1 What is a committee?
-a group of people to which some matter is committed
a) Ad hoc committees- temporary and are created for specific purpose for a short-term
b) Formal committees- part of organisationalstructure with specific delegated duties and authority
Committees:
-Permenant
-Authority
-provide a well tried way of resolving difficult decisions because all are involved in decision making process
Features
- Rules of procedure
- Chairperson and secretary
- Committee papers and reports to help committee make well-informed decisions or proposals
- Notice-announcement of the meeting prepared and circulated in advance
- Agenda-setting out what is to be discussed and in what order
- The minutes of the meeting which are the official record of what has taken place
Rigid procedure
- Speaking
- Voting rights
- Proposing the motion and meetings
- Rights of attendance
- The construction of the agenda
- Adding emergency items to the agenda
- Quorum
1.1 The rules of procedure
- To promote the smooth running of a committee
- To ensure that consistancy and fair play are maintained
- To enable both sides in an argument to state their case
- To help to minimise the effect of bullyinh tactics
- To ensure a proper record of all the proceedings is kept
1.2 The size and success of a committee
- too large: not giving individual time to give their view but if everybody speaks waste of time
- too few: lack of breadth of expertise and insufficient deliberation
successful committee should
- representative of all interests
- have a chairperson with qualities of leadership
- suitable subjects for actions and make precise proposals
- circulate reports
- clear cut terms of reference
- necessary skills and experience
- worth the cost of its operation
2. The purposes of committees in an organisation
Task
- decision making
- relaying decisions and instructions
- brainstorming- free exchange to generate new ideas and approaches
- participative problem-solving
- providing advice and information
- consultation
purpose of committee
- gather information
- disseminate information
- generate ideas
- coordinate people
- delaying mechanism
- oversee a dunction or procedure
6 The role of the chair and secretary of a committee
6.1 The Chair
Responsibilities
· Keeping the meeting to a schedule and to the agenda.
· Maintaining order
· Ensuring correct procedure is observed in convening and constituting the meeting , and during the meeting
· Ensuring impartiality and giving all parties a reasonable opportunity to express their views.
· Putting the issue to the vote and declaring the result.
· Depending on the level of formality of the meeting.
Chairperson must have :
· Ability to be decisive
· The ability to silence people in a firm and friendly manner
· Skill in communicating rulings clearly but tactfully.
· The skill of summarizing.
· An awareness of non-verbal behavior
· Sound knowledge of the relevant regulations
6.2 The Secretary
Responsibility of secretary to the committee meeting
· Before meeting
-fixing the date and time of meeting
-booking the venue
-preparing and issuing the agenda and other relevant document
· During meeting
-assisting the chairperson
-making notes
-advising the chairperson on points of procedure
· After meeting
-preparing the minutes
-acting on and communicating decisions
-dealing with correspondence
Wednesday, July 22, 2009
Friday, July 17, 2009
Stakeholders
3 External Stakeholders
4 Stakeholder conflict
*The problem with analysing stakeholders-
they tend to belong to > than 1 group& will change their groupings depending on the issue in hand
-Meeting the needs of most dominant stakeholders is important but other stakeholders' needs have to be considered-nearly every decision becomes a compromise.
Mendelows' power-interest matrix is used when org has difficulty deciding who the dominant stakeholder is.
-With this, dominant stakeholders/the key players can be identified.
-The needs of the key players must be considered during the formulation and evaluation of new strategies.
-Stakeholder groups can emerge& move from quadrant to quadrant due to specific event-->Change of position in the matrix occur.
