Full Additional Slides

Study Unit 1
Introduction to Management
Study Unit 1 (SU1): Learning Outcomes
1. Describe the characteristics of an ‘organisation’, define ‘management’, and

explain why efficiency and effectiveness are important to management
2. Identify issues related to management functions, management types,

management skills, and managerial roles and employ management-related
principles and practices to address such issues in today’s digital age
3. Analyse the change forces that are reshaping and redefining the manager’s
job
4. Explain the importance of international management and of viewing

management from a global perspective
5. Discuss the importance of regional trading alliances and global trade

mechanisms
SU1: Introduction to Management
• The concept of organisation

Chapter 1 • What is management?
• Management in the digital age
Foundations of • Levels of management
Management and • What do managers do?
Organisations • Important change forces that are reshaping
a manager’s job
Chapter 2 • Globalisation and international management

An Introduction • Cross-cultural management
to International • Managerial attitudes towards global business
Management • The global trade environment
4
Chapter 1
Foundations of Management and
Organisations
The Concept of ‘Organisation’
An organisation is “a deliberate arrangement of people to accomplish some

specific purpose” (Robbins & Coulter, 2021, p.35).
- All organisations have three common characteristics as shown below
• Expressed through goals the organisation seeks

Distinct Purpose to achieve.
• Tasks are divided and the responsibility to

Deliberate structure perform these tasks is assigned to organisation
members.
• Two or more people perform work that is

People required to attain goals.
© 2022 Singapore University of Social Sciences. All rights reserved.

Management
“Without his leadership, ‘the resources of production remain resources and never
become production” (Drucker, 1955, 13).
More than half a century later, the importance of having high-quality and capable
managers is constantly being emphasised in successful organisations. Management
is so important because organisations are so important.
What is Management?
According to Daft (2015), “management is the attainment of organisational

goals in an effective and efficient manner through planning, organising, leading,
and controlling organisational resources” (p.10).
According to Robbins and Coulter (2021), management involves “coordinating

and overseeing the work activities of others so that their activities are
completed efficiently and effectively” (p.37).
• Resource usage
Efficiency • Concerned with means of Management
getting things done
strives for high
efficiency and
• Goal attainment
high
• Concerned with ends of
Effectiveness attaining goals effectiveness.
Watch: Definition of Management

https://www.youtube.com/watch?v=_OBqwhYLEJo
Management History
Understanding history is important as it helps us see the origins of today’s

management practices and recognise what has and has not worked.
- Major approaches to study of Management
• Scientific management (Fedrick Taylor)

Classical • Administrative approach (Henry Fayol, Henri
Mintzberg, Max Weber, Robert L. Katz)
• Organisational Behaviour (Robert Owen, Hugo

Behavioural and Munsterberg, Mary Parker Follet, and Chester
Quantitative Bernard); Hawthorne studies (game changing
impact on the role of people in organisations)
• Quantitative approach (TQM, statistics)
• Systems approach (inputs, process, outcomes)
Contemporary • Contingency approach (situational factors);
• Technology , computerisation, digital age…

Four major Approaches to Management Theory
1. Classical approach: Rationality, as efficient as possible

- Scientific management theory, 1920s (Frederick W. Taylor and Gilbreth)
- General administrative theory: 1925, 1930 (Henry Fayol and Max
Weber)
2. Behavioural approach: late 1930s early 1940s (Robert Owen, Hugo

Munsterberg, Mary Parker Follet, and Chester Barnard); Focus on people
(OB approach); Human Relations approach (Elton Mayo, Hawthorne
studies)
3. Quantitative approach: Operations management, TQM, IT
4. Contemporary Approach: Systems approach (Open system)

Contingency approach (Organisational size, Routineness of task technology,
environmental uncertainty, and individual differences.
11
Management in the Digital Age
“The digital age refers to the time-period in which personal computers and
other subsequent technologies were introduced to provide users the ability to
easily and rapidly transfer information” (Tella et al., 2020, p.23).
▪ Digital age is shaped by Interconnectedness of people, organisations, and
machines brought by the Internet and mobile technology.
▪ Digital change is brought through digitisation and digitalisation.
• is the conversion of analogue information

Digitisation
(non-digital) to digital.
• is a process of using digital technologies
Digitalisation or digitised data to improve work
processes.

Reflection Question
Do you think Artificial intelligence (AI) has changed the practice of management?
Explain and provide relevant examples.
Suggested Guidelines
The basic practice of management or managing does not change. However, the
subject matter of managing changes as do the styles that managers favour. The
practice of management using digital technologies has certainly made a big
impact on how managers get work done. Over the past two decades, digital
technologies have increased both speed and volume in the transmission of
information making the field of management more connected.
Applications of AI technologies include natural language generation (NLG),
virtual agents, biometrics, robotic processes automation (RPA), and many
others.
Levels of Management
Managers work at different hierarchical levels – as first-line managers, middle

managers, top managers – to meet different requirements of the
organisations.
Levels of Management
Top-level
Managers
Middle Managers
First-Line Managers
Nonmanagerial
Employees
Source: Adapted from Robbins and Coulter (2021)
© 2022Singapore University of Social Sciences. All rights reserved.

What do Managers do from the Perspective of Functions,
Roles, and Skills?
Management researchers have developed three approaches to describe what
managers do: Functions, roles, and skills (Robbins & Coulter, 2021).
Top-level
Roles Managers
Middle
Skills Managers
Functions Lower-
level/First-line
Managers

The Four Management Functions
• “Setting goals, • “Determining what

establishing needs to be done,
strategies, and how it will be done,
developing plans who is to do it”.
to coordinate
activities”.
Resources
Human, Planning Organising
Performance
Technology,
Attain goals
Raw
Efficiency &
materials,
Effectiveness
Information,
Financial. Leading Controlling
• “Use of
influence to • “Monitoring
motivate employee
employees to activities to
achieve ensure that they
organisational are accomplished
goals”. as planned”.

Mintzberg’s Managerial Roles
Interpersonal Roles
Decisional Roles
Informational Roles
Figurehead Monitor Entrepreneur
Leader Disseminator Disturbance
Spokesperson handler
Liaison
Resource
Allocator
Negotiator

Management Skills
According to Katz (1974), “a skill implies an ability which can be
developed, not necessarily inborn, and which is manifested in
performance, not merely in potential .
Conceptual “are the skills managers use to think and conceptualise
Skills about abstract and complex situations”.
• Are required by managers at all levels, but more important for top-level
managers. Top-level
Managers
Interpersonal “the ability to work well with other people both

Middle
Skills individually and in groups”.
Managers
• Are essential for managers at all levels.
Lower-
level
Managers
“job-specific knowledge and techniques needed to
Technical Skills proficiently perform work tasks”.
• Are required by managers at all levels, but first-line managers tend to use
these skills more.

Important Change Forces that are reshaping a Manager’s
Job
Key Change Forces
The list of change forces

Technology covered here is by no means an
exhaustive list, but it does
Disruptive Social introduce some significant
Media change forces that are
Innovation
redefining a manager’s job.
Change Forces
Ethics and
Customers Sustainability
Management
Political
Uncertainty

Increasing productivity in Singapore’s organisations, particularly SMEs, has
been one of the key challenges facing the government.
(LO: Describe the characteristics of an ‘organisation’, Define ‘management’ and explain
why efficiency and effectiveness are important to management)
Q1) What do you understand by the word ‘productivity’?
Q2) Does achieving efficiency and effectiveness lead to improved

productivity, especially in the “new normal” economy?

LO: Describe the characteristics of an ‘organisation’, define ‘management’, and explain why
efficiency and effectiveness are important to management
a) Productivity
Productivity is a measure of inputs to outputs of any resources, labour,

capital or any other raw materials. In the national context, productivity is
the key source of economic growth. In a business context, productivity is a
measure of efficiency of organisational resources.
b) Does achieving efficiency and effectiveness lead to improved

productivity, especially in the “new normal” economy?
In successful organisations, high efficiency and high effectiveness typically go

hand in hand (Robbins & Coulter, 2018, p.44).
This often leads to improved productivity.
Identify different skills and roles that Desmond plays and
might play in the given case
Desmond is a sales manager in the marketing department of XYZ
automobile company. He has contributed significantly to the
company’s sales development and business generation.
Desmond has a thorough knowledge of his company’s products
and customers. He is able to work well with others. The company
has recently promoted him to the regional manager position.
This position requires Desmond to continue to work in his own
sales area and also analyse and understand the automobile
industry in South East Asia. Within the first two months,
Desmond has represented his company in regional automobile
exhibitions and has started working on building good
relationships company’s partners. Slowly, Desmond is
overwhelmed by the new roles that came with the new position.
He is now faced with a challenge of selecting a new supplier for
his company.
Characteristics of “Good” managers
Characteristics Function/s (POLC) Skills (CHT)

▪ Honest and gives feedback Leading Human
▪ Set goals and clear Planning and Controlling Technical/Human

expectations
▪ Takes care to monitor the
employee progress
▪ Helps in solving job
specific problems or issues
▪ Establishes clear line of Organising and Leading Conceptual,
communication and Human
delegates work
▪ Is abreast of the latest
research and development
trends in the industry
Chapter 2
An Introduction to International
Management
Globalisation and International Management
• “Globalisation refers to a process by which

organisations develop operations across
international borders” (Robbins & Coulter, 2021,
p.117).
Globalisation
• The term ‘globalisation’ is widely used to describe
a variety of economic, cultural, social, and political
changes that have shaped the world over the past
50 years (Guttal, 2007).
• “International management is the management of
business operations conducted in more than one
country; the basic management functions of
International
planning, organising, leading, and controlling are
Management
the same whether a company operates
domestically or internationally” (Daft, 2015,
p.133).

