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Contemporary management principles

2nd ed
Chapter 1: The evolution of management
theory
Learning objectives:
1. Explain why managers need to study the history of management theory
2. Discuss the contributions made by Frederick W Taylor, Max Weber and Henri Fayol to
management theory
3. Distinguish between human relations, human needs, motivation and the integration phases of
the behavioural approach to management
4. Explain why the quantitative approach to management emerged and how it led to the focus
on quality
5. Discuss the contributions of W Edwards Deming, Joseph M Juran and Philip B Crosby to the
quality approach to management
6. Discuss the systems approach to management and explain how systems thinking influenced the
field of cybernetics and Peter Senge’s ideas on the learning organisation
7. Discuss the contributions of Tom Burns, George M Stalker, Paul Lawrence, Jay Lorsch, Joan
Woodward and Alfred Chandler to the contingency approach to management
8. Describe the revolutions that took place since the late eighteenth century and explain how the
Information Revolution changed the business environment of organisations.
9. Explain why there is a perception that the world is entering the era of a Fourth Industrial
Revolution
Chapter 1: The evolution of management
theory

LO1: Explain why managers


need to study the history of
management theory
Chapter 1: The evolution of management
theory

What is the best way to manage


an organisation?
Chapter 1: The evolution of management
theory

LO2: Discuss the contributions


made by FW Taylor, Max Weber
and Henri Fayol
Chapter 1: The evolution of management
theory
Scientific Bureaucratic Administrative
Management Management Management
• FW Taylor • Max Weber • Henri Fayol
• Henry L
Gantt
• Frank B
Gilbreth
• Lillian
Gilbreth
• Morris Cooke
Chapter 1: The evolution of
management theory

LO3: Distinguish between human


relations, human needs,
motivation and the integration
phases of the behavioural
approach to management
Chapter 1: The evolution of
management theory

Human relations Human needs Organisational


Human relations
movement and motivation behaviour
•Focus on •H Münsterberg •Employee have •Douglas
groups in •Kurt Lewin needs and McGregor
organisations •Chester Barnard needs •Abraham
influence their Maslow
•Mary Parker Follett performance
•George E Mayo
Chapter 1: The evolution of
management theory

LO4: Explain why the


quantitative approach to
management emerged and
how it led to the focus on quality
Chapter 1: The evolution of
management theory
• Late 1950s and 1960s
• Statistics, linear programming, waiting
line theory, game theory, decision
trees and so on
Chapter 1: The evolution of management
theory

LO5: Discuss the contributions of W


Edwards Deming, Joseph M Juran
and Philip B Crosby to the quality
approach to management
Chapter 1: The evolution of management
theory

1. The Deming approach to quality management


2. Total quality management
3. In search of excellence
4. Juran
5. Crosby
Chapter 1: The evolution of management
theory

LO6: Discuss the systems approach


to management and explain how
systems thinking influenced the
field of cybernectics and Peter
Senge’s ideas on the learning
organisation
Chapter 1: The evolution of management
theory

Systems approach: Ludwig von Bertalanffy

The systems approach asserts that the


whole is greater than the sum of its
individual parts.
Developments in cybernetics and
cybernetic technology have contributed
much to the body of knowledge of how
systems learn.
Chapter 1: The evolution of management
theory

Learning organisation: Peter Senge


He challenged linear, cause-and-
effect thinking about
organisational
behaviour and identified five new
‘competent technologies
Chapter 1: The evolution of management
theory

LO7: Discuss the Contributions of


Burns, Stalkerm Lawrence,
Lorsch, Woodward and
Chandler to the contingency
approach to management
Chapter 1: The evolution of management
theory

Burns and Lawrence and Joan


Chandler
Stalker Lorsch Woodward
• Make a • Environmental • Classify • Different
distinction conditions organisations strategies will
between surrounding by the create
mechanistic the complexity of different
and organic organisation technology organisational
approaches have a used, which structures
to significant influence their
management effect on its choice of
choice of structure
structure
Chapter 1: The evolution of management
theory

LO8: Describe the revolutions


that took place since the late
eighteenth century and explain
how the Information Revolution
changed the business
environment of organisations
Chapter 1: The evolution of management
theory

Two Industrial Information


Fourth
Revolutions Revolution
• First (1760 – • 1970s • Currently
1840)
• Second
(1870 –
1914)
Chapter 1: The evolution of management
theory

LO9: Explain why there is a


perception that the world is
entering the era of a Fourth
Industrial Revolution
Chapter 1: The evolution of management
theory

• Massive advances in
technology
• Globalisation
Chapter 2: The management process
Learning objectives
1. Defend the importance of managers and apply the management
process in a contemporary organisation
2. Define management and apply the management process in a
contemporary organisation
3. Differentiate between the different levels and areas of
management in an organisation
4. Differentiate between the various roles played by managers in
contemporary organisations
5. Expound on the various skills needed by managers in
contemporary organisations
6. Explain how one can learn to manage a contemporary
organisation successfully
Chapter 2: The management process

LO1: Defend the importance of


managers and apply the
management process in a
contemporary organisation
Chapter 2: The management process

Managers have the most direct


influence on the performance of the
organisation’s employees and have
the primary responsibility for
inculcating the values, beliefs, norms
and values of top management for
the long-term sustainability of the
organisation.
Chapter 2: The management process

LO2: Define management and


apply the management process in
a contemporary organisation
Chapter 2: The management process

Management is the process of working with and through others to


achieve organisational objectives as efficiently and effectively as
possible within a changing environment. This definition of management
essentially has six components:
1. management is a process (planning, organising, leading and
controlling)
2. working with and through others
3. achieving organisational goals and objectives
4. balancing effectiveness and efficiency
5. making the most of limited and scarce resources
6. coping with a changing environment.
Chapter 2: The management process

LO3: Differentiate between the


different levels and areas of
management in an organisation
Chapter 2: The management process
Managerial levels

Top
management

Middle
management

Lower management
Chapter 2: The management process
Areas of management

Human
Finance Operations
resources

Research
Public
Procurement and
relations
development

Marketing
Chapter 2: The management process

LO4: Differentiate between the


various roles played by managers
in contemporary organisations
Chapter 2: The management process
Chapter 2: The management process

LO5: Expound on the various skills


needed by managers in
contemporary organisations
Chapter 2: The management process
Chapter 2: The management process

LO6: Explain how one can learn to


manage a contemporary
organisation successfully
Chapter 2: The management process

1. Management training and


development
2. Practical experience
Chapter 3: Features of contemporary
organisations and new management
challenges
Learning objectives

1. Cite reasons why organisations change


2. Identify variables in the business environment of contemporary
organisations that cause them to change
3. Defend the statement that the bureaucracy fails to provide for the
needs of modern organisation
4. Discuss the features of contemporary organisations and the
challenges their managers face
Chapter 3: Features of contemporary
organisations and new management
challenges

LO1: Cite reasons why


organisations change
Chapter 3: Features of contemporary
organisations and new management
challenges

• Radical advances in technology


• Globalisation
Chapter 3: Features of contemporary
organisations and new management
challenges

LO2: Identify variables in the


business environment of
contemporary organisations that
cause them to change
Chapter 3: Features of contemporary
organisations and new management
challenges
Globalisation and Technological Radical
the global advances and 4th transformation of
economy IR the world of work

Growing
Increased power New roles and
importance of
and demand of expectations of
intellectual capital
customer workers
and learning

Environmental Demographic
crisis change
Chapter 3: Features of contemporary
organisations and new management
challenges

LO3: Defend the statement that


the bureaucracy fails to provide for
the needs of modern organisation
Chapter 3: Features of contemporary
organisations and new management
challenges

