30mm
FOURTH
EDITION
F
O
U
R T
H
E
D
I
T
I
O
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A successful and competent administrative manager is integral to any
profitable and efficient organisation or office. Administrative Management
has been written specifically for people working in the field of administrative
management, as well as those studying Administrative Management at higher
education institutions. The content is specific to the South African market, and
it is the only local textbook on this topic. This fourth edition of Administrative
Management contains new examples and updated data, and discusses the
latest trends in this subject.
ADMINISTRATIVE
MANAGEMENT
ADMINISTRATIVE MANAGEMENT
ADMINISTRATIVE
MANAGEMENT
Topics include:
This book provides aspirant administrative managers with a good foundation,
and offers practising managers the insight that will enable them to manage the
administration needs of an organisation more timeously and efficiently, making
them invaluable to that organisation.
EJ Ferreira
D Groenewald
• The role of administrative management within an organisation
• Information systems, office systems and the management of information
• Written and electronic communication
• Meetings and meeting procedures
• Office layout, environment, equipment and furniture
• The virtual workplace
• Office procedures, workflow and productivity
• Planning, organising, leading, control and problem-solving
• Managing cultural diversity
• Business ethics
• Risk management and loss control.
F
O
U
R T
H
E
D
I
T
I
EJ FERREIRA
D GROENEWALD
www.jutaacademic.co.za
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Administrative Management
Fourth edition
Editors:
Prof EJ Ferreira
Dr D Groenewald
Authors:
Prof EJ Ferreira
Dr D Groenewald
Dr AW Erasmus
Dr K Strydom
Dr S van Antwerpen
Mr D Boucher
Mr F Janse van Rensburg
Mr A Masakale
Ms D Prinsloo
Mr D Rossouw
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Administrative Management
First published 2003
Second edition 2009
Third edition 2013
Fourth edition 2016
Juta and Company (Pty) Ltd
PO Box 14373, Lansdowne 7779, Cape Town, South Africa
© 2016 Juta and Company (Pty) Ltd
ISBN 978 1 48512 127 5 (Print)
ISBN 978 1 48512 457 3 (WebPDF)
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a person may engage in fair dealing with a copy of this publication for his or her personal or
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Acknowledgements of Tables and Figures:
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The author and the publisher believe on the strength of due diligence exercised that this work
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permissible under the law.
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Contents
Preface
Part A
Chapter 1
ix
Introduction to the field of administrative
management
1
The role of administrative management within an
organisation
3
1.1
1.2
1.3
1.4
1.5
1.6
Chapter 2
5
6
9
15
20
21
23
Information systems
25
2.1
2.2
2.3
2.4
26
28
28
2.5
2.6
2.7
Chapter 3
The role of the management function within an
organisation
The role of the administrative function within
an organisation
The role of the administrative manager in an
organisation
The information needs of the organisation
The relationship between the administrative
function and the other functions in an
organisation
The administrative manager of the future
Self-assessment
Defining a system
The objectives of a system
The elements of a general system
The characteristics of an efficient information
system
The implementation and modification of
information systems
Different types of information systems
The integration of systems and the flow of
information
Self-assessment
31
32
35
39
42
Information and knowledge management
43
3.1
3.2
3.3
3.4
3.5
3.6
44
49
49
50
51
62
The nature of information
Types of information
Factors influencing the flow of information
Perspectives on information management
Aspects of information management
Information and the management process
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Administrative Management
3.7
Chapter 4
Chapter 5
Chapter 7
Chapter 8
64
68
The administrative support function
71
4.1
4.2
4.3
4.4
72
72
79
The administrative support function
The profile of the administrative manager
Events management
Putting the event together – implementation
and execution of the plan
Self-assessment
The basics of communication
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
Chapter 6
Knowledge management
Self-assessment
The importance of good communication
The communication process
Communication channels
Communication mediums
Non-verbal communication
Multicultural communication
Barriers to effective communication
Overcoming barriers to effective communication
Guidelines for effective communication
Self-assessment
90
92
95
96
96
98
102
103
105
107
110
112
114
Written communication
117
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
118
119
121
125
131
132
135
136
137
The written communication process
Internal and external written communication
Business letters
Report writing
Presenting a report verbally
Memorandums
Effective writing techniques
Using technology to revise your message
Self-assessment
Electronic communication
139
7.1
7.2
7.3
7.4
140
145
155
157
166
Telecommunication systems
Telecommunication networks
The internet
Modes of electronic communication
Self-assessment
How to conduct effective meetings
169
8.1
170
What are meetings?
iv
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Contents
8.2
8.3
8.4
8.5
8.6
8.7
Types of meeting
Cycle of a meeting
Steps in meeting management
Conducting the meeting
Following up after the meeting has been held
Basic meeting terminology
Self-assessment
171
172
172
182
188
194
201
Part B
The office 203
Chapter 9
Office design and layout
205
9.1The importance and advantages of effective
office design and layout
206
9.2 The principles of office design and layout
207
9.3 Steps followed in planning the office layout
208
9.4 Factors to consider when planning the office
layout208
9.5 The costing of office space
211
9.6 Types of office layout
212
9.7 Specialised areas
214
9.8 The role of effective office layout in the flow of
information216
9.9 The role of furniture and equipment in the
office layout
216
9.10 Facilities management
217
Self-assessment
222
Chapter 10 The office environment
10.1
10.2
10.3
10.4
10.5
Locating the office building
Factors to consider in the décor of the office
The acquisition of office equipment
The maintenance of office equipment
Space management
Self-assessment
Chapter 11 The virtual workplace
11.1
11.2
11.3
11.4
11.5
The development of the electronic office
Features of the electronic office
Advantages of the electronic office
The virtual scenario
Features of the virtual workplace
225
226
227
245
245
246
249
251
252
253
255
255
257
v
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11.6 The feasibility of the virtual workplace
11.7 Managing virtual employees
Self-assessment
Chapter 12 Quality administrative management
262
264
265
267
12.1 Quality management
268
12.2 Total quality management (TQM)
270
12.3 Management of administrative policies and
procedures274
12.4 Systems and processes in quality administrative
management276
12.5 Systems and process thinking as an approach to
quality administrative management
277
12.6 Business process re-engineering (BPR) and
quality administrative management
280
Self-assessment
284
Chapter 13 Productivity, workflow and office procedures in
the administrative office
13.1
13.2
13.3
13.4
13.5
Productivity
The role of employees in raising productivity
The increase of productivity in the office
Workflow
Office procedures
Self-assessment
Chapter 14 The role of information systems
Part C
287
288
291
292
298
301
308
311
14.1 The information systems triangle
14.2 Information systems security
14.3 Information systems and the internet
Self-assessment
313
325
327
329
Management in the administrative
environment 331
Chapter 15 Planning and time management
15.1
15.2
15.3
15.4
15.5
What is planning?
Planning at different management levels
Types of plans and the planning process
Planning and your subordinates/office workers
Time management
Self-assessment
333
334
335
336
344
348
355
vi
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Contents
Chapter 16 Organising in the administrative function
16.1
16.2
16.3
16.4
16.5
16.6
357
Organising defined
Principles of organising
Centralisation versus decentralisation
The organising process
Organisational structures
Organisational designs
Self-assessment
358
358
367
370
371
381
385
Chapter 17 Leading in the administrative function
387
17.1 Leadership
17.2 Motivation
Self-assessment
Chapter 18 Controlling office activities
18.1
18.2
18.3
18.4
18.5
18.6
413
The control process
414
Characteristics of an effective control system
418
Aids for the application of control
418
Quality control
419
Cost control
424
Stock control (also referred to as inventory
control)430
Self-assessment
435
Chapter 19 Problem-solving and decision-making
19.1
19.2
19.3
19.4
19.5
19.6
388
398
411
437
The framework for decision-making
438
The basic elements of problem-solving
440
Problem-solving abilities
441
Steps in the problem-solving process
442
Problem-solving aids
448
Categories of problems in the administrative
department450
Self-assessment
452
Chapter 20 Managing cultural diversity
453
20.1 What is diversity?
454
20.2 Dimensions of cultural diversity
454
20.3 Workplace diversity: benefits, problems and
challenges459
20.4 Reasons for increased diversity in the workplace 461
20.5 Managing cultural diversity in the workplace
463
vii
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Administrative Management
20.6 Best practices
Self-assessment
471
473
Chapter 21 Business ethics
475
21.1
21.2
21.3
21.4
21.5
21.6
21.7
476
477
479
481
485
487
488
489
Ethics and value systems
Views on ethical behaviour
Myths about business ethics
Managing ethics in the workplace
Ethics and the information age
International business ethics
The role of ethics in administrative management
Self-assessment
Chapter 22 Risk and safety management for the administrative
manager491
22.1 The risk management process
22.2 Duties and responsibilities of the administrative
manager with regard to risk management
22.3 The financing of risk
22.4 Managing safety
22.5 The loss causation model
22.6 Health and safety programmes
Self-assessment
492
495
497
499
499
503
508
Index511
viii
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Preface
This book has been written to equip administrative managers with the knowledge,
skills and attitudes to function effectively in the administrative or office
environment. The book is also aimed at candidates studying in this field at higher
education institutions.
Part A focuses on the importance and role of the administrative function in the
supply of relevant, timely and accurate information to management at all levels.
It further aims to supply the reader with a relevant knowledge and understanding
of the administrative manager’s functions in the workplace: the various aspects of
this position are described in the chapters that form part of this section. The job
description of the administrative manager differs slightly from organisation to
organisation, but in essence there are certain principles, if thoroughly applied, that
will make the administrative manager successful in supporting the organisation
with an information service.
Part B deals with the office itself. The topics include planning and design
of the layout of the physical office, organising the interior environment of the
office, the role and function of office equipment and furniture in the office, office
procedures and productivity as well as the flow of work in the office. A discussion
of information systems has also been added to provide a basic understanding of
the technical side of information management in the office. A discussion of the
virtual office is included to make the aspirant administrative manager aware of
the changing nature of office work and the concept of quality administrative
management alerts readers to the importance of the managing quality in all
spheres of administration.
Part C deals with general management issues and the discussions aim to
contribute to an awareness of the changing environment in which a manager has
to function in the contemporary organisation. Organisational changes are mostly
the result of economic, political and social paradigm shifts, not only in South
Africa, but also in the international and global arenas. These organisational changes
will influence the manner in which South African organisations are managed. It
is necessary, however, to remember that in spite of the impact of international and
global changes, every manager needs to perform the basic management functions,
namely planning, organising, leading and controlling effectively, to ensure the
sustainability of the organisation – these issues are looked at in depth. Topics
such as cultural diversity and business ethics have been included because of the
importance of these aspects in the modern workplace.
A chapter about risk and safety management has been included in this edition
to equip the administrative manager to whom this task is delegated to deal with
issues around occupational health and safety.
The authors
October 2016
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Part A
Introduction to the field of
administrative management
Administrative management is one of the functions, departments or sections
existing in any organisation. The aim of the administrative function is to manage
the information needs of the organisation so that timely, relevant and accurate
information can be given to managers at all the different levels, so enabling them
to take meaningful decisions. Without such information it is not possible to
manage any organisation, function or process successfully.
The aim of Part A of this book is to introduce you to the field of administrative
management within an organisation. You will be given a basic knowledge and
an understanding of the role of the administrative manager in an organisation
within a South African environment; but this will ultimately equip you to be an
asset to the administrative environment globally. Although this role may differ
from one organisation to another, there are certain responsibilities and tasks that
will be found in most organisations.
The management of information, including records and knowledge
management, will be discussed; as well as systems and processes.
Communication is also a very important matter in all facets of life and equally
important in any organisation. And in a diverse country, it is important to remember
that language remains a barrier especially in a business environment. The basics of
communication will first be looked at to provide a solid foundation, followed by a
more detailed discussion regarding written and electronic communication. Lastly,
the complete process of organising and conducting different types of meetings
will be discussed in detail.
Part A of this book should give the aspirant administrative manager a good
foundation to work from. With the knowledge and skills gained here, you should
already be a useful asset in any administrative or office environment. To become
an invaluable asset to any organisation, it is suggested that you also study Parts B
and C.
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Chapter 1
The role of administrative
management within an organisation
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
discuss the role of the management function in the organisation;
explain the role of the administrative function in an organisation;
explain the role of the administrative manager in an organisation;
identify the information needs in an organisation;
explain the relationship between the administrative function and the other
functions in an organisation; and
discuss the administrative manager of the future.
Introduction
There are many different views about the administrative function in organisations,
but the common denominator in all these views is information. Administrative
management has to do with information and the management thereof. In some
literature this function is also referred to as information management.
The two job titles of administrative manager and information manager are used
interchangeably. For the purpose of this book, we will use the title “administrative
manager” throughout.
We will firstly look at what administration is and then approach what the purpose
of the administrative function and administrative manager are in organisations.
Administration describes the performance and executing of assigned duties and
is used to refer to a group of individuals that are responsible for executing those
duties. It is therefore essential to all the aspects involved in business operations.
Organisations that are well managed ultimately reach their goals.
Administrative management encompasses all the various processes and
resources required to collect, manipulate, maintain, protect and retrieve
information used in an organisation (Slovensky et al, 2006: xi). It also includes
the storage and release of information by means of computerised management
information systems, as well as bookkeeping, cost accounting, archive control and
general office organisation. The administrative manager is usually also responsible
for effective communication, office layout, office equipment and furniture, office
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Administrative Management
procedures, workflow, systems analysis and design, automation, form analysis and
controlling staff relations.
Administrative management can also be seen as managing information through
people that require services from the organisation. That is, not only managing
information through those who are part of the organisation. Information is central
to all management processes, and people are the resources that make use of that
information to add value.
Managing information effectively and strategically reduces costs, uncertainty
or risks; adds value to existing products or services; and creates new value through
new information-based products or services.
In most larger-scale organisations an administrative manager is appointed as
one of the functional or middle-level managers. In some smaller organisations,
administrative and other functions, such as the financial function, are linked
and managed by one person. There are also organisations where each function
is responsible for its own administration. It is therefore necessary to note that the
size of the particular organisation defines the role of the administrative manager.
The administrative function is that section in an organisation that is
responsible for the orderly collection, processing, storing, and distributing of
information to decision-makers and managers within the organisation as well
as other role players outside the organisation to enable them to execute their
tasks. The services rendered by this function to all the other functions (such as
marketing, operations, purchasing, human resources (HR), financial and public
relations) encompass the supporting functions responsible for satisfying all the
information requirements of an organisation.
In earlier years, administrative management had a limited scope. The primary
role of earlier administrative managers was to supervise employees who performed
office or administrative tasks. Administrative management was not implemented
as a separate organisational function as it is today.
The administrative manager, whose authority and responsibility are delegated
by top management, is the person responsible for ensuring that the administrative
activities, which are supportive functions, run smoothly and contribute to the
effective management of the organisation. The nature and responsibilities of
administrative managers in different organisations as well as their job titles
differ quite a lot. Among these titles we find the following: administrative office
manager, administrative manager, office administrator, office support manager,
and director of administration or administrative services. Although all these
positions share similar responsibilities, the title of administrative manager will be
used throughout this book to eliminate confusion.
They are often the glue that holds the office together, and are also referred
to as office managers, business managers, or the director of operations. These
individuals may be in charge of the management of a specific department in a large
company or oversee the office operations of the entire organisation in a smaller
organisation. Thorough and continuous training enables the administrative
manager to function optimally and, in turn, be an asset to the organisation.
4
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Chapter 1 – The role of administrative management
To enable the successful management of any organisation, managers must have
usable, timely, relevant and accurate information in order to make good decisions.
Managers need information to take decisions, not only data.
Data (plural noun) refers to facts (words and numbers) that include objects,
people and events. It also refers to unprocessed material that can be seen as potential
information. Lessing and Scheepers (2006: 11) consider data to be “objective
measurements of the attributes (characteristics) of entities (such as events, things,
people and places)”. Data is generally used by machines and is useless unless it is
processed to create information that people can understand and interpret.
Information (singular noun) refers to data that has been converted or processed
into meaningful and useful content for specific end users, at a specific point in
time, for a specific purpose, and presented in a specific format. Information is
used by managers to initiate actions, make decisions and manage their sections.
An information system is a group or set of people, procedures and resources that
collects, transforms and distributes information in an organisation. There are
manual (paper and pencil), informal (oral) and computer-based (using information
technology (IT)) information systems. The effective management of information
forms the core of what the majority of organisations do and should be carefully
managed because it is not only the foundation for sound decision-making; but
also an essential element in the attempt to achieve improved productivity over
local and global competitors in the business environment.
The administrative function depends more on technology and technologically
oriented applications and processes today than ever before. This is making vast
amounts of information available to the organisation. A few years ago organisations
lacked information, which caused some problems in terms of making proper
decisions. Today, all the information they need probably exists somewhere in the
digital domain. The problem now is to find the desired information as soon as it
becomes available, which, in turn, leads to increased levels of productivity. To cope
with this dilemma, software has been and is being developed to allow organisations
to integrate a diverse array of functions. These systems assist managers in decisionmaking processes. You will have to understand the function of management in
organisations that will form the foundation for the rest of this chapter.
1.1
The role of the management function within an
organisation
Before we look specifically at who the administrative manager of an organisation
is, it is necessary to define and unpack the concept of management in order to
focus on administrative management as an area of specialisation. Management
can be defined as the process of working with as well as through others to combine
elements such as people, materials, finances, different methods, technology and
morale to ultimately set and achieve specific predetermined goals of organisations.
In order to achieve these goals, organisations need to be managed properly
and efficiently by all the managers representing different levels within the
organisational hierarchy.
The nature of the work that managers perform as well as the different
responsibilities delegated to their positions and the type and size of the organisation
5
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Administrative Management
will determine the titles they hold. It is a modern trend to reduce the number of
managerial levels to create a leaner organisational structure. To discuss the main
function of management automatically includes a dynamic and complex blend
of different systematic techniques and common sense. If we focus on managerial
roles or behaviours, we can group them into the following three key categories:
•
•
•
Interpersonal: Due to their formal authority and superior status, managers
engage in a fair share of interpersonal contact with employees that have to
report to them.
Decisional: Managers have to balance competing interests; make decisions;
implement strategies; and ensure that they are executed.
Informational: Managers are accountable for information that relates to
various business-related tasks at hand or issues that might occur that have to
be resolved.
The management hierarchy consist mainly of three levels: lower-level, middlelevel and top-level management. Figure 1.1 illustrates the different levels of
management generally found in organisations. This will give you an idea
where the administrative manager (middle management) positions itself in the
hierarchy.
Figure 1.1
Informational
Decisional
Lower level
Interpersonal
Middle level
JOB CHARACTERISTICS
Top
level
The management hierarchy, direction of report and job characteristics
With management as a function discussed, we can now focus on where the
administrative manager features in organisations.
1.2
The role of the administrative function within an
organisation
The administrative function is one of the basic functions that usually exists in
an organisation and cannot function in isolation. These basic functions include
6
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Chapter 1 – The role of administrative management
general management, administration, sales and marketing, operations, purchasing
(and supply chain), HR, finances and public relations.
Administrative management does not comprise one position, one office or
one department, but rather incorporates the entire management component that
functions in an administrative capacity. In other words, all the other organisational
functions also perform certain administrative tasks and activities that are not
performed centrally by the administrative section or department. For example,
they all make use of telephone calls, do photocopying and handle mail (electronic
and postal) on a daily basis.
The administrative function involves reporting to line managers in the widest
sense of the term. While the focus is on the management information system
and its components, it covers the whole network of records of the organisation,
providing information for management purposes.
The administrative function does not generate an income for the organisation.
It is a function that renders a service, and it provides specialised support to
individuals and other organisational functions, which enables the latter to be
more cost-effective and maximise productivity. It relieves individuals of many of
their administrative responsibilities and enables them to give attention to more
important matters. For example, think of a manager who appoints an office
professional to take care of all office tasks such as filing, typing, correspondence,
and so forth, so that the manager can concentrate purely on management tasks.
In addition to the managers’ fields of specialisation, information is regarded
as the most important management tool, as well as one of the most fundamental
and valuable of the various organisational elements. Never before have managers
had so much information freely available at their disposal to support them. Most
managers will also agree that the effectiveness with which the information is
managed will determine its usefulness. The administrative function is able to
make a significant contribution to the success of the organisation through the
provision of specialised support in the management of information as well as
specialised office tasks.
It is crucial for the administrative manager to keep up with technological
development in this field. There is an array of training and skill-improvement
opportunities available, offered in-house or by companies that focus specifically
on equipping people to be able to use technology to their advantage. Continuous
training is necessary to ensure that the administrative environment functions
optimally and productively. Technological development is the largest factor
responsible for the considerable increase in the amount of information available to
managers. It not only creates large amounts of new information, but it also makes
existing information more readily available, accessible and convenient to use.
Think of the development of computer software packages that are improved daily
to make provision for faster and better processing of data and/or information. It is
advisable that the administrative manager belongs to administrative societies and
reads articles about the latest trends in the digital sphere to stay on top of their
area of specialisation.
7
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Administrative Management
Administrative activities
The administrative function covers a wide spectrum of administrative activities.
The needs of different sections and the amount of information needed in the
organisation will determine which of these activities will be found in a particular
organisation.
Administrative activities are quite diverse and could include the handling of
information in all its forms: mail, filing, indexing, copying and duplication, and
mechanisation. It could even include reception, word processing, correspondence,
costing, credit control, accounting and bookkeeping, and ordering. In small
organisations one often finds that many other activities are also classified as
administration, such as the activities related to sales, warehouse management and
deliveries.
Administrative managers must possess a thorough understanding of various
aspects of the organisation. A solid background of all the other organisational
functions is needed to do the work effectively and efficiently. According to Quible
(2005: 8−9), a specialised knowledge of the following areas is also important:
work simplification, work measurement, work standards, records management,
forms design, data processing, job analysis, job evaluation, office layout, office
equipment, cost control, performance appraisal, employee selection, productivity
improvement and word processing.
Figure 1.2 illustrates one possibility of how and where the administrative
function could fit into an organisation.
MANAGING
DIRECTOR
Information
Finance
Human
resources
Marketing
Operations
External
relations
Data processing
Office services
Systems analysis and design
Figure 1.2
The position of the administrative function in an organisation
The administrative manager is responsible for the general management of all the
administrative functions of an organisation. This person is also constantly in
contact with all the other functional managers and users of information systems.
These functional managers need to coordinate their particular needs, especially
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Chapter 1 – The role of administrative management
their information needs. This will ensure an efficient flow of information,
enabling each function to plan realistically and reach their objectives in the
most efficient manner.
There are many alternatives available for staffing the administrative function.
The positions that manage and execute all the activities in this function will
depend on many different factors and are governed by:
•
•
•
The size of the organisation: The larger the organisation, the more specialised
the positions in this function become. Smaller organisations often combine
many of these tasks (for example finance and administration) into one
position.
The type of industry that the organisation is involved in: It could be in the
primary (exploitative organisations), secondary (transforming/processing
organisations) or tertiary (provides final product/service) sectors. The needs
and requirements in these sectors are different.
The policy and philosophy of top management: Do they accept the use of
the systems approach and technology? The amount of funds available for
technology and the maintenance of these systems often govern the outcome.
In some organisations consultants are used to design, implement and maintain
information systems, because they specialise in information systems and the
latest trends and developments. Part-time staff can also be used to perform these
functions. These decisions depend on the needs of the specific organisation.
Consultants usually give recommendations, but leave the final decision to the
management of the organisation that they do business with. Consultants provide
the expertise and because they are outsiders, their recommendations are usually
objective. Many consultants are hired on a temporary basis (for example one day
per week) to maintain the system. One disadvantage in this case is that they are
not available all the time, especially when immediate assistance is needed. It may
also be costly, depending on the size of the organisation.
1.3
The role of the administrative manager in an
organisation
From the introduction it is clear that the administrative manager is responsible
for managing the activities in an organisation that relate to information. The
administrative manager is responsible for combining people, technology,
material, money and sources of information in such a way that the objectives of
the administrative function as well as the organisation are achieved. Now try to
see how the responsibilities of the administrative manager link to the definition
of management outlined earlier and how they support each of the individual
components.
The administrative manager can therefore be defined as the person who
is responsible for managing the administrative function, which is, planning,
organising, directing or leading and controlling all administrative activities and the
human resources related to these activities in an organisation. The administrative
manager will also have to take the initiative to create an information system that
can be implemented in the entire organisation.