Sources of stakeholder power:
Hierarchy: provides people/groups with formal power over others
Influence: may arise from personal qualities (leadership)
control of the government: knowledge, contact& influence of the environment.
| Stakeholder | Need/expectation | Example |
| Community at large | General public can be a stakeholder,esp if their lives are affected by an organisation’s decision | Local residents’ attitude towards out-of-town shopping centres |
| Environmental pressure groups | Does not harm the external environment | If airport wants to buy a new runway, the pressure groups may stage a ‘sit in’ |
| Government | Company activities=central to the success of economy.Eg. providing jobs& paying taxes. Legislation (e.g health&safety) must be met by the company | Actions by companies could break the law, or damage environment &governments therefore control what organizations can do. |
| Trade unions | Active in the decision-making process | If a dept is to be closed, union’ll want to be consulted & there should be a scheme in place to
help employees find alternative employment. |
4 Stakeholder conflict
| Stakeholders | Conflict |
| Employees vs managers | Jobs/wages vs bonus (cost efficiency) |
| Customers vs shareholders | Product quality/service levels vs profits/dividends |
| General public vs shareholders | Effect on the environment vs profit/dividends |
| Manages vs shareholders | Growth vs independence |
*The problem with analysing stakeholders-
they tend to belong to > than 1 group& will change their groupings depending on the issue in hand
-Meeting the needs of most dominant stakeholders is important but other stakeholders' needs have to be considered-nearly every decision becomes a compromise.
Mendelows' power-interest matrix is used when org has difficulty deciding who the dominant stakeholder is.
| Level of interest |
| |
| Low | High | Level of power |
| Minimal effort | Keep informed | Low |
| Keep satisfied | Key players | high |
-With this, dominant stakeholders/the key players can be identified.
-The needs of the key players must be considered during the formulation and evaluation of new strategies.
-Stakeholder groups can emerge& move from quadrant to quadrant due to specific event-->Change of position in the matrix occur.
Sources of stakeholder power:
Hierarchy: provides people/groups with formal power over others
Influence: may arise from personal qualities (leadership)
control of the government: knowledge, contact& influence of the environment.
Thursday, July 16, 2009
13: Stakeholders (Part 1)
Stakeholder is an individual or group, who has an interest in what the organization does, or an expectation of the organization.
1 Internal Stakeholders
They are intimately connected to the organization, and their objective are likely to have a strong influence on how it is run.
Internal stakeholders include:
1. Employees are those who get paid from working and concern about their job security.
Example: If workers are to be given more responsibility, they will expect increased pay.
2. Managers/Directors are those who have higher status in the organization, they also get paid, bonus from working and they concern about their job security too.
Example: If growth is going to occur, the managers will want increased profits, leading to increased bonuses.
2 Connected Stakeholders
They are having a contractual relationship with the organization.
Connected Stakeholders include:
1. Shareholders are those who want steady flow of income so possible capital growth and the continuation of the business will give them confident on the organization.
Example: If capital is required for growth, the shareholders will expect a rise in the dividend stream .
2. Customers are those who want satisfaction from the services and goods/products.
Example: Any attempt to for example increase the quality and the price, may lead to customer dissatisfaction.
3. Suppliers are those will get paid promptly while they supplying the goods/products.
Example: If a decision is made to delay payment to suppliers to ease cash flow, existing suppliers may cease supplying goods.
4. Finance Providers are those who invest or buy the security of the company hence they are looking for the ability to repay the finance.
Example: The firm’s ability to generate cash.
1 Internal Stakeholders
They are intimately connected to the organization, and their objective are likely to have a strong influence on how it is run.
Internal stakeholders include:
1. Employees are those who get paid from working and concern about their job security.
Example: If workers are to be given more responsibility, they will expect increased pay.
2. Managers/Directors are those who have higher status in the organization, they also get paid, bonus from working and they concern about their job security too.
Example: If growth is going to occur, the managers will want increased profits, leading to increased bonuses.
2 Connected Stakeholders
They are having a contractual relationship with the organization.
Connected Stakeholders include:
1. Shareholders are those who want steady flow of income so possible capital growth and the continuation of the business will give them confident on the organization.
Example: If capital is required for growth, the shareholders will expect a rise in the dividend stream .
2. Customers are those who want satisfaction from the services and goods/products.
Example: Any attempt to for example increase the quality and the price, may lead to customer dissatisfaction.
