelow’s stakeholder mapping 14. COMMITTEES IN BUSINESS ORGANISATIONS Committees A committee is a group of people officially delegated to perform a function and who are given appropriate authority. Types of committees: • Ad-hoc • Standing • Sub-committee • Joint Types of Committees continued • Executive • Steering • Work safety • Ethics • Audit • Remuneration 15. BUSINESS ETHICS Business ethics • Ethics is the analysis of right and wrong and associated responsibility • Business ethics is the systematic study of moral matters pertaining to business, industry or related activities, institutions or practices and beliefs • 2 approaches to ethics, either a compliance-based approach or an integrity based approach Code of professional conduct ACCA’s code of ethics: • Integrity • Objectivity • Professional competence and due care • Confidentiality • Professional behaviour 16. GOVERNANCE AND SOCIAL RESPONSIBILITY Board of Directors • At least half of the board should comprise independent non-executive directors (NED’s) who do not engage in day to day execution of management decisions • NED’s contribute to strategy formulation, monitor performance reporting, ensure robust financial controls and determine executives remuneration Corporate Governance • The system by which companies are directed and controlled • UK – Combined Code is principles based, company must ‘comply or explain’ • USA – Sarbanes Oxley is rules based (i.e. law) with personal liability of company officers Social Responsibility • Social responsibility is a duty to all stakeholders of the company to make decisions in such a way that takes into account the interest of the environment and society as a whole • Benefits include, attracting customers, reducing operational risks and retaining employees 17. LAW AND REGULATION GOVERNING ACCOUNTING Regulations covering accounting function Responsibility to: • Companies House (for filing of accounts) • Tax Authorities (e.g. HRMC for VAT, PAYE) • Financial Services (e.g. stock exchange for listed co’s) • Office of national statistics (e.g. business statistics) Bodies governing the accounting function • International Accounting Standards Committee foundation, parent entity of: • International Accounting Standards Board (IASB) • International Financial Reporting Interpretation committee (IFRIC) • Standards Advisory Council (SAC) Other bodies • Accounting Investigation and Discipline Board (AIDB) • Financial Reporting Review Panel (FRRP) • Professional Oversight Board for Accountancy (POBA) • Recognised Supervisory and Qualifying Bodies (e.g. ACCA, ICAEW) 18. THE ACCOUNTING PROFESSION The role of accounting within the business • Not a ‘stand alone’ function • Interacts with other departments and is one of the central functions of business • Financial information is a fundamental requirement in decision making Purpose of accounting function • Produces financial information that will be used to make decisions • May be produced for users outside the company e.g. sales invoices, financial statements • May be produced for users inside the company e.g. ledgers, cost information 19. ACCOUNTING AND FINANCE FUNCTIONS Modern accounting function Structure of accounting function: • Financial Accounting (maintaining books and records, preparing accounts) • Management Accounting (appraisal, budgeting) • Treasury (cash management, tax affairs) • Auditing (reviewing financial reports and internal controls) Recording of transactions 20. FINANCIAL SYSTEMS AND PROCEDURES Financial Procedures Stages in: • Sales cycle • Purchasing cycle • Wages cycle • Cash system • Inventory system The purpose of organisational control Purpose Why important Safeguard company’s assets If assets are stolen or damaged the company will have to spend money to replace them Efficiency Inefficient business practices are a waste of the company’s money Prevent fraud Fraud means the loss of valuable resources belonging to the company Prevent errors Errors can lead to losses in efficiency (time spent correcting) or a loss of assets (e.g. paying for goods that weren’t received) 21. THE RELATIONSHIP OF ACCOUNTING WITH OTHER BUSINESS FUNCTIONS Coordination between accounting and other business functions Marketing • Defined by the Institute of Marketing as ‘the management process that identifies, anticipates and supplies customer needs efficiently and profitably’ • Key emphasis on customer needs • Marketing research, product development, distribution and promotion all important Marketing Mix 22. INTERNAL AND EXTERNAL AUDIT Internal and External Audit • Internal auditing is an independent activity, established by management, to examine and evaluate organisational risk, management processes and control systems and make recommendations for improvements • External auditing is an independent examination of the financial statements to see whether they give a true and fair view of the company’s affairs Internal and External Audit - differences Internal Audit External Audit Roles Advises management on Provides an opinion to the the strength of internal shareholders on whether controls and protecting the the financial statements organisation against loss give a true and fair view
Legal Basis Not a legal requirement, Legal requirement for most