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1.3.1
Objectives of the administrative manager
The administrative manager can be classified as a functional manager and
therefore will form part of the middle management level of the organisational
hierarchy (refer to Figure 1.1). The administrative manager, as any other manager, is
responsible for certain predetermined key objectives in the organisation. According
to Quible (2005: 4) and Williams (2016: 1–3), the most common objectives of an
administrative manager are as follows:
•
•
•
•
•
•
•
•
•
To ensure that the relevant organisational activities are designed to maximise
individual and unit productivity. For example, developing a system for dealing
with mail in the organisation so that the employees do not waste unnecessary
time on tedious procedures. By using a good system, the overall productivity
of the organisation can be increased.
To provide effective management of the information of the organisation.
For example, managing all the information that the organisation requires
to be able to function – determining what information must be provided by
whom, when, in what format and to whom; checking whether it has been
done; and giving the necessary guidance if the worker does not know how to
do it.
To maintain reasonable qualitative and quantitative standards. For example,
the workers know from these standards that it will take them a day to compile
a specific report according to a specific pro forma.
To provide a satisfactory physical and mental working environment for the
employees of the organisation. For example, ensuring that the employees have
adequate equipment such as desks, computers, chairs, stationery, and so forth,
to complete their daily tasks; as well as considering aspects such as office
layout and air conditioning.
To help define duties and responsibilities of employees assigned within the
administrative office management functional area. For example, giving each
employee a list of duties or a job description stating the tasks for which they
are responsible and to whom they must report.
To develop satisfactory lines of communication among employees assigned
within the administrative office management functional area, and between
these employees and employees in other areas within the organisation. For
example, holding regular information sessions during which all staff are
informed on general matters, and using memorandums or electronic mail so
that the employees can communicate with one another if necessary.
To help employees maintain a high level of work effectiveness. For example,
setting objectives for employees with procedures and standards of how they
must complete a specific task. Once the task has been completed, the result is
measured against the standards that have been set.
To enhance the effective supervision of office personnel. For example,
developing control mechanisms whereby the administrative manager can
control tasks or the workers can perform their tasks as they are supposed to.
To ensure the efficient and proper use of specialised office equipment and
the maintenance of this equipment by continually keeping up to date
with all the new equipment on the market and, if necessary, starting to
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Chapter 1 – The role of administrative management
•
•
make use of that equipment in the organisation. To also ensure that all the
workers who have to work with the new equipment receive the necessary
training to enable them to do so. The administrative manager can also
be accountable to oversee the maintenance of equipment, machinery and
tools specific to the organisation’s business. Good negotiation skills are
beneficial in the bargaining process for the best price when purchasing or
leasing equipment.
To coordinate the organisation’s administrative operations to make sure that
the normal office duties flow as smoothly as possible. The office is the central
hub of each organisation and one of its functions is to make sure that the rest
of the organisation can function unhindered and undisturbed, which requires
coordinating activities. For example, when the conference room is going to be
refurbished, the rest of the staff should be notified in advance and alternative
venues should be made available.
To ensure functionality, which entails training and supervising the other
administrative staff in the organisation to ensure that these employees
perform optimally. Such tasks may include the receptionist being in place to
greet visitors and customers; and customer service representatives answering
phones in a timely manner and offering a pleasant and courteous experience.
Written policies and procedure manuals typically play an important role in
ensuring functionality.
The primary objective of administrative management is to present relevant
information, at the right time, in the right format and at an acceptable cost to
specific decision-makers in an organisation. To achieve this, the following must
be done:
•
•
•
•
Data must be captured according to a specific medium and stipulated process.
Source documents and data must be stored in the most effective manner and
must be backed up.
The most appropriate aids for the administration of the information must be
identified and used.
Information must be made available to the decision-maker through the
most appropriate medium, for example hard copies (paper), digitally, by
telephone or by fax.
1.3.2
Management tasks of the administrative manager
Within each of the management functions, the administrative manager
also has specific responsibilities. These responsibilities include primary
management functions such as planning, organising, directing or leading
and control; you will learn about this in depth later in this book (see
Part C). It is important to note that the administrative manager should
have proper training to execute their functions effectively and efficiently.
Figure 1.3 illustrates the relationship between the four primary functions (Steps 1
to 4), which are interrelated and need to be effectively coordinated and controlled
to ensure that the optimum levels of performance are achieved.
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Administrative Management
STEP 1:
PLANNING
STEP 4:
LEADING
STEP 2:
ORGANISING
STEP 3:
CONTROLLING
Figure 1.3
The relationship between the four primary management functions
Step 1: Planning function
Planning consists of a number of steps and the administrative manager
should follow these in order to manage the section effectively and efficiently.
The administrative manager should analyse past and present situations and
tendencies. If anything in the past was very successful and the situation has
not changed, then there probably is no need to make significant changes that
might have financial implications to the organisation. Repetition of problems
that occurred in the past must be avoided as far as possible. Standards that
were too high or too low must be adjusted to ensure that a repetition does not
take place. If there were many problems with the storage of information, for
example, this process or activity must be re-planned and revisited. Specific
objectives related to all the functions and services (including HR, office space
and systems) of the administrative management sections should be developed.
For example, programmes need to be designed six months in advance. Activities
need to be scheduled and a budget needs to be drawn up. Finally, methods and
procedures to perform the planned activities need to be developed or adapted.
The administrative manager needs to keep abreast of new developments in the
field and determine what changes should be made to remain productive.
Step 2: Organising function
All resources need to be organised to achieve different objectives as well as
goals as outlined in the planning process. An organisational structure for the
administrative section must be created, incorporating all the different sections
and positions.
The most effective ways for employees to perform specific tasks must be
developed, and efficient work methods and procedures need to be designed and
communicated to staff. The right employees need to be selected, employed and
trained.
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Chapter 1 – The role of administrative management
Step 3: Controlling function
The administrative manager needs to develop a control system to ensure that
the quality and quantity of work meet set standards and that the work is done
according to methods and procedures used in the organisation. The system needs
to include the setting of standards, comparing the work done with these standards,
determining any discrepancies and taking corrective action where needed. This
includes both information-related issues and financial control issues.
Step 4: Directing or leading function
The administrative manager needs to direct, supervise and motivate the
employees in the administrative section. For this, effective lines and methods of
communication need to be established.
With the increasing importance of the administrative function in the
organisation, the administrative manager should be more involved in policy
decisions at top management level. The administrative manager will have to
assist with decisions regarding automated systems and will therefore be forced
to increase their knowledge on the functioning of new technology and systems
design. Large organisations such as Sasol, Arcelor, Mittal South Africa, Edcon,
and Gencor usually have a very large administrative component, located in
different areas of the country, to accommodate the scale of the organisation. The
demand for administrative managers in large office-type organisations has also
increased. These organisations include insurance companies and companies in
the banking sector.
1.3.3
Examples of job duties, and the knowledge, skills and abilities
needed by an administrative manager
Job duties
The job duties listed are typical examples of the work performed by positions
in this job classification. Not all duties assigned to every position are included,
nor is it expected that all positions will be assigned every duty. Again, the
structure of each individual organisation will have a direct impact on the items
included in the list below, which attempts to address the duties, knowledge,
skills and abilities involved in the job holistically. The administrative manager:
•
•
•
•
•
•
plans, organises, directs and controls all administrative employees, workrelated activities and services such as record keeping, mail distribution and
other administrative support services;
manages the administration of various operations such as the warehouse,
accounting and finance, and safety and health;
coordinates all other departments regarding information systems and
needs;
identifies, coordinates and controls information and information requirements;
provides assistance with filing and retrieval systems;
maintains the flow of information among departments and functional areas
by documenting and communicating actions and information needs;
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Administrative Management
•
•
•
•
•
•
•
•
•
•
•
evaluates system results with all users and role players and ensures the
implementation thereof;
provides and manages telecommunications and computer systems, including
support, procedures and manuals;
maintains administrative staff by recruiting, selecting, orienting, training and
mentoring employees;
maintains a safe and secure work environment;
develops personal growth opportunities;
manages and coordinates workflow and work schedules;
implements technological updates when necessary;
prepares and controls budgets and financial reports;
oversees the management of facilities, which can include office buildings,
supplies, furniture and technological equipment;
is responsible for having back-up systems in place to protect the loss of
information and data; and
communicates job expectations, coaches and counsels, and assists with
disciplinary actions.
Knowledge, skills and abilities needed by an administrative manager
The administrative manager must also have:
•
•
•
•
•
•
•
•
•
•
•
knowledge of the principles and techniques of administrative management,
including organisation, planning, staffing, training, budgeting, and reporting;
knowledge of human resource issues;
knowledge of diversity issues in the South African context;
human skills (also referred to as interpersonal or soft skills) that allow
the administrative manager to interact with peers and managers in the
organisation;
the ability to analyse and appraise facts and precedents in making
administrative decisions (conceptual skills);
the ability to formulate policies and procedures based on information of a
conceptual nature and according to the unique functioning of the organisation;
the ability to establish and maintain effective relationships with all role
players;
the ability to communicate effectively with all levels within the organisation
(written and verbal);
a strong understanding of accounting/financial principles;
knowledge of quality management (QM) (also referred to as total quality
management (TQM)) and administrative innovation as tools for organisations
to adapt to their environment; and
knowledge of government legislation related to work.
The administrative manager must maintain this professional and technical
knowledge by attending workshops, studying professional publications and
establishing personal networks with stakeholders.
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Chapter 1 – The role of administrative management
1.4
The information needs of the organisation
We have mentioned information and the management thereof, but what
information are we referring to? Organisations have different goals, products and
managers and, because of this, they will have different information needs. The
information needs required by employees representing the different management
levels within the organisation are also different. Furthermore, there are external
role players that need information regarding certain aspects of the organisation,
and their needs will also differ. Let us consider these different needs, starting with
the external role players.
1.4.1
The information needs of external role players
Depending on the type of external organisations you are involved with, you
will need a system to supply them with specific information. These external role
players could be any of the following:
•
•
•
•
•
•
government requiring information on health, safety, financial and other
issues;
governing bodies for certain groups of organisations that need statistics about
the specific industry;
suppliers who need to know about future order quantities;
shareholders and investors who would like to know how their organisations
are performing;
banks that would like to know how their clients are doing; or
any other external person or entity that requires information.
The organisation will have to determine this need and develop a system whereby
the relevant information can be collected, processed and distributed wherever
and whenever required. Information could be supplied to the environment in
the form of annual and financial reporting. Supplying the information to the
external environment is usually the task of the manager responsible for marketing
and external relations. The interaction between organisations and their external
role players becomes vital in various levels because of innovation and the urge to
continuously improve business competitiveness.
1.4.2
The internal information needs of the organisation
Information is also needed within the organisation to satisfy its own unique
needs. This information can be gathered from the external environment, as well
as from within the organisation. To survive and compete in the global market, the
organisation needs information about the external environment. This information
must be analysed and the relevant information should be incorporated in the
decision-making process.
The information needed at each management level will differ and is determined
by the type of decisions that need to be taken and how quickly those decisions
need to be taken.
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The information needs of top management
Top management would need information externally about the following:
•
•
•
•
General economic variables: This is especially important if they are doing
business in the global market. The value of the rand against other currencies
(e.g. the US dollar, euro or pound sterling) can make a huge difference if
it fluctuates drastically while you are in the process of buying goods from
overseas countries. Locally, the interest rates can change and certain materials
might become scarce in the future.
Government Acts and regulations: Depending on the type of industry,
changes concerning Acts and regulations can force the organisation to make
changes that will cost money.
Technological changes and new developments: The most recent models of
computers are usually faster and can handle more information. This can give
an organisation a much-needed edge over their competitors.
Competitors in the market: They need to know how strong the competition
is and what they are doing regarding marketing and product strategies.
Top management rely on direct information for long-term planning and policy
decisions. Regarding information about the organisation and business itself, they
look at:
•
•
•
•
changing consumer patterns and behaviours;
the trends of income and expenditure involved in product lines;
the impact of new technology; and
population and other social trends.
This and other similar information influences the long-term decisions that
management have to make.
Computerised technology plays an important role in long-term planning.
Computerised information processing, information retrieval and centralised
computer facilities provide management with data and information. Top
management can use sophisticated analysis, forecasting and simulation techniques
as a basis for their long-term decisions. A number of software programs are available
on the market to assist them in making these decisions.
All this information will enable top management to make certain decisions
and counteract any changes by competitors that could affect the organisation
negatively. With this external information available, they can then look internally
and decide whether the organisation is properly aligned to face the future.
The information needs of functional (middle-level) managers
Top management will coordinate with the different functional managers and
decide on proper strategies to be implemented to meet their future needs. The
decisions made by top management are then given to the functional managers.
The functional managers, representing the middle-management level, need
information to enable them to assist top management in the planning, development
and implementation of policies as well as to manage their individual functions
effectively. Table 1.1 gives examples of the types of information they need.
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Chapter 1 – The role of administrative management
Table 1.1
Examples of types of information
Functional
area
External information needed
Internal information needed
Sales and
Marketing
•• Clients and potential clients:
•• Strategies of top
Number, tastes, preferences,
opinions, expenditure ability,
geographical situation,
markets, market sectors, and
needs
•• Competitors:
Their products, prices, and
marketing communication
management
•• The products/services and
their characteristics
•• Budgeted and actual sales
quantities
•• Marketing costs
Purchasing
and supply
chain
•• Everything about existing
•• Stock levels
•• Rate of consumption
•• Production quantities
•• Machine utilisation
Operations
•• Suppliers and potential
•• Budgeted and actual
Human
resources
and potential suppliers
•• Quality and prices of raw
materials and equipment
•• Acquisitions costs
•• Quality and availability of
other similar products
suppliers
•• Different materials and
products available for
production and the prices
thereof
•• Alternative sources of human
resource requirements
•• All the relevant labour
regulations and Acts
•• Trends regarding all facets of
the labour force
•• Salaries paid in organisations
of the same industry
production quantities
•• Operations costs
•• The application of equipment
and staff
•• Stock quantities required and
stock quantities available
•• Staff requirements
•• Leave
•• Salary scales
•• Other benefits (e.g. car
allowances, travelling)
•• Conditions of employment
•• Training statistics and needs
•• HR needs in other functions
•• Merit assessment results
•• Performance management
systems
Finance
Public
relations
•• Capital sources and interest
rates
•• Capital movement
•• Investment opportunities
•• Creditors and debtors
•• Interest groups
•• The image of the
organisation
•• Stock levels
•• Turnover
•• Information to calculate all
the financial ratios to ensure
sound financial management
•• Products and strategies of the
organisation to enable them
to project the correct image
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Administrative Management
The information needs of supervisors (lower-level managers)
The supervisors need information to enable them to function on a day-to-day
basis. They need information to control and manage the daily operations.
Information can be obtained from predetermined schedules, surveys, Gantt charts,
observation, budgets, and feedback from subordinates. This data or information is
then processed to enable them to make meaningful decisions regarding corrective
action or changes when necessary. The relevant information is also given to middle
management on a weekly or monthly basis as feedback regarding operations, the
work processes, and productivity.
The flow of information in the organisation
Managers and employees at all levels of the organisation need information
to make decisions and solve problems in their daily work. Information flows
vertically and horizontally within the organisation. As we have seen, higherlevel managers need information for strategic planning, while middle- and
lower-level managers need information for the implementation of these plans
and daily operations. Employees need information to accomplish their tasks.
Figure 1.4 illustrates the flow of information and the information needs in an
organisation.
Intelligence information
is gathered from the
external environment
Public information
is distributed to the
external environment
Top-level
management
Formulate strategy,
policies, long-term plans
and objectives; make
strategic decisions
Information flows
vertically and
horizontally within
the organisation
to facilitate
decision-making
Middle-level (functional) management
Formulate tactical plans and objectives;
provide functional strategy and
guidelines for first-line managers
Lower-level management (supervisors)
Implement operational plans and
objectives; make on-the-spot decisions;
transact day-to-day business operations
Figure 1.4
External and internal information needs of an organisation
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Chapter 1 – The role of administrative management
Figure 1.4 shows the different management levels of the organisation as a whole.
However, the middle and lower levels consist of different organisational functions
such as marketing, operations, purchasing, HR, financial and public relations. In
each of these functional areas employees are executing their daily tasks, and it is
here that data is captured and analysed internally.
The information needed by all these functional areas at the different levels
must be gathered, processed, stored and distributed, communicated or shared
with the relevant people when needed. Those organisations that are quickest at
analysing and extracting relevant information to use in their decision-making
process usually have a competitive advantage.
It is not always possible to gather information; mostly, only data is gathered.
You cannot learn much from data in its raw, unprocessed form. Information
(converted data) could be, for example, the turnover figures for the past 12
months. This information could be used by the relevant manager to make the
best decisions for the organisation. It is a reality of the digital age that systems
are volatile, complex, ambiguous, and uncertain. Its dominant dynamics are
completely beyond our control. To make the right decisions or to respond
optimally to problems is therefore far more challenging than in the past.
1.4.3
Requirements of useful information
Information must comply with the following requirements to be valuable to
decision-makers:
•
•
•
•
•
•
•
•
Information must be correct and accurate to contribute to effective decisionmaking. If this is not the case, incorrect deductions and conclusions may be
drawn.
Information gathered should be valid to meet the purpose of the exercise. If
this is not the case, incorrect decisions might be taken.
Information should have the right level of detail in order to be able to
contribute to the decision-making process.
Information should be understandable for the users. If this is not the case,
valuable time is wasted making sense of the information. In the business
world, the saying “time is money” is often used.
Information must be timely. If it is not available on time, it is worthless or
delays decision-making. The longer it takes to trace a problem, the more
difficult it becomes to correct. A fact yesterday may no longer be one today.
Information needs to be complete. A compromise must be reached here
between conciseness and completeness. It is therefore important to know what
the specific need is. Partial information can be very misleading.
Information must be summarised where possible and presented in an acceptable
form, mostly visually. Graphs and diagrams should be used wherever possible.
Decision-makers do not have time to work through long documents.
Information needs to be relevant. A sifting process is necessary. It must
be replaced by new information to keep up with changes. Never collect
unnecessary information. It must pertain to the problem at hand.
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Administrative Management
•
•
•
Information needs to be clear and to the point, detailed or summarised as
required, presented in a predetermined sequence, and in the relevant or
required format.
The cost of providing information must be relatively economical.
Information must be collected from various quarters so that decisions can be
approached from various points of view.
Managers need such information and the administrative function ensures that the
information is disseminated to the other functions in the organisation. Managers
should be aware what the characteristics of useful information are: it is an essential
skill for making the correct business decisions.
1.5
The relationship between the administrative function
and the other functions in an organisation
As we have mentioned, in most large organisations we find the following functions
that operate at middle-management level: administration, marketing, operations,
purchasing and supply chain, HR, financial and public relations.
In smaller organisations you will also find these functions, but very often
they are combined and one person manages two or even three of these functions.
Where one person manages these functions, the owner will of course manage all
the functions and should be multi-skilled to be able to handle all these functions
successfully. To enable the managers of these functions to make meaningful
decisions, they require certain information.
It is the responsibility of the administrative manager to make the information
that they do not have already, or do not collect themselves, available to them. It
is also essential that the administrative manager be aware of the different levels
of management in the organisation, the types of decisions made at each level and
the need for management information required at the particular level. Only if this
is the case can useful and relevant information be communicated to the different
levels and sections.
An information system needs to be created to facilitate the gathering of relevant
information from all the different functions involved, including the different
levels of management. This system must then be able to process the information
and store it so that it can be extracted easily. The information system now has the
information stored as well as the requirements or needs of the different functions.
These two aspects (the available information and the needs of the functions) must
be matched by the system. It is the responsibility of the administrative manager
to make sure that all the relevant information is distributed to those who require
it for decision-making purposes. This complete process must be coordinated and
managed by the administrative manager.
If the information is complete, accurate, valid, on time and logical, the average
management decision will be very precise and also be implementable without
wasting valuable time that costs the organisation money. When the information is
inaccurate, unsuitable or obsolete, the decisions can be regarded as a time-wasting
exercise. The decisions that must be made by the different functional managers
may be either simple or complex. Simple decisions refer to routine decisions that
are made daily with minimum information at hand as input. This type of decision
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Chapter 1 – The role of administrative management
occurs at various levels in the hierarchy and requires a specific type of management
information. The administrative manager must have the skill to satisfy all these
requirements.
1.6
The administrative manager of the future
Although the job descriptions of administrative managers differ immensely because
of the diversity in their positions, the primary purpose of the administrative
manager and section is still to process information and to communicate it to
stakeholders within their organisations. At the same time, there are employees
in the administrative section that need to be managed. They must be motivated,
grown intellectually and be involved in the decision-making of the organisation.
If you look at the changing environment, especially referring to the everchanging technology domain, administrative managers are also performing an
important role as change agents. They are implementing new systems and have
to deal with the employees who operate and work with these systems. There is
always a resistance to change and the employees need to be assisted in coping
with it in order to become productive once again by using the new systems. You
will find that change may be easier for people representing generation Y than for
people who were introduced to technology at a more mature phase of their lives.
Employees will constantly have to be motivated to keep up with the changing
circumstances and this might be difficult for some employees.
As you well know, the administrative manager will also have to manage and
coordinate the implementation of new technology in the workplace. Most of these
technological changes will be in the areas of data and information processing,
reprographics (photocopies) and telecommunications. Managers from different
levels might, for example, need training and assistance in chairing or participating
in conferences through the use of technology such as teleconferencing and Skype.
It is the duty of the administrative manager to make sure that employees are
comfortable with the use of new technology, which will also increase employee
morale and productivity.
The South African workforce is culturally very diverse. With all the different
cultures, beliefs, religions, habits and attitudes, the administrative manager, like
all managers in South Africa, has to adapt to accommodate this diversity. This
must not be seen as a stumbling block, but rather as an opportunity to utilise all
the differences in a positive way. This will ultimately enable the administrative
manager to function in the global environment that consists of various countries
and cultures. Countries are not bound by their borders and technologies enable
us to do business across borders. Just imagine how many different ideas you can
gather to solve a problem from so many different people with different viewpoints
and opinions.
The administrative manager has to develop sensitivity towards the implications
of large social and economic matters and has to recognise public matters of the
immediate future and their effect on the organisation and their future existence.
For example, the effect of HIV/Aids on the workforce and work must be taken into
account when strategic planning is done.
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The administrative manager has to include employees in the decision-making
processes, train and guide them, and encourage them to develop and understand
the total functioning of the organisation as an entity, and build a multidisciplinary
workforce to achieve the objectives of the organisation. Employees should be
empowered at all different levels; by including them, one can give them a sense of
belonging and improve their trust in the organisation they work for.
Today, in many organisations and industries, globalisation is part of business.
Technology, specifically in the digital and online domains, shifts goalposts, and
physical borders that demarcate countries become invisible. Global competitiveness
guarantees an organisation the possibility to trade internationally and to be
trendsetters. This is a matter of concern for countries from the African continent.
Therefore, African countries should be creative and eager to engage with the rest
of the world to ensure their existence. The administrative manager will have to
deal with this challenge in connecting the systems of the organisation with the
different role players and will have to make sure they operate smoothly. This will
guarantee them the competitive advantage in the business environment.
Recent controversial thinking in some quarters suggests that highly trained
freelancers and software may replace administrative managers within organisations,
but with the increasing use of teleworkers and outsourcing by companies, the role
of the administrative manager becomes even more necessary than ever before.
With employees that telecommute, the daily functioning of the office should run
smoothly to enable workers to work from various remote locations. We therefore
have to ensure that all administrative managers are given the essential training
required to enable them to make the best use of their own technical skills as well
as those of their subordinates.
Conclusion
To survive in the changing business world we find ourselves in and with all the
challenges facing us, one can see that the administrative manager has to be a
person possessing many different skills. The task of the administrative manager
has grown rapidly over past years to make this function one of the most crucial in
most of the large organisations. These tasks are expanding continuously and will
ultimately contribute to a productive and competitive organisation. Even smaller
organisations are not as productive as they can be because of the mismanagement
of information. Smaller organisations cannot always invest in a number of
skilled managers representing various management levels and functions and it is
therefore difficult to compete against organisations of a larger scale. The smaller
organisations have to be creative, especially with regard to budget constraints, to
tackle the competitive challenges experienced in the business environment and to
guarantee their future existence.
Administrative managers must make use of the available technology to assist
them in managing all available information. Decisions taken with insufficient
information can be very damaging to an organisation. On the other hand, the right
information at the right time can give an organisation a competitive advantage in
any industry.
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Chapter 1 – The role of administrative management
The administrative manager must stay abreast of any developments in the
administrative and technological fields. In the digital era that we function in,
technology is part of the information system of the organisation, as well as part of
the administrative manager’s job specification regarding personal decision-making
and problem-solving. The administrative manager must be able to implement
changes comfortably. This involves the identification of opportunities and the
implementation of change when necessary. Changes and new developments must
be communicated and implemented in the proper manner.