3. Suppliers are those will get paid promptly while they supplying the goods/products.
Example: If a decision is made to delay payment to suppliers to ease cash flow, existing suppliers may cease supplying goods.
4. Finance Providers are those who invest or buy the security of the company hence they are looking for the ability to repay the finance.
Example: The firm’s ability to generate cash.
Wednesday, July 15, 2009
3: Organizational culture
1 Defining organizational culture
1.1 Definition
-organizations have distinctive cultures, and behavior acceptable in one organizational culture may be inappropriate in another
-can change instantly as a result of a single major event.
1.2 Components of culture
• Norms guide people’s behavior
• Symbols or symbolic action
• A set of shared values and beliefs
2 The factors that shape the culture of the organsiation
• Size
• Technology
• Diversity
• Age
• History
• Ownership
3 Writers on culture
3.1 Schien
-First leader of the company create the culture of an organization, thus the link between culture and leadership is very strong.
• Artefacts –these are the aspects of culture that can be easily seen, e.g. the way that people dress.
• Espoused values – these are the strategies and goals of an organization, including company slogans etc.
• Basic assumptions and values- these are difficult to identify as they are unseen, and exist mainly at the unconscious level.
3.2 Handy
- ‘the way we do things around here’, by this handy means the sum total of the belief, knowledge, attitudes, norms and customs that prevail in an organization.
• Power – rely on a central figure, most likely to be the owner of the organization, who strive to maintain absolute control over subordinates
• Role – everything and everyone are in their proper place doing own job, it’s a bureaucratic organization, where the structure determines the authority and responsibility of individual.
• Task – teams established to achieve specific tasks. People describe their position in terms of the results they are achieving. This is often associated with matrix structure.
• Person – is characterized by the fact it exists to satisfy the requirements of the particular individual involved in the organization.
3.3 Hofstede
-an attempt to find aspects of culture that might influence business behavior.
• Individualism vs. collectivism –some cultures are more cohesive than others. Anglo Saxon cultures are generally more individualistic than the collectivist cultures of South America.
• Uncertainty – some cultures, e.g. France and Japan use bureaucracy to reduce uncertainty because they dislike it.
• Power distance - the degree to which culture are willing to accept an inferior position. In south America societies, differences in power were tolerated more than in North European cultures.
• Masculinity vs. femininity – a masculine role is one where the distinction between the roles of the gender is large and the males focus on work, power and success.
• Confucianism vs. dynamism – this look at the attitude to change over the long term, emphasis love to a humanity.
1.1 Definition
-organizations have distinctive cultures, and behavior acceptable in one organizational culture may be inappropriate in another
-can change instantly as a result of a single major event.
1.2 Components of culture
• Norms guide people’s behavior
• Symbols or symbolic action
• A set of shared values and beliefs
2 The factors that shape the culture of the organsiation
• Size
• Technology
• Diversity
• Age
• History
• Ownership
3 Writers on culture
3.1 Schien
-First leader of the company create the culture of an organization, thus the link between culture and leadership is very strong.
• Artefacts –these are the aspects of culture that can be easily seen, e.g. the way that people dress.
• Espoused values – these are the strategies and goals of an organization, including company slogans etc.
• Basic assumptions and values- these are difficult to identify as they are unseen, and exist mainly at the unconscious level.
3.2 Handy
- ‘the way we do things around here’, by this handy means the sum total of the belief, knowledge, attitudes, norms and customs that prevail in an organization.
• Power – rely on a central figure, most likely to be the owner of the organization, who strive to maintain absolute control over subordinates
• Role – everything and everyone are in their proper place doing own job, it’s a bureaucratic organization, where the structure determines the authority and responsibility of individual.
• Task – teams established to achieve specific tasks. People describe their position in terms of the results they are achieving. This is often associated with matrix structure.
• Person – is characterized by the fact it exists to satisfy the requirements of the particular individual involved in the organization.
3.3 Hofstede
-an attempt to find aspects of culture that might influence business behavior.