Cross-cultural Management
Hofstede’s Five Dimensions of National Culture
Individualism Collectivism
United States, Canada, Australia Japan Mexico, Thailand
High power distance Low power distance

Mexico, Singapore, France Italy, Japan United States, Sweden
High uncertainty avoidance Low uncertainty avoidance

Italy, Mexico, France United Kingdom Canada, US, Singapore
Achievement Nurturing
US, Japan, Mexico Canada, Greece France, Sweden
Long term orientation Short term orientation

China, Taiwan, Japan Germany, Australia, US, Canada

Cross-cultural Management
• According to Langstedt (2018), cross-cultural management (CCM) is

underpinned by two views: the essentialist view and the non-essentialist view.
• assumes ‘culture’ as a valid predictor of action and

Essentialist View
also as something that is restricted to certain
of Culture
national boundaries.
Non-essentialist • assumes that culture is complex, dynamic, and

View of Culture contextual.
Managerial Attitudes towards Global Business
They are three possible attitudes that shape a manager’s acceptance or

resistance to globalisation and their style of management (Robbins & Coulter,
2021).
Ethnocentric Attitude
• The parochial belief that the best work approaches and practices are
those of the home country.
Polycentric Attitude
• The view that the managers in the host country know the best work
approaches and practices for running their business.
Geocentric Attitude
• “A world-oriented view that focuses on using the best approaches and

people from around the globe” (Robbins & Coulter, 2021, p.118).

The Global Trade Environment
• An important feature of global environment is global trade in which

countries trade with each other.
• The following are agreements and institutions/organisations that shape
global trade:
International trade refers to the exchange of goods and services across international borders. This may include exports and imports of goods across
countries. Trade- agreements can be many types: bilateral (between two countries, like Singapore-Malaysia) or multilateral (between many
countries, like Asia Pacific Trade Agreement), or free trade agreements (FTA). Both bilateral and multilateral agreements generally reduce tariffs
but do not abolish them. The most common type of trade agreement is the ‘free trade agreement’ that usually happens when countries group
together and agree not to impose trade tariffs.
General Agreements on Tariffs And Trade (GATT)
ASEAN Free Trade Area (AFTA)
The European Union (EU)
The Association of Southeast Asian Nations (ASEAN)
World Trade Organisation (WTO)

International Monetary Fund (IMF)
World Bank (WB)
Organisation for Economic Co-operation and Development (OECD)

Regional trading alliances
Trade agreements can be many types:

1. Bilateral (between two countries, like Singapore-Malaysia) or
multilateral, trade among many countries, like Asia Pacific Trade
Agreement) )
2. Free trade agreements (FTA). Both bilateral and multilateral
agreements generally reduce tariffs, but, do not abolish them. The
most common type of trade agreement is the ‘free trade
agreement’ that usually happens when countries group together
and agree upon having no trade tariffs.
• CECA (comprehensive Economic Cooperation Agreement) is a part

of Singapore’s extensive network of 26 Free Trade Agreements
(FTAs), 90% of exports of goods and 85% exports of services). It is
bilateral trade.
Industry 4.0 (additional slide)
You must note that all industrial revolutions are about production- i.e., how
goods are manufactured.
• The first industrial revolution in the 18th century used steam power and
mechanisation of production.
• The second industrial revolution began in the 19th century with the invention of
electricity and assembly line production.
• The third industrial revolution in the late 19th century used partial automation and
memory-programmed computers.
• We are now in the fourth industrial revolution or Industry 4.0 that uses
information communication technologies that were later expanded by network
connections like the Internet and, subsequently, digital networks. So, the production
of goods involves various network systems, and the networking of all these systems
leads to cyber-physical production systems which result in smart factories (see
https://www.history.com/topics/industrial-revolution/industrial-revolution).
38
A Review of seminar 1 Topics
Key concepts that you must master in study unit 1
1. What is Management? Who is a Manager? Levels of Managers

2. The Concept of Organisation
3. What do Managers do: Management Functions, Managerial Roles,
Management skills
4. Is the Manager’s Job Changing? What are the forces of change?
5. The Global Environment: Global attitudes, Global trade (Regional
trade alliances & Tarde mechanisms)
6. Cross cultural management
7. Digital age, Digital economy, digitalisation, digitization
39
Study Unit 2
Environmental Analysis and
Planning
1. Apply the components of the external environment and explain how the
external environment affects managers and organisations
2. Describe organisational culture and outline its impact on organisational

performance
3. Explain various types of goals and plans, and innovative planning approaches
that managers adopt in a fast-changing environment
4. Discuss the guidelines of planning effectively in today’s turbulent

environment, especially in the digital era.
7
SU2: Environmental Analysis and Planning
• The concept of organisational environment

• External environment
Chapter 1 • Organisation-environment relationship
Organisational • Organisational culture
Environment • How culture affects managers’ and
organisation’s performance?
• Creating an innovative culture
• What is planning? Why planning?

Chapter 2 • Types of goals and plans
• Planning approaches
Foundations of • Contemporary issues in planning (planning in
Planning a dynamic/turbulent environment)
8
Chapter 1
Organisational Environment
The Concept of Organisational Environment
Source: Source: Robbins & Coulter, 2005, p.64

10
The External Environment
“The term external environment refers to institutions or forces that are out side
the organisation and potentially affect the organisation’s performance” (Robbins
& Coulter, 2021, p.96).
PESDT G
Political/Legal Sociocultural
The
Economic Organisation Technological
Demographic Global
11
Economic & Technology Factors
The economic dimension relates to the economic health of the country or

region in which the organisation operates.
Consumer purchasing power, the unemployment rate, interest rates,

inflation, changes in disposal income, savings rate,and business cycles are
some key factors in an organisation’s economic environment.
Digital divide
In 2019, only 53.6% of the global population was using the internet and only
14.9% population has an active fixed-broadband subscription (International
Telecommunications Union (ITU), 2019).
Demographic Factor
The demographic dimension includes factors like age, life

cycles, gender, and education levels, Population size and growth
rate, ethnic and age distribution mix, educational levels, household
patterns, Generational Cohorts; Boomers, Gen X, Gen Y,
It is important to note that demographics do not only look at current

statistics, but also look to the future. For example, it is estimated that,
by 2035, 32 percent of Singaporeans will be aged 65 and above
(Hirschmann, 2020).
A good understanding of a country’s demographics is necessary as
such factors have a huge impact on actions taken by businesses and
governments. Singapore society is aging and this has an impact on
organisations operating in Singapore.
Global Issues
In its Opinion Survey of World’s business leaders (January and July 2020), the World
Economic Forum asked the business leaders to identify the top risks for doing
business in their countries over the next decade.
The new World Economic Forum’s Regional Risks for Doing Business Interactive
Map shows that all five environmental risks included in the survey rose in the
rankings and were among the top 10 rising global concerns for businesses.
In East Asia and the Pacific, three environmental risks are a top business concern:
natural catastrophes, extreme weather events, and human-made environmental
catastrophes.
- The COVID-19 Pandemic

- Global minimum taxation regulations
- Global travel restrtictions
Technology and Socio-cultural Factors
• Technology factor: E.g. Accelerating pace of change and innovation; varying R & D
budgets; and increased regulation of technological change
• The Advanced Digital Solutions and Grow Digital schemes are good examples of the
government leading on digital policy to support business, while at the same time
continuing large infrastructure investments in broadband and 6G.
• Singapore is clearly ahead in many cutting-edge areas such as fintech and digital banking.
Traditional industries such as maritime, construction, and real estate – there is a need to
accelerate investments in digital transformation.
• Socio-cultural Factor:
• E.g. World view – ourselves, others, organisations, society, nature, core cultural values,
and subcultures
17
Organisation-environment Relationship
• Number of jobs available

• Number of jobs created
Jobs and Employment
• Number of jobs
disappeared
• The degree of change

Environmental (dynamic, stable)
Uncertainty • The degree of complexity
(less, more)
• Good relationship
Stakeholder
• Improved performance in
Relationship the long run
© 2022 Singapore University of Social Sciences. All rights reserved. 18

Organisational Culture
Organisational culture has been described as “the shared values, principles, traditions,
and ways of doing things that influence the way organisational members act and that
distinguish the organisation from other organisations” (Robbins & Coulter, 2021, p.
102).
Attention to
Detail
Innovation and Outcome

Risk Taking Orientation
Organisational
Culture
People
Stability
Orientation
Aggressiveness Team Orientation
19
Strong Culture vs Weak Cultures
Strong Culture
- Key values are - Values are shared within

intensely held and limited people, usually top
widely shared. management.
- Has greater influence - Sends contradictory
on employees messages about what is
- Associated with high important
organisational - Employees have little
performance identification with culture.
Weak Culture
- May prevent - Employees have little
employees trying new connection between
approaches shared values and
behaviours.
20
Culture and Ethical behaviour
Organisations with strong cultures would likely promote ethical

behaviour and vice versa (Robbins & Judge, 2019). For example,
Charoen Pokphand Group (C.P. Group), an agro-industrial and
food MNC based in Thailand, was the only
company in Southeast Asia which was voted as one of the 2021
World’s Most Ethical Companies by Ethisphere (Bangkok Post,
2021).
22
How Culture Affects Managers’ and Organisation’s
Performance?
Planning Organising
• The degree of risk the plans should • How much autonomy should be designed
contain into employees’ jobs?
• Whether plans should be developed by • Whether tasks should be done by
individuals or teams individuals or in teams?
• The degree of environmental scanning in • The degree to which department
which management will engage managers interact with each other
Leading Controlling
• The degree to which managers are • Whether to improve external controls or
concerned with increasing employee job to allow employees to control their own
satisfaction actions?
• What leadership styles are appropriate? • What criteria should be emphasised in
• Whether all disagreements – even employee performance evaluations?
constructive ones – should be eliminated? • What repercussions will occur from
exceeding one’s budget?