but highly recommended companies and public by The Combined Code bodies Scope of Work Determined by Determined by auditing management standards Approach Evaluates and Tests items and recommends transactions in the improvements to controls financial statements Status Company employees Independent accountants 23. INTERNAL FINANCIAL CONTROL Internal Controls • Internal Control is a process designed and initiated by management to provide reasonable assurance about the achievement of the entity’s objectives with regards to reliability of financial reporting, effectiveness and efficiency of operations and compliance with laws and regulations. Internal controls are checks on day to day transactions. They are managements responsibility. Components of Internal Control Categories of Internal Control Types of Control 24. FRAUD Fraud • Fraud is an intentional act involving the usage of deception to obtain an unjust or illegal advantage. It is a criminal offence • Prerequisites include: dishonesty, motivation and opportunity • Fraud could be committed by management, employees or third parties Examples of fraud Implications of fraud • Company collapse • Adverse publicity • Reduced profits • Qualified audit report since financial statements do not give a true and fair view • Distorted performance results make it hard for managers to make business decisions Responsibility for preventing fraud IT systems security Risks to data: • Human errors • Technical malfunction (e.g. systems crash) • Natural disasters (e.g. fire, flood) • Sabotage or espionage • Malicious damage Principles of data security • Use individual and complex passwords • Secure communication channels (e.g. fire walls) • Back up information on a regular basis • Have a contingency plan • Physical security for documents • Policy on suspicious emails 25. RECRUITMENT AND SELECTION Recruitment and selection • Recruitment is the process of generating a supply of possible candidates for positions within an organisation • Selection is choosing from a number of candidates the one most suitable for the specified position Recruitment process Importance of R&S Consequences of poor R&S • New recruit will be technically • High staff turnover competent and able to perform the job •Wasted advertising budget • Effective R&S reduces the need for retraining •Loss of management time dealing with unsuitable candidates • Employee will bring in ideas and enhance productivity •Costs and demoralising effects of dismissal •Candidate will get on well with existing team •Increased workload on existing staff if new recruit makes mistakes •Process will comply with legal requirements reducing employee • Potential effect on efficiency of disputes operations Job Analysis • The process of collecting all relevant information about the position • This information is then summarised into: 1.Job description 2.Person specification 3.Job evaluation Selection Process Selection tools include: • Interviews • Tests (e.g. aptitude, proficiency) • Assessment centres • References from previous employer Types of Interview • Face to face • Successive Interviews • Group interviews • Panel interviews Equal opportunities and Diversity • Equal opportunities is normally delivered through legislation which is aimed at giving all people an equal chance to be treated fairly in all aspects of employment • Diversity relates to valuing everyone as an individual and recognising the differences as contributing factors of business success Equal Opportunities legislation 26. REVIEW AND APPRAISAL OF INDIVIDUAL PERFORMANCE Appraisal • Appraisal is a regular and systematic review of performance and assessment of potential with an aim of producing an action programme to develop both work and individual • Its purpose is to review performance, potential and pay Objectives of appraisal From organisational point of view From individual point of view • Establishes the results staff are •Determines future promotional activities expected to deliver •Gives recognition for work well done •Identifies training and development •Serves as a basis for increase in needs remuneration •Encourages communication •Formal opportunity to ask for guidance •Aids personnel planning •Chance to contribute to goal-setting •Creates a supportive organisational process culture Barriers to effective appraisal • Appraisal seen as a confrontation • Appraisal seen as a judgement • Appraisal seen as just a chat • Appraisal seen as bureaucratic ‘form filling’ • Appraisal just an annual event, no substance • Appraisal just looks at recent events, ignores everything else Features of an effective appraisal system 27. TRAINING, DEVELOPMENT AND LEARNING Learning Kolb’s experiential learning theory Honey and Mumford’s learning styles Training, development and education Stages in training and development Features of a Learning Organisation • adapts to change • encourages questions and experimentation • sees mistakes as part of learning • supports risk-taking and initiative • knowledge shared openly and willingly • people committed to continuous professional development 28. IMPROVING PERSONAL EFFECTIVENESS AT WORK Preparing a personal development plan Effective time management - influences Barriers to effective time management
Barriers Ways to overcome barriers
•Frequent interruptions •Be assertive
•Unpredictable nature of the •Distinguish between urgent job and important •Having to travel long •Multi-task distances •Focus on effectiveness •Bureaucratic procedures •Promise yourself a reward on •Putting things off completion Coaching, counselling and mentoring 29. EFFECTIVE COMMUNICATIONS AND INTERPERSONAL SKILLS Communication process Effective communication Barriers to effective communication Ways to overcome the barriers •Different cultures and languages •Provide training on cultural awareness •Noise and distortion •Choose the most effective •Information overload communication channel •Assumptions and prejudice •Prioritise and focus •Conflict between individuals •Be open minded •Rise above the differences Communication patterns 1. Centralised: • Wheel • Chain • Y 2. Decentralised: • Circle • All channels