Traditional versus modern model


Chapter 3: Features of contemporary
organisations and new management
challenges

LO4: Discuss the features of


contemporary organisations and
the challenges their managers
face
Chapter 3: Features of contemporary
organisations and new management
challenges
Chapter 4: Management in a changing
environment
Learning objectives
1. Understand the importance of the management environment
when making management decisions.
2. Depict diagrammatically and explain the concepts of the process,
systems and contingency approaches in management.
3. Understand the structure and dynamics of the management
environment.
4. Conduct a basic analysis of the management environment.
Chapter 4: Management in a
changing environment

LO1: Understand the importance of


the management environment
when making management
decisions
Chapter 4: Management in a
changing environment

The management environment


became increasingly complex and
interdependent, with change
becoming more rapid,
discontinuous and turbulent.
Chapter 4: Management in a
changing environment

LO2: Depict diagrammatically and


explain the concepts of the
process, systems and contingency
approaches in management
Chapter 4: Management in a
changing environment
• The process approach to management is based on the four main
functions of management. According to this approach, the
performance of the planning, organising, leading and controlling
functions within the organisation is seen as circular and continuous.
• The systems approach to management views a system as a set of
interrelated and interdependent parts.
• The basic premise of the contingency approach is that the
application of management principles depends on the specific
situation that managers face at a given point in time.
Chapter 4: Management in a
changing environment

LO3: Understand the structure and


dynamics of the management
environment
Chapter 4: Management in a
changing environment

The micro environment


Chapter 4: Management in a
changing environment

The market environment


Chapter 4: Management in a
changing environment

The remote environment


Chapter 4: Management in a
changing environment

LO4: Conduct a basic analysis of


the management environment
Chapter 4: Management in a
changing environment

Phase 2: Phase 4:
Phase 1: Evaluate and Phase 3: Monitor the
Identify key select a Develop an variables,
environmental technique for environmental trends and
variables analysing the profile environment
environment continuously
Chapter 5: Managing organisational
change and individual stress
Learning objectives
1. Identify and discuss the forces of change.
2. Discuss the dimensions of change.
3. Explain why organisations and individuals resist change.
4. Provide advice to managers on how to overcome
resistance to change.
5. Discuss the approaches to managing change.
6. Identify the areas of organisational change.
7. Discuss the nature of stress.
8. Identify the sources of managerial stress.
Chapter 5: Managing organisational
change and individual stress

LO1: Identify and discuss the forces


of change
Chapter 5: Managing organisational
change and individual stress
Internal forces External forces

• Change in strategy • Market environment


• Poor performance • Consumers
• Pressure to grow • Competitors
• Workforce problems • Suppliers
• Implementation of new • Intermediaries
technology • Macro-environment
• Changes in top management • Technological environment
• Power and politics • Economic environment
• Lack of innovation • Social environment
• Environmental crises • Political environment
• Ecological and political
environments
Chapter 5: Managing organisational
change and individual stress

LO2: Discuss the dimensions of


change
Chapter 5: Managing organisational
change and individual stress
Dimensions of change
Chapter 5: Managing organisational
change and individual stress

LO3: Explain why organisations


and individuals resist change
Chapter 5: Managing organisational
change and individual stress
1. Organisational barriers to change
2. Individual resistance to change
Chapter 5: Managing organisational
change and individual stress

LO4: Provide advice to managers


on how to overcome resistance to
change
Chapter 5: Managing organisational
change and individual stress

Participation
Education and Facilitation and
and
communication support
involvement

Negotiation Manipulation Explicit and


and and co- implicit
agreement potation coercion
Chapter 5: Managing organisational
change and individual stress

LO5: Discuss the approaches to


managing change
Chapter 5: Managing organisational
change and individual stress

Lewin’s change model


Step 1: Step2: Step3:
Unfreezing Change Freezing
Chapter 5: Managing organisational
change and individual stress

Kotter’s eight step change model


Step 1:
Create a Step 2:
Step 3:
sense of Form a Step 4: Step 5: Step 6: Step 7: Step 8:
Create a
urgency by guiding team Communicate Empower Produce short Consolidate Create a new
change vision
stressing the to lead the vision others to act term wins improvements culture
and strategy
need for change
change
Chapter 5: Managing organisational
change and individual stress

LO6: Identify the areas of


organisational change
Chapter 5: Managing organisational
change and individual stress
Change in
Strategic organisational
change structure and
design

Change in Changing
technology people
Chapter 5: Managing organisational
change and individual stress

LO7: Discuss the nature of stress


Chapter 5: Managing organisational
change and individual stress

• The nature of stress


• Emotional stressors
• Eustress versus distress and
performance
• Stress and health
Chapter 5: Managing organisational
change and individual stress

LO8: Identify the sources of


managerial stress
Chapter 5: Managing organisational
change and individual stress

Job overload Role conflict Job fit

Organisational
Lack of job
Relationships structure and
security
culture

Organisational Change in
change personal lives
Chapter 5: Managing organisational
change and individual stress
Standards to address mental health in the workplace:
• a plan for mental health at work
• mental health awareness among employees
• open conversations about mental health
• information about available support for struggling employees
• good working conditions
• effective human capital management
• routine monitoring of employee mental health and wellbeing
Chapter 6: Corporate culture
Learning objectives

1. Describe the concept of culture


2. Define organisational culture
3. Explain the levels of culture
4. Differentiate between the various types of cultures
in organisations
5. Discuss the elements of culture
6. Compare the different types of culture
7. Explain how organisations change their culture
Chapter 6: Corporate culture

LO1: Describe the concept of


culture
Chapter 6: Corporate culture

Culture is the total pattern of human behaviour


and its products embodied in thought, speech,
action and artefacts and dependent on man’s
capacity for learning and transmitting knowledge
to succeeding generations through the use of
tools, language and systems of abstract thought.
Chapter 6: Corporate culture

LO2: Define organisational culture


Chapter 6: Corporate culture

Organisational culture is the pattern of basic


assumptions, that a group has invented,
discovered or developed in learning to cope
with its problems of external adaptation and
internal integration, and that have worked
well enough to be considered to be valid,
and, therefore, to be taught to new members
as the correct way to perceive, think, and
feel in relation to those problems.
Chapter 6: Corporate culture

LO3: Explain the levels of culture


Chapter 6: Corporate culture
Chapter 6: Corporate culture

LO4: Differentiate between the


various types of cultures in
organisations
Chapter 6: Corporate culture

LO4: Differentiate between the


various types of cultures in
organisations
Chapter 6: Corporate culture

• National and regional cultures


• Industry culture
• Organisational culture
Chapter 6: Corporate culture

LO5: Discuss the elements of


culture
Chapter 6: Corporate culture

LO5: Discuss the elements of


culture
Chapter 6: Corporate culture

Symbols Stories

Language Rituals
Chapter 6: Corporate culture

LO6: Compare the different types


of culture
Chapter 6: Corporate culture

Charles • Sets of values and norms and beliefs – reflected


Handy in different structures and systems

Deal and • Links to external environment (market) of the


Kennedy organisation

Quinn and • Identified four types of culture


McGrath
• Attempts to group types of culture by how they
Jones et al impact on the behaviour of individuals and
groups in an organisation
Chapter 6: Corporate culture

LO7: Explain how organisations


change their culture
Chapter 6: Corporate culture

• Formulate a clear strategic vision to capture the essence of the new strategy and
the shared values and behaviours that underpin the strategy.
• Top management should demonstrate firm commitment to the espoused values
and the need for culture change and they should reinforce their commitment in
word and deed.
• Model culture change at the highest level with senior executives committed to
communicate the new culture through their own actions.
• Modify the organisation to support organisational change as cultural change
normally entails modifications in organisational structure, human resources systems,
information and control systems and management styles.
• Selecting and socialising newcomers and terminating deviants change
organisational membership to fit the new culture.
Chapter 7: Power, politics, conflict
resolution and negotiation
Learning objectives
1. Define and discuss power and organisational sources
of power.
2. Explain the relationship between power and interest.
3. Discuss how people use influence tactics and political
action to protect their interests.
4. Explain the various sources of organisational conflict
and identify the conflict management strategies.
5. Provide guidelines on how to apply the two phases of
the negotiation process: planning and the actual
process.
Chapter 7: Power, politics, conflict
resolution and negotiation