24
Chapter 2
Foundations of Planning
What is Planning
"Planning involves defining the organisation's goals, establishing an overall strategy for
achieving these goals, and developing a comprehensive hierarchy of plans to integrate
and coordinate activities" (Robbins & Coulter, 2021, p. 233).
• Planning is concerned with both ends (what) and means (how).
• Formal vs. Informal planning
• The overall planning process begins with a mission statement, goals, and plans.
Goals → objectives; desired outcomes or targets
Plans → documents that outline how goals are going to be met
Why Planning?
✓ Provides direction
✓ Reduces uncertainty
✓ Minimises waste and redundancy
✓ Sets the standards for controlling
✓ Aims to achieve positive financial results
Types of Goals and Plans
Criteria for different plans

Strategic & Breadth
Operational
Long term & Time Frame

Goals & Short term
Plans Directional Specificity
& Specific
Single-use & Frequency of Use

Standing

Types of Plans and Categories
Breadth
▪ Strategic plans apply to the entire organisation, establish
organisation’s overall goals.
▪ Operational plans relate to a particular operational area of the
organisation.
Time frame
▪ Long-term plans cover time frame beyond three years.
▪ Short-term plans cover time frame of one year or less.
Specificity
▪ Specific plans are clearly defined.
▪ Directional plans are flexible and set out general guidelines.
Frequency of use
▪ A single-use plan is a one-time plan designed to meet the needs of a
unique situation.
▪ Standing plans are ongoing plans that provide guidance for activities
performed repeatedly.
32
Contingency Factors in Planning
Three contingency factors

1. Manager’s level in the organisation
2. Degree of environmental uncertainty: High level - use specific and flexible plans
3. Length of future commitments: The commitment concept (The commitment concept says
that “plans should be extended far enough to meet those commitments made when the plans were developed” (Robbins &
Coulter, 2018, p.299).
Strategic Top-level
Planning
Managers
Middle
Managers
Operational
First-Line
Planning Managers

Approaches to Planning
Top managers set goals that flow

Traditional down through the organisation and
become subgoals for each
Goal Setting department or work setting.
Approaches
“Is a process of setting mutually
to Planning Management agreed upon goals and using those
goals to evaluate employee
by Objectives performance” (Robbins & Coulter,
2018, p.296).

Approaches to Planning
How does traditional goal-setting work? How does Management by Objectives

(MBO) work?
▪ The concept of ‘Means-ends chain’ ▪ The four major activities of MBO
▪ When hierarchy of goals is clearly o Goal specificity, participative decision-

defined, it forms an integrated making, an explicit time period, and
network of goals, or a means-end performance feedback (Robbins &
chain. Coulter, 2021)
▪ Assessing the effectiveness of MBO is a

▪ Higher level of goals are linked to
complex task.
lower-level goals, which serve as
means for their accomplishment.
o Contingency factors: a person’s ability,
Thus, goals achieved at lower-ends
acceptance of goals, and perception of
becomes means to achieve goals at
difficult goals.
the next higher level and up through
different organisational levels.

Approaches to Setting Goals
The Downside of Traditional Goal-Setting

Approaches to Setting Goals
Management by Objectives (MBO)

MBO is a process of setting mutually agreed-upon goals and using those
goals to evaluate employee performance.
Steps in MBO
This approach presumes that top management knows the best and so in a way it is
autocratic
Characteristics of Effective Goals
Well Written Goals
1) Written in terms of outcomes

2) Measurable and quantifiable
3) Clear time frame
4) Written down
5) Communicated to all necessary organisational
members
.
Contemporary Issues in Planning
Environmental Virtual Reality

Digital Tools
Scanning (VR)
• Environmental • Digital tools refer to • Virtual Reality (VR)
scanning refers to “technology systems refers to “a three
“screening large or software that allow dimensional,
amounts of the user to collect, interactive, computer-
information to detect visualise, or analyse generated experience
emerging trends and data” (Robbins & that takes place within
create a set of Coulter, 2018, p.302). a simulated
scenarios” (Robbins & environment”
Coulter, 2021. P. 243). (Robbins & Coulter,
• Competitor 2021, p. 244)
intelligence

Examples
Digital Tools
Environmental Scanning (Hybrid work Context )
Virtual Reality (VR)
• Competitive intelligence. ❖Greater use of AI and • VR (uses Head gear)

For example, Spotify, the Data analytics at work • AR (Augmented
Swedish music service, • Poly’s Director AI
gathers information Reality)
technology embedded in
about Google’s You Tube video conferencing • Marketing: Customer
and Apple’s Beats. Such solutions service; Product
information helps • NoiseBlockAI technology design; Presentations
Spotify’s managers to helps ensure distracting • Companies like BP and
develop business plans. sounds are kept out of ExxonMobil uses VR in
calls employee training
• VISA vs. Mastercard • AI and analytics can also (emergency exit
provide insights on
scenarios)
• Others? employees’ habits,
behaviour, and • Gaming industry
movements while at
work.

Planning in Dynamic Environment
Guidelines
✓ In an uncertain environment, managers should develop plans that
are specific, but flexible.
✓ Managers need to recognise that planning is an ongoing process.
✓ Good management recognises that plans grow and change to
meet the challenges of changing environment.
✓ Managers must improve their analysis of external environment
by conducting environmental scanning.
▪ Environmental scanning - screening information to detect

emerging trends
▪ Competitor intelligence - gathering information about

competitors that allows managers to anticipate
competitors’ actions rather than merely react to them
Study Unit 3
Decision-Making and Problem Solving,
Business Ethics and Social Responsibility
1. Apply the decision-making process, ethical decision-making, and corporate social

responsibility in real and hypothetical situations
2. Examine types of decisions, decision-making thinking styles, decision-making

approaches, and three conditions under which decisions are made in organisations
3. Identify techniques for improving decision-making and problem-solving in today’s

world
4. Define ethics and analyse the factors that lead to ethical and unethical behaviour
5. Discuss the role of organisations and managers in encouraging ethical behaviour in

organisations
6. Describe the concept of social responsibility and contemporary issues in corporate

social responsibility, especially in the digital era
3
SU3: Decision-Making and Problem Solving,
Business Ethics and Social Responsibility
• Problem solving and decision-making

• Decision-making process
Chapter 1 • Types of decisions
Decision-Making and • Decision-making conditions
Problem Solving • Decision styles
• Approaches to decision-making
• Effective decision-making
• Ethics and ethical behaviour

Chapter 2 • Factors that determine ethical and unethical
Social behaviour
Responsibility • Corporate social responsibility (CSR)
and Ethics • Contemporary issues in CSR and Ethics
4
Chapter 1
Decision-Making and Problem Solving
The Concept of Decision-Making
▪ Decision is a choice made from available alternatives.

An alternative refers to one of two or more available
possibilities/solutions.
▪ Decision-making is a process of identifying problems and

resolving them, or identifying opportunities and making the
most out of them.
✓ A problem is the discrepancy between an existing condition and

a desired condition. It is defined as an issue or a situation that is considered
unfavourable and needs to be addressed
✓ An opportunity is a current or a foreseeable set of favourable

circumstances that may help an organisation.
Take note: Perception may play a role in determining whether a
situation represents a problem or an opportunity.
E.g.: The founder of a company will retire next month. Is it a problem
or an opportunity?
Decision-Making
Managers, often referred to as decision-makers, must make

good decisions because the quality of managerial decisions
affects organisations’ success or failure (Robbins & Coulter,
2018).
Importance of Decision-Making
➢ Decision-making is the main activity of a manager.

Managers are decision makers on:
◆ What needs to be done? (planning)
◆ Who should do it? (planning and organising)
◆ Who and how it should be done? (organising)
◆ By when it should be done? (controlling)
◆ How to motivate others, and how to resolve conflicts?
(leading)
➢ Managers at all levels make decisions.
➢ Decision-making helps to ensure organisations’ success by
resolving problems, and by taking advantage of
opportunities.
Problem Solving and Decision-Making
• is an issue or a situation that is

Problem considered unfavourable and needs
to be addressed.
• refers to a series of activities that are

carried out - from defining a problem,
Problem identifying its root cause, producing
various options, defining the selecting
Solving criteria to select the most viable option
in a given situation, and then
implementing the selected solution to
address the issue (American Society for
Quality, (2021).
• is a process of identifying not only

Decision-Making problems/issues that needs to be
resolved, but also opportunities that
need to be explored and embarked
upon (Daft, 2012).