The administrative manager has become much more than just another glorified
office manager or clerk. Owing to the information explosion and technological
progress, this function has become crucial in most organisations to ensure that
organisations function optimally and stay part of the competitive business
environment, ensuring future existence. As you have seen in this chapter, a multiskilled employee is needed to manage this function effectively. It is not just about
managing the administrative function, but also coordinating the information
needs of the organisation. Administrative managers should be experts in a variety
of fields, as they do not function in isolation.
Self-assessment
1.Define management and discuss briefly what the role of management in an
organisation is.
2.
Discuss the role of an administrative manager in a large organisation.
3.
List the objectives of an administrative manager.
4.
Make a list of all the possible job duties of administrative managers.
5.Discuss the information needs of each functional area within an organisation.
6.
When would information be useful?
7.Discuss the role of the administrative manager in a contemporary business
environment.
8.Explain why the administrative manager must perform an important role as
change agent.
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References
Lessing, N. & Scheepers, C. (eds.). 2006. Information is a management issue.
Johannesburg: ISIC.
Probst, G. 2014. “Six tips for taking complex decisions at work.”
https://www.weforum.org/agenda/2014/04/six-ways-handle-complex-decisionswork/
(Accessed: 15 May 2016).
Quible, Z. K. 2005. Administrative office management: An introduction. 8th ed. New
Jersey: Pearson Education.
Slovensky, D. J., Garrie, R. L. & Paustian, P. E. 2006. Information management:
Medical Practice Management Body of Knowledge Review Series. Alabama: MGMA.
Van Antwerpen, S. 2013. Key success factors influencing productivity of administrative
employees in the South African public sector. DTech thesis. Pretoria: Tshwane
University of Technology.
Williams, T. 2016. “Five key objectives of the administrative manager.” http://
www.ehow.com/info_8478544_five-key-objectives-administrative-manager.html
(Accessed: 15 May 2016).
Anon. 2015. “Administrative manager job description.”
http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/jobdescriptions/adminstrative-manager-job-description.aspx
(Accessed: 12 May 2016).
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Chapter 2
Information systems
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
explain the systems concept;
list the objectives of a system;
identify the characteristics of an efficient information system;
explain why organisations would modify an existing system;
describe how to implement a new information systems;
identify different types of information systems in an organisation; and
explain the integration of systems within an organisation.
Introduction
Managers in an organisation, including the administrative manager, are required
to manage the information resources available to them effectively and efficiently
when completing their duties. The implementation of an information system
creates an environment which makes it possible for the administrative manager
to efficiently manage the various sources of information and utilise the collected
information to reach the required administrative objectives.
Information is sourced both internally and externally. Internal information is
collected from various organisational functions, departments and management
levels. As the whole organisation is a potential source of information, all employees
(from operational to senior management) make some form of contribution towards
the effectiveness and efficiency of the information system. External information
can be collected from sources such as suppliers, customers, industry trends, and
media reports.
This chapter does not focus on the information technology (IT) used by the
administrative manager, but rather on information systems, which is concerned
with how people make use of IT to complete their work-related tasks (i.e. processes).
The use of information systems provides organisations (whether large or small)
with the opportunity to have a competitive edge over those that do not use them.
The primary focus of this chapter is on the implementation or modification
of information systems. We will also be looking at the objectives of a system as
well as the characteristics of an efficient information system. This is because the
information required by an organisation is seldom located in an individual system.
The starting point is then to explain the nature of a system.
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2.1
Defining a system
A system is composed of various components and procedures working together to
achieve a given goal within an identified boundary (or border). The components
are the physical attributes of a system, while procedures consist of the actions
(or methods) needed to complete various work processes associated with that
system. Any given system may comprise one or more subsystems, which can be
broken down until you reach a single system that cannot be broken down any
further.
Subsystems are therefore functional components of a larger system. A
subsystem can also be regarded as a system in its own right. It just depends on
the relevant context. For example, the Department of Home Affairs records details
about citizens within the Home Affairs system, but this information is broken
down into smaller parts that record anything from births to deaths to marriage
registrations. Each of these can be considered as a separate subsystem of the overall
Home Affairs citizen record system that relies on the completion of the relevant
procedures.
Procedures are a series of related and consecutive steps that must be followed
to enable someone or a system to perform a specific task in a routine manner. For
example, the application for an identity card issued by the Department of Home
Affairs. A method, on the other hand, is the manner or way in which activities
or tasks are performed. For example, the method of capturing fingerprints is now
done using biometric technology, instead of paper and ink.
We can use a typical organisation for a more detailed example to explain the
definitions above. Organisations as a whole can be seen as a system, which is made
up of various functional units (that is, administration, marketing, production,
purchasing and supply management, human resources (HR), finance and public
relations). Each of these functional units (or departments/sections/divisions)
can be seen as the subsystems of the organisation. Additionally, each of these
functional units can also be seen as a system in itself.
Therefore, if the administrative function is seen as a system then the different
sections or divisions that report to that system will be its subsystems. How these
subsystems are arranged within the administrative system will depend on the
organisational structure of the administrative function. The subsystems could
involve activities such as facilities management, information and communication
technology management, HR management, strategic planning and mailroom
management.
Within these subsystems there are certain procedures and methods that must
be followed to ensure the effective and efficient functioning of that section. For
example, in the mailroom certain procedures must be followed when dealing with
incoming mail. These procedures may include:
•
•
•
•
•
receiving mail;
opening mail;
date-stamping mail;
sorting the mail according to its destination; and
distributing the mail.
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Chapter 2 – Information systems
Each of the above procedures consists of specific methods to execute each step.
These probably differ from one organisation to the next. The method for receiving
and opening mail could be the following:
•
•
•
Receive the mail from the courier service before 10:00 every morning.
Separate confidential and personal mail for delivery.
Open the rest of the mail.
A system’s components include all the people, technology, machinery and facilities
that form part of that specific unit. How a system interacts with its environment
can either be viewed as open or closed. When an organisation is an open system it
exchanges inputs (raw materials and/or information) and outputs (finished goods/
services and/or information) with its environment. The administrative function
needs to operate as an open system within the organisation (its environment), as
it is interrelated with all the functions of the organisation as well as the external
environment (that is, outside the organisation). A closed system is self-sufficient
and can exist independently of a particular environment (that is, it does not
need any inputs or outputs). However, closed systems within in an organisational
context cannot be allowed to exist, as it means that there is no effective and
efficient sharing of information.
We can explain the concept of environments and systems further by revisiting
the notion of an organisation. If we say that the organisation is the system, then
everything inside the organisation is part of the system and can be seen as the
internal environment (or the internal subsystems). An organisation is also an open
system if it interacts with the external environment (clients, suppliers, customers
and other agencies), which involves activities such as purchasing, marketing,
distribution, and research. These could then also be seen as the external subsystems
of the organisation.
The interaction between the various internal and external subsystems results in
the recording of transactions. These transactions represent data that is transferred
between the subsystems to facilitate coordinated actions relating to the goods and
services exchanged between clients, suppliers, customers or third party agents. The
internal subsystems support the transfer of data associated with all the internal
operations (e.g. finance, HR, procurement) of the organisation.
An organisational system can also be considered from the perspective of a
value-chain. The concept of a value-chain is concerned with all those activities
associated with converting a raw material into a finished product or service. For a
furniture manufacturing facility, the value-chain process might involve: sourcing
the wood from a supplier, transporting it to your production facility (factory),
warehousing the raw materials, converting that wood into a kitchen table and
chairs (manufacturing), delivering it to the retailer (such as Game), and then
following up with service and maintenance. There are a number of administrative
functions that will be carried out by various subsystems during the primary
activities (production process) of the value-chain. These might include such tasks
as the processing of goods receipt vouchers (GRVs) for raw materials, and the
invoicing of the furniture to the retailer.
Apart from the primary subsystems in operation, there are also other functions
(more subsystems) such as HR and technology requirements that support the
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primary activities described above. Each of the primary and support activity
groupings may utilise separate information systems or be part of a single
enterprise information system (e.g. an enterprise resource planning (ERP) system,
such as the SAP™ ERP software). The subsystem within each group will rely not
only on information generated within that group, but also on key elements of
information provided by the other groups’ information systems, or a module of
a single information system. Certain systems operated by support activities will
encompass the whole organisation and will require the input of information from
all the activities. For example, the budgetary control system will monitor the funds
budgeted and actual expenses associated with the purchasing of raw materials and
the labour costs of the manufacturing process.
No matter the activities associated with a given subsystem or system, all systems
have a general set of objectives associated with their development and use.
2.2
The objectives of a system
The following are some of the objectives for developing and using a system:
•
•
•
•
•
maximising the efficient use of organisational resources;
enhancing operating efficiency and productivity (this includes saving time
and money);
achieving the objectives of the organisation;
practically managing the important details of the business; and
facilitating the operation of all the functions of the organisation.
As you can see from these objectives, there are obvious advantages when using
a system. If we look at systems in organisations, it is difficult to imagine any
organisation functioning in any other way. The functions of the organisation
are coordinated through the system concept. When managers know where their
input comes from and who is affected by their output, they have better control
over information for decision-making, which leads to improved efficiency in the
organisation. However, it is important that managers identify any inefficiency in
processes within their subsystems and change them to avoid those inefficiencies
affecting the system as a whole. To ensure that changes are actioned correctly it
is necessary to identify the element of the general system where the inefficiency
occurred and communicate the correction to the relevant parties.
2.3
The elements of a general system
All general systems consist of the following elements:
•
•
In any system there will be an input of some sort. It could be data, information
or any other resource. An input can also include the staff executing the tasks
as well as the equipment needed for the tasks, if they are not already part of
the existing general system.
The input or data gathered has to be calculated, analysed, classified, counted,
grouped, sorted, compared, evaluated, summarised or prepared as graphs to be
considered useful information. This is the element of processing. It converts
the input into an output. One of the basic objectives of the administrative
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•
•
•
•
function is to convert data into information. This runs parallel to the objective
of computer information systems, which is to transform data into information.
Once the data is processed into useful information it needs to be stored until
needed by decision-makers. Today, information is mostly stored digitally.
Processing is done in a certain manner and produces a specific outcome called
the output. The output has to be in the required form and of the specified
quality to meet the needs of the user (the ultimate destination). Often this
output becomes the input of the subsequent subsystem (see Figure 2.1).
For example, the student number issued to a student when they apply to a
university becomes the input to a number of other subsystems.
There is usually some mechanism in a general system to provide feedback.
Feedback tells us how the system is performing. Output, for example, could
be adjusted, corrected or refined. The amount of feedback you require is
determined by the importance of the system for the survival of the organisation.
The more important the system or the desired output, the more important it
is to have proper feedback. Feedback is necessary to determine whether the
desired input is received, the proper processes are executed and the required
output is available. Feedback is received as a controlling measure to make sure
that the system remains effective and efficient.
Control involves monitoring and evaluating feedback to determine whether
a system is doing what it should be doing. The control function initiates
adjustments to direct the activities towards reaching the objectives and
ensures that the system is only being accessed by those individuals who have
the authority to complete certain tasks. For example, the release of salaries
in the payroll system is only carried out by those individuals who have been
authorised to do so.
The environment in which the organisation operates and the communication
channels that it utilises are often considered to be elements of an information
system.
The administrative manager will have to manage and interact with various
systems in an organisation. Therefore the focus for the rest of this chapter will be
on the information system. The main activities of an information system can be
seen in Figure 2.1.
Information systems consist mostly of the following basic resources that work
together in producing an output such as information:
•
Data: This is the raw facts that form the information part of the information
system. For example, the individual ages of all the students in a class written
on a sheet of paper would be raw data. It becomes information when we use
that raw data to determine the average age of the students in the class, or the
number of students who fall into a certain age category. The raw data that is
captured in the information system needs to be stored somewhere so that it
can be manipulated (processed) at some point for an output. Databases are
used to store raw data. A database is a collection of related data files and holds
data in a structured format. It can be accessed and used in various different
applications.
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Potential available data
Collect data
Process data
Store data
Distribute data
Users of data
Figure 2.1
•
•
•
•
•
Model of an information system
Hardware: These are all the physical devices and materials used in information
processing. It includes the internal computer system components, such as the
motherboard; central processing unit (CPU); and memory chips; the computer
peripherals (for example the keyboard, mouse, screen, and printer); and
telecommunication networks (communication devices).
Software: These include all sets of information processing instructions,
programs for computer instructions and procedures for human instruction.
It tells the hardware how to function. The following classification is used:
system software (operating systems such as Windows), application software
(for a specific use such as a payroll program) and procedures (instructions on
how to use a package).
People: As the most important part of the system, we find users (end users
or clients) and information professionals, who develop, implement, operate
and maintain information systems. Information system professionals could
include business analysts, system analysts, analyst programmers, programmers,
database administrators and network professionals.
Procedures: Procedures are to people what software is to hardware. These are
the rules, descriptions and instructions for how things are done. They are
often found in instruction or user manuals and they describe how to use the
hardware, software and data.
Communication: This refers to the digital connectivity between hardware
components and devices in order for them to be able to share data and
information. Computers (hardware) communicate with one another through
components that are controlled by either system or application software.
People facilitate the communication process by utilising the hardware and
software to share relevant information for decision-making.
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2.4
The characteristics of an efficient information system
As you have seen, the aim of the administrative function is to collect, process,
store and distribute meaningful information to decision-makers and managers to
enable them to execute their tasks. This is only possible through the use of efficient
information systems that make use of current technology. Such systems have the
potential to give one organisation a competitive advantage over their competitors.
Gaining an advantage does not just happen automatically when implementing
current technology. There are certain factors (external to the system itself) that are
considered essential to the success of a system. These are:
•
•
•
•
the technical quality (or current technological relevance) of the system;
the participation and involvement of users in the system design;
the capability and skill levels of the users; and
the support from top management.
Furthermore, an effective information system should satisfy certain requirements.
It must supply decision-makers with information that is new and relevant.
Managers do not need information that they are already familiar with. They
need information that leads to action, or that is essential for background study
regarding a certain issue. To provide information that satisfies these requirements,
the information system itself must have the following characteristics:
•
•
•
•
•
•
•
•
The output must facilitate decision-making. It is important that the information
produced by the information system must serve the purpose for which it was
intended.
Data must be processed efficiently. For this, adequate control must be exercised
over the hardware and software during the process of generating useful
information.
Data must be managed effectively. Files must be updated all the time, data
input needs to be accurate, and adequate security controls need to be in place
to ensure the integrity of stored data.
The information system must be flexible in order to accommodate special or
unusual circumstances.
The information system must be adaptable to accommodate any changes that
arise as the needs of the organisation change or if there is new technology
available. Any changes made should not destroy or hinder its functioning.
The information system should be systematic and logical in the way that it
processes information.
Interaction between components of the information system needs to be
properly organised and coordinated.
The information system must be user-friendly so that the tasks can be
performed effectively and efficiently. It should be as simple as circumstances
allow.
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Technological change increasingly influences the design and operations of
information systems. Additionally, the software used to facilitate the technologically
integrated procedures must facilitate the delivery of tasks from one person,
department or management level to another. The existing data must also be
accommodated and facilitated in the information system whether it is old or new.
Although we have discussed the characteristics of an efficient information
system, the administrative manager cannot just change or modify the system at
any time. This type of action needs to be managed properly.
2.5
The implementation and modification of information
systems
If an organisation has an information system, it has to be managed. If the current
information system is out of date, it has to be modified to meet the current needs,
or retired (replaced) if it can no longer add value. If an organisation does not have
an information system but needs one, then it would have to design and implement
one. The management, modification and implementation of an information
system become the final responsibility of the administrative manager in a given
department, as they need to ensure that the system will meet the business needs.
When designing a new information system, it should be done within a planned
framework and be created from scratch. It is not a good thing to patch different
smaller subsystems together. A system is usually changed when it has lost its
competitiveness or when it does not meet the needs of the business any more.
Developing a new system is not simple. It requires a thorough understanding of
the existing processes and a vision of how an organisation should operate. It also
requires discipline, knowledge and excellent communication skills.
Once the need for an information system has been identified, the planning
and development thereof will follow. The planning phase provides the framework
within which the information system will be implemented. Once the decision is
taken to implement a new system, the process of developing it will begin. There
are many different steps and methods that can be followed to implement a new
system. For the purpose of this chapter, we will use the following steps to develop
an information system:
1.
2.
3.
4.
5.
6.
7.
Analysis;
Feasibility study;
Design;
Testing;
Implementation;
Documentation; and
Maintenance and evaluation.
Step 1: Analysis
The beginning is always an important step: it is the foundation on which the rest
will be built. An investigation is needed to determine whether there is in fact a
need for an information system.
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According to Stair et al (2015), an investigation attempts to find answers to the
following questions:
•
•
•
•
•
What primary problems should the new system solve?
What opportunities might a new or enhanced system provide?
What new hardware, software, databases, telecommunications, personnel or
procedures will improve an existing system or are required in a new system?
What are the potential costs (variable and fixed)?
What are the associated risks?
A committee consisting of system analysts and some users, as well as the manager
leading the initiative, could be used to find answers to the questions identified
above as part of a preliminary investigation. Information could be obtained
from managers and present users of the system by interviewing and observing
them. Existing manuals, where available, could also be studied. A written report
about the information gathered is then given to top management or a steering
committee. The steering committee needs to review the report in terms of the
entire organisation and assess how the information is managed at the present time
and how the present system (if there is one) is working. The steering committee
will require information about the feasibility of the new system to make a final
decision and this will be included in a feasibility study.
Step 2: Feasibility study
The feasibility study step can be done as a separate step, but is often part of the
analysis step. Its purpose is to determine whether developing the system will
improve operations and add value. A feasibility study therefore focuses on five
factors that will affect the success of the new system project (Stair et al, 2015):
•
•
•
•
•
Technical feasibility: Does the organisation have the necessary hardware,
software and telecommunications required to build and implement the
system?
Economic feasibility: Will the cost of the system provide a return on
investment?
Operational feasibility: Will the system meet the purpose for which it is
intended?
Legal feasibility: Will the system meet the legal requirements of the industry/
country?
Schedule feasibility: Can the project realistically be finished given the
available time and business need?
Once management accepts that the system will be feasible, a project team
is established that will develop the system until it is ready for delivery. Such a
team usually includes the following people: system analysts, programmers, and
representatives from the departments that will form part of the system. Once the
requirements are known and the best solution to solve the presented problem or
exploit the opportunity has been chosen, the project team can commence with
designing the system.
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Step 3: Design
The requirements determined in Steps 1 and 2 will assist the development team
with designing the system. This is usually done on paper (logical design) and then
the actual system is built (physical design) once the requirements are confirmed
with the users. The design process will consider the following areas as part of the
development of the new system:
•
•
•
•
•
Inputs: This includes the input files that will be used to capture the input
data and the procedures used to process the input; the type of data required;
the amount of data; where it will be collected from; and how the data will be
entered into the system. It also includes the manner of interaction with the
system by the users and the interfaces, which will enable users to interact with
other systems.
Outputs: This includes the need and form of output required; the output files
that will capture the processed data; as well as the files that will record input
by all the other users of the system.
Hardware: This is the technology, including communication technology,
suited for the system.
Software: Packages satisfying the need, including databases and word processing.
Construction: Programmers design programs to facilitate the input, processing
and output of the system.
Once the developers have a working system, it needs to be tested to ensure that it
is operating as per the organisation’s needs.
Step 4: Testing
The process of system testing is ongoing from the very beginning of the
development process. The developers need to check that all the parts of the system
work together. Usually, a system is tested in a testing environment before it is
released into a production environment. This is to ensure that any bugs (coding
problems) in the system can be rectified. Imagine the costs that a factory producing
cars would experience if there was a problem in the code and they did not do
testing before the system went live. Therefore, a system needs to be tested before
being used to make sure it does what it is supposed to do. The organisation will test
the system with simulated real world data. They will also input incorrect data on
purpose to measure the output, processing times and quality. Any errors that arise
will be corrected before the information system is implemented in the production
environment.
Step 5: Implementation
If the current system is still in operation, then you need to decide if you are going
to stop that operation and introduce the new system immediately or whether
you are going to run the two systems simultaneously. This is referred to as the
changeover process. Usually, if the system to be replaced is a critical system (for
example the financial system of the organisation), the new and old system will be
run together for a period of time, so that the output from the two systems can be
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compared. Whatever the decision, the administrative manager must be aware of
the following factors during the changeover process:
•
•
•
The data in the current system: There will be a large amount of time spent on
transferring the data in the existing system into the new one. It is important
to prepare for any irregularities and inform the developers immediately of
problems so that the system can be rectified.
The acceptance of the users: The users need to be trained to use the new
system. They should be given background knowledge of the new system as
well as on-the-job training if necessary.
The changes in work processes: When changing from an old to a new system,
productivity would probably go down initially and mistakes could occur due
to the new processes that have to be followed.
Step 6: Documentation
Documentation is done throughout the development of the system. There are
the user manuals for the users and technical documentation for the IT analysts/
programmers who manage and maintain the system. User manuals, for example,
contain information about methods and procedures of how to work the system.
This documentation should also provide detailed help to the users, which is now
often found online and no longer in printed documents. The need for technical
documentation is important as it will be difficult for those maintaining the new
system to do so without reference material of how everything works.
Step 7: Maintenance and evaluation
Any system needs maintenance and this consists of addressing problems as they
arise. This may include user problems as well as changes to the system itself. To
assist users, a help-desk is often provided. The system is also evaluated from time
to time to determine whether it is still meeting the needs of the organisation, or
needs to be upgraded or retired and replaced with a new system.
2.6
Different types of information systems
The type of information that will be used in an organisation is determined by
the level of decision being made (strategic, tactical or operational), the use of
information (for planning or control), the source type and application, and the
destination (internal or external) of the information.
To classify information systems is not simple. As new uses are found for
computer-based information systems, so new categories of information systems
are constantly being developed. Information systems are mainly conceptualised in
terms of five types of systems: transaction processing systems (TPSs), management
information systems (MISs), decision support systems (DSSs), group support
systems (GSSs) and executive support systems (ESSs).
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2.6.1
Transaction processing systems (TPSs)
These are the basic business systems that serve the operational (lower) level of the
organisation. A TPS is a computerised system that performs and records the daily
routine transactions found in all organisations. Examples of these activities are
sales, receipts, orders, payments, banking transactions, payroll, hours worked, and
the flow of material in an operations department. The transaction is added to the
system or database as soon as it is received or as soon as it happens. We experience
transaction processing systems on a daily basis when we make purchases at a retail
store, as the Point-of-Sale (POS) system that the cashier uses will automatically
make a number of adjustments to the databases that it is connected to in the
organisation.
The main purpose of a TPS is to track the flow of transactions through the
organisation and to answer routine questions. The information here is used to
manage the lower-level activities in the organisation. These systems can only carry
out the tasks for which they are designed and the built-in functionality cannot
be changed by the user. However, users do have the choice of default options that
they can change to customise the system to a given environment. It is therefore
important that when designing a TPS that the system developers understand the
exact need of the organisation and cater to their needs. The reports available
from a TPS are often prescribed. The inflexibility of the reporting capabilities of
TPSs is one reason why more advanced reporting systems were developed that
could support the decision-making process of managers. These systems are the
backbone of an organisation, as they can provide updated information at any
given time.
2.6.2
Management information systems (MISs)
In order for managers of an organisation to make decisions on all levels, they
need information. It is therefore necessary to have information available in an
organised form and for this an MIS can be used. An MIS can provide managers
with reports in an accurate and timely manner. It could also provide them with
online access to the organisation’s current performance, as well as with historical
records. An MIS gathers relevant data and information from inside as well as
outside the organisation. This data and information is processed and stored on
a database. It is updated regularly and can be accessed by managers whenever
needed. This information is also used for control purposes. An example could be
a report for the month regarding the budget, noting where actual costs exceeded
budgeted costs.
MISs are specifically designed to use IT to meet the information needs of lower
and middle managers as they make a variety of decisions on a day-to-day basis. An
MIS provides managers with the information they need to carry out their functions.
It generates regular performance-monitoring information, maintains coordination
and provides background information about organisational activities.
An MIS does not directly support the decision-making process but makes
information available that managers use to base their decisions on. The MIS
usually provides the internal information of the organisation about its past
performance. The system itself does not do any forecasting. Databases from
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which the information is gathered must be updated first before the MIS can
provide the information to managers. This can cause a delay in the decisionmaking process. As a result, computer-generated reports are an important part
of MISs.