LO1:Define and discuss power and


organisational sources of power
Chapter 7: Power, politics, conflict
resolution and negotiation

Power is the potential to influence


behaviour, to change the cause of
events, to overcome resistance,
and to get people to do things
they would not otherwise do
Chapter 7: Power, politics, conflict
resolution and negotiation
Sources of organisational power (French & Raven)

Formal power Personal power

• Legitimate • Referent power


power • Expert power
• Reward power
• Coercive power
Chapter 7: Power, politics, conflict
resolution and negotiation
Who gets what, when and how in organisations (Morgan)

Control over
Control of scarce Organisational Control over
Formal authority knowledge and
resources structure decision processes
information

Liaison with
Informal
organisations
Control of Coping with Control of interpersonal
outside the
boundaries uncertainty technology alliances and
organisational
networks
boundaries

Symbolism and the Gender and the


The deep structure A person’s existing
management of management of
of power sources of power
meaning gender relations
Chapter 7: Power, politics, conflict
resolution and negotiation
Social networks as source power

Number of contacts
Number of contacts
between an employee Diversity of contacts in
within the organisation
and significant decision an individual’s contacts
with access to
makers within an network
information
organisation
Chapter 7: Power, politics, conflict
resolution and negotiation

LO2: Explain the relationship


between power and interest
Chapter 7: Power, politics, conflict
resolution and negotiation

Interests:
people have individual and
collective interests
Chapter 7: Power, politics, conflict
resolution and negotiation

In organisations, people protect


their own and their group or teams’
interests, and if they have power,
they use it.
Chapter 7: Power, politics, conflict
resolution and negotiation

LO3: Discuss how people use


influence tactics and political
action to protect their interests
Chapter 7: Power, politics, conflict
resolution and negotiation

Influential people have power, but


not all people with power have
influence. Influence involves
getting others to work with you to
achieve a specific goal.
Chapter 7: Power, politics, conflict
resolution and negotiation

Influence tactics

Upward
Pressure Exchange Coalition
appeals

Rational Inspirational Consultation


Ingratiation
persuasion appeals tactics
Chapter 7: Power, politics, conflict
resolution and negotiation
Political behaviour include
activities that are not required as
part of an employee’s formal role,
but are activities to influence or
attempt to influence the
distribution of advantages or
disadvantages in the organisation
Chapter 7: Power, politics, conflict
resolution and negotiation

LO4: Explain the various sources of


organisational conflict and
identify the conflict management
strategies
Chapter 7: Power, politics, conflict
resolution and negotiation

Conflict occurs when one party


perceives that another party
opposes or negatively influences its
interests.
Chapter 7: Power, politics, conflict
resolution and negotiation
The relationship between the intensity of conflict and the level of
organisational performance
Chapter 7: Power, politics, conflict
resolution and negotiation

Causes of conflict
Intergroup behaviour and
Interpersonal conflict
conflict
• Personal differences • Competing for scarce
• Communication resources
breakdown • Task interdependence
• Role incompatibility • Jurisdictional ambiguity
• Environmental stressors • Power and status
• Competing for the same differences
positions • Goal differences
Chapter 7: Power, politics, conflict
resolution and negotiation

Managing conflict

Avoidance Accommodation Compromise

Competition Colloboration
Chapter 7: Power, politics, conflict
resolution and negotiation

LO5: Provide guidelines on how to


apply the two phases of the
negotiation process: planning and
the actual process
Chapter 7: Power, politics, conflict
resolution and negotiation

Negotiating is a process where two or


more parties in a conflict situation
attempt to reach an agreement.
During the negotiating process,
conflicting parties frequently use power
and influence tactics and resort to
political action.
Chapter 7: Power, politics, conflict
resolution and negotiation
The negotiation process

The negotiation
•Research the other party phase
•Set objectives
•Develop options and trade- •Negotiator should be
offs honest and trustworthy
•Anticipate the issues the •Allow other party to make
other party might raise and first offer
prepare responses •Make sense of the other
party’s needs
•Do not rush into agreement
Planning phase
Chapter 8: The components of ethical
business
Learning objectives
1. Describe the interplay between business ethics, corporate social responsibility
and corporate governance.
2. Define business ethics, distinguish between normative and descriptive ethics,
explain the three most common approaches to normative ethics, and describe
the micro and macro-economic level considerations that impact upon
business ethics.
3. Define and motivate the case for the narrow and broad view of corporate
social responsibility. Explain why stakeholder considerations, sustainability
considerations and the notion of corporate citizenship necessitate a broad
understanding of the role that businesses play in society.
4. Define the components of good governance, critically compare the statutory
with the voluntary approach to corporate governance and provide an
historical overview of South Africa’s corporate governance regime.
Chapter 8: The components of ethical
business

LO1: Describe the interplay


between business ethics, corporate
social responsibility and corporate
governance
Chapter 8: The components of ethical
business

Three documents in South Africa define the requirements for ethical


business and governance practices:
1. Companies Act of 2008
2. Companies Regulations of 2011
3. King Report on Corporate Governance for South Africa
Chapter 8: The components of ethical
business

In the King Report on Corporate Governance for South Africa, ethical


values and practices find their expression in three areas of
organisational life, namely:
 ethical leadership,
 ethical culture and
 responsible corporate citizenship.
Chapter 8: The components of ethical
business

LO2: Define business ethics, distinguish


between normative and descriptive
ethics, explain the three most
common approaches to normative
ethics, and describe the micro and
macro-economic level considerations
that impact upon business ethics
Chapter 8: The components of ethical
business
• Morality refers to a person’s or group’s standards for determining right
and wrong, good and bad, and what deserves respect and what does
not
• Ethics refers to the evaluation of these moral standards
• Business ethics concerns the evaluation of the standards that we
employ to distinguish between right and wrong, good and bad, and
what deserves respect and what does not, but within the specific
context of business operations
• The normative dimension of ethics is focused on the normative
principles and justifications for individual and group behaviour
• The descriptive dimension of ethics empirically investigates individual
and group moral attitudes, taking into consideration the organisational
and systemic realities in which individuals and groups are embedded
Chapter 8: The components of ethical
business
Normative ethical theories and moral decision making
 Consequentialism: the morally correct action as that action which
promotes good consequences (assessed in terms of happiness or
utility) over the long term
 Deontology: the morally correct action as that action which
adheres to universally accepted moral rules, such as human rights,
rather than focusing on the consequences of an action
 Virtue ethics: the morally correct action as that action which a
person with good moral character and practical wisdom would
undertake
Chapter 8: The components of ethical
business
Normative ethical approaches
Chapter 8: The components of ethical
business
Descriptive ethics
 Descriptive ethics is a branch of ethics that empirically investigates the
moral attitudes and decision-making processes of individuals and
groups of people
 At the micro-economic level, the ethical evaluation of the economic
activities within organisations is studied, including the informal norms,
formal policies, decisions and actions that occur within business
 The organisational culture is the tacit and explicit organisational norms
and rules that direct individual behaviour
 At the macro-economic level, a study and evaluation of the social,
economic, political, environmental and cultural systems (and the
interrelations between these systems), which enable and constrain
business activities and shape business practices are executed
 At the meso-economic level, the impact that business has on society is
studied
Chapter 8: The components of ethical
business
LO3: Define and motivate the case for the
narrow and broad view of corporate social
responsibility. Explain why stakeholder
considerations, sustainability considerations
and the notion of corporate citizenship
necessitate a broad understanding of the
role that businesses play in society
Chapter 8: The components of ethical
business
Narrow view of CSR