Decision-Making Process
According to Robbins and Coulter (2021), decision-making process involves

eight steps that include,
1. Identifying a problem
2. Identifying decision criteria
3. Allocating weights to the criteria
4. Developing alternatives
5. Analysing and assessing alternatives
6. Selecting an alternative
7. Implementing the alternative
8. Evaluating decision effectiveness

The Decision-Making Process: An Illustration
Step 1 – Identifying a problem

Example: A manager needs to select a supplier.
Step 2 – Decision criteria: define what is relevant to a problem

Example: Cost, quality, time, past record, social responsibility
Step 3 – Allocating weights to the criteria (Step 2)
Criteria Weight
Cost 10
Time 8
Quality 6
Social responsibility 5

Step 4 – Developing alternatives requires listing viable alternatives: Supplier 1,

Supplier 2, Supplier 3.
Step 5 – Each alternative needs to be evaluated against the criteria established in

Steps 2 and 3
Cost Time Quality Social responsibility
(weighted (weighted (weighted (weighted criteria -
criteria -10) criteria - 8) criteria - 6) 5)
Supplier 1 10 5 5 3
Supplier 2 8 6 4 2
Supplier 3 5 5 8 3
Cost Time Quality Social responsibility Total
(weighted (weighted (weighted (weighted criteria - 5) score
criteria -10) criteria - 8) criteria - 6)
Supplier 1 10 X 10 5X8 5 X6 3X5 185
Supplier 2 8 X 10 6 X8 4 X6 2 X5 162
Supplier 3 5 X10 5 X8 8 X6 3 X5 153
Step 6 – Managers need to select the best alternative – i.e., this best alternative
will become the decision among those listed in Step 4, based on the
assessment conducted in Step 5. Supplier 1 in this case.
Step 7 – Implementation of the selected alternative. The manager should inform

all the respective departments and stakeholders that Supplier 1 is
selected.
Step 8 – Evaluation of the effectiveness of the decision. The manager needs to

evaluate if Supplier 1 performs well (offers reasonable time, delivers the
products timely, etc.)
Types of Decisions
Structured Problems and Programmed Decisions

Unstructured Problems and non-programmed Decisions
Unstructured Top
Non-programmed
Decisions
Type of Level in
Problem Organisation
Programmed
Decisions
Lower
Structured

Decision Types
Programmed vs. non-programmed Decisions

1. Programmed decisions for Structured problems
Problems are easily defined, simple, and familiar to managers who need
to handle them. Such problems can usually be addressed by programmed
decisions that can be repeated in many instances and can be dealt with by
a standard approach (e.g., by a rule, a procedure. or a policy).
2. Non-programmed decisions for Unstructured problems
Problems are new or uncommon to managers who need to resolve them

and for which information is insufficient, unclear, or incomplete. Such
problems are often addressed by non-programmed decisions that are
custom-made solutions. Thus, such decisions are unique to address a
particular, non-recurring problem.
Decision-Making Conditions
• refers to a circumstance when a perfect decision can

Certainty be made by a manager because the outcome of each
of the available options is known.
• refers to a condition in which a manager is able to

predict the probability of the outcome of each of the
Risk available alternatives.
• refers to an event when an accurate decision cannot

Uncertainty be made by a manager because the outcome of each
of the available options is impossible to predict.

Decision making Conditions
Conditions: from complete certainty to absolute uncertainty,
▪ Certainty refers to a circumstance when a perfect decision can be

made by a manager because the outcome of each of the available
options is known.
▪ Risk is a condition in which a manager is able to predict the

probability of the outcome of each of the available alternatives.
▪ Uncertainty refers to an event when an accurate decision cannot be

made by a manager because the outcome of each of the available
options is impossible to predict.
• Ambiguity refers to a circumstance when the knowledge of any

possible alternatives is absent. Managers assume alternatives and
their outcomes.
Decision Styles
Linear Thinking • An individual may prefer to gather external data and

Style facts, and to analyse the collected data using rational
and logical thinking.
• An individual may prefer to use internal sources of

Non-linear information, feelings, and intuition, and to process
thinking style this information using feelings and internal insights.
Einhorn (2021) also advises that good decision-making should be circular – i.e., an effective decision-
making process needs “a feedback loop” because new information is available every few minutes via
various communication channels, especially during the digital age.
Note: Robbins and Coulter (2021) also explain that an individual’s approaches to
making decisions may be influenced by his or her own thinking styles.

Approaches to Decision-Making
The four approaches to decision-making as explained by Robbins and Coulter (2018)

and Chartered Institute of Personnel and Development (2021) are
Rationality decision-making approach
Bounded rationality decision-making approach
Intuition decision-making approach
Evidence-based decision-making approach

✓ The Rational decision-making approach is a normative

approach and managers are expected to be rational decision
makers who make economically sensible decisions in the
organisation’s best economic interest.
✓ Managers make logical, consistent, value-maximising choices
within specified constraints.
✓ The constraints or assumptions include (i) the problem is clear
and unambiguous, (ii) the decision-maker has a clear and
specific goal and knows all possible alternatives, and (iii)
decisions are made in the best interest of the organisation.
The Bounded Rationality approach operates under assumptions of

“bounded rationality” which says that managers make decisions rationally,
but are limited (bounded) by their ability to process information on all
alternatives, so manager’s satisfice rather than maximise.
In simple words, under bounded rationality, managers make “good enough
decisions” or satisficing decisions rather than maximise payoffs.
Thus, managers choose the first alternative they come across that
satisfactorily solves the problem. They do not consider all alternatives
maximise the outcome.
Intuition is another aspect of administrative decision-

making. Intuition represents a quick apprehension of a
decision situation based on past experience, feelings and
accumulated judgement. It is based on years of practice and
hands-on experience.
Research studying managers’ use of intuitive decision-making

has identified five aspects of intuition: experience-based
decisions, affect-initiated decisions, cognitive-based
decisions, sub-conscious mental processing and values-ethics
based decisions (Dane & Pratt, 2007 ).
Effective Decision-Making
Two Cutting-edge Approaches to Decision-Making
Design • is a process to approach and address problems

similar to how designers approach design
Thinking problems (Robbins & Coulter, 2021).
• is a multi-discipline that includes a broad range of

Decision decision-making methods and tools, such as data
Intelligence analytics, AI, applications of complex adaptive
systems, etc. (Panetta, 2021).

Decision Intelligence
Types of intelligent decision models Features

Human-made Humans make decisions based on the data
and insights provided by AI systems or
machines. In this model, AI systems are not
directly involved in the decision-making
process, and do not make any decisions.
Machine-based Decisions are made by AI systems, and human

intervention is limited. It should be noted that
AI systems may generate behaviours or
options that are not foreseen by the
programmers.
Hybrid Human and AI systems work with each other

to produce solutions. In some cases, AI
systems can make suggestions and even
implement such suggestions for humans.
Table 3.4 Types of Intelligent Decision-Making Models(Source: Dilmegani, 2021)
25
Guidelines/Techniques for Effective Decision-Making
➢ Understand cultural differences
➢ Create standards for good decision-making
➢ Know when it is time to call it quits
➢ Use an effective decision-making process
➢ Develop one’s ability to think clearly
➢ Building an organisation that can predict the unexpected events

Chapter 2
Social Responsibility and Ethics
Ethics and Ethical Behaviour
Ethics is moral principles that guide one’s conduct or behaviour to do right

or wrong things (Robbins & Coulter, 2021).
Managers face ethical dilemmas where they need to choose between two
options, but none of them is considered perfectly acceptable.
Ethical behaviour is the result of complete interaction between the

manager’s stage of moral development and moderating variables of
personal characterises, the structural variables (e.g., organisations’ policies
and rules, job tasks, codes of ethics, organisational culture, etc.), and the
intensity of the issue (Robbins & Coulter, 2021).

Factors that Determine Ethical and Unethical Behaviour
Individual characteristics Intensity of

(values and personality) Ethical Issue
Stage of Ethical or
Ethical
moral Moderators unethical
dilemma
development behaviour
Structural variables (structural

design, policies, rules, performance
appraisal, and organisational culture)
Source: Adapted from Han & Dawson (2021), Kohlberg & Hersh (1977), Robbins & Coulter (2021)

Stages of Moral Development

Stage 6: Apply own ethical principles even if they do not
comply with the regulation/law.
Stage 5: Respect others’ views and rights and uphold values

Principled and rights regardless of the majority’s sentiment.
.Stage 4: Uphold conventional order by doing what one

has agreed to do
Conventional
Stage 3: Try to do what people expect one to do so.
Stage 2: Comply with rules and regulation only if one will reap
benefits for doing so.
Pre-conventional
Stage 1: Comply with law, rules and regulations to avoid
physical punishment.
Source: Adapted from Han & Dawson (2021), Kohlberg & Hersh (1977), Robbins & Coulter (2021)

Stages of Moral Development
Implications
At each successive stage , an individuals moral judgment
becomes less dependent on outside influences and more
internalised.
Conclusion:
- People proceed through the six stages sequentially
- No guarantee of continued moral development
- Majority of adults are at stage 4: obey rules and inclined
to behave ethically (different reasons)
Manager implications:
▪ A manager at level 3 is likely to make decisions based on
peer approval;
▪ A manager at stage 4 tries to be good corporate citizens;
▪ A manager at stage 5 challenges organisational practices
that he/she believes to be wrong.
6. Individual Characteristics
Values and personality

Locus of control that refers to the degree to which people believe that they
control their own fate.
Ego strength (a measurement of the strength of one’s beliefs, view and
conviction)
Internal Locus of control vs. External Locus Control (extent to which one
can manage their own fate?)
Structural Variables
Formal rules and regulations, job descriptions, written codes of ethics,
performance appraisal systems, and reward systems can strongly
influence ethical behavior.
Organisational Culture
▪ Cultures with a high level of risk tolerance, control, and conflict
tolerance is likely to encourage ethical behavior.
▪ Weak cultures, work groups and departmental standards may not
encourage ethical behavior.
Intensity of Ethical Issue
Consensus
of Wrong
Greatness of Probability
Harm of Harm
Issue
Intensity
Concentration Immediacy of
of Effect Consequences
Proximity to
those who
are affected

Intensity of Ethical Issue
S/N. Elements Questions to determine The issue is intensive if
1 Greatness of harm How many people will be negatively affected by the A large number of people are negatively affected by
action or the decision? the action or the decision.
2 Consensus on wrong How many people agree that the action or the decision Many people agree that the action or the decision is
is wrong? wrong.
3 Probability of harm What is the possibility that an action or a decision will The possibility that an action or a decision will cause
cause negative consequences? negative consequences is high.
4 Immediacy of consequences When will the negative consequences happen? Will The negative consequences happen immediately.
they happen immediately?
5 Proximity to those who are How close are those who are negatively affected by the Those who are negatively affected by the action or
affected action or the decision? the decision are close.
6 Concentration of effect How concentrated are the negative consequences of The negative consequences of the action or the
the action or the decision? decision are very concentrated
Describe Managers’ Role in Encouraging Ethical
Behaviour in Organisations
Robbins & Coulter (2018) lists the following specific ways that
managers can encourage ethical behaviour and create a
comprehensive ethics programme.
1. Employee selection
2. Codes of ethics and decision rules
3. Leadership at the top
4. Job goals and performance appraisal
5. Ethics training
6. Independent social audits
7. Protective mechanisms
Corporate Social Responsibility (CSR)
Social responsibility of organisations, or corporate social responsibility (CSR),

refers to their activities that go beyond legal obligation and compliance with
laws, rules, and regulation to respond to societal expectations with regard to
the environment, stakeholders, community, etc. (Buchholtz & Carroll, 2012;
Johnston et al., 2021; Lim & Greenwood, 2017).
• Robbins and Coulter (2021) discuss two main views of CSR, namely
✓ Classical View (social obligation)