Different subsystems exist to supply information to functional managers. The
subsystems are marketing, production, purchasing and supply chain, HR, finances
and public relations. The data and information regarding the operations of these
functions is recorded and transferred to a database. Each function supplies the
information regarding its own operations. The information regarding each
function referred to here was discussed in Chapter 1.
Some information processed or gathered by each organisational function is
only for its own use. However, there is also information that needs to be supplied
to the other functions for them to function effectively. An example of this is
the financial function that has to supply information to all the other functions
regarding the budget. Each function needs to draw up a budget and this cannot be
done without guidelines regarding the financial situation. Another example is the
HR function supplying all the other functions with information on the policies of
the organisation. If you look at the information needs as described in Chapter 1,
you will see that some of this information can be obtained internally from
other functions. This information will be included in the MIS. Any confidential
information will obviously not be available to the other functions and will only
be available to the specific user.
2.6.3
Decision support systems (DSSs)
A DSS is a computer system designed to provide assistance to managers in
determining and evaluating different courses of action. It uses special software to
allow users to interact directly with a computer to help make decisions for solving
complex and sometimes unstructured problems. It acquires data from a range of
routine transactions of the organisation and analyses it by using advanced statistical
techniques to create useful information and even narrows down different decision
options to assist managers. The DSS has arisen from an ever-increasing need for
information system support in non-routine, non-repetitive, uncertain situations
where success criteria are by no means clear. It was developed to overcome the
structured problem focus of MISs.
A DSS can be used in a number of different ways, such as in financial services
where insurance agents need to structure sales situations and respond to clients’
requests by choosing the best combinations from a set of options. The DSS does
not make the decision for the manager, but provides information about different
options that the manager will use to make the decision.
The main functions of a DSS are to:
•
•
provide support for decision-makers faced with unstructured or semistructured problems by combining computerised information with human
judgement;
increase the number of alternatives presented to the decision-maker;
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•
•
enable more rapid response to unexpected situations; and
provide decision-making capabilities to individuals at different management
levels in the organisation.
The functionality of a DSS can be enhanced by integrating it with a group support
system which facilitates group decision-making.
2.6.4
Group support systems (GSSs)
This is software that includes all the characteristics typically expected of a DSS,
as well as software that facilitates the sharing of structured and unstructured
information. Remember that a DSS does not make the decision for a manager, but
provides them with possible solutions. GSSs provide a means for decisions to be
made by more than one individual. This is specifically helpful in environments
where teams or managers are expected to provide their opinions about decisions
that are to be made. Stair et al (2015) state that GSSs typically have the following
characteristics that assist with decision-making:
•
•
•
•
•
•
•
They are designed for groups, and provide a means to have online meetings,
voting, and receiving input on decisions to be made.
They are easy to use, as group users are less tolerant of systems that are difficult
to use.
They are flexible, such that they support the different decision-making styles
of different managers.
They allow anonymous input by users, which allows users to express their
opinions in a safe manner.
They reduce negative behaviour, such as where one individual dominates
others, by allowing everyone to express their opinion.
They support parallel communication, which allows more than one user to
express an opinion at a the same time by entering it into their workstation.
They provide automated recordkeeping for all decisions made, so that accurate
records exist for all meetings held.
2.6.5
Executive support systems (ESSs)
Senior and top managers make use of ESSs to make decisions that serve the strategic
level of the organisation. They address non-routine decisions requiring judgement,
evaluation and insight. ESSs create a generalised computing and communications
environment rather than any fixed application or specific capability. The focus is
on long-term trends, internally and externally. External changes must be noted
to adjust internally and thereby remain competitive. Examples are the long-term
industry trends and future products of the industry.
The system gathers information from many different sources and this
information is put on an IT system. This system must be user-friendly so that these
managers do not spend all their time trying to operate the system instead of just
getting the information they need.
The information must of course be relevant to the decisions they need to take.
This information will be on matters such as competitors, the economy, politics,
customer needs, and government rules and regulations. The information must
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be presented graphically where possible and summarised to save time when
working through it. Detail must be available on request. This system makes use
of the available internal and external databases, as well as a database specifically
designed for this purpose.
2.7
The integration of systems and the flow of information
There are a number of ways in which the various types of information systems can
be linked in order for people to access the data stored in the databases.
The systems in most organisations are specialised to serve the processing needs
of the functional areas, such as sales and marketing, finance and accounting,
manufacturing and production, and HR. Systems are often initially developed
as stand-alone systems and are not linked to other systems in the organisation.
The lack of integration of the systems in an organisation means that managers
often don’t have access to real-time information for decision-making, which could
lead to poor decisions being made. Therefore, the main goal of integrating the
systems in an organisation is to view it as a whole with one common and shareable
database as the source of data for decision-making.
In order to integrate separate systems, system analysts would be used to investigate
the possibility of integrating the different systems within the organisation so that
information can flow between them. The goal is to ensure that information can
then be made available to all the users by means of any of these systems. This is
often a challenging process, especially if there are significant compatibility issues
between the various vendor systems. Often smaller systems need to be developed
to bridge the gap between two larger systems, so that the data can flow freely. For
the user, the interaction between the various systems should not be evident, as
everything happens behind the user interface.
As we have explained, each function in the organisation could be seen as a
system on its own. Although each function is managed individually, they are
still part of the organisation and must function interdependently as integrated
systems. Each functional manager has to produce certain outputs in order for the
organisation as a whole to be profitable.
The question is: “Who must take care of this integration?” We can generally
say that this is the function of top management, but each functional manager is
also responsible. Each functional manager, for example, cannot do planning in
isolation. There is no use in expanding one of the functions without informing
the HR function. Who will recruit and employ the necessary staff? The matter will
therefore be facilitated if a team approach is followed in the management process.
To ensure successful integration and coordination in the organisation, the
following requirements must be satisfied:
•
•
•
There must be mutual cooperation between individuals and the different
functions.
Each function and its subdivisions must be aware of its share in the goal of the
organisation (the output they need to provide that becomes the input of the
other functions).
Each function must be flexible and able to adapt to changing circumstances.
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An ERP system, such as the software developed by SAP™, provides a fully integrated
system that connects all the functional areas of an organisation. We will now
briefly look at the functions found in most organisations that will interact together
in a typical ERP system.
The administrative/information function: The administrative function
plays an important and pertinent role in the integration and coordination of the
different functional divisions. It is the administrative function’s responsibility to
ensure that the information required by the different functions reaches them at
the right time. To ensure this, it is essential that the administrative personnel in
functional units capture the required information timeously, so that the correct
information is available at the right time for the other functional units. The
database manager plays a critical role as they maintain the necessary database
structures that allow data to be stored when it is not being used for processing in
the ERP system. When data is processed into information by the ERP system, it is
made relevant for the given context and made available to the functional units of
the organisation.
The marketing and sales function: The marketing strategy selected by the
marketing manager is very important since it often reflects the overall strategy
of the organisation. The marketing manager must consider the information
and capital-needs implications of the marketing policy and marketing strategy.
Marketing managers often have access to customer relationship management
(CRM) systems that store relevant information about the purchasing habits of the
company’s consumers in order to target advertising. The resulting consumer order
information needs to be shared with the other functional units in the organisation
such as production, purchasing and finance. This assists the other functional
units with taking the necessary actions to ensure that customer order fulfilment
is possible. At all times an integrated system provides the marketing manager with
a clear view of whether increased sales are in fact possible for the organisation. If
there are too many credit sales accepted then the organisation may run out of cash
to purchase resources for production, therefore an integrated system constantly
monitors the necessary balance.
The production function: Production is the key function in the organisation
because it is the process whereby input is converted into valuable output. The
production manager must plan and control their activities according to the
sales and production capacity. The production strategy to be followed by the
production manager will be linked to the marketing strategy in an integrated
system. The production manager therefore depends on information available from
the marketing, administrative and financial functional units. The production
manager, in turn, must provide the purchasing functional unit with information
on the resources and materials required to meet the customer orders.
The purchasing and supply-chain function: The manager uses information
obtained from the integrated system to make decisions in the respective divisions.
The sales orders placed by the sales team will commit the stock on hand and
make it necessary for the purchasing manager to order additional resources to
manufacture more stock. The purchasing manager is concerned with information
from the suppliers, delivery times, quality and scope of requirements, storage space,
production needs, and rate of consumption. These and other factors influence the
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cost and capital needs of purchases and stockholding (i.e. how much stock to keep
in the warehouse). Based on quality of service, punctuality of delivery and quality
of raw materials, the production function will also serve the purchasing function
in selecting the right suppliers.
The human resources function: The HR manager is in control of the
most important resource in the organisation: people. The manager requires
information from the different functions on staff matters (such as additional
staff required) and training needs. According to the needs of the different
functions, employment, career development, career guidance, performance
appraisal and training will be initiated by the HR function. To ensure uniformity
in the organisation, the HR function must also provide guidelines to all the
other functions of the organisation on labour law restrictions, such as acceptable
employment hours and minimum wages. This impacts on the financial function
of the organisation, as well as all the other functions.
The financial function: The financial manager must be aware of the capital
and financial needs of the other functions, so that the committed expenses
are possible within the existing budget of the organisation. This information
is reflected in the position of debtors, creditors, cash and stock. The financial
manager must therefore know what the priorities are for the capital allocated to
projects. They must also be aware of what levels of capital allocation can be made
by the operating managers without permission from their superiors.
The external relations function: All the different functions must provide the
external relations manager with information on opportunities as well as threats.
Opportunities can be used to improve the external image of the organisation.
Negative publicity, in turn, must be avoided when there are threats, and steps must
be taken in good time to avoid them. The external relations manager can thereby
attempt to maintain good external relations with their consumers, wholesalers,
retailers, competitors, and local, provincial and government authorities, as well as
financial institutions, trade unions and the community in which the organisation
functions.
The functions can be described as a number of mutually dependent subsystems,
parts or procedures and methods that work together towards a common goal.
Within each function you need to get the work done in a coordinated way and
according to certain standards, such as quality, quantity and time. For this you
need procedures and methods that need to be followed by the staff in the different
functions.
Conclusion
The continuing development in IT and applications provides opportunities for the
improvement of information systems and the efficient use of information. The
latest technologies are also being used more and more by organisations in order to
stay competitive, especially in the global market. Even organisations that have not
used technology in the past are now using it as it is becoming increasingly difficult
to compete without automated production systems.
The storage capacities of databases are becoming increasingly larger, which
allows for the opportunity to manipulate large amounts of data into useful
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information. Telecommunications technology that supports web applications and
services continues to be applied in innovative ways to improve communication
throughout the value chain, from the supplier to the customer.
The increasing amount of technological integration used in the design of
operating systems and procedures is responsible for the evolution of what is
known as knowledge management. Basically, it involves providing information to
the right persons at the right time in the best format to meet their needs.
Self-assessment
1.
Explain the relationship between systems, subsystems, procedures and
methods. Use examples applicable to a given organisation when explaining
your answer.
2.
Describe the characteristics of an efficient information system.
3.
Describe the seven steps that were described as part of the systems
development process.
4.
Identify and briefly describe the five different types of information systems
that can support managers when making decisions.
5.
Imagine that you are the owner of a factory that produces chocolates. Briefly
describe why the different functional areas in the chocolate factory need to
be linked together in order to share information.
References
Piccoli, G. 2012. Information systems for managers: Texts & Cases. 2nd ed. Hoboken,
New Jersey: John Wiley & Sons.
Rainer, R. K., Jr. & Watson, H. 2012. Management information systems: Moving
business forward. Hoboken, New Jersey: John Wiley & Sons.
Stair, R., Reynolds, G. & Chesney, T. 2015. Principles of business information systems.
2nd ed. Hampshire, UK: Cengage Learning EMEA.
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Chapter 3
Information and knowledge
management
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
describe aspects of information management such as document management,
mail management and forms management;
explain the impact of the nature of information on the management of
information and the role of management information in general management;
and
explain the function of information and the management thereof in knowledge
management.
Introduction
The importance of information, the management thereof and the role of
information for effective management cannot be underestimated in our modern
society where organisations are characterised by the many electronic devices
available to generate and transfer information. In fact, organisational success
depends on the efficiency and effectiveness with which an organisation can
manage its information (Chen, Snyman & Sewdass, 2005). If we consider a local
municipality as an organisation, then we can see why the information that they
manage is important. If the municipality does not keep accurate records of rates,
electricity, and water payments, then they cannot offer promised services to their
citizens. The citizens would also become irritated if they are billed incorrectly.
Therefore, the administrative manager plays a critical role as one of the key people
responsible for the management of information in an organisation and needs to
be equipped to fulfil this function effectively, especially because of the value of
information in the 21st century.
In this chapter, we pay attention to the nature of information. We also identify
a number of important areas in which information should be managed well, such
as the management of documents, mail and forms.
We also discuss the nature of information and how it is managed, as well as the
role of information management in the management context. In the final part of
the chapter we focus on explaining how information becomes knowledge and how
this knowledge is managed in knowledge management.
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3.1
The nature of information
Rocha and Schnell (2013) state that the word information is derived from the
Latin word informare (in + formare), which means to give form, shape, or character
to something. We have learnt in Chapter 2 that data forms the building blocks of
information and that we derive value from data when it is presented in a certain
manner. We have also learnt that information only has value when it is relevant
in a given context.
Since all decisions are taken on the grounds of the availability of information,
the quality of the information can influence decisions considerably. Incomplete
or inadequate information is frequently the main reason for wrong decisions,
resulting in a loss of large amounts of money, labour and time.
According to Currás & Romero (2012), information is more than simply a process
resulting as a consequence of the elaboration and processing of documents. It is a
phenomenon caused by the environment of the noosphere (the sphere of human
thought), which surrounds us and informs the development of our daily activities.
Information became a prominent word and notion in an article published in
1948 by Claude Shannon while addressing the topic of the mathematical theory
of communication (Rocha & Schnell, 2013). The essential understanding of
Shannon’s work became known as information theory (depicted in Figure 3.1),
and focused on the efficiency of information transmission in electronic channels.
Shannon later became known as the father of information theory.
Information
Source
Destination
User
User
Document
Signal
Transmitter
Data
Transmission
Impacts on
Message
Message
Signal
Receiver
Document
Webpage
Webpage
Noise Source
Figure 3.1
Elements of information theory
The main premise of the theory is that information is constantly flowing from
an information source (e.g. a person, a document, or the internet), and this
information is then transmitted in some form (verbal/written) to a receiver.
While information is flowing from the transmitter to the receiver, it is subject to
influence from a noise source (electrical/sound interference). For example, if you
are speaking to someone on a mobile phone and their voice is not clear, then it
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could be as a result of some form of interference. If the message is not transmitted
clearly, then the receiver would not be able to interpret it correctly and may need
it to be resent by the transmitter. Once the information has been received, it can
either be presented visually to the user, be included in a document, or be made
accessible via a website. How the information is received and used will depend on
the business processes in the organisation.
It can be argued that the nature of information is for all intents and purposes
inherently problematic. To better understand why, it is necessary to explore the
nature of information by focusing on the following four areas:
1.
2.
3.
4.
the flow of information;
the fact that information is intangible;
the fact that information is a human representation of occurrences; and
the fact that information needs to be valuable.
3.1.1
The flow of information
The office/department/functional unit is the entity that receives, processes and
distributes information, such that it facilitates the flow of information. In other
words, the office has an impact on whether there is a quick and uninterrupted
flow of information. Office staff can also control the amount, quality and content
of information that is shared. Certain information can, for example, be withheld
and in this way the actions of the receiver can be manipulated. That is, the receiver
can only make decisions on the information provided by the sender.
A variety of electronic tools and methods can be used to facilitate the flow
of information, such as the telephone, email, fax machines and computer
printouts. Electronic devices, such as tablets, mobile phones, routers and Wi-Fi
networks provide increased accessibility for conducting business. The method
that is chosen to distribute information is important since this may influence
the way in which information is handled and understood by the receiver.
Information is created and distributed at various stages. This means that
information can be distributed to announce certain occurrences or events. It can
therefore be said that information is futuristic in nature. An example of this is the
distribution of an agenda for a meeting. Information is also distributed at the time
of occurrences or events. Think about what happens at a meeting: information
is shared and decisions regarding future actions are based on the information
provided. Finally, information is also distributed after occurrences or events. In this
case, think about the minutes of a meeting that is distributed to provide feedback
to everybody who attended a meeting. The minutes of a meeting can also lead to
matters arising at the next meeting, which are then discussed. It is important to
understand that information is constantly in motion within an organisation and
is often the source of decision-making.
3.1.2
Information is intangible
This characteristic contributes to the problematic nature of information. Only the
method that we use to distribute information can be touched, for example paper,
the computer screen, the fax machine or the telephone. Because we cannot touch
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information, it is difficult to determine the extent of influence of the information
that is distributed.
The success achieved because of information received in time, or the damage
done as a result of receiving information late, cannot be exactly determined. This
is one of the main reasons why people sometimes underestimate the value of
information in the day-to-day operations of the organisation. One of the outcomes
of this attitude is that people neglect the manner in which they deal with
information, sometimes adopting a careless approach to the timeous distribution
of information.
3.1.3
Information is a human representation of occurrences
If you look back at the references made to Currás & Romero (2012) and Rocha &
Schnell (2013) earlier in this chapter, it becomes clear that information is in all
instances a human representation of occurrences. Because of that, it is possible
that information may sometimes be incorrect. Management should take this into
consideration when, for instance, reading reports. It should always be remembered
that the information supplied in the report is influenced by the frame of reference
of the report writer, the organisational culture in which the report was created,
as well as the objective of the report writer. It may also simply be that a data
capturing error has occurred. There is thus always an element of subjectivity in
information provided for decision-making; those making use of the information
need to keep this in mind when using the information.
3.1.4
Information needs to be valuable
Stair et al (2015) list the following characteristics of valuable information.
Information should be:
•
•
•
•
•
•
•
•
•
•
accessible to those users who are authorised to access it, such that the right
information is available to the right person at the right time;
accurate, which means that it is free of errors;
complete, which means that it includes all the necessary raw data (facts);
economical, which means that the value derived from the information should
not exceed the cost of producing it;
flexible, which means that it has different uses;
relevant, which means that the decision-maker must find it useful for making
a decision;
secure, which means that all the necessary controls must be in place to ensure
that it cannot be accessed by unauthorised users;
presented in a simple manner, so that it is easy to understand;
timely, which means that it should be available to users as and when it is
required; and
verifiable, which means that you can check if the data used came from a
trusted source.
In relation to what has been discussed earlier, one can see that one of the objectives
of the distribution of information is to enable users to apply information in a
useful manner. The uninterrupted and fast flow of information facilitates the
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application of information, thereby raising the knowledge and skill levels of all
staff in the organisation.
In addition to the general value of information, there are three specific areas in
which the potential value of information is high: communication, feedback, and
the action and decision-making processes of management.
Communication
Communication and information distribution exist in such a close-knit
relationship that it is difficult to distinguish between cause and effect. On
the one hand information is the reason for all communication, and on the
other hand communication makes information distribution possible. We have
already referred to the value of information, and the number of communication
devices and organisations in our modern society mirror the premium placed on
information for effective decision-making. Information is a resource like all other
organisational resources, but it has a distinct feature: the ability to pull all the
other organisational resources together. It is this feature of communication that
highlights the versatility of information as well the potential for information
to become knowledge when applied. Because information, once communicated,
always sets a series of events in motion, the communication structures, tools and
methods in any organisation should be well designed and applied.
Feedback
We have already mentioned that information has the ability to pull organisational
resources together. We have also touched on the various stages where information
is created and distributed. In this regard, feedback becomes a powerful tool to
ensure that an organisation continues to operate productively. It is important to
understand the notion of feedback and the exact role it plays. Torokoff (2004)
discusses the importance of feedback in an organisation’s development processes
and the presence of innovation. In this regard, she emphasises a manager’s role in
the implementation of a feedback system, stating that one of the roles played by
managers is “to learn to know the employees well in order to put people’s hidden
talents into maximum use for the achievement of the organisation’s primary goals.
This role expects the manager to be the leading person who organises a network of
relationships and creates prerequisites for synergy”.
In terms of the creation of synergy to achieve organisational goals, feedback is
that element in the distribution of information that describes the status of a task
in progress, and receiving feedback is the sign that further action can be taken.
We learnt in Chapter 2, that feedback is an important feature in any information
system, as it prompts the user to complete actions and/or correct errors when
necessary.
When feedback is part of the organisational culture, it means that interaction
is taking place regularly and will result in the successful integration of the various
functional areas in the organisation. Torokoff (2004) highlights some of the
features of what she refers to as a feedback culture, namely openness, confidence,
respect for the individual, wide communication, acceptability of mistakes,
a positive atmosphere of cooperation, mutual support, and placing stress on
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continuous learning. When we look at what has been discussed so far, it becomes
clear that it is important to design effective feedback mechanisms. These should
be done in a way that achieves synergy between the various functional areas in
the organisation. Synergy refers to the greater result from combining the efforts
of all the functional areas rather than that of the individual functional areas.
Feedback mechanisms should therefore be designed to integrate the efforts of the
functional areas jointly.
Regular feedback has a positive impact on the morale of the staff. One can easily
understand this view because when feedback is received upon each completed
step of a task, every individual in the team, as well as the team itself, has a clear
direction of what to do next. If staff never receive feedback on completed tasks,
they cannot know if they have performed to the best of their abilities or not.
Feedback also assists in identifying those processes that might negatively impact
employee and organisational productivity.
Higher productivity levels positively impact production costs. Remember,
feedback is one of the elements in the flow of information that contributes to the
staff’s ability to react. The more regularly feedback is received, the faster staff can
react to new information. The higher the added value, the greater the increase in
the organisation’s competitive advantage.
Action and decision-making processes of management
A manager’s role consists of well-known aspects such as planning, organising,
leading and control. Although these are the more traditional aspects, the
information role of the manager should not be taken lightly. According to
Mintzberg (in Lunenberg, 2012), a manager’s role consists of the following
categories: interpersonal, decisional and informational. The informational
category deals with the processing of information and consists of three elements
that define how the manager uses the information: as a monitor, as a disseminator,
and as a spokesperson.
When managers receive information, they act as assimilators or monitors of
their sections and immediate environment. The manager plays an assimilation
role when they receive information and correctly put it into perspective in the
relevant context before distributing it to the relevant people. To fulfil the role of
monitor, the manager will use available information to make themselves aware
of all activities in their sections and, as a result, be in a position to manage their
section effectively.
When the manager processes information in their section, they need to
follow organisational rules about how information is to be disseminated.
The manager, as a disseminator, will need to ensure that all organisational
policies and legal requirements are met when distributing information both
internally and externally. As a spokesperson, a manager needs to ensure that
the information their section is sharing meets all the underlying requirements
of valuable information, so that the organisation is not negatively affected.
To achieve these results, it is important to be aware that there are various types
of information that can be utilised in an organisation.
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3.2
Types of information
In gathering information for decision-makers, it is important to ensure that the
correct type of information is collected. This is to ensure that the right information
is available in the right format at the right time for the specific person or functional
unit in the organisation.
The three prominent types of information that are used in organisations are
descriptive information, which indicates a change taking place (for example
rising interest rates), explanatory information, which indicates the consequences
of occurrences (for example less credit being used as a result of the institution of
higher interest rates), and comparative information (for example indicating the
comparison between this year’s and last year’s profit figures).
We referred to the flow of information in Section 3.1.1 when we discussed
the nature of information. As information is required to always be in a state of
movement in an organisation, it is necessary to consider the factors influencing
the flow of information.
3.3
Factors influencing the flow of information
There are quite a number of factors that influence the flow of information, but
for the purpose of the discussion we will examine the following: organisational
structure and culture, distribution methods, and people.
3.3.1
Organisational structure and culture
Lunenberg (2012) refers to Mintzberg’s description of organisational structure and
three essential substructures. The first is the key part of the organisation that plays
the largest role in determining the success or failure of the organisation. The second
is the prime coordinating mechanism, which is the method the organisation uses
to coordinate its activities. The third is the extent to which the organisation lets its
employees participate in decision-making, referred to as decentralisation.
In addition to this, Lunenberg (2012) adds that every organisation implements
a strategy that will result in one of the following five structural types: simple
structure, machine bureaucracy, professional bureaucracy, divisionalised form,
and adhocracy. All the above factors affect the flow of information within an
organisation.
As the information in an organisation moves up through the management
levels, it becomes less detailed by means of a filtering process. The intention of this
filtering of information is to provide management only with relevant information
to avoid an information overload. The danger, however, is that management may
be prevented from having a complete picture of a particular situation because of
the filtering of information. For example, a problem experienced by a technician
in a telecommunications firm is recorded in a technical report, which is then
reworked by their manager, then by the next manager, and so on. Often the final
message does not even relate back to the actual problem, as top-level managers
are not concerned with operational matters, but rather the overall impact on
organisational performance.