In the narrowest sense a corporation’s


responsibilities are limited to making profits
for its shareholders.
Chapter 8: The components of ethical
business
Broad view of CSR

1. The proponents of the broad view of CSR argue that, at the very least, business has a
negative duty to refrain from harming society.
2. A second argument for extending our view of CSR can be made with reference to the
social contract. The social contract expresses the implicit relation between business and
society whereby society grants business the ‘licence to operate’ through public consent
in the expectation that business will address certain societal needs.
3. A third justification for the broader view of CSR concerns businesses’ economic influence.
Corporations cannot ignore the effects that they have on society, nor the responsibilities
that they have towards society.
4. A fourth justification for extending CSR concerns businesses’ responsibility towards
stakeholders. The effects that organisations have on stakeholders are so pervasive and
far-reaching that stakeholder theory has evolved into a business ethics theme in its own
right. Moreover, stakeholder theory is viewed as an important way in which to flesh out
and operationalise a broad notion of CSR.
Chapter 8: The components of ethical
business
Stakeholder theory
The father of stakeholder theory, Edward
Freeman, argues that the goal of business is
to create value for its stakeholders, and
that, to do so, one should integrate
‘business and ethics within a complex set of
stakeholder relationships rather than
treating ethics as a side constraint on
making profits
Chapter 8: The components of ethical
business
Corporate citizenship
A concept that draws attention to the rights, obligations,
privileges and responsibilities that organisations have in the
societies within which they are embedded. The King Report
states that:
‘As the organisation is an integral part of society, it has
corporate citizenship status. This status confers rights, obligations
and responsibilities on the organisation towards society and the
natural environment on which society depends. The notion of
corporate citizenship recognises that the organisation is licensed
to operate by its internal and external stakeholders, and by
society in the broad sense.’
Chapter 8: The components of ethical
business

LO4: Define the components of


good governance, critically
compare the statutory with the
voluntary approach to corporate
governance and provide an
historical overview of South Africa’s
corporate governance regime
Chapter 8: The components of ethical
business

Corporate governance concerns


the systems and processes
according to which organisations
are directed and controlled.
Chapter 8: The components of ethical
business
Corporate governance provides the basis to
protect shareholders, to treat stakeholders fairly,
and to ensure transparency and ccountability for
managers. According to the World Bank,
corporate governance should be based on four
pillars, namely responsibility, accountability,
fairness and transparency.
Chapter 8: The components of ethical
business

South Africa has adopted a


stakeholder-orientated, voluntary
governance model
Chapter 9: Workforce diversity and
inclusion
Learning objectives
1. Define and explain diversity and inclusion and the various
dimensions of diversity and inclusion.
2. Provide reasons for the increased focus on managing workforce
diversity.
3. Explain the need for diversity management and inclusion in South
Africa.
4. Recommend strategies for managing diversity and inclusion.
5. Suggest ways to perform diversity and inclusion training in an
organisation.
Chapter 9: Workforce diversity and
inclusion

LO1: Define and explain diversity and


inclusion and the various dimensions of
diversity and inclusion
Chapter 9: Workforce diversity and
inclusion

 The realities of diversity


 Misconceptions
 What is diversity an inclusion?
 Diversity and inclusion is about demographics
 Diversity and inclusion is about profitability
 Diversity and inclusion is about values
 Diversity and inclusion is about behaviour
 Diversity and inclusion is a long-term process
Chapter 9: Workforce diversity and
inclusion

 What is workforce diversity and inclusion?


 Diversity is defined as the mosaic of people who bring a variety of
backgrounds, styles, perspectives, values and beliefs as assets to the
groups and organisations with whom they interact.
 The platinum rule: treat others as they want to be treated
 Golden rule: treat people as you want to be treated
 Inclusion is the achievement of a work environment in which all
individuals are treated fairly and respectfully, have equal access to
opportunities and resources, and can contribute fully to the
organisation’s success
Chapter 9: Workforce diversity and
inclusion

General dimensions of diversity

Gender Marital
Age
issues status

Physical
Language
ability
Chapter 9: Workforce diversity and
inclusion

LO2: Provide reasons for the increased


focus on managing workforce diversity
Chapter 9: Workforce diversity and
inclusion

1. Changing composition of the workforce


2. Globalisation
3. Use of ICT and virtual working environments
Chapter 9: Workforce diversity and
inclusion

LO3: Explain the need for diversity


management and inclusion in South
Africa
Chapter 9: Workforce diversity and
inclusion

1. South Africa is a radically pluralist society


2. Imbalances in the South African business world
3. Benefits of diversity management
Chapter 9: Workforce diversity and
inclusion

LO4: Recommend strategies for


managing diversity and inclusion
Chapter 9: Workforce diversity and
inclusion
Arguments for managing diversity

Resource
Cost Marketing
acquisition

Problem- System
Creativity solving flexibility
Chapter 9: Workforce diversity and
inclusion
Approaches for managing diversity and inclusion

Golden Right-the-
Rule wrongs

Value the
differences
Chapter 9: Workforce diversity and
inclusion
Diversity paradigms
Discrimination – fairness Access – legitimacy Learning – effectiveness

Focus Creating equal opportunity, assuring fair treatment, and Match internal employee demographics to customer and Incorporate diversity into the heart and fabric of the mission, work,
compliance with equal opportunity laws. marketplace served. and culture of the organisation.

Human resource practices Recruitment of women and previously disadvantaged Recruitment of employees from diverse groups to match Redesigned and transformed to enhance performance of all
groups (PDGs). Mentoring and career development for external demands. employees.
women and PDGs.

Effectiveness Recruitment numbers. Retention rates of women and Niche markets captured. Degree of diversity among All employees feel respected, valued, and included.
PDGs. employees.

Weaknesses – Strengths Does not capitalise on diversity of all employees. Does not affect mainstream of company business; All employees respected, valued, and included.
Emphasis on assimilation. diversity confined to specific market segments.
Chapter 9: Workforce diversity and
inclusion

LO5: Suggest ways to perform diversity


and inclusion training in an
organisation
Chapter 9: Workforce diversity and
inclusion

LO5: Suggest ways to perform diversity


and inclusion training in an
organisation
Chapter 9: Workforce diversity and
inclusion

1. Approaches to training
2. Management support
3. Summary of spheres of activity for
diversity management
Chapter 10: Principles of planning
Learning objectives

1. Explain the nature and defend the importance of planning.


2. Demonstrate an understanding of the benefits and costs
associated with planning.
3. Differentiate between the various types of plan.
4. Explain the barriers to effective planning.
5. Reflect on ways to overcome barriers to effective planning.
Chapter 10: Principles of planning

LO1: Explain the nature and defend


the importance of planning
Chapter 10: Principles of planning

Components of planning

3.
1. 2.
Find resources in
Vision, mission Ways to reach
a complex
and goals goals
environment
Chapter 10: Principles of planning

LO2:Demonstrate an understanding of
the benefits and costs associated with
planning
Chapter 10: Principles of planning

Benefits of planning

Provides direction and helps managers as well as non-managers to focus on forward thinking

Leads to a participatory work environment

Reduces the impact of change

Reduces the overlapping and duplication of activities

Sets the standards by which to facilitate control


Chapter 10: Principles of planning

Costs of planning

May create rigidity

Management time

Formal plans cannot replace intuition and creativity

Delay in decision-making
Chapter 10: Principles of planning

LO3: Differentiate between the


various types of plan
Chapter 10: Principles of planning

1. Strategic, tactical and operational plans


2. Long-term, medium-term and short-term
plans
3. Specific and directional plans
4. Single-use, standing and individual plans
Chapter 10: Principles of planning