✓ Socio-economic View (social well-being and social welfare)

Corporate Social Responsibility (CSR)
TheFriedman's
Milton Classicalstance
Viewwasof plain:
Social Responsibility
“There is one and only one social
responsibility of business—to use its resources and engage in activities
✓ Managements’
designed only
to increase its socialThat
profits.” responsibility is to
view has long maximise
influenced profits.
management
thinking,
✓ The corporate governance,
obligation and strategic
of a business is to moves.
meet its economic and legal
responsibilities and nothing more
You might disagree with Milton Friedman's famous claim that the sole social
The Socioeconomic
responsibility View
of business is to of Social
increase Responsibility
its profits. But you can't deny that it
sounds simple and straightforward.
✓ Social responsibility goes beyond the making of profits to
protect society/communities and improve social welfare.
✓ Social responsibility is reflected when a firm engages in social

initiatives in response to some social needs.
Take note: The level of social responsibility of an organisation

can be viewed by looking at three stages of organisations – from
obligation to responsiveness to responsibility.
Contemporary Issues in CSR and Ethics
(Green Management & Sustainability)
Shades of Green Model
High Environmental
Sensitivity
Activist
Approach
Stakeholder approach
Market approach
Legal approach
Low Environmental
Sensitivity
Source: Adapted from Kurland & Zell (2011), Robbins & Coulter (2021)

Study Unit 4
Organisational Design: Evolving Structures
1. Explain why organising is an essential element in the management process in the

digital age
2. Analyse the key elements in organisational design and their relevance in
organisations today
3. Discuss the contingency factors affecting structural choice that favour either the
mechanistic model or the organic model of organisational design
4. Examine traditional organisational designs – simple structure, functional structure,
and divisional structure
5. Discuss organising for flexibility in the twenty-first century, and assess the need for
collaboration in organisations
6. Outline key elements of a ‘digital organisation’ and discuss management principles
that govern a digital organisation
5
SU4: Organisational Design: Evolving Structures
• Importance of Organising function

Chapter 1 • Organising and organisational design
• The six elements of organisational design
Foundations • Mechanistic structure and organic structure
of • Contingency factors that shape organisational
Organisational structure
Design • Traditional organising designs
• Contemporary organisational designs
• Organising for collaboration
• Being digital
Chapter 2 • Digital Transformation (DT)
Management • What is a digital organisation?
of Digital • Managing a digital organisation
Organisations • Challenges in managing a digital organisation
6
Chapter 1
Foundations of Organisational Design
The ‘Organising Function’
✓ The organising function follows the planning function. Planning defines

what and when to do. Organising defines how and who to do it.
✓ In order to achieve both effectiveness and efficiency in organisations,

managers look into the way work is arranged or structured (Robbins and
Coulter, 2018).
✓ Organising function is important as it involves decisions about six key

elements of organising that are essential for effective management.
✓ Organising decisions are not only important for upper-level, managers at

all levels deal with some or the other elements of organising.

Organising and Organisational Design
Robbins and Coulter (2021) define organising as “arranging and structuring

work to accomplish organisational goals” (p. 307).
Organisation Structure
“is a formal arrangement of jobs within an organisation” (Robbins & Coulter, 2021, p. 307).
Organisation Chart
• is a visual presentation of organisational structure (Robbins & Coulter, 2021).
Organisational Design
• is a process that involves decisions about six key elements – work specialisation,
departmentalisation, chain of command, span of control, centralisation and
decentralisation, and formalisation (Robbins & Coulter, 2021).

Organisational Chart: An Illustration
Organisational chart is a visual representation of an organisation’s structure.

The Six Elements of Organisational Design
According to Robbins and Coulter (2021), the six key elements of organisational
design are:
1. Work specialisation
2. Departmentalisation
3. Chain of command
4. Span of control
5. Centralisation and decentralisation
6. Formalisation

Work Specialisation Departmentalisation

“It refers to dividing work activities “It refers to how jobs are grouped
into separate job tasks” (Robbins & together” (Robbins & Coulter, 2021,
Coulter, 2021, p. 309). p. 309).
Early proponents of work Five common forms of

specialisation believed that it could departmentalisation are:
lead to a great increase in 1. Functional
productivity. 2. Geographical
3. Product
4. Process
Over-specialisation is said to cause 5. Customer
human diseconomies.
o Teams and Matrix (new forms)

Chain of Command Span of Control

“is the line of authority extending Refers to “how many employees can
from the upper organisational levels a manager can efficiently and
to the lower levels, which clarifies effectively manage” (Robbins &
who reports to whom” (Robbins & Coulter, 2021, 311).
Coulter, 2021, p. 309).
o Large or wide span of control
1. Authority (flat)
2. Responsibility o Low or narrow span of control
3. Unity of Command (tall)
o Line Authority & Staff Authority

o Line vs. Staff functions

Key Elements of Organisational Structure: Chain of
Command
Authority: Line and Staff Functions
CEO
Top
Management
Team
Middle
Management
Research & Human Information

Logistics Production Marketing Finance Accounting
Development Resources Technology
Line Functions Staff Functions

Centralisation and Formalisation

Decentralisation
Centralisation is the degree to whichFormalisation is the degree to which
decision making takes place at upper jobs within an organisation are
levels of the organisation (Robbins &standardised and the extent to
Coulter, 2021). which employee behaviour is guided
by rules and procedures (Robbins &
Decentralisation means that Coulter, 2021).
decision authority is pushed down to
lower organisation levels (Robbins & o High formalisation
Coulter, 2018). o Low formalisation

Key Elements of Organisational Structure
Formalisation
▪ Highly formalised jobs offer little discretion over what is to be
done.
▪ Low formalisation means fewer constraints on how employees

do their work.
▪ Degree of formalisation vary widely between organisations and

within organisations.
Today’s View
Organisations are moving towards less formalisation –
fewer rules and procedures.
Mechanistic Structure Organic Structure
High work specialisation Cross-functional teams
Rigid departmentalisation Cross-hierarchical teams
Clear chain of command Free flow of information
Narrow spans of control Wide spans of Control
Centralisation Decentralisation
High formalisation Low formalisation

Contingency Factors that shape Organisational Structure
Types of Strategy Innovation, Imitation, and Cost minimisation

• Strategy and Structure
o Changes in corporate strategy should lead to changes in an organisation’s structure that support
the strategy. Certain structural designs work best with different organisational strategies.
Small & Medium Enterprises (SMEs), Conglomerates, Large

Different Sizes Organisations
• Size and Structure
o As an organisation grows larger, its structure tends to change from organic to mechanistic with
increased specialisation, departmentalisation, centralisation, and rules/regulations.
Production Unit production, Mass production, Process production

Technology (Woodward studies)
• Technology and Structure
o Organisations adapt their structures to their technology. Read about Woodward’s classification
of firms based on the complexity of the technology employed.

Traditional Organisational Designs
❑ Simple structure is an organisational design with low departmentalisation,

wide spans of control, centralised authority, and little formalisation.
Strengths: fast, flexible, easy to maintain
Weaknesses: not appropriate as an organisation grows
❑ Functional structure is an organisational design that groups together similar

or related occupational specialties.
Strengths: Cost saving advantage from specialisation, economies of scale
Weaknesses: become insulated with little understanding of what other departments do
❑ Divisional structure is an organisational structure made up of separate,

semi-autonomous units or divisions.
Strengths: Focuses on results or effectiveness more than efficiency
Weaknesses: Cost inefficiencies brought by duplication of resources and activities

Traditional Organisational Designs:
Functional Structure
CEO
Vice-President Vice-President Vice-President

Vice-President
Sales & Human Finance &
Manufacturing
Marketing Resources Administration
Purchasing Marketing Recruiting Finance

Senior Manager Senior Manager Senior Manager Senior Manager
Training &
Operations Sales Administration
Development
Senior Manager Senior Manager Senior Manager
Senior Manager
Compensation & Corporate

Logistics Market Research
Beneﬁts Governance
Senior Manager Senior Manager
Functional Structure
CEO
Vice-President Vice-President Vice-President

Vice-President
Sales & Human Finance &
Manufacturing
Marketing Resources Administration
Purchasing Marketing Recruiting Finance

Training &
Operations Sales Administration
Development
Senior Manager Senior Manager Senior Manager
Senior Manager
Compensation & Corporate

Logistics Market Research
Beneﬁts Governance
Divisional Structure (Outputs)
CEO
Printer & Desktop

Laptops
Scanner Computer Tablets
Product
Product Product Division
Division
Division Division
Manufacturing Manufacturing Manufacturing Manufacturing

Marketing Marketing Marketing Marketing

Human Resources Human Resources Human Resources Human Resources

Finance & Finance & Finance & Finance &

Administration Administration Administration Administration
• The divisional structure adopts a vertical structure approach of grouping functional
departments based on organisational outputs.
• Different functional departments are brought together to produce a single
organisational output.
• Divisions are created as self-contained units with separate functional departments
for each division.
• For example, in a large divisional organisation, separate engineering, human
resources, and marketing departments are created within each division, with each
division focusing on a single product.
• The divisional structure is sometimes called a product structure,
geographic, program structure, or self-contained unit structure.
Example is Nike, which uses a geographical divisional structure (North America, central
and eastern Europe, China, and emerging markets), with each division having its
functional structure.
Traditional Organisational Designs
• A summary of the strengths and weaknesses of each type of organisational design can
be found in Exhibit 11-8.
Contemporary Organisational Designs
1. Matrix structure assigns specialists from different functional departments

to work on a project led by a project manager.
2. Project structure involves employees continuously working on projects in

their teams.
3. Team structure is an organisational structure in which the entire

organisation is made up of work teams.
4. A boundaryless organisation is characterised by an absence of any definite

structure – vertical or horizontal or external boundaries.