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3.3.2
Distribution methods
The second factor that can influence the flow of information is the methods used
to distribute information, which have already been covered in this chapter. See
Section 3.1.1.
3.3.3
People
The third factor that can influence the flow of information is the people in the
organisation, since they are the key players in facilitating the flow of information.
Bear in mind that people are not always fully informed, they sometimes keep
information to themselves, they sometimes do not supply the correct information,
they tend to supply incomplete information, they sometimes do not react to
information, they do not always keep documents up to date and they cannot always
anticipate the impact of information. Nowadays, it can also be the case that the
technology in the organisation is not being used efficiently due to fear, ignorance,
or incompetence on the part of those individuals working in the organisation.
Stating that “this is the way we have always done things” and not being open to
changes can negatively affect the organisational culture.
3.4
Perspectives on information management
So far we have dealt with the nature of information, the main types of information
most organisations deal with, as well as the factors influencing the flow of
information. We now take a closer look at information management. We start by
sharing some perspectives on it, then discuss a number of aspects of information
management.
Information management can be seen as a continuous process made up of the
planning, organising, and control of information, as well as the control of the
application of information in order to achieve organisational aims and objectives.
The first three elements – the planning, organising and control of information –
do not function in isolation. They can be distinguished, but not separated when
executed.
The correct handling of information is very important, as the same information
can be repurposed and resold more times than a single tangible product. It therefore
has a direct impact on the competitive advantage of the organisation. We return to
this point in the section where knowledge management is discussed.
Another aspect of information management maintains that we differentiate
between the following information functions:
•
•
•
•
•
•
the creation or collection of data;
the processing of data into information;
the storage of data/information;
the retrieval of data/information;
the distribution of information; and
the disposal of data/information.
It is important to note that the office, for the purpose of this discussion, refers
to the administrative office of the organisation and plays an important role in
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information management functions, specifically with regard to the receipt,
documentation, preparation, and communication of data and information.
As mentioned earlier, the administrative manager plays an important role in
information management. The administrative manager is responsible for actioning
the business processes associated with the administration and management of the
information-related activities of the organisation.
We now look at a number of important aspects associated with information
management, namely: document management, mail management and forms
management.
3.5
Aspects of information management
3.5.1
Document management
A document is written evidence that information has been collected and kept for
use in the decision-making process. Strict control is therefore essential to storing,
retrieving and maintaining documents effectively. Your document management
system is only effective when the system is able to supply the correct information
to the correct person in the shortest possible time at the lowest possible costs.
Documents can be stored by means of a manual or an electronic system.
With today’s information technology (IT), documents are produced with relative
ease, quickly, in great numbers and at low costs. These factors associated with
document production (whether manual or digital) create an environment where it
becomes increasingly challenging to track, trace and manage the current version
of relevant documents. Therefore, it is important that every information manager
understands and applies the following stages of the document management cycle:
•
•
•
•
•
The creation of documents: Decisions have to be taken about the format of a
document, who will use it, and for how long it will be stored.
Utilisation: Documents are created to be used, so they must be stored in such
a way that they can be effectively and readily retrieved. The period during
which a document should be available for utilisation determines to a large
extent the storage and maintenance thereof.
Storage: During the storage stage of the document management cycle,
decisions regarding the filing methods, equipment and the effective use of
space are taken. Documents must also be stored in such a way that they can be
easily used.
Retrieval: The speed with which the documents can be traced is important.
Factors that influence the retrieval speed are storage methods, classification
methods and filing procedures.
Maintenance: Documents have to be maintained in the most cost-effective
way. Since documents sometimes have to be maintained for long periods of
time, decisions about the suitability of space and storage equipment have to
be taken carefully. In instances where the documents can be destroyed after a
relative short period of utilisation, storage is not such a big consideration.
In certain organisations, the ownership of document management is entrusted
to a group of individuals. We refer to this as centralised document management.
However, documents can also be the responsibility of the specialised departments
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in the organisation. We refer to this as decentralised document management.
In addition to this, as information is released from the document management
system and utilised by most people in the organisation, it is important that the
procedures and methods for managing the documents are well known throughout
the organisation.
The tangible format of paper documents facilitates their control. In contrast
to this, documents in computer systems such as networks and servers appear
in intangible forms on computer drives. These intangible documents can be
produced in unlimited numbers, which has greatly increased the responsibility of
the administrative manager to provide adequate document management control
systems.
We differentiate between two types of document management systems,
namely the manual document management system and the electronic document
management system.
Manual document management system
We often refer to manual document management as filing, which consists of the
following distinguishable elements: the classification of documents, centralised
vs decentralised filing, filing systems, filing stock, filing equipment, indexing
procedures and equipment, the filing procedure and filing management.
The classification of documents
The key to effective document management is the classification of documents
in order of importance to the organisation. We distinguish between four
classification categories.
Essential documents: These are the documents that are so important to the
organisation that the organisation cannot function without them, for example
legal documents, tax documents and financial documents. These documents
are irreplaceable and the organisation should see to it that they are guarded
against theft and fire. Whereas the paper copies should be filed securely, many
companies are increasingly also keeping scanned copies.
Important documents: These are the documents necessary for the
functioning of the organisation, for example personnel documents. They are
replaceable, although it would be difficult, time-consuming and costly to do so.
Useful documents: These are necessary for the smooth running of all the
activities of the organisation, for example copies of orders, reports and catalogues.
They are also replaceable, but their loss would be very inconvenient.
Dispensable documents: These contain useful information, but do not have
a particular advantage to the organisation, for example notices of meetings and
agendas.
Centralised vs decentralised filing
When documents are stored in a central place in the organisation, it is referred to
as centralised filing. Only one person or a small team of people receive training in
the filing procedures. This option facilitates a high level of maintenance as well as
tight control of the security of the documents.
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Another way of storing documents is to decentralise the documents. This means
all the specialised departments store the documents that are applicable to their
own functions.
The organisation has to decide whether to centralise or decentralise the
documents. It might be the case that a single decision to centralise or decentralise
does not satisfy the document management needs of the organisation. In this case,
both the centralised and decentralised systems will be used.
Filing systems
There are a number of systems that can be used to store documents. We will confine
our discussion to the most widely used systems, namely the alphabetical system,
the duplex-alphabetical system, the numerical system and the alpha-numerical
system.
The alphabetical system: Documents are arranged strictly according to the
alphabet. The system facilitates the filing of documents according to clients’
surnames, geographical areas where business is done or according to subjects. The
filing of documents according to geographical areas is mostly used in organisations
that are involved in regional collaboration and national and/or international trade.
Documents are filed according to subject when client information is not so
important. The biggest problem with this system is the allocation of the most
appropriate subject. The use of a cross-referencing system can be of great help
with this.
In the case where clients’ surnames are used and two clients have the same
surname, the initials of the clients will indicate the position of the client’s file in
the system. This system is widely used, as direct access to the files is possible. The
system is also easy to understand. The biggest disadvantage of this system is that
the bigger the system, the more difficult it is to maintain. It is also difficult to
judge the future space needed and files might have the same name, which could
lead to confusion.
The duplex-alphabetical system: This system is an outcome of the alphabetical
system and is mostly used in large systems. Documents are filed in a stricter
alphabetical order, namely A−a to A−c; A−d to A−f. An example of this is Aaron to
Ackermann and Adendorf to Africa.
The numerical system: In this system each document, as it is created, is
allocated a number. The letters of the alphabet are not taken into consideration.
With this system it is very important to keep a well-maintained index to facilitate
retrieval of and access to the documents. Universities typically use a numerical
system where students are issued student numbers that uniquely identify when
they first registered with the university. This allows the administration team to
easily access any supporting documentation provided by the student during the
course of their registration at the institution, which is stored in their student file.
The duplex-numerical system: To facilitate expansion in the system, this
variation can be installed. This system is mostly found in warehouses. Files are
stored from the lower to the higher numbers. This system facilitates a higher degree
of security, as files cannot be retrieved and accessed without consulting the index.
The alpha-numerical system: This system is a combination of the alphabetical
and numerical systems. Files are arranged alphabetically, but not strictly so. Files
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are also allocated a number, for example N28: N for the surname Ndlovu together
with the number 28, which indicates that Mr Ndlovu is the 28th client record to
be created with a surname starting with the letter N. This allows for a systematic
sequential numbering system to be used, which in turn allows for quick retrieval
from file storage.
It is very important to note that any documents associated with a given client’s
record should always be stored chronologically. This means that documents are
stored according to the date of the document, with the most recent document at
the front.
Filing stock
In addition to the important aspects of document management mentioned above,
the correct use of the most appropriate filing stock (stationery) also plays an
important role in document management. Filing stock includes folders and files,
labels, guides, cross-reference cards, out-cards and colour coding. We will now
look at each of these briefly.
Folders and files: Folders and files enable you to keep documents that belong
together in one place. They also help you to identify documents and keep them
safe. Folders and files come in various sizes and shapes. Standard sizes are used
for letters and special sizes are used for other types of documents, like computer
printouts or town plans. We distinguish between the following different types of
folders and files: the manila folder, the lever-arch file, the box file, the concertina
file and the ring file.
Labels: Labels are used to name a file or folder. This name is normally the
name that is used in the indexing system and can be the surname of the client, the
subject or the number of the file. The information on the label should preferably
appear in typed format. A number of labelling software packages are available on
the market, as well as dedicated electronic labelling devices. Files that are labelled
incorrectly or not at all are of no value to the organisation, and make it difficult
for the administrator to access information if it is required.
Guides: A guide is any type of card used to divide the contents of a file or folder
to serve as a marker and strengthen the folder. The guide can also be equipped
with a reference code on a label. Guides can be divided into primary guides to
indicate the main sections of the file or folder, and secondary guides to indicate
the subsections of the file or folder. The use of guides facilitates the retrieval of
information and documents.
Cross-reference cards: Sometimes documents can be filed under more than
one possible subject. In such a case the document will be put in the most suitable
file, while cross-reference forms are placed into all the other possible places. Such
cards consist of a description of the document and the name of the file in which
it can be found.
Out-cards: These cards can be used in the form of a file or guide or a sheet of
paper to replace a document that has been removed. This indicates that there is
such a file and that it has been removed. The name of the person who took the
file and the date of removal must be written on this form. The out-card should be
visible, so that the administrator can easily refile any missing files.
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Colour coding: The use of colour coding is a big cost-saving element in filing.
Colour coding can be used with practically every system of filing. The method is
as follows: Each number or letter is allocated a colour. Each figure from 0–9 has its
own colour and each letter of the alphabet has its own colour. It is now easy to see
whether a file fits, because colour blocks are formed.
Filing equipment
The use of the appropriate filing equipment facilitates the protection of files and
the prevention of theft, and minimises physical strain when retrieving documents.
When selecting filing equipment, the following points should be considered:
•
•
•
The equipment should be adaptable: This means it should be changeable so
that it can adapt to the different filing needs of the organisation.
The equipment should allow for variety: This means it should be able to
accommodate a variety of document sizes.
The equipment should be accessible: This means it should assist in
minimising the costs of information retrieval by being barrier free and
physically easy to operate.
A variety of filing cabinets are available on the market. The organisation should
decide upon the most appropriate filing system and then acquire the most suitable
equipment to accommodate the filing system. The five most widely used cabinets
are as follows:
Vertical filing cabinet: This cabinet consists of a number of drawers where
documents are stored in an upright position. The disadvantages of this filing
cabinet are as follows: the inside of the cabinet is often unstable, the cabinet uses a
substantial amount of floor space, people are inclined to overload the cabinet, and
it is difficult to store a large number of documents. The advantage of this filing
cabinet is that it appears neat from the outside.
Lateral filing cabinet: This cabinet is very practical when there is a need
to optimise the available floor space, as they come in various sizes, styles and
configurations. Typically, files are stored alongside each other with the spines of
the files displaying the information references.
Horizontal filing cabinet: This cabinet is especially suitable for the storage
of maps and plans. The cabinet consists of deep drawers in which the material
is placed on top of each other. The one disadvantage of this cabinet is that
it takes up floor space and the documents can easily be damaged because of
frequent handling.
Rotating filing cabinet: This cabinet rotates around a spool and consists of
levels of different depths with different files. Each level rotates independently.
This is ideal where the administrator is utilising a number of files on a regular basis
through the course of a given day.
Mobile filing cabinet: This cabinet usually consists of very simple units of
drawers placed on wheels. The cabinet is ideal for use in open-plan offices.
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Indexing procedures and equipment
Indexes are used with most filing systems in order to facilitate information
retrieval. It is very important to maintain the index, and the best way to achieve
this is to add each new document to the index as soon as the document has been
created. As soon as documents are destroyed, the document must be removed
from the index. All changes to the document management system should also be
effected immediately on the index.
The index can be done separately from the documents or the documents can be
arranged in such a manner that they are self-indexing, like a telephone directory.
Indexing equipment should also assist with the information retrieval process.
There is a variety of indexing equipment.
Vertical card index: This index consists of a number of cards, each one dealing
with one item of the index. The heading with the reference information where the
document can be found in the filing system appears on the card. The cards are
organised vertically in a drawer. The wheel index is a type of vertical card index.
The cards are organised around a spool in the form of a wheel. The wheel index
can either be portable, in a cabinet or built into a desk.
Visible card index: This index consists of a range of cards organised so that
they overlap each other. Only a part of the card is visible. This index is mostly
found in a book or cabinet.
Book index: This index appears in a special book with indented guide pages on
which the letters of the alphabet appear, for example a little book with telephone
numbers.
The alphabetical filing system is self-indexing. This means no index is
necessary to retrieve documents. Indexes should be used with the numerical and
alpha-numerical systems.
The filing procedure
The following example shows how mail is filed using seven steps:
1.
2.
3.
Identify the type of mail. Mail should be identified as incoming, outgoing or
internal mail.
Inspection. Make sure that the mail is supposed to be filed. The correspondence
must have been seen by somebody. Look for the initials of the addressee, a
filing stamp or any sign that indicates that the document is ready for filing.
Indexing. Select an appropriate name or reference code. Incoming mail is
normally filed under the name of the organisation on the letterhead or the
name of the sender, if this is important. On outgoing correspondence, the
name of the addressee is important. If the address on the inside of the letter
consists of the name of the sender and the organisation, it is better to use the
name of the organisation. The only exception is when personal is mail sent
to a business address. Internal correspondence is filed according to the subject
or contents of the correspondence. Make sure that you are familiar with the
contents of the correspondence to select the most appropriate subject. If more
than one subject is suitable, cross-referencing should be used.
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4.
5.
6.
7.
Coding. The name, subject, date or any reference code are highlighted. This is
especially useful when documents need to be replaced after being used.
Cross-referencing. The document is filed under the most appropriate subject.
A cross-reference card is placed in all the other possible files. As mentioned,
the cross-reference card consists of a description of the document and the
name of the files where the document can be found.
Sorting. Sort all the correspondence into groups according to the filing system
used.
Filing. Place the documents in the appropriate files or folders.
Filing management
It is not only important to know how and when documents need to be filed; it is
also necessary to know how to manage and control the location where the files
are stored. We now continue with our discussion, focusing on how the control of
documents should be dealt with.
If no control is exercised, documents will get lost or fall into the wrong hands.
The person responsible for the documents should do everything in their ability
to safeguard the documents. It is always a good policy to grant only authorised
personnel access to the documents. It is also important to place a restriction on the
number of people who have access to the documents.
The control of documents entails the control of access to classified material, the
control of document storage, the control of information retrieval and the control
of the destruction of documents. Each of these aspects is now briefly discussed.
The control of access to classified material: Some documents are irreplaceable.
If these fall into the wrong hands, it can cause great harm to the organisation.
Special precautions should therefore be taken to ensure that this does not happen.
One method to control access to classified material is to keep the filing cabinet
locked at all times. Alternatively, classified material can be stored at a bank, locked
in a safe or put on microfilm. In electronic filing, a password can be installed on
the document. In addition to this, special filing procedures can also be used.
The control of document storage: File documents immediately when they
have been dealt with. Always file documents chronologically and maintain the
index.
The control of information retrieval: Make use of labels and guides. In the
case of centralised filing, establish a procedure for information retrieval. Make use
of out-cards once a document has been removed.
The control of the destruction of documents: There may not always be
sufficient physical space to store all documents. Every organisation will therefore
have to shred files on a regular basis. It is good practice to only file essential,
important and useful documents. Another solution to the space problem is to
clean files out regularly. Make use of a schedule to do this. When doing this,
take the type of the documents into consideration. For example, catalogues can
be thrown away if new ones arrive. Essential and important documents should
be stored permanently and will never be destroyed. The recommended time
for storing essential and important documents should be determined by each
organisation. To destroy documents safely, use a paper shredder.
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Before destroying a document one should consult the retention policy of one’s
organisation and industry as well as any applicable legislation. The following
general time periods for the retention of documents could be applicable:
•
•
•
•
•
•
•
•
One year: All correspondence, for example unsuccessful job applications.
Five years: Salary adjustment schedules, industrial training documents, tax
receipts, guarantee documents.
Six years: Cancelled cheques and contracts with clients and suppliers.
Seven years: All human resources (HR) documents.
Ten years: Tax receipts sent in by stockbrokers.
Twelve years: Share transactions from listed companies.
Fifteen years: Accounting documents and registers.
Indeterminable period of time: Permanent registration documents, personnel
documents of senior members of staff.
Documents that have been approved for destruction and contain any confidential
information regarding clients, employees, suppliers or the organisation should
be shredded and not simply disposed of intact. The reason for this is that if
confidential information is not disposed of properly, it could be used for identity
fraud, to hack computer systems, or for industrial espionage.
Electronic document management system
Electronic document management is known as electronic filing. The prevailing
trend nowadays is to mostly use electronic equipment for filing. This mainly refers
to using computers to file documents. Computers are more sophisticated and the
storage and retrieval of information is faster. The storage of information also takes
up less space. When a computer is used for the storage of documents, information
is stored rather than a physical item.
As far as equipment and time are concerned, electronic systems are expensive
to develop. However, costs may be recovered at a later stage as a result of savings
on salaries and a better information management system. The maintenance of
such a system will largely depend on the staff in charge. Their knowledge of and
proficiency in the use of electronic equipment, devices and systems will play a
determining role in the effectiveness of the system.
The training of staff in the use of automated equipment, devices and systems
is essential, as special skills are required. Usually, the suppliers of electronic
equipment, devices and systems, such as computers and software packages, provide
training. Consultants also render training services and advice. Although all the
above-mentioned people contribute to the training process, it remains the task of
management to select and place staff in such a manner that the right people are
appointed as information managers.
Electronic filing procedures
The electronic filing of folders and files can be done by means of a program such
as Program Manager or Windows Explorer. The procedure to use in Windows
Explorer is as follows:
•
On the desktop, click on the Windows Explorer icon.
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•
•
•
•
•
•
A display of all the program folders in the various drives will appear on the
screen and the screen will be split into a left and right half.
Click in the left half to highlight the specific drive in which you want to create
a folder.
On the top toolbar, click on File. The drop-down menu will appear. Highlight
the first option that says New, then click on Folder.
On the right-hand side of the screen a space will appear for you to type the
name of the folder. Type an appropriate name for the folder and press enter.
The principle for creating a folder in Windows Explorer is the same as with
manual filing. This means that a folder contains a group of files that are related
to each other.
When saving a file in the folder you created, choose the specific drive, then
choose the appropriate folder, then save the file.
There are a number of document management systems available, such as Microsoft
SharePoint Server, which controls how documents are shared. This assists in
restricting access to certain documents and also tracks who has checked out and
modified a document, which aids version control. Version control for electronic
documents is often a problem when using the simple Windows Explorer filing
system, as one is not always sure whether the document one is working in is the
most current.
The relevance that document management has to information and knowledge
management will be discussed later in the chapter. We highlight one particular
characteristic that demonstrates the important link between a document,
information and knowledge, and the management thereof.
A document is the holder of information, which is an organisational resource
and a representation of knowledge, and knowledge is a combination of contextual
information that is created by experiences, interaction and learning (Chen,
Snyman & Sewdass, 2005).
3.5.2
Mail management
The organisation can use a number of methods to distribute hard copy information,
such as incoming, internal and outgoing mail. These methods include an effective
mailroom system, messengers, conveyor systems or self-propelled delivery vehicles.
To distribute electronic information within the organisation, local area networks
can be used. To distribute electronic information within and outside of the
organisation the following methods can be used: telecommunication systems such
as the telephone, fax machines, email, wide area networks and teleconferencing.
Since correspondence plays such a major part in any organisation, we will now
take a closer look at mailroom activities. To achieve efficiency in the mailroom,
two principles should be applied: the mailing department is a specialist area that
must operate with competence and economy; and all departments concerned with
correspondence must feed into and out of the mailroom.
Total efficiency demands the following:
•
•
The handling of mail must be recognised as being a specialist function.
The mailroom must be supplied with suitable equipment and trained staff.
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•
•
•
•
Costs should be kept as low as possible.
Mail must be distributed according to a set procedure and with the minimum
delay.
A system should be developed whereby outgoing mail is signed for and made
available to the mail department at prescribed times.
Correspondence must be produced by the most efficient and economical
methods.
It is regrettable that in many organisations the mailroom is an area which is largely
ignored by management. Mailroom supervisors are often not regarded as being
part of middle management and their departments are frequently overlooked by
those responsible for efficient administration.
Sound management practice is the watchword for the efficient handling of
the various postal activities. To achieve this, the various activities need to be
examined in detail. The calculation of the costs currently associated with the
handling of postal articles (which includes courier charges) may be used as the
basis for evaluating the efficiency of the postal division. This can also be used to
assess the effectiveness of any improvements that might have been introduced.
Automation is an important factor in the management of mail. The administrative
manager must continuously pay attention to the possibility of replacing manual
labour with machines for greater efficiency and cost-saving purposes.
3.5.3
Forms management
The definition of a form
A form is a paper document that contains fixed data and provides spaces for
variable data. Data elements that do not change or are known in advance can
become part of the standard entries on the form. Only data elements that vary or
may vary with each transaction need to be filled in. Forms are used to simplify
and standardise office work and to accumulate, report on, transmit/distribute
and process information. A form can also be an electronic document saved on a
computer. Forms are used to simplify and standardise office work and to gather,
report, transmit and process information.
To manage the organisational forms effectively, the administrative manager
should have a clear forms management policy in place. This will make provision
for a forms management system that will provide the organisation with forms that
are necessary, efficient and generated at the lowest printing and processing costs.
The two crucial elements to address in a forms management policy are the policies
and procedures for the creation, review, production and storage of forms, and the
specification of the staff who will be responsible for the management of forms.
The following guidelines should be followed to ensure the quality of all forms
in use:
•
•
•
All forms should be approved for adequacy prior to use.
Forms that are part of the review cycle should be regularly updated and
reapproved prior to use.
Only the relevant versions of forms should be available from the administrative
manager.
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•
•
•
The system to ensure that forms remain legible and readily identifiable should
be strictly adhered to.
Forms of external origin should immediately be identified as such.
All obsolete forms should be identified as such and withdrawn from circulation
in the organisation.
Forms analysis
Part of any well-established forms management system is the continuous analysis
of forms to determine whether a form is necessary and, if so, how it should be
designed to perform its function effectively. This can be done either systematically
as an assigned project or when the form is due for printing or electronic release. A
forms analysis exercise may result in improvements and therefore a cut in costs by
eliminating a form item or changing to a smaller form size.
Forms analysis may reveal the following: that the form is not needed; that the
form is not cost-effective; that another form can be used; or that two or more forms
can be combined. The analysis should be a group effort involving the analyst
and all users of the form. The role of the analyst is to provide direction while
the users supply the required information and make the necessary suggestions.
The analyst should have a thorough knowledge of the flow of the form, how the
form is completed, as well as the information that is extracted from the form as it
moves from one workstation to another. The users of the form consist of all those
who enter data on the form, who extract information from the form and who are
involved in filling out the form.
Another very important information management function of the administrative manager is to design forms. We now look at some of the aspects of forms
design.
Forms design
Forms design is a crucial forms management function and is done manually or by
computer. The layout of a form accompanies the form specification information
when the form is ready to be produced. According to Tedesco and Mitchell (1984)
there are 12 principles to apply when a form is designed: simplicity, zoning, title,
number, self-instruction, logical sequence, sufficient spacing, headings, boxes,
lines, font style and size, and printing on both sides.
Simplicity means that the form should be easy to understand and complete.