LO4: Explain the barriers to effective


planning
Chapter 10: Principles of planning

Time- Resistance to
consuming change

Environmental
Reluctance to
complexity
establish goals
and volatility
Chapter 10: Principles of planning

LO5: Reflect on ways to overcome


barriers to effective planning
Chapter 10: Principles of planning

Planning Plans should


Involve
should start at Communicate not be cast in
employees
the top stone
Chapter 11: Strategic management
Learning objectives

1. Differentiate between the terms ‘strategy’ and ‘strategic


management’
2. Apply the various phases in the strategic management process in
an organisation
Chapter 11: Strategic management

LO1: Differentiate between the terms


‘strategy’ and ‘strategic
management’
Chapter 11: Strategic management

Strategy helps to explain the things that


managers and organisations do in
order to fulfil the purpose of the
organisation
Chapter 11: Strategic management

Strategic management entails


strategic analysis, strategy formulation,
strategy implementation and strategic
control
Chapter 11: Strategic management

LO2: Apply the various phases in the


strategic management process in an
organisation
Chapter 11: Strategic management

Strategy Strategic
formulation control
• What is our • How can we
current • Where do get where • How will we
position? we want to we want to know when
be? be? we arrived?
Strategic Strategy
analysis implementation
Chapter 11: Strategic management

Strategy Strategic
•Develop a vision formulation •Set functional goals control
•Formulate a mission and objectives
•Organisational •Set long-term goals •Formulate medium- •Organisational
philosophy •Formulate corporate and short-term performance
•Analyse the and business-level strategies •Productivity
environment strategies •Institutionalise strategies •Management
effectiveness

Strategic Strategy
analysis implementation
Chapter 12: Decision making
Learning objectives

1. Contextualise decision-making in terms of the management process.


2. Explain the relationship between problems, problem-solving and
decision-making.
3. Distinguish between the different types of managerial decisions.
4. Compare the various decision-making conditions.
5. Distinguish between the various decision-making models.
6. Explain group decision-making.
7. Suggest techniques for improving group decision-making.
8. Recommend tools for decision-making under the various decision-
making conditions.
Chapter 12: Decision making

LO1: Contextualise decision-making in


terms of the management process
Chapter 12: Decision making

Managers at all levels of an


organisation are constantly faced with
problems, opportunities and threats
and they need to evaluate alternative
courses of action to deal with them. In
other words, they need to make
decisions
Chapter 12: Decision making

LO2: Explain the relationship between


problems, problem-solving and
decision-making
Chapter 12: Decision making

Managers at all managerial levels are responsible for setting goals.


Whenever these goals are not being met, a problem exists.

Problem-solving is the process of taking corrective action that will solve


a problem and it realigns the organisation with its goals.

Decision-making is the process of selecting an alternative course of


action that will solve a problem.
Chapter 12: Decision making

LO3: Distinguish between the different


types of managerial decisions
Chapter 12: Decision making

Programmed Non-
decisions programmed
•Repetitive •Novel
•Routine •Unstructured
•Never occurred
before
Chapter 12: Decision making

LO4: Compare the various decision-


making conditions
Chapter 12: Decision making

Certainty Risk Uncertainty


Chapter 12: Decision making

LO5: Distinguish between the various


decision-making models
Chapter 12: Decision making

 Optimising: decision-maker selects the best possible solution to a


problem

 Satisficing: decision-maker selects the first possible solution to a


problem that meets the minimal criteria
Chapter 12: Decision making
The decision-making process

Recognise, classify
Generate Evaluate
and define the Set goals and
alternative courses alternative courses
problem or criteria
of action of action
opportunity

Conduct follow-up Implement the Select the best


evaluation chosen option option
Chapter 12: Decision making

LO6: Explain group decision-making


Chapter 12: Decision making

Group decision making has


advantages and disadvantages
Chapter 12: Decision making

LO7: Suggest techniques for improving


group decision-making
Chapter 12: Decision making

Top management
Delphi technique

Middle management
Nominal Group
Technique

Lower management
Brainstorming
Chapter 12: Decision making

LO8: Recommend tools for decision-


making under the various decision-
making conditions
Chapter 12: Decision making

Top management
Conditions of uncertainty
Simulation
Capital budgeting

Middle management
Conditions of risk
Break-even analysis
Decision tree
Pay-off matrix
Probability analysis

Lower management
Conditions of near certainty
Queuing theory
Linear programming
Chapter 13: Information management
Learning objectives

1. Contextualise information management in terms of the decision-


making process
2. Defend the importance of managing information for a sustainable
competitive advantage
3. Explain the basic functioning of an information system
4. Identify and explain the characteristics and costs of useful information
5. Explain the organisation of information systems in modern
organisations
6. Classify information systems in terms of their use in operational and
managerial support
7. Develop a generic information system for managers
Chapter 13: Information management

LO1: Contextualise information


management in terms of the decision-
making process
Chapter 13: Information management

Data from internal


environment

Data from market


Information
environment system that Decision
transforms making
data to
information
Data from external
environment
Chapter 13: Information management

LO2: Defend the importance of


managing information for a sustainable
competitive advantage
Chapter 13: Information management

Competitive advantage can be defined as


the ability of an organisation to provide
greater value to customers than its
competitors.

A sustainable competitive advantage occurs


when other organisations tried unsuccessfully
to duplicate an organisation’s competitive
advantage.
Chapter 13: Information management

LO3: Explain the basic functioning of


an information system
Chapter 13: Information management
Chapter 13: Information management

LO4: Identify and explain the


characteristics and costs of useful
information
Chapter 13: Information management

Characteristics

Quality Relevance

Quantity Timeliness
Chapter 13: Information management

Costs

Acquisition Processing Storage

Retrieval Communication
Chapter 13: Information management

LO5: Explain the organisation of


information systems in modern
organisations
Chapter 13: Information management

Corporate
strategy

Divisional/business
strategies

Functional strategies
Chapter 13: Information management

LO6: Classify information systems in


terms of their use in operational and
managerial support
Chapter 13: Information management
Chapter 13: Information management

LO7: Develop a generic information


system for managers
Chapter 13: Information management

Systems
Systems implementation,
Systems analysis Systems design
investigation maintenance
and security
Chapter 14: Project management
Learning objectives

1. Explain the philosophy and meaning of project management.


2. Distinguish between the various perspectives of project
management.
3. Identify the key role players in project management.
4. Lead and direct the implementation of the project management
process and activities.
Chapter 14: Project management

LO1: Explain the philosophy and


meaning of project management
Chapter 14: Project management

The application of project management as a management philosophy


greatly facilitates the deconstruction of work required to deliver the
organisation’s strategic intent. During the deconstruction process, work
is categorised at distinct levels starting at the top managerial level with
strategy and, depending on the size of the organisation strategy, is
deconstructed to portfolios that in turn are deconstructed to
programmes, programmes to projects and projects to activities. Final
deconstruction of work to activity level (lowest level of work depicted
in the WBS) allows for organisational resources and assets to be
allocated in order to start the bottom-up planning process.
Chapter 14: Project management

Project management is a tool used to plan, organise, implement and


control activities in order to attain a predefined objective, using
knowledge, skills, tools and resources to execute activities to meet
clients’ need and expectations.