Contemporary Organisational Designs
Boundaryless Organisation
➢ Two types of boundaries

Internal - those imposed by work specialisation or departmentalisation
External - those that separate the organisation from its customers,
suppliers or other stakeholders
➢ Eliminating these boundaries lead to creation of a network or virtual

organisation.
➢ Virtual organisation operates with a small core of full-time employees,

while hiring outside specialists to work on projects temporarily as needed.
➢ Network organisation uses its own employees to do some work activities,

while using networks of outside suppliers to provide other needed product
components or work processes.
Organising for Collaboration
Organisations need to be more flexible in how work is done, especially in contemporary

organisational designs.
Collaboration among employees is important for more coordinated and integrated work
efforts.
Collaboration efforts can be internal (employees) or external (stakeholders).
❑ Collaboration is needed for:

✓ increased communication and coordination
✓ greater innovation
✓ enhanced employees’ ability to address complex problems
✓ sharing information
However, managers must keep in mind the following challenges that may arise during
the collaborative process:
✓ potential interpersonal conflicts
✓ different views and competing goals
✓ logistics and coordination issues

Chapter 2
Management of Digital Organisations
Being Digital
Digital Transformation (DT) marks a radical rethinking of

how an organisation uses technology, people and
processes to fundamentally change business
performance (Westerman & Bonnet, 2020).
Digital Age
Digitalisation is a process of
Digitisation is the conversion
using digital technologies or
of analogue information (non-
digitised data to improve work
digital) to digital.
processes.

Digital Transformation (DT)
❑ Digitalisation and the phenomenon of digital transformation are

rapidly and fundamentally changing existing businesses and
organisations alike (Collin, 2015).
• Different organisations are embracing digital transformation for

different reasons.
• The road to digital transformation for many organisations may not

have been all that fruitful.

What is a Digital Organisation?
Those organisations that began

to adopt a new digital approach
after dot.com bubble in late
20th century - digital first
companies.
Those organisations that

Digital are adopting Digital
Organisation Transformation (DT).
Those organisations that are

adopting digital technologies
at different spectrums of their
operations.

Managing a Digital Organisation
According to Negroponte (1995), the four very powerful qualities that will
result in a digital organisation’s ultimate triumph are:
Decentralising
Globalising
Harmonising
Empowering

Challenges in Managing a Digital Organisation
Along with the many opportunities that digital technologies offer, they pose
many challenges to digital organisations. Some, not all, challenges include:
✓ How to organise
✓ How to build agile teams
✓ Managing trust
✓ CSR practices in the digital age
✓ Ethical issues

Study Unit 5
Leading in Turbulent Times
1. Define leadership, explain the nature and importance of leadership

2. Discuss the importance of motivation in leadership effectiveness
3. Explain early approaches to leadership – the ‘trait’ and the ‘behaviour'
approaches to leadership
4. Discuss the two situational approaches to leadership: the Fiedler’s model and
Hersey &Blanchard’s situational leadership theory
5. Describe transformational and charismatic perspectives on leadership
6. Outline the five sources of leadership power
7. Examine current issues in leadership in the twenty-first century, especially in
the digital era
3
SU5: Leading in Turbulent Times
• What is leadership?
Chapter 1 • Leaders vs. managers
• Leadership and motivation
Leadership: • Early approaches to leadership
Nature and • Situational approaches to leadership
Approaches • Contemporary views of leadership
• Managing power
Chapter 2 • Leadership in the digital age

Current Issues in • Building trust and empowering employees
Leadership • Leading across cultures: A global mindset
• Is leadership for everyone?
4
Chapter 1
Leadership: Nature and Approaches
Leadership: An Overview
1. Leadership: Nature and importance 2. Early leadership theories

Traits theories & Behaviour theories
3. Contingency theories 5. Current issues in

leadership
The Fiedler Model
Hersey and Blanchard’s Situational ➢- Managing power
Leadership Theory ➢- Developing trust
Leadership ➢- Empowering employees
➢- Leading across cultures
4. Contemporary views of ➢- Becoming an effective
leadership ➢ leader
- Transformational & Transactional
leadership
- Charismatic & Visionary leadership
- Team Leadership
What is Leadership?
“Leadership is a process leading a group and influencing that group to achieve its goals”
(Robbins & Coulter, 2021, p. 481).
Influence
People Goals
Leadership
13

What is Leadership?
Leadership
There is probably no topic more important to business success than leadership

because it occurs among people, involves influence, and is used to attain goals.
Influence means that the relationship among people is not passive. Influence is
designed to achieve some end or goal.
What is Leadership?
14
Leaders vs. Managers
✓ Managers plan, organise, lead, and control work activities to reach

organisational goals. Leaders, on the other hand, are concerned with
understanding people, their beliefs, and gaining their commitment.
✓ While managers advocate stability and the status quo, leaders advocate change
and new approaches (Lunenburg, 2011). According to Kotter (1987), leadership
is about coping with change whereas management is about coping with
complexity.
✓ Leadership cannot replace management. Good management helps the

organisation meet current commitments, while good leadership moves the
organisation into the future.
✓ Most of the research on leadership aims at addressing the question “What

makes an effective leader”?

Leadership and Motivation
Motivation is the process that accounts for an individual’s intensity, direction, and
persistence of effort toward attaining a goal (Robbins & Judge, 2019).
- Intensity (how hard)

How to Motivate? - Direction (right goal)
- Persistence (how long)
✓ Maslow’s Hierarchy of Needs Theory
o Within every individual a hierarchy of five needs exists: physiological needs,

safety needs, social belonging needs (also called love & belonging need), esteem
needs, and self-actualisation needs.
✓ Herzberg Two-Factor Theory
o Intrinsic Factors vs. Extrinsic Factors (Hygiene factors)

Maslow’s Hierarchy of Needs
As each need is substantially satisfied,

the next need becomes dominant
Maslow’s Hierarchy of Needs

theory ranks five categories of
human needs in an order of
satisfaction priority that directs
individual’s efforts within as well as
outside of the workplace.
18
Herzberg’s Two-Factor Theory
Hygiene or maintenance factors
No dissatisfaction Dissatisfaction
Motivators or growth factors
Satisfaction No satisfaction
20
The things that made people satisfied and
motivated on job are different from the things
that made them dissatisfied
Early Approaches to Leadership
• Certain characteristics/traits differentiate leaders

Leadership from non-leaders some times, not always.
Traits • It is more successful in identifying ten traits that
Theory are consistently associated with effective
leadership.
• The University of Iowa Studies (autocratic,

Leadership democratic, laissez-faire)
• The Ohio State Studies (initiating structure and
Behavioural consideration)
Theories • The University of Michigan Studies (employee-
oriented and job-oriented)

Ten Traits Associated with Leadership
Description
Drive Leaders exhibit a high effort level. They have a relatively high desire for achievement, they are
ambitious, they have a lot of energy, they are tirelessly persistent in their activities, and they show
initiative.
Desire to lead Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take
responsibility.
Honesty and integrity Leaders build trusting relationships with followers by being truthful or not deceitful and by showing high
consistency between word and deed.
Self-confidence Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence
in order to convince followers of the rightness of their goals and decisions.
Intelligence Leaders need to be intelligent enough to gather, synthesise, and interpret large amounts of information,
and they need to be able to create visions, solve problems, and make correct decisions.
Job-relevant Effective leaders have a high degree of knowledge about the company, industry, and technical matters.
knowledge In-depth knowledge allows leaders to make well-informed decisions and to understand the implications
of those decisions.
Extraversion Leaders are energetic and lively people. They are sociable, assertive, and rarely silent or withdrawn.
Proneness to guilt Guilt proneness is positively related to leadership effectiveness because it produces a strong sense of
responsibility for others.
Emotional Intelligence Empathetic leaders can see others’ needs, listen to what followers say, and read the reactions of others
Conscientiousness People who are discipline and able to keep commitments have an apparent advantage when it comes to
leadership.
Source: Robbins & Coulter (2021), Kirkpatrick & Locke (1991), Judge et al. (2002)

Leadership Behavioural Theories: Leadership Styles
✓ Autocratic style: a leader who dictates work methods, makes unilateral

decisions, and limits employee participation.
✓ Democratic style: A leader who involves employees in decision-making,

delegates authority, and uses feedback as an opportunity for coaching
employees.
✓ Laissez-faire style: A leader who lets the group make decisions and complete the
work in whatever way it sees fit.
✓ Initiating structure: The extent to which a leader defines his or her role and the
roles of group members in attaining goals.
✓ Consideration: The extent to which a leader has work relationships

characterised by mutual trust and respect for group members’ ideas and
feelings.

Situational Approaches to Leadership: Introduction
What makes a successful/effective leader?
• The quest for what makes a successful leader, besides

traits and behaviour approach, lead researchers to take a
contingency approach that explores situational influences
on leadership effectiveness (Robbins & Coulter, 2021).
• The contingency theories, thus, study which leadership

styles might be suitable in different situations and what
the different situations are?
Situational Approaches to Leadership
• It proposes that effective leadership is

Fiedler’s Leadership achieved by a proper match between a
Theory leader’s style (task oriented or relationship
oriented) and the situation.
Hersey Blanchard’s • It proposes that effective leadership is

Situational achieved by selecting the right leadership
style (telling, selling, participating,
Leadership Theory delegating) that matches with the
(SLT) followers’ readiness level.