Zoning refers to the allocation of specific and clearly indicated sections on the
form. The form should have a title, for example Leave Application Form. For filing
and redesign purposes, the form should have a reference number. Where possible,
the form should indicate how data entries should be made, for example “tick the
appropriate block”. The entries on the form should appear in a logical sequence,
for example: Surname, Initials, Title, etc. Sufficient spacing should be allowed for
people to complete the form.
Each subsection of the form should have its own heading. Boxes and lines will
facilitate the completion of the form. The font style and size will influence the
physical attractiveness of the form and lastly, only if applicable, the form should
be completed on both sides.
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A telephone message pad is an example of a form that does not lend itself to be
completed on both sides, since an individual message will be taken from the pad
to distribute to the receiver of the message.
The storage and distribution of forms
The storage and distribution of forms are two other important information
management functions of the administrative manager. The objective of storing
forms is to save money by printing in bulk and to avoid using excess storage space
or losing forms through deterioration. Distribution procedures may vary, but in
many cases the main office of the organisation maintains the forms supply. The
office supplies forms to regional offices, branches or other offices on request.
Forms control
In addition to the storage and distribution of forms, the administrative manager
should also control the whole forms management process. Forms control
procedures should be clearly outlined and understood by employees before any
attempt is made to implement control mechanisms. The forms control procedure
is as follows:
•
•
•
•
•
3.6
Initiate the procedure by submitting in writing a request for the approval of a
new form.
Register and review the form by entering the request in the organisation’s
Forms Control Catalogue.
Analyse and design the new form once its need is confirmed.
Issue a number and edition date to the form. Record information about the
reproduced form in the Forms Control Catalogue as an approved form for
distribution. Thereafter, manual form reproduction and distribution can
occur.
Notify the owner of a form if a form needs revision or reproduction.
Information and the management process
The role of information in the management process is organised around
the traditionally accepted four management functions, namely: planning,
organising, leadership/direction, and control. Before we look at the role of
information in management – alternatively known as management information
– it is necessary to refresh our memories on management. Drucker (2007) says
that management is about the following: making people’s strengths effective
and their weaknesses irrelevant; enhancing the ability of people to contribute;
integrating people in a common venture by thinking through, setting and
exemplifying the organisational objectives, values and goals; enabling the
enterprise and its members to grow and develop through training, developing
and teaching; and ensuring everyone knows what needs to be accomplished, what
they can expect of you, and what is expected of them. Management therefore
allows us to coordinate hundreds or thousands of people with different skills and
knowledge to achieve common goals. We will now proceed by looking at the role
of information in each of the management functions.
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3.6.1
The role of information in planning
As previously stated, information can be seen as the essence of planning and the
basis for decision-making, evaluation and management. A very basic description
of the planning process is supplied below and it is important that you note the
prominent role information plays in this process. The planning process follows
four steps:
1.
2.
3.
4.
Set goals. The organisation formulates goals as a means to achieve results.
If there is uncertainty about what the organisation wants to achieve, it will
not be possible to utilise and apply the resources of the organisation fully.
Goal setting is primarily an information-related exercise. To set goals means to
formulate an idea of what you want to achieve, and information is instrumental
to this exercise.
Gather all the relevant information. Information must be collected about
the past, present and future. On the basis of the information collected and
assumptions about the possible course of the future, different alternatives can
be identified for the achievement of the set goals.
Analyse and consider the alternatives. It is necessary to determine whether
the information is complete and accurate. If decisions must be made on
the basis of assumptions and probabilities, it is necessary to ensure that the
predictions are realistic.
Make a final decision. A decision should be made between the alternative
scenarios as described by the various information sets and a final plan should
be decided upon.
3.6.2
The role of information in organising
The basic procedure for organising can be described in the following six steps
(once again, look at how heavily the organising function leans on information):
1.
2.
3.
4.
5.
6.
Collect all the necessary information about the organisation.
Analyse the information about the organisation.
Divide all the activities of the organisation into departments.
Divide the activities of each section into tasks.
Assign authority and responsibility.
Make the required facilities available and arrangements known.
It is clear that information plays an essential role in all of the above steps. Note
how Steps 3 to 6 are based on the information collected as described in Step 1 and
the analysis of information as described in Step 2.
3.6.3
The role of information in leadership
Information is of utmost importance to being an effective leader in the organisation.
Leadership is an extremely important part of the management process, whereby
the execution of the work is started and carried out. The provision and transfer of
information will naturally play a very important role.
Effective communication means the correct transfer of information from
one person to another person or people. This transfer of information is not only
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of internal importance, but is also important when information is transferred
from or to external sources. It is important to note that information is not only
transferred vertically, but also horizontally. The flow of information is important
in the achievement of goals since it can be hampered in certain circumstances by
workers or managers.
3.6.4
The role of information in control
In the course of organisational operations, information is collected. Much of this
information is needed for task control. The primary purpose of information about
operating performance is to alert the manager to the possible need for corrective
action. The manager must therefore receive information promptly enough to be
able to act. The information should also be structured so that the need for possible
action is flagged. An effective information management system will thus facilitate
control.
From the above discussion we can see exactly what an important role
information plays in the management process. This information is referred
to as management information. Haythornthwaite (1990) supplies a very useful
definition of management information: “Management information is information
on, or about, the function of management.” Furthermore, she says, “management
information is information on how to manage” and “[i]t is arguably more important
than facts and figures, because it is information which helps the individual to
learn and assess whether or not he or she can improve their own personal or
organisational performance. It enhances effectiveness because it strikes at the
core of successful organisation by capitalising on that single most valuable asset:
human performance”.
According to Haythornthwaite, fast, constant change and developments in
organisations lead to new situations that have to be managed. Managers therefore do
not know which information is valuable before they catalogue, classify and analyse
it. The assessment of the value of information is therefore a very difficult task.
It is important to supply the context in which Haythornthwaite positions
her views. She uses the working hypothesis of the discipline of management as
consisting of the following fields: general management, management techniques,
financial management, marketing management, production management,
personnel management, office management and logistical management.
3.7
Knowledge management
In this part of the chapter, the important relationship between information
and knowledge, and information management and knowledge management is
explored. Attention is also given to the relevance of this topic for the administrative
manager.
3.7.1
Information and knowledge
Knowledge can be considered to be the “awareness and understanding of a set
of information and the ways that information can be made useful to support
a specific task or reach a decision” (Stair & Reynolds, 2012). Knowledge is the
application of knowledge, and in this regard knowledge workers are the people
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who create, use and disseminate knowledge. Knowledge can thus be considered an
organisational asset and managers of today have realised that knowledge resides
in their human resources. It is therefore important that human resources are
managed with careful consideration of this fact.
Koulopoulos and Frappaolo (1999) say that “there is most certainly a difference
between knowledge and its management, and information and its management”.
They differentiate between the two as follows: “Information management consists
of pre-planned responses to anticipated stimuli”; and “Knowledge management
consists of unplanned responses to surprise stimuli”. Lim, Ahment and Zairi (1999)
support this view and say that organisations know that in order to succeed, they
have to view knowledge as an asset and manage it effectively.
Devlin (1999) points to the interchangeable use of the concepts of knowledge
and information, but says these two concepts are not the same. There are a number
of definitions of knowledge, but the following one captures some of the common
elements: “Knowledge is made up of information that is combined with experience
and understanding.” Other similarities are also found in the following statement:
A transformation of information and intellectual assets occurs when knowledge
is required to add value to employees, customers and the business as a whole.
Employees as well as customers in the organisation document this knowledge.
This transformation and documentation fulfil a strategic purpose and improve
the performance of the organisation. Once again, note the important relationship
between information and knowledge.
Davenport, Marchand and Dickson (2000) fully investigate the question “Is
KM [knowledge management] just good information management?” Their answer
is: “Data, information and knowledge are points along a continuum of increasing
value and human contribution … Information is what data becomes when we as
humans interpret and contextualize it. It is also the vehicle we use to express and
communicate knowledge.”
Köpke (2000) refers to the relationship between information and knowledge
stating that knowledge is information, but for information to be transformed
into knowledge, an understanding of the information should accompany the
information. According to Davenport, Marchand and Dickson (2000):
The primary reason for this close link between information and knowledge
management is that people in organizations are constantly converting
knowledge into various forms of information and acquiring information from
others to improve their knowledge.
They point out the difference between these two concepts, saying that the difference
lies in the various ways people use knowledge. Managers should therefore not see
the two concepts as interchangeable.
Chen, Snyman and Sewdass (2005) add that the difference between information
and knowledge is essentially based on four factors:
1.
2.
Objectivity: Information is objective as it can be contained on paper
documents and computer storage, whereas knowledge is subjective as it resides
in people;
Dynamics: Information, therefore, is more static, while knowledge changes
more often, as it is linked to people’s experience;
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3.
4.
The degree of abstraction: Knowledge is a more abstract concept than
information, as knowledge must be represented in information for it to be
communicated; and
The degree of difficulty to acquire: The process of acquiring knowledge is a
much longer process than acquiring information.
3.7.2
Information and knowledge management
Manasco (1996) describes a number of knowledge management strategies. He
explains that the most widespread strategy of knowledge management is to
transfer knowledge and best practices in order to improve operations or to
embed the knowledge and best practices in products and services. This means
that knowledge is transferred between various individuals in the organisation
in order to improve the products or services produced. The quality and value of
the product or service could therefore be proportional to the level of knowledge
and best practice transfer. The customer-focused knowledge strategy is directed
towards capturing, developing and transferring knowledge and understanding of
the customer’s needs, preferences and business. This strategy recognises that an
organisation can learn from its customers.
The question still remains: what exactly is knowledge management and how
does it relate to the job of the administrative manager?
According to Koulopoulos and Frappaolo (1999), “Knowledge management …
embodies organizational processes that seek synergistic combination of data and
information processing capacity of information technologies, and the creative and
innovative capacity of human beings.” This view is confirmed by Chen, Snyman
and Sewdass (2005), who wrote, “Knowledge management encompasses the
management of information and the management of people.”
Köpke (2000) refers to Despres and Chauvel, who also attempt to answer this
question by saying that knowledge management consists of attempts to design
and install techniques and processes to create, protect and use explicit knowledge;
to design and create environments and activities to discover and release tacit
knowledge; and to articulate the purpose and nature of managing knowledge as a
resource.
Köpke (2000) makes reference to the objectives of what is referred to as “the
knowledge management project”. These objectives can be understood as the
elements of the knowledge management process, and consist of the following:
Creating knowledge repositories: This entails the codifying and storing of
knowledge in such a way that it can easily be accessed and retrieved. Davenport,
De Long and Beers (1997) distinguish between three types of repositories: external
knowledge that refers to competitive intelligence; structural internal knowledge
such as research reports, product-oriented marketing materials; and informal
internal knowledge such as discussion databases that contain know-how.
Knowledge access: For knowledge to be useful, it needs to be transferable
among employees; individuals need to have access to knowledge at the right time
and at the right place.
Knowledge environment: The organisational culture should be conducive to
knowledge sharing and knowledge use.
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Knowledge assets: Knowledge should be treated just like any other asset on the
balance sheet and should include infrastructure assets, human capital, intellectual
property, and market and shareholder assets. The primary aim of infrastructure
assets and human capital is to transfer human characteristics and know-how
into a digital system. Intellectual property covers patents, copyrights, brands,
trademarks, etc. Lastly, market and shareholder assets encompass what is known
about customers, competitors, the marketplace, industry and stakeholders.
Stair and Reynolds (2012) state that knowledge management is concerned with
“obtaining, storing, sharing, and using knowledge” within the organisation. What
is very important in terms of how they define knowledge management is the fact
that essentially the process of obtaining, storing, sharing, and the continuous
use of organisational knowledge, resides in the administrative manager who is
responsible for coordinating information activities in the organisation. Khalil,
Claudio and Seliem (2006) state that there are five elements in the knowledge
management process, namely: knowledge acquisition, knowledge documentation,
knowledge creation, knowledge transfer, and knowledge application. It is the
administrative manager who will be responsible for the management of each of
these procedures. Stair and Reynolds (2012) add to that by describing a knowledge
management system as an “… organized collection of people, procedures, software,
database, and devices used to create, store, and use the organization’s knowledge
and experience”.
One key example of organisational knowledge is the knowledge contained in
policies and procedures. Policies and procedures form part of the organisational
knowledge of how things are done. Because of the dynamics in organisational
change and quality improvements, policies and procedures are continuously
refined to reflect evolving organisational processes. Morrow (2001) in OndariOkemwa and Minishi-Majanja (2007) confirms this, describing knowledge
management as a term which is loosely used to include the “practices and
approaches related to generating, disseminating, and applying knowledge”.
Conclusion
From the contents of this chapter, we can conclude that information management
is a very important part of the job of the administrative manager. If information
is not properly managed, general management will not be able to perform their
task efficiently and effectively. The administrative manager has to see that
the creation and processing of data, the storage of data and information, the
retrieval of data and information, and the distribution and disposal of data
and information are done according to sound principles. In this manner the
administrative manager will assist the organisation to optimise its profits by
cutting information management costs.
As the nature of information makes it difficult to handle, the necessary systems
should be put into place to ensure the uninterrupted flow of information.
It is also important that the administrative manager convinces staff of the
functional value of information. Information and the management thereof should
be treated with caution. One very important reason for this is the impact that
the sound principles for the management of information have on the retention
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of knowledge. This is why the elements of information management, such as the
management of documents, the distribution of information and the management
of forms, should be executed with the necessary accuracy. This will facilitate the
role that information can play in management.
Self-assessment
1.
Identify and describe the ten characteristics of valuable information.
2.
Which factors have an impact on the flow of information?
3.
Describe the document management cycle.
4.
Describe the function of the following: files and folders, labels, guides, outcards, cross-reference cards and colour coding.
5.
Describe how you would go about establishing a forms management policy.
6.
What is the relationship between information and knowledge, and information
management and knowledge management?
7.
You have been employed as an administrative assistant at a busy medical
practice. The practice makes use of paper-based patient records. Describe the
various filing systems for manual documents, and explain which would be the
best alternative for the medical practice to use.
8.
Make use of the internet to find the prices for the various resources that you
will use to setup a manual document management system at a local school.
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References
Chen, X. H., Snyman, M. M. M. & Sewdass, N. 2005. “Interrelationship between
document management, information management and knowledge management.”
South African Journal of Information Management, 7(3). September.
Currás, E. & Romero, N. L. 2012. Systems science and collaborative information systems:
Theories practices and new research. Hershey, PA: Information Sciences Reference (an
IGI imprint).
Davenport, T., De Long, D. & Beers, M. 1997. Building successful knowledge
management projects. Working paper. London: Ernst & Young.
Davenport, T. H., Marchand, D. A. & Dickson, T. 2000. Mastering information
management. London: Prentice-Hall.
Devlin, K. 1999. Turning information into knowledge. New York: Freeman.
Drucker, P. F. 2007. Management challenges for the 21st century. Classic Drucker
collection. New York: Routledge.
Haythornthwaite, J. (ed.). 1990. The business information maze: An essential guide.
London: Aslib.
Khalil, O., Claudio, A. & Seliem, A. 2006. “Knowledge management: The case of
the Acushnet company.” SAM Advanced Management Journal, 71(3): 34.
Köpke, M. M. 2000. The implementation and measurement of successful knowledge
management strategies. BCom (Honours) research project. Grahamstown: Rhodes
University.
Koulopoulos, T. M. & Frappaolo, C. 1999. Smart things to know about knowledge
management. Dover: Capstone.
Lim, K., Ahment, P. & Zairi, M. 1999. “Managing equality through knowledge
management.” Total Quality Management, 10(4/5): 615–621.
Lunenberg, F. C. 2012. “Organizational structure: Mintzberg’s Framework.”
International Journal of Scholarly Academic Intellectual Diversity, 14(1).
Manasco, B. 1996. “Leading firms develop knowledge strategies.” http://webcom.
com/quatera/Apqc.html (Accessed: 11 June 2013).
Ondari-Okemwa, E. & Minishi-Majanja, M. K. 2007. Knowledge management
education in the departments of library/information science in South Africa. Pretoria:
University of South Africa.
Rocha, L. M. & Schnell, S. 2013. “The nature of information.” www.informatics.
indiana.edu/rocha/academics/i101/pdfs/i101_lecnotes_v1.pdf (Accessed: 27 April
2013).
Stair, R. & Reynolds, G. 2012. Fundamentals of information systems. Boston: Cengage
Learning.
Stair, R., Reynolds, G. & Chesney, T. 2015. Principles of business information systems.
2nd ed. Hampshire: Cengage Learning EMEA.
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Tedesco, E. H. & Mitchell, R. B. 1984. Administrative office systems management.
Etobicoke: John Wiley Canada, Limited.
Torokoff, M. 2004. The importance of feedback in the organisation’s development
process. Tartu: University of Tartu Pärnu College.
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Chapter 4
The administrative support function
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
discuss the personal attributes that an administrative manager should have;
discuss the personal skills that enable an administrative manager to be a good
manager;
understand the technical competencies an administrative manager should have;
understand the people skills that an administrative manager should have;
discuss different types of events as an example of the supportive function of
the administrative manager; and
discuss the different committees that can be put into place to organise an event.
Introduction
In today’s competitive and changing environment, the administrative function
is faced with diverse challenges. One of these is to maintain the capability to
support the achievement of the organisation’s objectives. A paradigm shift has
taken place where organisations realise that to be competitive, they need to
respond to change. The traditional view of administrative management as merely
a support function has changed to it being a key contributor to the achievement
of the organisation’s objectives. The administrative support function supports the
organisation’s core processes, whereas the administrative manager supports the
decision-making process (Berman, 2015). As set out in Chapter 1, the administrative
manager is the person responsible for ensuring that the administrative activities,
which are supportive functions, are run smoothly and contribute to the effective
management of the organisation.
Most of these supportive functions are covered in this book, for example the
management of information in Chapter 3, office design and layout in Chapter 9,
problem-solving in Chapter 19, etc. In these chapters and others, we cover how
this supportive function should be managed.
The purpose of this chapter is to examine the position that the administrative
manager has in the organisation, the type of person they should be and what
skills or competencies they should have to perform the supportive function. This
chapter will explore the type of person who occupies the position that provides
the administrative support. The chapter closes with an example of a supportive
activity, namely the organising of events, which is discussed in more detail.
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4.1
The administrative support function
Business environments have become dynamic and highly competitive. No matter
the environment or size of the organisation, there will always be a person in the
organisation responsible for the administrative support function.
The specific duties and responsibilities of administrative managers differ
according to their position within the organisation, although they share common
duties. The position of the administrative support function also has different
titles according to the level of position, for example: first-line administrative
support can include titles such as secretary, administrative assistant, personal
assistant, office assistant, receptionist, typist and filing clerk. For middle-level
administrative support positions, titles include senior administrative assistant,
senior administrator, administrative support supervisor and administrative
manager.
These titles mean different things in different organisations and are not set in
stone. There is, for example, a movement that no longer uses the title secretary, but
rather professional assistant or personal assistant. The job title or the position will
be determined by the specific job description, as well as the size of the organisation,
the type of industry and the policy and philosophy of top management, as set out
in Chapter 1.
In larger South African organisations, the title is usually administrative
manager or administrative officer, which points to the seniority of the position
where a full range of moderate to complex clerical duties is provided. We use the
title administrative manager in this chapter for convenience, but it must be noted
that it refers to all the titles mentioned above.
4.2
The profile of the administrative manager
Administrative managers are employed in virtually every sector of the economy
and face a significant shift in the way they work. In order to meet these demands
and to work effectively and efficiently, administrative managers will have to
have a sophisticated understanding of the organisation and need a new set of
skills. To be successful as an administrative manager, there are certain attributes
and skills required. Sometimes these overlap and will be discussed in more than
one specific area.
Initially the administrative assistant might not have all the necessary attributes
and skills, but the aim is to try to acquire them through practice and training. It is
important that the administrative manager grows into their profession.
4.2.1
Personal attributes
To be an effective administrative manager, it is fundamental to start from the
inside, in other words with personal effectiveness. Administrative managers on
different levels have different management responsibilities and it is difficult to
indicate which specific attributes an administrative manager should have in
order to be successful. In today’s workplace, some of the generic attributes are
a prerequisite while others are just good to have. Also, some of these attributes
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are basic life or generic skills, but add value when applied by the administrative
manager in the organisation.
Personal attributes are of importance, as they influence the decisions an
administrative manager makes, and these decisions influence people’s attitudes
and beliefs in the organisation.
We give four general attributes here as a benchmark to guide management
professionals. Having a broad spectrum of these traits is beneficial and may
ensure success.
Integrity
Integrity means being honest and ethical. Honesty can be found in all codes of
ethics and conduct, and can help lead to successful and ethical decision-making.
Therefore, honesty and being ethical is absolutely essential, not only in life but
also in business.
The administrative manager must ensure that the information provided to
all who need and use it is truthful. In today’s business environment, dishonesty
can exist in various information forms, such as misleading information, delayed
reporting of critical information and outright lies (Pells, 2012). The administrative
manager, as the provider of information, always has to ensure that the source
of their information can be trusted and that the information is correct. It is the
administrative manager who will be held accountable for the correct information
as they are responsible for supplying information. However, being honest and
ethical alone is not enough to achieve the overall objectives of an organisation.
See Chapter 21 on the relevance of honesty and ethical behaviour.
Responsibility
Responsibility includes being dependable and self-disciplined. In any organisation,
each manager and subordinate at every level is responsible for their actions and
needs to pull their own weight.
Responsibility is the obligation of a subordinate to achieve the activity-based
goals, while in the task of being an administrative manager, the responsibility is
to achieve the outcomes-based goals.
Responsibility implies that a person accepts the results of their actions, and that
whatever the result of a person’s actions, they should take the praise or the blame.
A further aspect of responsibility is that subordinates must report their actions
and decisions to the supervisor from whom they received the authority. Even in a
situation of empowerment, subordinates have to provide feedback of their actions
to their superior.
Work ethic
Having a good work ethic is a broad theme that consists of many aspects
including hard work, loyalty, initiative, inherent drive and self-motivation.
In any organisation, work ethic refers to each subordinate and administrative
manager’s positive attitude towards the organisation, as well as to both employees
and customers. In order for an organisation to be really successful, its employees’
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goals should be aligned with those of the organisation. One way this alignment is
expressed is through loyalty to the organisation.
Positive work ethic highlights the dedication and the maintaining of
confidentiality among employees. It is important for the administrative manager
to be dedicated to the organisation. Also, since administrative managers are in a
position of trust, it is vital that they handle the affairs of the organisation and the
employees in a confidential manner.
In addition, the administrative manager must be self-motivated and have
an inherent drive. This will bring other characteristics to the fore, such as the
willingness to improve on the job, be it by improving qualifications or being
innovative to increase efficiency.
Teamwork
The last general attribute is teamwork. Teamwork includes being cooperative,
helpful, supportive and collaborative. The word team can be used in different
ways, but in the administrative function it refers to the administrative manager
and their subordinates, who share responsibility for definable goals with a high
degree of interdependence and communication.
The administrative manager does not stand alone and needs a small, capable
team of subordinates with mutual accountability to make effective and efficient
decisions. If the administrative manager fails to link the team and performance,
it becomes easy for subordinates to struggle and the achievement of activityand outcomes-based goals to be diluted (Baldwin et al, 2013). To highlight the
importance of teamwork, a survey conducted by the International Association of
Administrative Professionals (IAAP) about the administrative profession concluded
that one of the best things about this profession is the ability to be a team player. A
report released by the Council for Administration also highlighted the importance
of teamwork.
4.2.2
Personal skills
In most organisations, management fills the administrative support and
managerial positions by promoting within the organisation. It is therefore
important to be able to differentiate between attributes and skills, as skills can
more easily be acquired and learnt. Attributes that are part of the manager’s
personality, take longer to be changed or improved. To become eligible for
promotion or simply for personal development, the administrative support staff
and administrative managers must prove that they are capable of improving
themselves and handling additional responsibilities. It is also very important
to know your own skills in order for you to fill any gaps with the necessary
training. A few skills that will enhance the value of the administrative manager
are described below.
Leadership skills
The first skill that will enhance the administrative manager is to be a good leader.
Leadership has a different meaning for people in different contexts. As mentioned
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earlier in the chapter, the administrative manager is responsible for influencing
people to achieve the overall outcomes-based goals of the organisation. In this
chapter, for convenience, this responsibility can be considered as a definition of
leadership. The administrative manager is usually a democratic leader as they
interact with subordinates daily and request cooperation of others.