• Individualism vs. collectivism –some cultures are more cohesive than others. Anglo Saxon cultures are generally more individualistic than the collectivist cultures of South America.
• Uncertainty – some cultures, e.g. France and Japan use bureaucracy to reduce uncertainty because they dislike it.
• Power distance - the degree to which culture are willing to accept an inferior position. In south America societies, differences in power were tolerated more than in North European cultures.
• Masculinity vs. femininity – a masculine role is one where the distinction between the roles of the gender is large and the males focus on work, power and success.
• Confucianism vs. dynamism – this look at the attitude to change over the long term, emphasis love to a humanity.
Monday, July 13, 2009
Sunday, July 12, 2009
2: Organizational structure (Part 1)
1.1 Different types of structure
Entrepreneurial - Owner of small companies, usually is built around the boss and his/her employees.
Advantages - One person taking decision lead to decisions is being made quickly so the entrepreneur should recognize the market alters fast act quickly. Also the owner can control over the work force easily.
Disadvantages - The structure is suited to small companies so there is no career path for the employees, when organization growth is hard to cope with the increase volume of decisions.
Functional structure - Organization that have outgrown the entrepreneurial structure and it is on a functional basis, usually exist in a relatively stable environment.
Advantages - Not much of duplicating so similar activities are grouped together. Hence, there are lower costs, standardization of output, specialization and there is a career path for the employees.
Disadvantages - Empire building (Manager will try to gain control over the key project and maximize their job security. As a result some other part of the project may not be achievable and ruin the ultimate goal of the entire project). Decision making in company will be slower due to longer chain of command and the structure is not suited for rapidly growing and diversifying organization too.
Product/Division/Department - Organization structured in accordance with product lines, usually general managers who enjoy responsibility for their own resources.
Advantages - It is easier to grow and diversify, also division managers can clearly see their area so top management can concentrate on strategic matters. As a result general managers are able to train up.
Disadvantages - There will be lack of control and duplication in companies. Also specialists may feel isolated and allocation of central costs problem may occurred.
Geographically structured - Grouping activities on the basis of location, commonly operate over a wide geographic area.
Advantages - It’s enable geographic growth. Also, clear responsibility for areas and top management free to concentrate on strategic matters. General managers are able to train up.
Disadvantages - It’s almost same as divisional structure.
Matrix structure - It aims to combine the benefits of decentralization.
Advantages - It got the advantages of both functional and divisional structures. It is flexible, customer orientation and able to encourage teamwork and the exchange of opinions and expertise.
Disadvantages - It may cause difficulty is in the lines of control and dilution of functional authority, meetings are quite time consuming, also the admin cost is higher.
1.2 Further aspects of organisational structure
Ownership and managers are normally seperated in large companies. This is because managers does not have enough money and they need to rely on bankers or the market ( the owners ).
In order the managers to manage the company in the best interest of the owners and this causes many safeguard/ controls are put in the place such as the formal organisation structures.
Scalar chain
the line of authority that can be traced up or down. This relates the nember of management levels within the organisation.
Span of control
The number of people that she or he is directly responsible.
There are 2 types of span of control:
Tall- narrow span of control
Flat- wide span of control
There are many factors that will influence the span of control:
Nature of work - more repetitive of work wider is the span of control
Type of personnel - better managers have wider span of control
Location of personnel - widely spread personnel have narrower span of control
1.3 Centralisation and decentralisation
analysing structures by refrence of the level which decisions are made
Centralisation
upper levels retain the authority to make decision
Decentralisation
lower levels people are able to take decisions
Factors that will affect the amount of decentralisation:
- management style
- ability of management/employees
- location spread
- size of organisation
- scale of activities
advantages of decentralisation
- senior management can concentrate on strategy
- better decision due to local expertise
- better motivation due to increased training and career path
- quicker responses due to smaller cain of command
disadvantages of decentralisation
- loss of control
- dysfunctional decisions
- lack of goal congruence
- poor decision from inexperience managers
- training cost
- duplication of cost
- extra cost in obtaining information
Entrepreneurial - Owner of small companies, usually is built around the boss and his/her employees.