Contingencies theories focus on the ‘context’ or ‘situation’ and look

at what leadership styles might be suitable in different situations and
what the different situations are.
1. Fiedler’s Contingency Leadership Theory: “A leadership theory

proposing that effective group performance depends on the
proper match between a leader’s style and the degree to which
the situation allows the leader to control and influence” (Robbins &
Coulter, 2016, p. 527).
Two leadership styles: Task oriented and Relationship oriented can

be adopted in different situations that are defined as highly
favourable, moderate, and highly unfavourable.
✓ The suitability of a person’s leadership style is determined

by whether the situation is favouurable or unfavorable.
✓ Since leadership styles are considered to be difficult to

change, the basic idea is to match the leader’s style with
the situation most favorable for his or her effectiveness.
✓ The favourability of a leadership situation can be analyzed

in terms of three elements: leader-member relations, task
structure, and position power.
Fiedler’s Contingency Leadership Theory
How to know if the situation is favourable? What leadership style to adopt?
✓ A leader needs to know whether he or she has a

relationship- or task-oriented style.
✓ A leader should diagnose the situation and
determine whether leader-member relations, task
structure, and position power are favourable or
unfavorable.
If a situation is very unfavorable but was led by a relationship-

oriented leader, the group’s performance could be improved
by replacing its leader with a task-oriented leader.
Hersey & Blanchard’s Situational Leadership
Reediness level of Followers vs. Leadership style

✓ People low in task readiness need a different leadership
style than those with high readiness.
✓ People have low task readiness due to limited skills, lack

of training, or insecurity.
✓ People with high task readiness tend to have ability,

skills, confidence, and willingness to work.
Hersey & Blanchard’s Situational Leadership
Hersey & Blanchard’s Situational Leadership Model: 4 styles

(depending on the level of readiness (unable and unwilling,
unable but willing, able but unwilling, able and willing) of
followers)
▪ Telling (high task–low relationship): The leader defines roles and tells
people what, how, when, and where to do various tasks.
▪ Selling (high task–high relationship): The leader provides both directive

and supportive behavior.
▪ Participating (low task–high relationship): The leader and followers

share in decision making; the main role of the leader is facilitating and
communicating.
▪ Delegating (low task–low relationship): The leader provides little

direction or support.
Contemporary Views of Leadership
Transformational
Team Leadership
Leadership
Visionary Charismatic
Leadership Leadership

LO: Contrast transformational and transactional leadership
1. Transformational & Transactional Leadership

▪ Early leadership theories, including the contingency theories,
were all transactional in nature. They viewed leaders as
transactional leaders who lead primarily by social exchanges or
transactions.
▪ Transactional leaders excel at management functions.
▪ Transformational leadership develops from transactional
leadership.
▪ Transformational leaders stimulates and inspires followers.
▪ Evidence indicates that transformational leadership is
strongly correlated with lower turnover rates, and higher levels
of productivity.
Examples of Transformation Leadership
Microsoft, created a climate of intellectual stimulation, and

nurtured it in the organisation that brought many changes
and transformed Microsoft into the world’s largest and best
PC software company.
Another example is Reed Hastings, co-founder and CEO of

Netflix, who transformed the company’s original mail-order-
DVD service company into a subscription-based
entertainment service. Hastings’ transformational leadership
was evident when Netflix succeeded in creating its own
content rather than leasing previously produced content.
Charismatic-Visionary Leadership
Charismatic leader – “An enthusiastic, self-confident leader whose personality

and actions influence people to behave in certain ways” (Robbins & Coulter, 2018, p. 565).
Personal characteristics of a charismatic leader include:

✓ having a vision,
✓ being able to articulate that vision,
✓ being willing to take risks to achieve that vision,
✓ being sensitive to both environmental constraints and follower needs, and
✓ exhibit behaviours that are out of the ordinary.
❖ Visionary leadership – “The ability to create and articulate a realistic,

credible, and attractive vision of the future that improves upon the present
situation” (Robbins & Coulter, 2018, p. 566).
Types of Power and Managing Power
Legitimate Power
Coercive Power
Reward Power
Expert Power
Referent Power

Chapter 2
Current Issues in Leadership
Building Trust and Empowering Employees
Building Trust
• Trust is defined as the belief in the integrity, character, and ability of a
leader (Robbins & Coulter, 2021).
• The five dimensions of trust include: integrity, competence, consistency,
loyalty, and openness.
Empowering Employees
• Empowerment involves increasing the decision-making discretion of
workers.
• Empowerment may be driven by
(i) quick decisions to be made, especially by the individuals who are most
knowledgeable about particular issues, and
(ii) change in organisational culture towards more decentralisation.

Leading Across Cultures: A Global Mindset
National culture includes the values and attitudes shared by individuals from a
specific country that shape their behaviour and their beliefs about what is important
(Robbins & Coulter, 2021).
Global leaders need a global mindset, an attribute that allows a leader to be

effective in cross-cultural environments (Cseh et al., 2013; Javidan et al., 2010;
Robbins & Coulter, 2021). The three components of a global mindset are: intellectual
capital, social capital, and psychological capital.
Intellectual
capital
Global
Social capital
Mindset
Psychological
capital

Is Leadership for Everyone?
• Leader training involves different forms of

Leadership imparting different skills such as vision creation,
Training trust-building, and mentoring (Robbins & Coulter,
2021).
Substitutes • Individual variables

for • Job variables
Leadership • Organisational variables

Study Unit 6
Control and Performance,
Contemporary Issues, and the
Future of Management
1. Define the concept of control and compare various control techniques

2. Describe the three-step control process
3. Explain the use of financial controls, information controls, balance
scorecard, and benchmarking as control tools for managers in the digital era
4. Outline contemporary topics in management, including contemporary
issues in control like employee workplace concerns, cross-cultural
differences, and corporate governance
5. Examine the future of management in the digital era
3
SU6:Control and Performance, Contemporary
Issues, and the Future of Management
Chapter 1 • Control: Meaning and importance

• The control process
Foundations of • Focus of control: Types of control
Control • Control tools
Chapter 2 • Agile Organisation

• Growing accountability: Employees, customers,
The Future of society; people-machine partnerships
Management * • Global factors
• Industry 4.0: A historical review

Chapter 3 • The Industry 4.0 technologies
• Contemporary issues in control
Contemporary Topics ✓Cross-cultural differences
in Management ✓Work-place concerns
✓Corporate governance
*Topics covered are non-exhaustive; self study chapter 2
4
Chapter 1
Foundations of Control
Control – Meaning and Importance
“Controlling is the process of monitoring, comparing, and correcting work

performance” (Robbins & Coulter, 2021, p.517).
The value of control function can be seen in three specific areas:
1. Planning (planning-controlling link) Planning Goals

& Plans
2. Empowering employees
3. Protecting the workplace
Controlling The Planning
Standards, Organising
and
Measurement Structure &
comparision,
controlling Design
Action Link
Leading
Motivating &
communication

1. Meaning of Control
Control is the management function that involves monitoring,

comparing, and connecting work performance” (Robbins and Coulter, 2018, p.
632), i.e., involving the process of monitoring activities to ensure
that they are being accomplished as planned and correcting any

significant deviations.
✓ An effective control system ensures that activities are

completed in ways that lead to the attainment of the
organisation’s goals.
✓ The effectiveness of a control system is determined by how

well it facilitates goal achievement.
2. Importance of Control
Controlling for organisational performance and employee

performance
Organisational Performance
➢ Performance – “The end result of an activity” .
(Robbins & Coulter, 2018, p. 637)
➢ Organisational performance – “The accumulated results of all the

organisation’s work activities” (Robbins & Coulter, 2018, p. 637).
Employee Performance
➢ Disciplinary actions – “Actions taken by a manager to enforce the
organisation’s work standards and regulations” (Robbins & Coulter, 2018, p.
.
639)
➢ Delivering Effective Performance Feedback – “Managers need to

provide their employees with feedback so that the employees know
where they stand in terms of their work” (Robbins & Coulter, 2018, p. 639).
2. Importance of Control
Exhibit 18-1 shows how controlling provides a critical link

back to planning.
The Control Process
The control process is a three-step process of measuring actual performance,

comparing the actual performance against a standard, and taking managerial action
to correct deviations, or to address over or below standards (Robbins & Coulter,
2021).
• What do Comparing
managers Actual
measure? • Immediate
Performance
• How do corrective
managers
• Acceptable action
measure? range of • Basic corrective
variation action
Measuring the
Actual Performance Taking managerial
Action
12
The control process assumes that standards are already established by
managers during planning function.
These include standards of performance against which to compare

organisational activities.
Standards should be defined clearly and precisely so employees know what

they all need to do and can determine whether their activities are on target.
13
3. The Control Process
Step 1 – Measuring Actual Performance
How do managers measure?

Four sources of information:
1. personal observations,
2. statistical reports,
3. oral reports, and
4. written reports.
What do managers measure?