In order to be a successful and effective administrative manager, they should
be able to help subordinates to achieve activity-based goals, while maintaining
valuable working relationships. The administrative manager is actively involved
and encourages subordinates in making decisions. The administrative manager
must be able to establish credibility, respect and trust among subordinates as well
as other employees and customers of the organisation (Brandler & Roman, 2015;
Baldwin et al, 2013).
Interpersonal and social skills
The second skill that will enhance the administrative manager is focused on
interacting and influencing other people within the organisation. This skill is also
part of business courtesy, which includes having propriety, etiquette, and being
respectful. As the administrative manager is in a leadership position, they must
know how to behave in a socially acceptable manner.
The administrative manager needs to be aware of others’ reactions and needs
to understand why they react the way they do, as it affects the way they treat
subordinates, customers and suppliers. There is another important aspect, which
is that the manager represents the organisation in their dealings with people, and
is therefore an advertisement for the organisation. As such, the manager must
have etiquette and know how to behave in all circumstances.
However, it is important to remember that acceptable behaviour in one
community does not necessarily constitute acceptable social behaviour in another.
South Africa’s diverse population, together with globalisation, necessitates the
administrative manager becoming familiar with cultural diversity (see Chapter 20).
They should lead the staff to an understanding of what is acceptable behaviour in
specific circumstances by their behaviour.
Communication skills
Communication skills are the third skill and are central to organisational success.
It affects managerial behaviour. Successful administrative managers are people
who can effectively share their views and express themselves.
Therefore, effective communication is established when subordinates interpret
the administrative manager’s message in the same way the manager intended it to
be. Hence, if the administrative manager is a good communicator, it will inspire
confidence in subordinates to share useful information and will enhance effective
and efficient decision-making.
Another aspect that is required from a good communicator is to be a good
listener. The administrative manager should be able to listen carefully and to
be sensitive to the needs of others. It is important to note that sensitivity refers
not only to oral communication but, maybe more importantly, to non-verbal
communication too. It is also vital that the administrative manager can express
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themselves well through written communications in the form of policies,
regulations, manuals, etc. The importance of communication is also reflected by
the extent of the coverage in this book (see Chapters 5, 6, 7, 8 and 21).
Problem-solving and decision-making skills
The fourth skill that will enhance the administrative manager is being able to
solve a problem and making the right decisions. If the administrative manager is
not capable of solving a problem or not confident in the solution to the problem,
the quality of the decisions will be poor and most likely not effective.
The administrative manager must ensure that all subordinates are involved in
the decision-making process for at least two reasons. Firstly, each subordinate must
use all the resources available to them in order to increase the quality of decisionmaking. Secondly, if subordinates are actively involved in the decision-making
process, it will increase subordinates’ commitment and loyalty to the achievement
of the organisation’s outcomes.
In order to enhance effective decision-making, the following essential
elements must form part of the process: positive interdependence, individual
responsibility/liability and face-to-face interaction. A good guideline for an
administrative manager is that they should be able to “explain the problem
and the solution in less than 30 seconds” (Baldwin et al, 2013: 108). If the
administrative manager is not able to, it is likely that subordinates will not
understand it either.
Creative skills
The last skill that will enhance the administrative manager is being creative. As
global competition rises, the premium on being creative also increases. Creativity
is the process of developing or creating something new using rather untraditional
methods. It is important that the administrative manager and subordinates are
open to new ideas, opinions and perspectives in order to foster creative thinking
and problem-solving.
Hence, to encourage creative thinking among subordinates, the administrative
manager should create a safe and cooperative atmosphere that consists of trust and
taking risks.
What is important here is the ability not to accept current reality as a given,
but to treat everything as an opportunity for improvement. This not only refers
to products, procedures and processes, but also to people, who should be viewed
for their potential. This skill will improve the administrative manager’s ability
to solve problems and to manage change, both crucial in the changing world of
business.
4.2.3
Technical competencies
Changes due to technology have substantially influenced the competencies that
an administrative manager must have. The problem in South Africa is that, since
we are a developing country, we use both old and new technologies. Because
of the changes taking place in the areas of technology, hardware and software,
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the administrative manager must keep up with the latest soft and technical
competencies.
The following competencies do not cover everything, but can be used as a
guideline against which an administrative manager can measure themselves.
Basic technical competencies
Basic technical competencies include:
•
•
•
•
initiative management competencies which include effective and clear
communication, deciding on and initiating action, teamwork and providing
support to all subordinates;
interpersonal and leadership-related competencies which include providing
leadership, supervision and influencing subordinates;
analysing and interpreting competencies which include writing and reporting,
applying expertise and technology and problem-solving; and
innovations-related competencies which include learning and researching,
creating and innovating.
Basic software competencies
Basic software competencies include:
•
•
•
•
•
•
•
•
knowledge of the latest software and the next big software package;
knowledge of latest versions of Microsoft software and when the next version
will be available;
certification in Microsoft Word, Excel and PowerPoint;
word processing skills;
database management;
desktop publishing;
the ability to operate the large variety of office equipment, such as fax machines,
scanners, telephones, laminators, answering machines, recording devices, allin-one machines, motorised filing equipment, copiers and computers; and
the ability to use internet, intranet, extranet, email, SMSs and bulk SMSs,
voicemail and videoconferencing.
4.2.4
Management skills
Administrative managers must have managerial skills in order to manage the
organisation or the department for which they are responsible. The level of skills
needed will be determined by the level that the manager operates in. These skills
are managerial functions: planning, organising, leading, controlling, problemsolving and decision-making, and managing cultural diversity.
An aspect that is neglected in most of the sources available on administrative
management is the fact that the administrative manager must be an expert in the
office environment. This means that they must be able to understand office design
and layout, know how to manage the space and locate a new office, as well as how
to equip an office with the necessary furniture and equipment.
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The administrative manager must keep up to date with new developments, as
office equipment is the second most expensive component in the budget of an
organisation, and it is under the direct control of the administrative manager.
4.2.5
Summary of the profile of the administrative manager
As discussed in this chapter, the profession of administrative management is
constantly changing, and a number of new attributes and skills need to be acquired
for the new business world. Not all of these attributes and skills are necessarily
found in one administrative manager and therefore they must be obtained over
a period of time. To improve yourself requires that you desire to be better. One
way of doing this is to have an understanding of most new job titles found in this
profession.
With the world’s current entrepreneurial focus, organisations need people who
reflect the following seven characteristics:
•
•
•
•
•
•
•
The ability to deal with risk: The administrative manager does not always
have all the information available on which decisions can be based, and should
sometimes make risky decisions. This is a factor inherent in the managerial
position.
Results oriented: All good managers take ownership of the tasks that they do
and the results thereof. They have “can-do” attitude.
Energetic: A high level of energy, eagerness and enthusiasm is visible in
the administrative manager and there is no doubt about their commitment
towards the organisation. This is a further assurance that they are aligned
with the goals of the organisation.
Growth potential: The successful administrative manager is always trying to
improve themselves and to assume more responsibility.
Team player: The administrative manager builds teams and is part of the
team, so it is important that they are a team player. Accountability is accepted
for their area of responsibility, but credit is also given to the other team players
who deserve the credit.
Multitasking: The administrative manager is flexible in accepting new duties
and responsibilities, and will carry on with these duties until they are able to
delegate to others after the necessary training.
Improvement oriented: The administrative manager constructively criticises
existing procedures and systems that could be improved in a creative and
innovative way.
By getting an academic qualification, managers learn about and become sensitised
to the attributes and skills highlighted in this chapter. Academic training involves
acquiring knowledge, but is also a means of applying the skills and developing the
competencies while doing the training. The fact that a person has an academic
qualification says something about the person’s ability to work under stress and
their inherent drive or willingness to perform.
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4.3
Events management
The event industry has a major impact on the economy. Depending on the
viewpoint, there are various definitions available, but for the purpose of this
section we refer to events as leisure activities that involve a temporary gathering
of people. Events come in different types and sizes, but regardless of the size of
the event, a high degree of planning and skill is required. The management and
organising of events is part of the support function that an administrative manager
must fulfil. This responsibility involves research of the distinct stages of an event,
from initiation to closure.
Events management is closely linked to project management, as events
generally have the same characteristics as projects. Both events and projects are of
limited duration and are unique occurrences to achieve the overall organisational
outcomes.
In order to fulfil the role as an events manager and to take responsibility for
it, the administrative manager must be knowledgeable about different types of
events as well as how to go about organising and managing each event.
The following section discusses the different types of events in detail in
order to give you an idea of the variety of events that an administrative manager
may be requested to organise. Sometimes it is necessary for the manager to
choose the type of event to suit a specific purpose. It may even happen that
although the manager does not have to organise the event, they have to oversee
or supervise it.
4.3.1
Different types of events
In today’s changing environment the administrative manager can be requested to
host or organise almost any type of event, ranging from a small, informal social
function for the management team to a mega-event for the organisation, a meeting
for top management or a conference.
Advances in technology have introduced events such as web conferencing,
teleconferencing, and webinars or webcasts.
There are different types of events according to different cultures. For example,
an imbizo (a meeting between representatives from government and ordinary
citizens) is an event unique to South Africa. The administrative manager must
gain insight into the different types of events and the categorisation thereof. One
way of remembering the different categorisation of corporate events is by using the
five MINCE categories (meetings and conferences, incentives, networking events,
corporate hospitality, and exhibitions and trade shows) (Bladen et al, 2012). We
will discuss these in greater detail below.
Meetings and conferences
Meetings and conferences are usually held with the focus on business, in other
words, concerning business-to-business matters rather than business-to-customer
matters.
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Meetings are normally defined as a gathering of two or more people to decide on
certain matters. Meetings must be held with a reason and not just for the sake of
talking. See Chapter 8 for a full discussion on meetings.
Conferences are held for larger groups and can be both public and private. A
public conference is convened in order to get interested people from the public and
people from a few organisations to attend in order to discuss topics of particular
interest. A private conference can be hosted by an organisation with only clients,
customers and staff of the organisation invited, in order to discuss topics of interest
to the organisation.
Teleconferencing and web conferencing are becoming increasingly popular as
new types of meetings.
With teleconferences, it is possible to get people from all over the world to
talk to each other without having to travel to one central place. This type of
conferencing can be arranged by telephone or cellphone just by organising the
line connection for all the participants. Teleconferencing is expensive to set up
and use and may not always be effective due to telephone signal failure.
The two biggest factors in organising such an event are arranging the connection
and taking time zone differences between countries into consideration.
With web conferencing it is also possible to share information from
widespread geographic locations without having to travel to one central place.
This type of conferencing includes training events, presentations and meetings,
and all participating venues must have web connections. Web conferencing is also
expensive to set up and use, but can be very effective as it is an interactive face-toface encounter.
The three biggest factors in organising such an event are the initial costs, the
venues, and the time differences between the time zones. One of the biggest
downsides of web conferencing is technological failure, over which organisers
rarely have control.
Owing to further advances in technology the cost of hosting such high-level
technological meetings has come down a lot. It is no longer such a costly exercise
for medium to large organisations. Global organisations use these continually
in order to ensure proper communication between divisions that are situated in
different countries.
Incentives
Incentives can include various types of events such as seminars, training and
teambuilding. Incentive events are held with the intention to focus on staff
motivation and development to increase their performance levels or to achieve
specific activity-based goals.
Seminars are normally relatively short functions (an hour to a full day) at
which the employees of the company are addressed by management (or by an
expert) as a training exercise on a specific topic. The main purpose of holding a
seminar is to learn more about a specific topic, which is usually either work-related
or in an area identified for staff development. Seminars are normally easier to
manage, as they are normally held on a regular basis.
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Special types of seminar, held by connecting the different participants or the
expert by way of the internet, are called webinars. The seminar can also be made
interactive so that attendees can participate more actively. This is only possible if
all the participants have fast internet access.
Webcasts are also seminars that make it possible to do presentations to an
international audience. This type of seminar tends to be less interactive and more
informative than webinars.
Networking events
Networking events can include various types of events such as congresses, banquets
and awards ceremonies. This type of event is normally held with the focus on
introducing people to new business connections.
Congress events are normally held by a specific interest group, for example
academics from a specific field of study, in order to get the interested parties
together. Networking events provide opportunities to discuss specific topics and
to share relevant information.
Businesses use congresses to get delegates from geographically dispersed
business units together in order to share knowledge.
Both conferences and congresses have a big scope and are not organised by just
one person. A committee or task team is normally appointed to perform this task,
as will be discussed later.
Banquets are another type of networking event and are usually held at the
end of the year or when awards have to be presented. It is basically a dinner at
which short speeches are made. A variation of a banquet is a business breakfast
or luncheon. Depending on the event, it must be decided whether or not to serve
liquor and what type of liquor.
The menu is of the utmost importance, as people remember the food long
after the speeches are forgotten. In a culturally diverse society the organiser
must make provision for the different food preferences and dietary requirements
of people.
A few other aspects that need attention are the dress code, the seating
arrangements and the venue.
Corporate hospitality
This type of event is held with the intention to improve business relationships by
only focusing on the clients and customers.
It is usually hosted at sporting and cultural events where the hosting organisation
is responsible for covering all the costs. These events are also short functions (one
day or less) and usually involve welcoming drinks and food throughout the event
with a gift for the guests.
Great importance is placed on the guests’ experience and the success of such an
event is largely dependent on how good the hosting of the event was.
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Exhibitions and trade shows
The last type of event is complex and can be seen as a marketing or communication
tool. At this type of large event, the focus is on business purposes and consumers.
Businesses have the opportunity to showcase their selection of products and
services.
Some exhibitions are open to the general public, but charge an entrance fee.
Exhibitions provide a platform for individuals to directly interact with different
companies and their products/services. One benefit of hosting exhibitions is that it
increases the opportunities for networking and the sharing of useful information.
Organising such an event may take up to two years from the original concept
development to the day of the event self.
4.3.2
The organising of the event
The following factors affect the way an event is organised:
•
•
•
Person responsible: If the event has been organised before by the same
person, it will be easier since they will have gained useful knowledge from
past experiences.
Size of the event: The size of the event influences the number of people that
will be involved in its organisation.
Legal requirements: This is very important, as laws, regulations or the
organisation’s constitution may need to be taken into account, which can
have a huge effect on the event.
The basic planning process starts by making decisions on the customer and venue/
site logistics (not all will apply to every event):
•
Customer logistics:
•• ticketing;
•• queuing;
•• travel arrangements;
•• transport; and
•• accommodation.
•
Venue/Site logistics:
•• plan of action;
•• person(s) responsible;
•• budget;
•• venue design and site plan;
•• supplier logistics and management;
•• catering;
•• stewarding and security;
•• target audience;
•• VIPs and the media;
•• emergency plans;
•• speakers; and
•• technical requirements.
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This is a general guideline regarding all the aspects that should be considered when
organising an event. For each aspect, it may be necessary to appoint a committee
with a chairperson that represents it in the overall coordinating committee.
The plan of action
As events management is part of project management, the planning of events has
now been made easier because of new software. Events management is normally
repetitive, so having a checklist from which you can work makes it easier. This is
provided by software that helps the organiser of the event by ensuring that every
area of decision-making is covered and not even the smallest detail is left out.
It is not necessary to reinvent the wheel every time you organise an event. It
is much easier to get assistance or help from somebody who has done it before.
Normally organisations that hire out venues have events managers on their staff
that can be consulted for assistance.
Depending on the type and size of the event you may even decide to outsource
the function at this early stage. The outsourcing of the event should be done if
your organisation lacks the expertise and the workforce to organise the event.
When the decision is made to outsource, it is important to shop around for
reliable events management organisations with a good reputation. It is also
important that the process should be monitored carefully, and that everything is
not just left in the hands of the organisation the event was outsourced to. Liaison
sessions must be scheduled on a regular basis for the duration of the planning
process.
The timing to start planning is a crucial decision for the success of the event:
it could be between five minutes, for organising a quick meeting, or a couple of
years, for a big event like the Olympic Games. The main reasons to begin the
planning as soon as possible are:
•
•
•
the booking and the availability of the venue;
the timing of the event – the bigger the event, the more people will be affected,
and costs might be saved by having the event in an off season; and
the people involved.
The person(s) responsible for organising the event
Smaller events, for example company in-house meetings and business lunches,
are normally organised by only one person. Meetings are discussed in detail in
Chapter 8 of the book as they are an important function of the administrative
staff. In these cases, the use of electronic schedulers in the organisation has made
the life of many administrative assistants easier.
Usually bigger events require more people, which is why the second phase of
planning an event consists of putting together a committee or task team. The
choice of members for the committee determines the success or failure of the event
and should be done with the utmost care.
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It is advantageous to select people according to the specific skills that are needed
to organise the event. Examples are:
•
•
•
•
•
an experienced chairperson with strong leadership skills – this might be the
administrative manager for most in-house events (for bigger events they will
most likely fulfil the role of coordinator);
a strong financial person to handle the finances;
a technical person if the event relies heavily on technology;
a person with a legal background; and
a person with previous experience in organising the event.
For bigger events these people make up the overall coordinating committee or the
steering committee and each has their own committee or portfolio to oversee.
The chairperson of the committee is responsible for the event, but each person
that has a portfolio must be given full responsibility for that portfolio. The whole
question of what is delegated must be determined at the start. Feedback to the
committee, however, is a must.
4.3.3
Portfolios in the coordinating committee
The finance committee
This is one of the most important committees in any event, as the success or
failure is usually determined by the budget, by definition, financial management,
which is the summary of all the planning in monetary terms.
The accounting officer is the chairperson of the steering committee, so the
financial committee or the treasurer (as the chairperson of the finance committee
is called) must provide the steering committee with feedback and uninterrupted
access to all financial data. One way to ensure this is to give the chairperson of the
steering committee co-signing powers on the cheque account, if it is kept.
If the finances are channelled through the accounting records of the
organisation the same applies, but it is then only the co-authorising that has to be
regulated.
The first thing the financial committee must determine is which finances
are available. Are all the funds supplied by the organisation, or must they be
raised from other sources? If funds have to be raised, especially in the case of
sponsorships, the legal adviser or committee should check all agreements before
anything is signed. As a precaution, all agreements that involve finances should be
checked with the legal adviser.
After most of the committees have done some planning, a budget is drawn up
to reflect these preliminary plans. Income may be from the following sources,
depending on the type and size of the event:
•
•
Registration fees: When hosting seminars, conferences and congresses,
one of the main sources of revenue is the registration fee that attendees or
delegates are asked to pay. Normally the attendees get a discount for early
payment.
Sponsorships: Sponsors give money for something in return, whether it be
the marketing value or just the advertisement of their name. So you must
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•
•
•
•
•
be sure that the event can provide what is required by the sponsorship
agreement.
Donations: Donations are normally made without any strings attached, as the
donor does not require anything in return.
Advertising: The same issues as for sponsorship agreements apply to
advertising in the programme or at the venue.
Exhibition fees: At bigger events, sponsors or exhibitors have an opportunity
to exhibit their goods and services. They pay a fee for exhibition space.
Goods in kind: Although not necessarily a source of income, some
organisations are willing to donate or make some of their products available
in order to get some marketing value out of it, for example stationery, printing
facilities, faxing facilities, drinks on the venue tables.
Funds: These are provided by the organisation managing the event. Costs
can be divided into fixed, variable and semi-variable costs. As it is usually a
financial expert who is chairperson of this committee, these costs will not be
discussed individually. A general discussion on costs is warranted though.
Examples of costs can be:
•
•
•
•
•
•
•
The venue rental: Sometimes this cost can be very high and influences a lot
of the other expenses, for example if the venue has its own caterers that you
are obliged to use.
Appearance fees: These fees can also be divided into two groups, namely fees
for speakers and fees payable to others appearing at the event, for example
for entertainment. Sometimes speakers are not paid a fee, but instead get a
reduction on or waiver of the registration fee.
The registration process: Registering people requires printing brochures,
developing a website (if registration is done electronically), and managing or
appointing staff to handle the registration process.
Equipment: Depending on the type of event, different types of equipment
need to be provided, for example faxes, telephones, photocopying machines
and audio-visual equipment.
Printing: Printing costs may include brochures, programmes, printed menus
on the tables as well as the printing done after the event, for example the
summary of papers delivered. Lately this is done by putting it on a CD or USB
flash drive, which is cheaper.
Refreshments and meals: These two costs can have a major impact on
the budget as they are quite expensive. The dietary requirements of all the
attendees should be catered for, whether they be vegetarian, vegan, kosher or
halaal. Normally when wine is served, a bottle or two is budgeted for every
table. Whether there is a cash bar is determined by the event organisers.
Transport: Transport starts becoming expensive when the venue where the
event is hosted is not the same as the venue where the attendees are staying.
This can make the decision of where to host the function more crucial. The
possibility of transporting attendees on excursions to important sights in the
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•
region or the city – if they are travelling for a conference, for example – must
also be budgeted for.
Administrative costs: These costs include postage, telephone, cellphone, fax
and internet costs, if provided at the venue.
The budget should be revised and approved if and when substantial changes occur.
The venue committee
Those responsible for the venue must have a general idea of what kind of venues the
coordinating committee have in mind before they start searching for a venue. It is
of no use if this committee comes up with an idea of a venue and the coordinating
committee disapproves because it is not what they had in mind.
A detailed list of what is required from the venue will enable this committee to
do a proper search and make recommendations. Such a list may include:
•
•
•
•
•
•
•
•
•
the size of the venue;
the audience profile;
the duration of the event;
the seating arrangement;
accommodation, if needed;
catering facilities, if required;
security of the venue;
audio-visual equipment, which includes the public address system, overhead
projection screens, internet connection, and recording facilities; and
administrative facilities, for registration, duplicating, faxing, etc.
Once they know what is required, the committee can do thorough research, list
and visit all the possible venues and make recommendations on the most suitable
ones to the organising committee. After a visit by the committee, the venue must
be confirmed in writing, which will also require a deposit being paid.
The venue committee is also responsible for drafting maps to the venue
from all the major roads and airports for inclusion in the brochure. Temporary
road signs may have to be erected if the location is difficult to find. The GPS
coordinates of the location can also be made available to make it easier to locate.
After confirmation of the venue, the real work for the venue committee starts,
since they then have to organise the following:
•
•
•
•
•
•
•
•
•
•
the seating arrangements during the main sessions;
the seating arrangements for the discussion groups;
the correct positioning of the registration area;
the administrative centre;
signage to the different meeting places and other facilities;
the stage and access thereto;
the stationery during the function and additional supplies;
the operation and control of all the audio-visual equipment;
the refreshments during breaks (for example tea and coffee) and water in the
venue; and
the meals and times at which they are served.
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In most cases it is this committee that must be familiar with every aspect of the
venue, since it is responsible for the smooth execution of the programme during
the event.
This committee might also be responsible for the accommodation, or another
committee might handle this portfolio. Regardless, the preferences of the speakers
and the delegates should be taken into account as far as possible, and transport to
and from the venue and other possible functions must be arranged.
Block bookings can substantially reduce the price of the accommodation.
Reservations can be made long before the time and cancellations can be done by
an agreed cut-off date.
Once again, depending on the size of the event, there might be a specific
portfolio to handle the catering.
The catering committee
If a separate catering committee is formed, it will be responsible for all the food and
beverages. The menu must be designed to make provision for everyone, whatever
their dietary requirements might be. This information must be supplied by the
committee that does the registration.
It is advisable to plan for smaller and lighter meals in the afternoons as people
are uncomfortable working after a big meal. Liquor is normally not served in the
afternoons.
The following checklist is recommended:
•
•
•
•
See to it that meals and refreshments are served on time.
Serve a variety of beverages, for example Ceylon and rooibos tea, coffee,
decaffeinated coffee, mineral water, sparkling water; this also applies to the
food.
Serve light snacks if no breakfast was served on the day of registration.
Coordinate the tea breaks and lunch breaks at all times with the programme
committee.
Once again, in the case of a large event, the coordinating committee might decide
to split the workload of the catering committee. They may appoint a banqueting
committee to organise all the evening functions, which could take place at
different locations.
The registration committee
The registration or ticketing committee should focus on the distribution and
collection of the registering process, as it will be the first impression that the
customers will have of the event. This committee’s work starts at the beginning
of the events management process and ends after the event has finished. The
bulk of their work happens during the event itself. The following checklist can be
followed:
•
•
Ensure that registration forms, printed or electronic, are user-friendly and
have all the relevant information.
Communicate all the relevant information to other committees, for example
dietary requirements and accommodation requirements.
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•
•
•
•
•
•
•
•
Compile the registration list and divide it up between different desks that will
be used for registration at the venue.
Get the event documentation that will be given to delegates at registration
ready and sort it according to the registration list; this includes the gifts that
will be handed out.