Advantages - One person taking decision lead to decisions is being made quickly so the entrepreneur should recognize the market alters fast act quickly. Also the owner can control over the work force easily.
Disadvantages - The structure is suited to small companies so there is no career path for the employees, when organization growth is hard to cope with the increase volume of decisions.
Functional structure - Organization that have outgrown the entrepreneurial structure and it is on a functional basis, usually exist in a relatively stable environment.
Advantages - Not much of duplicating so similar activities are grouped together. Hence, there are lower costs, standardization of output, specialization and there is a career path for the employees.
Disadvantages - Empire building (Manager will try to gain control over the key project and maximize their job security. As a result some other part of the project may not be achievable and ruin the ultimate goal of the entire project). Decision making in company will be slower due to longer chain of command and the structure is not suited for rapidly growing and diversifying organization too.
Product/Division/Department - Organization structured in accordance with product lines, usually general managers who enjoy responsibility for their own resources.
Advantages - It is easier to grow and diversify, also division managers can clearly see their area so top management can concentrate on strategic matters. As a result general managers are able to train up.
Disadvantages - There will be lack of control and duplication in companies. Also specialists may feel isolated and allocation of central costs problem may occurred.
Geographically structured - Grouping activities on the basis of location, commonly operate over a wide geographic area.
Advantages - It’s enable geographic growth. Also, clear responsibility for areas and top management free to concentrate on strategic matters. General managers are able to train up.
Disadvantages - It’s almost same as divisional structure.
Matrix structure - It aims to combine the benefits of decentralization.
Advantages - It got the advantages of both functional and divisional structures. It is flexible, customer orientation and able to encourage teamwork and the exchange of opinions and expertise.
Disadvantages - It may cause difficulty is in the lines of control and dilution of functional authority, meetings are quite time consuming, also the admin cost is higher.
1.2 Further aspects of organisational structure
Ownership and managers are normally seperated in large companies. This is because managers does not have enough money and they need to rely on bankers or the market ( the owners ).
In order the managers to manage the company in the best interest of the owners and this causes many safeguard/ controls are put in the place such as the formal organisation structures.
Scalar chain
the line of authority that can be traced up or down. This relates the nember of management levels within the organisation.
Span of control
The number of people that she or he is directly responsible.
There are 2 types of span of control:
Tall- narrow span of control
Flat- wide span of control
There are many factors that will influence the span of control:
Nature of work - more repetitive of work wider is the span of control
Type of personnel - better managers have wider span of control
Location of personnel - widely spread personnel have narrower span of control
1.3 Centralisation and decentralisation
analysing structures by refrence of the level which decisions are made
Centralisation
upper levels retain the authority to make decision
Decentralisation
lower levels people are able to take decisions
Factors that will affect the amount of decentralisation:
- management style
- ability of management/employees
- location spread
- size of organisation
- scale of activities
advantages of decentralisation
- senior management can concentrate on strategy
- better decision due to local expertise
- better motivation due to increased training and career path
- quicker responses due to smaller cain of command
disadvantages of decentralisation
- loss of control
- dysfunctional decisions
- lack of goal congruence
- poor decision from inexperience managers
- training cost
- duplication of cost
- extra cost in obtaining information
Saturday, July 11, 2009
The business organisation
3. Strategic, tactical and operational planning levels in the organization
3.3 The strategic planning process
Strategic planning
Tactical planning
***
Operational planning
| Levels | Definition |
| Strategic planning |
|
| Tactical planning |
|
| Operational planning |
|
Strategic plans translated ---> Medium term tactical plans converted --->Detailed performance targets and budgets
3.2 The nature of strategic plan
3.3 The strategic planning process
| Process | Definition |
| Strategic analysis |
|
| Strategic choice- |
|
| Strategic implementation |
|
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