Some common criteria that managers usually measure include:
✓ employee satisfaction rates,

✓ turnover & absenteeism rates, and
✓ costs within budget.
Sources of Advantages Information Disadvantages
Personal - Get first-hand knowledge - Subject to personal biases
Observations
- Information is not filtered - Time-consuming
- Obtrusive
- Intensive coverage of work
activities
Statistical - Easy to visualise - Provide limited information
Reports
- Effective for showing relationships - Ignore subjective factors
Oral Reports - Fast way to get information - Information is filtered
- Allow for verbal and nonverbal - Information cannot be documented
feedback
Written Reports - Comprehensive - Take more time to prepare

- Formal
- Easy to file and retrieve
15
Step 2 – Comparing Actual Performance against

Standard
Determining the degree of variation between actual performance

and the standard involves identifying the range of variation – “the
acceptable parameters of variance between actual performance
and the standard” (Robbins & Coulter, 2018, p. 635).
Step 3: Taking Managerial Action

Managers, depending on the nature of problem, could take three
different actions:
1. Do nothing
2. Take corrective action

➢ Immediate corrective action – “Corrective action that corrects
problems at once in order to get performance back on track”
(Robbins & Coulter, 2018, p. 636).
➢ Basic corrective action – “Corrective action that looks at how

and why performance deviated before correcting the source of
deviation” (Robbins & Coulter, 2018, p. 636).
3. Revise the standard - If performance consistently
exceeds (or cannot meet) the goal, the standard should be
revised.
Focus of Control: Three Types of Control
Managers can implement controls before an activity begins, during the time
the activity is going on, and after the activity is completed.
Types of Control
Source: Robbins and Coulter (2018, p.642)

Control Tools
Managers use different kinds of control tools for monitoring and measuring
performance.
Financial Controls Ratio analysis and Budget analysis
• Current ratio, Debt to Assets ratio, Liquidity ratio
• Revenue budget, Expense budget, Cash budget
Information Controls Management Information System (MIS)

• Big data, Digital & mobile platforms, Cloud computing
Four areas that contribute to a company’s performance: financial, customer,

Balance Scorecard internal processes, people/innovation/growth assets.
• Balance sheet, Customer satisfaction, Cost of production, Number of jobs created
“is Identifying, analysing, and adopting the best practices from other organisations
Benchmarking that lead to their superior performance” (Robbins & Coulter, 2021, p.531).
• Internal benchmarking

5. Control Tools
LO: Outline the use of financial controls and information controls as

control tools for managers
Managers use different kinds of control tools for monitoring and
measuring performance.
1. Financial controls
Budget analysis & ratio analysis
2. Information controls (MIS)

How to get the right information at the right time and in the right
amount to measure and monitor organisation performance?
Example: Management Information System (MIS);
3. Balance scorecard
It is more than just a financial perspective.
4. Benchmarking
“The search for best practices” (Robbins & Coulter, 2018, p. 646)
5. Control Tools
1. Financial controls
✓ Budget analysis: budgets provide managers with quantitative
standards against which to measure and compare actual performance
and resource consumption
✓ Ratio analysis: Financial ratios are calculated by taking numbers from
the organisation’s primary financial statements—the income statement
and the balance sheet. Example: liquidity ratios, leverage ratios
2. Information controls (MIS)

Managers deal with information controls in two ways:
1. as a tool to help them control other organisational activities and
2. as an organisational area they need to control.
❖ A management information system (MIS) is a system used to provide

managers with needed information on a regular basis. Most
organisations have moved to computer-supported applications.
❑ Information controls need to be monitored to ensure information is
protected
5. Control Tools: Balanced Scorecard
A balanced scorecard – “A performance measurement tool

that looks at more than just the financial perspective” (Robbins &
Coulter, 2018, p. 646). It evaluates organisational performance from
several perspectives and not just from a financial

perspective (Robbins & Coulter, 2018, p.646) .
Four Perspectives:
1.Financial,
2.Customer,
3.Internal processes, and
4.People/innovation/growth assets.
According to this approach, managers should develop goals

in each of the four perspectives and then measure whether
the goals are being met.
5. Control Tools: Benchmarking
Benchmarking is “the search for the best practices among

competitors or non-competitors that lead to superior
performance” (Robbins & Coulter, 2018, p. 646)
Benchmark – “The standard of excellence to measure and

compare against which to measure and compare” (Robbins and
Coulter, 2018, p. 646).
- This practice can be used to identify specific

performance gaps and potential areas of improvement.
Internal Benchmarking - When best practices are found

inside the organisation
Chapter 2
The Future of Management
• The digital age is redefining the way management is

practised, due to its huge impact on how managers plan,
organise, lead, and control.
• In response, managers must evolve and adapt to the new

technologies.
• This chapter will provide you with basic knowledge of the

future of management in the digital age, particularly from
the perspectives of planning, decision-making and
organisational design.

❑ The future organisation is increasingly going to be digital, agile, and customer-

centric.
❑ Agile organisations include five trademarks (Aghina et al., 2018).
A network of teams
People-centred culture
Learning organisations
Technology-led decision making
Common purpose

Future of Management: Characteristics
In brief, the future of management is likely to take on the following characteristics:
(i) the structure of organisations should have minimum layers or be less hierarchical
with work organised in teams and network structures,
(ii) increased use of advanced technologies in planning and decision-making
(however, it is important to note that the quality of data and the competencies of
those using it to derive useful information are crucial. There will be more
emphasis on contingency planning and crisis planning);
(iii) leading should be people-centric and rely on their influence and trustworthiness
and not position (and leaders must create the right environment for agile teams.
For instance, leaders must create an inspiring environment for self-managed
teams to thrive. Also, structural or follower characteristics may act as substitutes
for leadership);
(iv) more emphasis on control function as the Covid-19 pandemic continues to
influence how and where the work is carried out. (For instance, remote working
will create great challenges for managers in getting work done).
33
Growing Accountability: Employees, Customers, Society and

People-machine partnerships
✓ Businesses are increasingly questioned on their role in supporting their
customers, employees, and society at large.
✓ Sustainability initiatives at corporations appear to drive better financial

performance. A company’s robust Environment, Social, and Governance (ESG)
practices make good business sense as it provides a stronger corporate brand
and access to a large pool of capital.
✓ The future of management will see increasing people-machine partnerships in

organisations with software-based services like Google, Amazon, and Facebook.
• The advancements in information computer technology (ICT) are giving rise to

digital workers or workers who are machines

Global Factors
Changing global factors that will influence the practice of management in the
future may include ( a non-exhaustive list).
• Rising protectionism in the world: This may hinder global search for talent and
have far-reaching implications to talent management in organisations
• Changing global regulations
• Rising security concerns
• Global political tensions (Russia and Ukraine war)
• COVID-19 pandemic & climate change

Chapter 3
Contemporary Topics in Management
Industry 4.0 Technologies
The Internet of Artificial

Big Data
Things (IoT) Intelligence
Cyber physical
production
Cloud Computing Cyber Security
systems (smart
factories)
Augmented
Reality

Contemporary Issues in Control
Cross-cultural • Differences are primarily in measurement and

differences corrective steps of control function.
• Employee privacy
Work-place
• Employee theft
concerns
• Employee violence
Corporate • Board of Directors

governance • Financial Reporting

LO: Explain what corporate governance is and
how it is changing
4. Corporate Governance
Corporate governance is “the system used to govern a

corporation so that the interests of corporate owners are
protected” (Robbins and Coulter, 2018, p. 654).
➢Boards of Directors – “A group, who is independent from
management, look out for the interests of shareholders who
were not involved in the day-to-day management of the
organisation” (Robbins and Coulter, 2018, p. 654).
➢Financial reporting - Senior managers are required by law to

certify their companies’ financial results.

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Study Unit 1

1. Describe the characteristics of an ‘organisation’, define ‘management’, and

2. Identify issues related to management functions, management types,

4. Explain the importance of international management and of viewing

5. Discuss the importance of regional trading alliances and global trade

• The concept of organisation

Chapter 2 • Globalisation and international management

An organisation is “a deliberate arrangement of people to accomplish some

- All organisations have three common characteristics as shown below

• Expressed through goals the organisation seeks

• Tasks are divided and the responsibility to

• Two or more people perform work that is

© 2022 Singapore University of Social Sciences. All rights reserved.

According to Daft (2015), “management is the attainment of organisational

According to Robbins and Coulter (2021), management involves “coordinating

Watch: Definition of Management

Understanding history is important as it helps us see the origins of today’s

- Major approaches to study of Management

• Scientific management (Fedrick Taylor)

• Organisational Behaviour (Robert Owen, Hugo

© 2022 Singapore University of Social Sciences. All rights reserved.

1. Classical approach: Rationality, as efficient as possible

2. Behavioural approach: late 1930s early 1940s (Robert Owen, Hugo

3. Quantitative approach: Operations management, TQM, IT

4. Contemporary Approach: Systems approach (Open system)

• is the conversion of analogue information

© 2022 Singapore University of Social Sciences. All rights reserved.

Managers work at different hierarchical levels – as first-line managers, middle

Source: Adapted from Robbins and Coulter (2021)

© 2022Singapore University of Social Sciences. All rights reserved.

© 2022 Singapore University of Social Sciences. All rights reserved.

• “Setting goals, • “Determining what

Source: Adapted from Robbins and Coulter (2021)

© 2022 Singapore University of Social Sciences. All rights reserved.

Source: Adapted from Robbins and Coulter (2021)

© 2022 Singapore University of Social Sciences. All rights reserved.

Interpersonal “the ability to work well with other people both

© 2022 Singapore University of Social Sciences. All rights reserved.

Key Change Forces

The list of change forces

Source: Adapted from Robbins and Coulter (2021)

© 2022 Singapore University of Social Sciences. All rights reserved.

Q1) What do you understand by the word ‘productivity’?

Q2) Does achieving efficiency and effectiveness lead to improved

© 2022 Singapore University of Social Sciences. All rights reserved.

Productivity is a measure of inputs to outputs of any resources, labour,

b) Does achieving efficiency and effectiveness lead to improved

In successful organisations, high efficiency and high effectiveness typically go

Characteristics Function/s (POLC) Skills (CHT)

▪ Set goals and clear Planning and Controlling Technical/Human

• “Globalisation refers to a process by which

© 2022 Singapore University of Social Sciences. All rights reserved.

Hofstede’s Five Dimensions of National Culture

High power distance Low power distance

High uncertainty avoidance Low uncertainty avoidance

Long term orientation Short term orientation

© 2022 Singapore University of Social Sciences. All rights reserved.

• According to Langstedt (2018), cross-cultural management (CCM) is

• assumes ‘culture’ as a valid predictor of action and