Traditionally in project management we speak of the ‘triple constraint’


which is made up of time, cost and requirements (primary constraints).
The triple constraint has been extended to also include quality, risk and
resources.
Chapter 14: Project management

Managing any project entails planning, organising, coordinating and


controlling the associated project activities and resources. These
resources can include but are not limited to the following:
• human resources
• money
• equipment
• machinery
• information systems
• organisational processes
• time.
Chapter 14: Project management

LO2: Distinguish between the various


perspectives of project management
Chapter 14: Project management

Internal perspective of project management

Internal projects are those launched within an organisation to use


scarce resources more effectively, improve existing procedures and
methods, ensure more efficient service and improve the quality of the
final product and/or service. Generally the internal perspective of
project management allows the organisation to focus on efficiency in
relation to system processes and procedures.
Chapter 14: Project management

External perspective of project management

An outward perspective taken to determine the effectiveness of the


organisation’s products and/or services in the market place. Projects
with an external perspective are undertaken in a competitive
environment where the work is acquired through a bidding process
through either quotations or tenders as dictated by the procurement
policy of the organisation.
Chapter 14: Project management

LO3: Identify the key role players in


project management
Chapter 14: Project management

In any project, two types of role players can be distinguished, namely


key role players and supporting role players. Key role players in the
project management process are the strategic manager, the tactical
or programme manager, the project sponsor and the operational or
project manager. The project management office is responsible for
administration and monitoring programmes and projects. Lastly, the
client is the person or institution which originated the request and is the
owner of the final product or service of the project.
Chapter 14: Project management

LO4: Lead and direct the


implementation of the project
management process and activities
Chapter 14: Project management

Step 2
Step1 Step 3 Step 4 Step 5
Choose the project
Identify the need for Develop a tactical Develop the quality Define change
team and appoint
the project project plan management plan control procedure
the project manager

Step 6 Step 7 Step 8 Step 9 Step 10


Develop a Develop a Define the scope of Develop the project Develop the project
stakeholder plan communication plan the project schedule budget

Step 11
Step 12 Step 13 Step 14
Develop key Step 15
Conduct risk Implement the Monitor and control
performance Close the project
management plan project project activities
indicators
Chapter 15: Principles of organising
Learning objectives

1. Differentiate between the terms organising, organisation and organisational


structure
2. Defend the importance of organising in attaining the goals and objectives of
the organisation
3. Design a structure for a contemporary organisation
4. Explain the principles of organising that should be considered in designing a
structure for a contemporary organisation
5. Explain the term authority and its relationship with organising
6. Implement the departmentalisation approach to organisational structure
7. Propose recommendations regarding the design or redesign of jobs as a
motivational factor
8. Design and provide implementation guidelines for a delegation process
Chapter 15: Principles of organising

LO1: Differentiate between the terms


organising, organisation and
organisational structure
Chapter 15: Principles of organising

Organising can be seen as an ongoing and interactive process that


occurs throughout the life of an organisation.

A typical way of illustrating an organisational structure is by means of


an organisational chart. An organisational chart shows, among other
things, authority and communication relationships between jobs and
units.
Chapter 15: Principles of organising

LO2: Defend the importance of


organising in attaining the goals and
objectives of the organisation
Chapter 15: Principles of organising

Establish clear
Allocation of
Accountability channels of
responsibilities
communication

Resource
Synergy Departmentalisation
deployment

Division of work Systematic grouping Coordination


Chapter 15: Principles of organising

LO3: Design a structure for a


contemporary organisation
Chapter 15: Principles of organising
Chapter 15: Principles of organising

LO4:Explain the principles of organising


that should be considered in designing
a structure for a contemporary
organisation
Chapter 15: Principles of organising
• Unity of command and direction
• Chain of command
• Span of control
• Division of work
• Standardisation
• Coordination
• Responsibility
• Authority
• Accountability
• Power
• Delegation
• Downsizing
• Delayering
• Flexibility
Chapter 15: Principles of organising

LO5: Explain the term authority and its


relationship with organising
Chapter 15: Principles of organising

 Formal and informal authority


 Line and staff authority
 Centralised and decentralised
authority
Chapter 15: Principles of organising

LO6: Implement the


departmentalisation approach to
organisational structure
Chapter 15: Principles of organising

 Functional departmentalisation
 Product departmentalisation
 Location departmentalisation
 Customer departmentalisation
 Multiple departmentalisation
 Matrix departmentalisation
 Divisional departmentalisation
 Network structure
 New venture units
 Team approach
 Virtual network approach
Chapter 15: Principles of organising

LO7: Propose recommendations


regarding the design or redesign of
jobs as a motivational factor
Chapter 15: Principles of organising

 Job design
 Job specialisation
 Job expansion
Chapter 15: Principles of organising

LO8: Design and provide


implementation guidelines for a
delegation process
Chapter 15: Principles of organising

With delegation, authority is also


passed on to an employee, who then
has the authority to deploy the
necessary resources in order to
complete the delegated task
Chapter 15: Principles of organising

 Principles
of delegation
 Advantages of delegation
 Obstacles to effective delegation
 Overcoming obstacles to effective
delegation
Chapter 15: Principles of organising

The delegation process


Chapter 16: Value chain and e-business
Learning objectives

1. Illustrate the internal value chain of an organisation


diagrammatically and explain each component thereof.
2. Explain the optimisation of the value chain.
3. Distinguish between the various industry-specific value chains.
4. Explain the term ‘value system’.
5. Define the term ‘e-business’ and differentiate between the various
categories of business models in an e-business strategy.
Chapter 16: Value chain and e-business

LO1: Illustrate the internal value chain


of an organisation diagrammatically
and explain each component thereof
Chapter 16: Value chain and e-business

Value chain refers to the internal


functions and activities that need to be
performed in order to create value for
an organisation’s customer
Chapter 16: Value chain and e-business
The internal value chain
Chapter 16: Value chain and e-business

LO2: Explain the optimisation of the


value chain
Chapter 16: Value chain and e-business

 Vertical integration
 Internally focused
 Quality
 Price
Chapter 16: Value chain and e-business

LO3: Distinguish between the various


industry-specific value chains
Chapter 16: Value chain and e-business

 Primary activities
 Inbound logistics
 Operations
 Outbound logistics
 Marketing and sales
 Services
 Secondary activities
 Infrastructure
 HR management
 Technology development
 Procurement
Chapter 16: Value chain and e-business

LO4: Explain the term ‘value system’


Chapter 16: Value chain and e-business

The value system


Chapter 16: Value chain and e-business

LO5: Define the term ‘e-business’ and


differentiate between the various
categories of business models in an e-
business strategy
Chapter 16: Value chain and e-business

Electronic-business (e-business) can be


defined as a business method where an
intra-connected (intranet) organisation
with an online presence is able to interact
internally and also make their goods or
services available for the purpose of
selling, trading, bartering or transacting
over the internet.
Chapter 16: Value chain and e-business

A number of models and


technologies define selling and
trading on the web.
 Well-defined and known models are
business-to-consumer, business-to-
business and consumer-to-consumer
commerce.
Chapter 16: Value chain and e-business

E-business revenue generating model


 Commission-based
 Advertising-based
 Make-up-based
 Production-based
 Referral-based
 Subscription-based
 Fee-for-service-based
Chapter 16: Value chain and e-business
E-business type shopping model
 Storefront
 Auction
 Portal
 Dynamic pricing
 B2B exchanges
 B2B service providers
 Online trading
 Online loans
 Web-based recruitment
 Online news
 Online travel bookings
 Online entertainment
 Automotive sites
 Online service provision
 E-learning
 Click-and-mortar
Chapter 16: Value chain and e-business
E-business advanced technologies
 Expert systems
 Neural networks
 Workflow management systems
 Decision support systems
 Management information systems
 Computer-based simulations
 Computer-aided design
 Computer-aided manufacturing
Chapter 16: Value chain and e-business

E-business web management


 Search engine optimisation
 Website management
Chapter 16: Value chain and e-business

