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Chapter 1-21 BME206D
Chapter 1-21 BME206D
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
• 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
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
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
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
Participation
Education and Facilitation and
and
communication support
involvement
Change in Changing
technology people
Chapter 5: Managing organisational
change and individual stress
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
Symbols Stories
Language Rituals
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
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
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
Interests:
people have individual and
collective interests
Chapter 7: Power, politics, conflict
resolution and negotiation
Influence tactics
Upward
Pressure Exchange Coalition
appeals
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
Competition Colloboration
Chapter 7: Power, politics, conflict
resolution and negotiation
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
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
Gender Marital
Age
issues status
Physical
Language
ability
Chapter 9: Workforce diversity and
inclusion
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
1. Approaches to training
2. Management support
3. Summary of spheres of activity for
diversity management
Chapter 10: Principles of planning
Learning objectives
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
Costs of planning
Management time
Delay in decision-making
Chapter 10: Principles of planning
Time- Resistance to
consuming change
Environmental
Reluctance to
complexity
establish goals
and volatility
Chapter 10: Principles of planning
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
Programmed Non-
decisions programmed
•Repetitive •Novel
•Routine •Unstructured
•Never occurred
before
Chapter 12: Decision making
Recognise, classify
Generate Evaluate
and define the Set goals and
alternative courses alternative courses
problem or criteria
of action of action
opportunity
Top management
Delphi technique
Middle management
Nominal Group
Technique
Lower management
Brainstorming
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
Characteristics
Quality Relevance
Quantity Timeliness
Chapter 13: Information management
Costs
Retrieval Communication
Chapter 13: Information management
Corporate
strategy
Divisional/business
strategies
Functional strategies
Chapter 13: Information management
Systems
Systems implementation,
Systems analysis Systems design
investigation maintenance
and security
Chapter 14: Project management
Learning objectives
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 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
Establish clear
Allocation of
Accountability channels of
responsibilities
communication
Resource
Synergy Departmentalisation
deployment
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
Job design
Job specialisation
Job expansion
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
Vertical integration
Internally focused
Quality
Price
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
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
Genetic
Family
hereditary
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
Openness to
Conscientiousness Extroversion
experience
Agreeableness Neuroticism
Chapter 17: Individual behaviour in
organisations
Four pillars of EI
Emotional Emotional
literacy fitness
Emotional Emotional
depth alchemy
Chapter 17: Individual behaviour in
organisations
Conformity Security
Chapter 17: Individual behaviour in
organisations
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
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
Informal Formal
group group
Interest Command
group group
Friendship
Task group
group
Chapter 18: Work groups and teams
Individual and
mutual Shared
Synergy
accountability leadership
and rewards
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
Delegation Power
Chapter 19: Principles of leading
Behavioural
Trait theory
approach
Contingency
approach
Chapter 19: Principles of leading
Charismatic Transactional
leadership leadership
Emotional
Transformational
intelligence
leadership
leadership
Chapter 19: Principles of leading
Authentic Ethical
leadership leadership
Responsible Servant
leadership leadership
Chapter 19: Principles of leading
Satisfaction/Dissatisfaction Motive
Consequence Behaviour
Chapter 20: Workforce motivation
Content Reinforcement
Process theories
theories theories
• Maslow • Equity • Reinforcement
• ERG • Expectancy
• Herzberg
• McClelland
Chapter 20: Workforce motivation
Job Job
enlargement enrichment
Job
characteristics
Chapter 21: Principles of control
Learning objectives
• 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
Strategic
control
Operations control
Chapter 21: Principles of control
Human Physical
Financial
resources resources
Operations Information
Chapter 21: Principles of control
Integrated
with Flexible Accurate
planning