E-business marketing
 Social media
 PPC
 Facebook, Twitter
 Electronic analytical tools
Chapter 17: Individual behaviour in
organisations
Learning objectives
1. Define personality, describe why and how personality is measured and explain
the factors that determine an individual’s personality
2. Identify the key traits of the Big Five personality model
3. Define the following concepts:
 locus of control
 self-monitoring
 Holland’s classification of personalities
 self-efficacy
 the Myers-Briggs psychometric test
and how they can influence individual behaviour in the work
place.
Chapter 17: Individual behaviour in
organisations

4. Describe perceptions and the perceptual process and the distortions that can
be brought about as a result thereof
5. Discuss emotional intelligence and the pillars of emotional intelligence
6. Define personal values and discuss Schwartz Theory of Basic Values constructs.
7. Discuss attitude, components of attitude and the means of developing a
positive attitude
8. Illustrate and describe the MARS model of behaviour
9. Identify and discuss the three components that play a role in individual output,
namely talent, creativity and performance.
Chapter 17: Individual behaviour in
organisations

LO1: Define personality, describe why and


how personality is measured and explain the
factors that determine an individual’s
personality
Chapter 17: Individual behaviour in
organisations

Personality is the combination of traits that


essentially determines how an individual
perceives, evaluates and reacts to his or her
environment.
Chapter 17: Individual behaviour in
organisations
Personal Society
experiences
Culture
and
attitudes

Genetic
Family
hereditary

Internal Individual External


factors personality factors
Chapter 17: Individual behaviour in
organisations

Workplace personality testing

Organisations often use personality testing to identify, select, appoint and promote
employees who are perceived to perform satisfactorily and will ‘fit in’ with the
organisation’s culture.
Chapter 17: Individual behaviour in
organisations

LO2: Identify the key traits of the Big Five


personality model
Chapter 17: Individual behaviour in
organisations

Openness to
Conscientiousness Extroversion
experience

Agreeableness Neuroticism
Chapter 17: Individual behaviour in
organisations

LO3: Define the following concepts:


 locus of control
 self-monitoring
 Holland’s classification of personalities
 self-efficacy
 the Myers-Briggs psychometric test
and how they can influence individual behaviour in
the work place
Chapter 17: Individual behaviour in
organisations

Locus of control refers to an individual’s


generalised
perception about the amount of control
people have over their own lives.
Chapter 17: Individual behaviour in
organisations

Self-monitoring is a personality trait that refers


to ‘an individual’s
level of sensitivity to the expressive behaviour
of others and the ability to
adapt appropriately to these situational cues.
Chapter 17: Individual behaviour in
organisations

Holland proposes that some personalities are


appropriate for certain occupations. These
categories are realistic, investigative, artistic,
social, enterprising and conventional.
Chapter 17: Individual behaviour in
organisations

Self-efficacy relates to the belief in one’s


capabilities to organise and execute the
course of action required to manage
prospective situations.
Chapter 17: Individual behaviour in
organisations

The MBTI is a personality inventory designed to


identify individuals’ preferences for
processing and perceiving information.
According to the MBTI, there are four basic
preference dimensions in which people differ.
Chapter 17: Individual behaviour in
organisations

LO4: Describe perceptions and the perceptual


process and the distortions that can be
brought about as a result thereof
Chapter 17: Individual behaviour in
organisations

Perception is a cognitive process by which


individuals organise, select and interpret their
sensory impressions to make sense of their
surrounding environment.
Chapter 17: Individual behaviour in
organisations

LO5: Discuss emotional intelligence and the


pillars of emotional intelligence
Chapter 17: Individual behaviour in
organisations

Emotional intelligence is a state of being self-


aware, self-regulated, motivated,
empathetic and social and it affects individual
performance.
Chapter 17: Individual behaviour in
organisations

Four pillars of EI

Emotional Emotional
literacy fitness

Emotional Emotional
depth alchemy
Chapter 17: Individual behaviour in
organisations

LO6: Define personal values and discuss


Schwartz Theory of Basic Values constructs
Chapter 17: Individual behaviour in
organisations

Values as core ideas about how people


should live and the ends they should seek.
Chapter 17: Individual behaviour in
organisations
Schwartz Values

Power Achievement Hedonism Stimulation

Self-direction Universalism Benevolence Tradition

Conformity Security
Chapter 17: Individual behaviour in
organisations

LO7: Discuss attitude, components of attitude


and the means of developing a positive
attitude
Chapter 17: Individual behaviour in
organisations

Attitudes can be defined as the cluster of


beliefs, assessed feelings,
and behavioural intentions towards people,
an event or an object.
Chapter 17: Individual behaviour in
organisations
Components of attitude

Cognitive=evaluation Affective = feeling

Behavioural = action
Chapter 17: Individual behaviour in
organisations
Ways of developing a positive attitude:
 Dreaming
 Desire
 Dedication
 Devotion
 Daring
 Determination
 Discipline
Chapter 17: Individual behaviour in
organisations

LO8: Illustrate and describe the MARS model


of behaviour
Chapter 17: Individual behaviour in
organisations

The MARS model is a useful tool for understanding the


drivers of individual behaviour and results. In this model, four
factors are identified that influence the employee’s
behaviour, namely motivation, ability, role perception and
situational factors. These four factors lead to improved (or
poorer) results.
Chapter 17: Individual behaviour in
organisations

LO9: Identify and discuss the three


components that play a role in individual
output, namely talent, creativity and
performance.
Chapter 17: Individual behaviour in
organisations

 Talent:
Managing talent requires leadership
commitment and proactiveness
 Creativity:
Organisations need to invest in
innovative and creative individuals to remain
competitive
 Performance:Individual qualities and behavioural
aspects determine performance
Chapter 18: Work groups and teams
Learning objectives
1. Distinguish between groups and teams in an organisation
2. Explain why people join groups
3. Differentiate between the various types of groups in organisations
4. Describe the stages of group development
5. Discuss the variables that influence group behaviour
6. Describe the characteristics of a work team
7. Explain why and under what circumstances organisations use teams effectively
8. Differentiate between problem-solving, self-managed, cross-functional and
virtual teams
9. Explain how organisations develop people into team members
Chapter 18: Work groups and teams

LO1: Distinguish between groups and teams in


an organisation
Chapter 18: Work groups and teams

 A group can be defined as two or more people, interacting and interdependent,


who come together to attain particular goals.

 A team comprises a small number of people with complementary competencies


working together, committed to a common purpose, and individually and
collectively accountable for performing tasks that contribute to attaining specific
goals.
Chapter 18: Work groups and teams

LO2: Explain why people join groups


Chapter 18: Work groups and teams

 Groups offer security to people


 The members of a group that is perceived by others as important enjoy
recognition and status
 Self-esteem is the way people feel about themselves
 Groups can achieve what people cannot do by themselves and thus groups are
more powerful
 People join groups to achieve goals they cannot achieve alone
Chapter 18: Work groups and teams

LO3: Differentiate between the various types


of groups in organisations
Chapter 18: Work groups and teams

Informal Formal
group group

Interest Command
group group

Friendship
Task group
group
Chapter 18: Work groups and teams

LO4: Describe the stages of group


development
Chapter 18: Work groups and teams

Forming Storming Norming Performing Adjourning


Chapter 18: Work groups and teams

LO5: Discuss the variables that influence


group behaviour
Chapter 18: Work groups and teams
Organisational Group member
Group structure Group processes Group tasks
context resources
•Goals and •Technical •Leadership •Group decision •Simple
strategies knowledge and •Roles making •Complex
•Authority skills •Norms •Communication
relations •Interpersonal •Status •Power dynamics
•Policies, skills •Conflict
•Cohesiveness
procedures, rules interaction
•Size
and regulations
•Diversity
•Organisational
resources
•Personnel
selection
process
•Performance
management
system
•Organisational
culture
•Physical work
setting
Chapter 18: Work groups and teams

LO6: Describe the characteristics of a work


team
Chapter 18: Work groups and teams

Commitment to Shared mission


Complementary
a common and collective
competencies
purpose responsibility

Individual and
mutual Shared
Synergy
accountability leadership
and rewards

Equality Size Selection


Chapter 18: Work groups and teams

LO7: Explain why and under what


circumstances organisations use teams
effectively
Chapter 18: Work groups and teams

Teams are very effective under specific conditions:


When:
 the problem is relatively complex, uncertain, and holds the potential for conflict
 the problem requires inter-group co-operation and co-ordination
 the problem and its solution have important organisational consequences
 there are tight but not immediate deadlines
 widespread acceptance and commitment are critical to the successful
implementation of a response to a situation.
Chapter 18: Work groups and teams

LO8: Differentiate between problem-solving,


self-managed, cross-functional and virtual
teams
Chapter 18: Work groups and teams

 Problem-solving teams are typically composed of employees from the same


department who meet for a few hours each week to discuss ways of improving
quality, efficiency and the work environment.
 Self-managed work teams function autonomously because they make and
implement decisions and take full responsibility for the outcomes.
 Cross-functional teams comprise employees on the same hierarchical level, such
as the marketing manager, financial manager, operations manager and so on.
 Virtual teams comprise geographical and/or organisationally dispersed co-
workers who work remotely to accomplish organisational tasks.
Chapter 18: Work groups and teams

LO9: Explain how organisations develop


people into team members
Chapter 18: Work groups and teams

Selection Reward
Training
processes systems
Chapter 19: Principles of leading
Learning objectives
1. Define the concept of leadership as a management function
2. Differentiate between leadership and management
3. Discuss the components of leadership
4. Discuss the early approaches to leadership theory
5. Differentiate between charismatic, transactional and transformational
leadership
6. Discuss the values-based leadership theories
7. Explain the new developments in leadership theory
Chapter 19: Principles of leading

LO1: Define the concept of leadership as a


management function
Chapter 19: Principles of leading

Leadership can be defined as an influence


process that produces acceptance or
commitment on the part of organisational
members to willingly participate in courses of
action that contribute to the effectiveness of
the organisation.
Chapter 19: Principles of leading

LO2: Differentiate between leadership and


management
Chapter 19: Principles of leading

Leaders cope with change by setting


directives, aligning people and motivating
and inspiring them.

Managers cope with complexity by planning


and budgeting, organising and staffing as well
as controlling and problem-solving.
Chapter 19: Principles of leading

LO3: Discuss the components of leadership


Chapter 19: Principles of leading

Authority Responsibility Accountability

Delegation Power
Chapter 19: Principles of leading

LO4: Discuss the early approaches to


leadership theory
Chapter 19: Principles of leading

Behavioural
Trait theory
approach

Contingency
approach
Chapter 19: Principles of leading

LO5: Differentiate between charismatic,


transactional and transformational
leadership
Chapter 19: Principles of leading

Charismatic Transactional
leadership leadership

Emotional
Transformational
intelligence
leadership
leadership
Chapter 19: Principles of leading

LO6: Discuss the values-based leadership


theories
Chapter 19: Principles of leading

Values-based leader behaviours


have a moral, authentic and ethical
dimension.
Chapter 19: Principles of leading

Authentic Ethical
leadership leadership

Responsible Servant
leadership leadership
Chapter 19: Principles of leading

LO7: Explain the new developments in


leadership theory
Chapter 19: Principles of leading

Agile leadership is the ability of a leader to


be able to lead in a wide range of
circumstances especially in new,
changing and ambiguous situations.
Chapter 20: Workforce motivation
Learning objectives
1. Explain the nature of motivation
2. Illustrate and explain the motivation process
3. Differentiate between content theories, process theories and
reinforcement theories of motivation
4. Discuss the content theories
5. Discuss the process theories
6. Discuss the reinforcement theory of motivation
7. Present arguments for and against the use of money as
a motivator
8. Explain how managers can use job design to motivate workers
Chapter 20: Workforce motivation

LO1: Explain the nature of motivation


Chapter 20: Workforce motivation

Motivation is the willingness of an employee to


achieve organisational goals.
Chapter 20: Workforce motivation

LO2: Illustrate and explain the motivation


process
Chapter 20: Workforce motivation
Need

Satisfaction/Dissatisfaction Motive

Consequence Behaviour
Chapter 20: Workforce motivation

LO3: Differentiate between content theories,


process theories and reinforcement theories of
motivation
Chapter 20: Workforce motivation

Content Reinforcement
Process theories
theories theories
• Maslow • Equity • Reinforcement
• ERG • Expectancy
• Herzberg
• McClelland
Chapter 20: Workforce motivation

LO4: Discuss the content theories


Chapter 20: Workforce motivation

Content theories of motivation deal with the


‘what’ of motivation.
Chapter 20: Workforce motivation

LO5: Discuss the process theories


Chapter 20: Workforce motivation

Process theories deal with the ‘how’ of


motivation.
Chapter 20: Workforce motivation

LO6: Discuss the reinforcement theory of


motivation
Chapter 20: Workforce motivation

LO6: Discuss the reinforcement theory of


motivation
Chapter 20: Workforce motivation

The reinforcement theory of motivation states


that behaviour is a function of its
consequences.
Chapter 20: Workforce motivation

LO7: Present arguments for and against the


use of money as
a motivator
Chapter 20: Workforce motivation

LO7: Present arguments for and against the


use of money as a motivator
Chapter 20: Workforce motivation

 Money satisfies the lower-order needs of Maslow


 Herzberg’s theory states that when the organisation links a monetary reward, such
as a merit bonus, to the recognition of good performance, it acts as a motivator.
 Equity theory proposes that employees use pay as a yardstick to measure if they
are treated fairly.
 According to the expectancy theory, money is a motivator if employees
perceive that good performance results in a monetary reward which they value.
 The reinforcement theory suggests that money is a reward to reinforce behaviour
that leads to a positive job performance
Chapter 20: Workforce motivation

LO8: Explain how managers can use job


design to motivate workers
Chapter 20: Workforce motivation

Job Job
enlargement enrichment

Job
characteristics
Chapter 21: Principles of control
Learning objectives

1. Define the term ‘control’


2. Defend the importance of control
3. Implement the control process in an organisation
4. Distinguish between the various levels of control
5. Differentiate between the various functional area control systems
6. Identify and explain the characteristics of an effective control
system
Chapter 21: Principles of control

LO1: Define the term ‘control’


Chapter 21: Principles of control

Control is the final step in the


management process and can be
defined as the regulatory task of
management that determines whether or
not there has been a deviation in the
organisational plans so that steps can be
taken to prevent and/or rectify errors or
deviations from the plans.
Chapter 21: Principles of control

LO2: Defend the importance of


control
Chapter 21: Principles of control

• Control ensures that all activities at all levels of the organisation are
in accordance with the organisation’s overall objectives.
• Control ensures that the organisation’s resources are deployed in
such a way that it attains its objectives.
• Control results in better quality and enables management to cope
with environmental change and uncertainty.
• Complex organisations need control measures to ensure that costly
mistakes are avoided.
• In order to compete, organisations need to be tightly run, and
control is therefore necessary.
• Control facilitates delegation and team work.
Chapter 21: Principles of control

LO3: Implement the control process in


an organisation
Chapter 21: Principles of control
Chapter 21: Principles of control

LO4: Distinguish between the various


levels of control
Chapter 21: Principles of control

 Strategic
control
 Operations control
Chapter 21: Principles of control

LO5:Differentiate between the various


functional area control systems
Chapter 21: Principles of control

Human Physical
Financial
resources resources

Operations Information
Chapter 21: Principles of control

LO6: Identify and explain the


characteristics of an effective control
system
Chapter 21: Principles of control

Integrated
with Flexible Accurate
planning

Timely Objective Simple

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