If registration is slow, inform the coordinating committee so that a decision
can be made quickly on additional marketing.
Arrange for staff to manage the registration desks – two per desk.
Ensure that the registration area is visible and that the signage or directions
have been put up.
Liaise with the accommodation committee to show delegates their accommodation if not at the same venue, or use the hotel’s services if in a hotel.
Liaise with the finance committee for two people to handle the finances of
possible late registrations or registrations for a single session.
If delegates are allowed to register for one or two sessions, the registration
process will have to continue during the whole event.
The transport committee
This committee is responsible for all the transport arrangements. All transport
requests must be forwarded to them in order for them to plan the transport properly.
As transport is an expensive item on the budget of any event, all transport
requirements must be closely monitored and carefully planned. Proper liaison
between the different committees is essential to ensure efficient transport.
The following aspects affect transport costs significantly:
•
•
•
•
the distance between the venue of the event and the airport, together with the
number of international and national delegates;
whether or not the accommodation is at the same venue as the event, as a
shuttle service must be provided if not;
the number of extra excursions planned for the delegates; and
whether or not there is a spousal programme in place.
The transport committee must also liaise very closely with the VIP committee (if
there is such a committee), as well as with the registration committee to ensure that
the number of times the shuttle service has to travel to the airport is minimised.
This service must be available before and after the event.
The number of delegates going on excursions must be communicated in time
to the transport committee, as crisis management creates problems.
The speaker committee
The main task of this committee is to attract the right quality and number of
speakers to the event to speak on the topic chosen by the coordinating committee.
The speakers will enhance the event’s value.
In order to achieve their goal, the committee must communicate what is
needed to the registration committee before registration documents or the website
are finalised. They must constantly monitor the number of speakers and pass this
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information on to those responsible for the programme. If there is a shortage of
speakers, extra marketing should be done to ensure sufficient numbers.
The following checklist may be of value:
•
•
•
•
•
•
•
Ensure that the papers or speeches are of a high quality by using a peer review
system.
Inform speakers of the required format and length of the papers or speeches;
this is something that has to be strictly applied (especially during the event)
to ensure smooth execution of the programme.
Get copies of the papers in time to advertise in the programme and make the
programme available in printed or digital format.
Get an abbreviated CV to assist an appointed person to introduce the speaker
and appoint a person to thank the speaker after the speech.
Appoint chairpersons for the discussion groups if discussions are to be held on
the speeches.
If exhibitors request a slot to speak to the delegates, make provision for this.
Find a keynote speaker in close liaison with the coordinating committee.
The VIP committee
It is this committee’s responsibility to oversee and manage every aspect of the
attendance of VIPs and the media to make it enjoyable for everyone.
It is essential for the VIP committee to ensure that all the VIP guests are
able to reach all the necessary areas such as the entertainment and VIP areas.
This committee must be knowledgeable about protocol. The government has a
department that has all the information available on protocol.
Sometimes it is necessary to work closely with the security companies if the
VIP is a high-profile person. In such instances the venue of the event needs to be
scrutinised in order to secure the safety of the VIP.
The transport and accommodation requirements of VIPs should get special
attention. In most cases one or more of the keynote speakers are VIPs.
The security committee
A key focus for the security committee before, during and after the event is to
ensure that the right people have access to the correct area. This committee must
ensure the safety of delegates and the equipment at the venue during the event.
They might be required to liaise closely with the security personnel of VIPs, if
needed.
When there is an exhibition at the event, this committee is also responsible for
the safety of the exhibits.
Another aspect that has become important is transporting registration fees to
a bank or secure venue.
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Other committees
Depending on the size of the event, the coordinating committee might decide to
have more specialised committees. These might be any of the following:
•
•
•
•
•
a marketing committee – responsible for the marketing of the event;
a sponsorship committee – responsible for all the negotiations with sponsors
and the signing of contracts (this committee oversees all aspects of promoting
the products or services of the sponsors);
a programme committee – to draw up the programme and implement it;
a spouses committee – increasingly events also cater for the spouses of delegates
during times that the delegates are busy with the conference (this may require
a full programme on its own, which is actually a smaller event in its own
right); and
an EMC (Executive Management Committee) that is able to make emergency
decisions without convening the whole coordinating committee.
Regardless of the number of committees, it is vital that each committee liaises
closely with the others. There must be constant feedback to the coordinating
committee to ensure the event’s success.
4.4
Putting the event together – implementation and
execution of the plan
While every detail should be planned meticulously, the success of the planning
lies in putting the event together. Putting the event together follows a certain
timeline, and by understanding this timeline, administrative managers can
execute any event successfully. Putting the event together usually starts with the
initiation of a plan or an idea. This is where a definition is given to the idea and
communicated to all subordinates involved.
The second timeline of organising the event is the planning thereof. In
collaboration, all the assumptions, constraints, risks, and the drafting of a broadbrush plan with a summary and sequence of tasks are discussed.
Implementing the event is the third timeline, which entails the final review
and approving of the broad-brush plan. The fourth timeline of organising the
event is the event self, and lastly, it is the closure of the event and what happens
after the event.
Every event follows a timeline, but these can be broken down into three phases.
Phase 1: The steps before the event
This phase involves the idea and the planning of the event. All the planning is
done by the coordinating committee with the help of the subcommittees.
•
•
•
•
The budget is drawn up.
The date and the duration and the venue are finalised.
Marketing is done, which includes press releases as the opening day of the
event comes closer.
The closer the date of the event the more regular the meetings are to ensure
that everything is in order.
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•
Everything should be rehearsed to ensure that every possible scenario has
been taken into account.
Phase 2: The event itself
The implementation of the event itself is done in this phase. Each committee
ensures that what has been planned is implemented. There may be unforeseen
problems, such as load shedding, and these problems must get immediate attention.
One way to ensure that everything runs according to plan is to ensure that the
scheduled times on the programme are strictly adhered to. In order to do this, you
can appoint a programme monitor who enforces the time schedule, for example
by indicating to speakers when they have exceeded their allotted time. This can be
done with a bell, flash cards or coloured lights.
The whole committee must know exactly what their responsibilities are during
the event. An early morning briefing session about the problems of the previous
day and the programme for the day helps to prevent similar problems from arising.
Another important factor to consider is that the venue and all the facilities
must be kept neat at all times. When the event is held in a hotel, their staff will
be responsible for this, but if the event is at a venue that does not have its own
housekeeping, the responsibility lies with the coordinating committee or the
appointed subcommittee. This includes not only the venues, but also the restrooms
and the lobby. The refreshments in the main function area and the discussion
rooms must also be replenished.
Phase 3: The days after the event
Some people may think that nothing important happens during this phase, but
this is a misconception. This stage is the feedback and closure phase where all the
problems and the hiccups are identified, recorded and discussed so that solutions
are found to avoid them the next time. It can also be called the evaluation phase.
During this time, you should evaluate the checklist and add anything that might
have been overlooked in the planning phase. This includes factors that caused
problems and suggestions for improvement.
It is advisable that each committee file a report on their activities to the
coordinating committee, that then compile a comprehensive report on the event
for future reference.
There are also certain final arrangements that must be made, such as:
•
•
•
•
•
•
paying gratuities and honoraria;
posting the proceedings of the event to the delegates after they have been
printed or put onto CD or USB flash drive;
returning hired or borrowed equipment;
returning identifiable missing property to delegates;
sending out thank-you letters to everyone involved; and
settling all accounts and closing the bank account or transferring the funds to
the people responsible for the next follow-up event.
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Conclusion
An organisation cannot function properly without the supportive function of the
administrative manager. This chapter has identified the characteristics and the
competencies needed for the job. It demonstrated how advances in technology
have also affected the role the administrative manager, who has to keep up to date
with these new developments in order to run the supportive function efficiently.
The changing global environment has also changed the way we do business.
Having to manage a diversified workforce adds to the skills needed by the
administrative manager.
To conclude this chapter, we gave a detailed example of one of the supportive
functions that an administrative manager has to manage. This illustrates just how
comprehensive one small section of the administrative manager’s job description
is. It also gives you an idea of how an administrative manager should go about
their job, and what principles are involved.
The administrative manager of the future will have to adapt to change and
thrive in order to manage their team.
Self-assessment
1.
Describe the personal attributes that an administrative manager must have in
order to operate effectively.
2.
Provide a summary of the personal skills that can be acquired and learnt that
will enhance the value of the administrative manager.
3.
List the different categorisation of corporate events as an example of the
support function of the administrative manager.
4.
List and explain three factors that can affect the way an event is organised.
5.
Which factors should be taken into account when putting a committee
together to organise an event?
6.
List and explain the three main phases that you can use in putting an event
together.
7.
Discuss the timeline that every event follows.
8.
List two committees that can be put into place to organise an event.
9.
Why is the implementation or execution of the planning of an event so
important?
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References
Baldwin, T. T., Bommer, W. H. & Rubin, R. S. 2013. Managing organisational
behaviour: What great managers know and do. 2nd ed. New York: McGraw-Hill.
Berman, L. 2015. The Office of Management and Budget and the presidency, 1921–1979.
New Jersey: Princeton University Press.
Bladen, C., Kennell, J., Abson, E. & Wilde, N. 2012. Events management: An
introduction. London: Routledge.
Brandler, S. & Roman, C. P. 2015. Group work: Skills and strategies for effective
interventions. 3rd ed. New York: Routledge.
Carter, M. Z., Armenakis, A. A., Feild, H. S. & Mossholder, K. W. 2013.
“Transformational leadership, relationship quality, and employee performance
during continuous incremental organizational change.” Journal of Organizational
Behavior, 34(7): 942–958.
Jones, M. 2014. Sustainable event management: A practical guide. 2nd ed. London:
Routledge.
Kalargyrou, V., Pescosolido, A. T. & Kalargiros, E. A. 2012. “Leadership skills in
management education.” Academy of Educational Leadership Journal, 16(4): 39–63.
Pells, D. L. 2012. “How a passion for honesty can lead to more mature project
management and better project results.” PM World Today, 14(2): 1–10.
Robles, M. M. 2012. “Executive perceptions of top 10 soft skills needed in today’s
workplace.” Business Communication Quarterly, 75(4): 453–465.
Schwalbe, K. 2015. Information technology project management. 8th ed. Boston:
Cengage Learning.
Silvers, J. R. & Goldblatt, J. 2012. Professional event coordination. 2nd ed. New Jersey:
John Wiley & Sons.
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Chapter 5
The basics of communication
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
••
••
explain the importance of good communication;
describe the meaning of communication in an organisational context;
explain the elements of the communication process;
list, describe and distinguish between the various communication channels;
identify various communication mediums and specify which medium is
appropriate for which situation;
discuss non-verbal communication;
explain and indicate how to deal with multicultural communication;
discuss the barriers to effective communication;
explain ways to overcome the barriers to effective communication; and
list guidelines to improve effective communication.
Introduction
Communication (in its simplest form) is the process of transmitting information,
knowledge and ideas from one person to another. Communication is the basis
of all relationships. Although most of us take communication for granted, its
importance cannot be overestimated. It is estimated that managers spend over 80
per cent of their day communicating with others (Williams, 2013). Across all walks
of life poor communication is often found to be the most important reason why
relationships fail and why things go wrong in an organisation.
All business matters depend on the exchange of information, knowledge and ideas.
The success of the organisation’s performance depends on the effective exchange
of such information, knowledge and ideas. Communication therefore affects every
decision and almost every activity in the organisation, from human communication
to technology-based communications. Possessing effective communication skills is
an essential aspect of being successful in a working context.
Therefore, to ensure effective communication, it is necessary to have a basic
knowledge of communication. This chapter will address issues such as the
importance of good communication, the communication process, communication
channels, communication media, non-verbal communication, multicultural
communication, barriers to effective communication, overcoming the barriers
to effective communication and, lastly, guidelines for effective communication.
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Chapter 6 will focus on written communication and Chapter 7 on electronic
communication.
5.1
The importance of good communication
According to Jones and George (2014), organisational performance is a measure
of how efficiently and effectively managers use available resources to satisfy
customers and achieve organisational goals. Good communication is essential for
attaining an organisation’s goals. According to Jones and George (2014), through
good communication managers can:
•
•
•
•
Increase their efficiency: They can do this by updating the production
process to take advantage of new and more efficient technologies and by
training workers to operate the new technologies and expand their skills. Good
communication is necessary for managers to learn about new technologies,
implement them in their organisations and train workers in how to use them.
Improve quality: Managers need to communicate to all members of an
organisation the meaning and importance of high-quality products. They
should also make suggestions for increasing quality to their superiors. Members
of self-managed work teams need to share their ideas on improving quality
with one another.
Help to increase responsiveness to customers: When the organisational
members who are closest to customers are empowered to communicate
customers’ needs and desires to managers, managers are better able to
respond to these needs. Managers, in turn, must communicate with other
organisational members to determine how best to respond to changing
customers’ preferences.
Effectively innovate: Innovation normally takes place in a cross-functional
team, which requires good communication. Innovation in organisations is
increasingly taking place at a global level, making effective communication
all the more important.
Other reasons why communication is important for an organisation, according to
Thill and Bovée (2015), include the following:
•
•
•
•
•
•
•
5.2
closer relationship with communities in the marketplace;
opportunities to influence conversations, perceptions and trends;
better financial results and higher return for investors;
earlier warning signs of potential problems, for example from rising business
costs or critical safety issues;
stronger decision-making based on timely, reliable information;
clearer and more persuasive marketing messages; and
greater employee engagement with their work, which will lead to higher
employee satisfaction and lower employee turnover.
The communication process
As indicated in the introduction of the chapter, communication is the process
of transmitting information, knowledge and ideas from one person to another.
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In delivering the information, knowledge and ideas from the one person to the
other person, there are various aspects involved. The best way to address these
various elements is through the communication process. The elements of the
communication process are illustrated in Figure 5.1.
Sender
formulates the
message by
encoding it
with signs and
symbols
Figure 5.1
Message
Channel
Channel
Feedback
Receiver
receives the
message by
decoding it
with signs and
symbols
The communication process
Source: Adapted from Van Staden, Marx & Erasmus-Kritzinger (2007)
Let us take a closer look at the components of this process.
The sender: The sender is the source or the originator of the message. It may
be an individual or several individuals working together. The source may also
be an institution or an organisation. The sender initiates the communication
activity and formulates the message. Usually the sender sends a message because
of a need to convey information, express feelings, obtain feedback or satisfy needs.
Communication occurs if the sender and the receiver have some minimum degree
of prior common experience or some level of shared meaning. At the other extreme,
no two individuals have exactly the same experience; hence the language used
(signs and symbols) often may have somewhat different meanings for the recipient
and the sender. An individual’s experience is constantly changing and, as a result,
the meanings of the symbols used in messages change over time. Many failures to
communicate are due to mistaken assumptions by the sender or recipient about
the meaning of the symbols they have exchanged.
Encoding: The sender encodes the thoughts or feelings into a medium (written,
visual, spoken or symbolic form) that conveys the intended meaning to ensure
that the receiver recognises and understands what the sender wants to convey.
These signs and symbols can be verbal (in the form of language) or non-verbal
(hand or facial gestures, or any other body movements and images).
The receiver: This is the person who receives the message from the sender.
The receiver must interpret or decode the message. The signs and symbols in the
message must be translated into a form that can be understood by the receiver.
Decoding: Decoding translates messages into a form that has meaning to the
receiver. A receiver, just as the sender, is limited in the decoding of a message
because of their skills, attitudes, knowledge and social cultural system. For
example, the sender must be skilful in writing and speaking and the receiver must
be skilful in reading and listening.
The message: The message contains the verbal (spoken, written or audiovisual) symbols and non-verbal cues representing the information that the
sender wants to convey to the receiver. Messages normally contain information
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or data. An example of information is an administrative report to an executive
that shows that telephone expenditure has increased by 20 per cent in the past
year.
A channel is the system through which a message gets delivered from a
sender to a receiver. It is the path through which the message is physically
transmitted, for example downwards, upwards, horizontally, diagonally, or
informally.
Feedback (also referred to as a reaction or response) is the message the receiver
sends in response to the sender’s message. It may be thought of as a measure of
the effectiveness of the communication, in other words how successfully the
message has been transferred. Positive feedback informs the sender that the
intended effect of a message was achieved. Negative feedback informs the sender
that the intended effect of a message was not achieved. In general, the more
feedback-oriented a communication process, the more effective it is. Feedback
can be verbal or non-verbal.
Communication barriers are also referred to as noise or interference. During
the communication process something may prevent communication from
taking place successfully. This could be anything that causes a communication
breakdown or prevents the receiver from receiving the message. In Section 5.7
more attention is given to the barriers to communication.
5.3
Communication channels
As indicated above, the communication channel is the system through which
a message travels from sender to receiver. Communication can flow through a
formal or informal channel in the organisation. Organisational structures (as
discussed in Chapter 16) help to make the flow of information more effective and
ensure that there are formal communication channels to be followed whenever
information needs to be exchanged. Formal channels can move upwards,
downwards, horizontally, and diagonally. Informal communication channels refer
to communication that does not follow the normal structures of the organisation.
Informal communication can take place through people who socialise informally
and through the grapevine.
5.3.1
Downward communication channels
Downward communication refers to messages sent from managers to employees
that follow the organisation’s formal chain of command from top to bottom.
Managers frequently use downward communication effectively as a channel, but
it may be the most misused channel because it provides little opportunity for
employees to respond.
Managers use downward communication to send the types of messages to
employees that (Fielding & Du Plooy-Cilliers, 2014):
•
•
•
•
describe the organisation’s goals, philosophy, strategy and mission;
describe the organisation’s ethical standpoint;
describe the organisation’s general policy and procedures;
describe an employee’s relationship with the organisation;
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•
•
•
•
•
instruct people on how to do a job or task;
give information on how one job is related to others being performed in the
organisation;
give people feedback on how successful previous jobs have been performed;
give departments and individuals feedback on their general performance;
and
motivate, encourage and support staff.
One concern with downward communication is that the message might decrease
in accuracy as it passes through the chain of command. For that reason, managers
use written materials such as employee handbooks, policy manuals, organisational
newsletters, memoranda, reports, notices, in-house magazines or newspapers,
bulletin boards, videos and meetings to communicate clearly downwards within
the organisation.
The biggest problem with downward communication is that it is too often
one-way: it is a lean channel that does not encourage feedback from those on the
receiving end. To correct this problem, managers should encourage employees to
use upward communication channels.
5.3.2
Upward communication channels
Upward communication is feedback of data or information from lower levels in
the organisation to upper management levels. This communication usually deals
with problems, clarifications, attitudes, ideas and accomplishments. To encourage
upward communication, managers use suggestion systems, attitude surveys, team
meetings, complaint procedures and committees.
Upward communication provides feedback on how well employees understand
the messages they have received. It enables employees to voice their opinions and
ideas. If effective, upward communication can provide an emotional release and
simultaneously give employees a chance to participate, so that they will feel that
they are being listened to and experience a sense of personal worth. Managers
need to foster an atmosphere of openness and trust and should strive to be as
objective as possible. Employees in turn have to be prepared to suggest new ideas
and criticise present practices. Most importantly, employees often have excellent
suggestions for improving efficiency and effectiveness.
Specific methods for communicating upward include oral and written reports,
memoranda, proposals, spoken and written suggestions.
The six main purposes of upward communication according to Fielding and
Du Plooy-Cilliers (2014) are to:
•
•
•
•
•
•
receive feedback on how employees have received messages from managers;
receive feedback on the progress of tasks;
receive feedback on employees’ attitudes, motivation and perceptions;
receive suggestions from employees;
check on individual performance; and
receive proposals from employees.
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5.3.3
Horizontal communication channels
Horizontal communication (also known as lateral communication) is
communication that occurs between departments or functional units,
that is between people at the same level of authority. An example is when
the administrative manager needs to obtain information from the financial
manager.
Messages communicated horizontally are usually related to coordinating
activities, sharing of information and solving problems. Other examples of
horizontal communication are interdepartmental meetings, teambuilding
exercises, business lunches or other functions that promote interpersonal
relationships between group members. An organisation needs to ensure that
there is a smooth flow of horizontal communication between departments, for
it has a direct influence on the culture of cooperation and teamwork between
departments.
Horizontal communication can be challenging in an organisation, as one
departmental manager does not have management authority over the other
departmental manager. In these situations, the manager will need to rely on their
relationship-building and persuasive communication skills to obtain support and
accomplish their goals.
To encourage horizontal communication, management need to decide on:
•
•
•
who is to be informed of which department’s activities;
the amount of detail to be reported; and
the medium to be used for this type of communication. Most of the
communication will take place through face-to-face discussions, internal
reports, emails and memoranda (Fielding & Du Plooy-Cilliers, 2014).
5.3.4
Diagonal communication channels
Diagonal communication does not take place along the normal line of authority;
it takes place across different levels of authority in the organisation. For example,
the administrative manager may ask the assistant financial manager to look
at the budget before it is submitted to the financial manager. In this case there
is no obvious line of authority for instructing the job to be done, and the
communication therefore relies heavily on goodwill and tact.
Diagonal communication has become important specifically because
organisations make use of teams, consisting of people from various levels in the
organisation. Members of different departments also interact regularly with one
another. This may be to coordinate and to provide services, advice, assistance and
directives.
5.3.5
Informal communication channels
All above-mentioned communication channels are referred to as formal
communication channels because they are officially prescribed channels along
which messages normally flow inside the organisation. Sometimes this is referred
to as the chain of command, which means that the correct channel to follow is
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to discuss issues or concerns with your immediate superior first before going over
their head (more on the chain of command in Chapter 16).
Informal communication channels describe communication that travels
along channels other than those formally designed by the organisation. Informal
interaction helps people accomplish their jobs more effectively.
Informal social gatherings refer to groups formed among co-workers who meet
during lunch, after work or during work time to discuss various issues. Meetings
of these groups are very important in an organisation, as they provide a relaxed
environment in which good interpersonal relations may be built, information may
be exchanged or decisions may be made. Management must attempt to get involved
in these social groups in order to know what is being said among subordinates and
to become more aware of their feelings and needs. Sometimes the difference in
status can hamper the free flow of communication, but with a positive and relaxed
attitude, valuable insights can be gained. Without good formal communication,
the grapevine can take over. Competent managers will not try to get rid of the
grapevine but will pay close attention to it and act promptly to counteract false
rumours.
The grapevine involves transmission of information by word of mouth
without regard for organisational levels and it often provides a great deal of useful
information. It is normally a term used to refer to people who spread rumours
and gossip in the organisation. The two most common kinds of grapevines are
the gossip chain and the cluster chain. Griffin (2012) indicates that a gossip chain
occurs when one person spreads the message to many other people. Each one, in
turn, may either keep the information confidential or pass it on to others. The
gossip chain is likely to carry personal information of people in the organisation.
The cluster chain refers to where one person passes the information to a selected
few individuals. Some of these individuals will pass the information to others and
the other individuals will keep the information to themselves. The gossip and
cluster chains are illustrated in Figure 5.2.
One example of grapevine chatter is the business of talking about the boss.
It happens in the cubicle corners of every office across the country. Cliques of
co-workers gather to trade complaints and gossip about the incompetence of the
boss or an unpopular directive.
Unfortunately, however, the grapevine can distort information, cause
resentment and work against organisational plans and objectives.
Attempts to eliminate the grapevine are fruitless, but fortunately the manager
does have some control over it. By maintaining open channels of communication
and responding vigorously to inaccurate information, the manager can minimise
the damage the grapevine can do (Griffin, 2012).
The grapevine is mostly used when:
•
•
•
•
there is great upheaval or change within the organisation;
the information is new;
face-to-face communication is physically easy; and
workers cluster in clique-groups along the vine.
The most difficult thing about organisational communication for an administrative
manager may be keeping an ear open at all times for whatever problems may arise.
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An outgrowth of the informal communication channels is that co-workers are
becoming the new advisers for each other. For example, the friendly advice that
parents once swapped with their neighbours is now coming from office friends.
Many working parents are using their workplace networking skills to exchange
information on diapers, day care, teen problems and other issues.
Informal channels of communication have been recognised by many
organisations as so important that they encourage and support employees’ efforts
to strengthen them. Employee network groups are informal groups that organise
regularly scheduled social activities promoting informal communication among
employees who share a common interest or concern.
In some cases, management deliberately uses the grapevine. Information is
then intentionally leaked in order to test staff attitudes towards decisions to be
taken or changes to be made.
Gossip chain
Cluster chain
*
*
Figure 5.2
5.4
Gossip and cluster grapevine chains
Communication mediums
When encoding a message, the sender should give careful consideration to
selecting the communication medium. The major communication mediums that
exist are verbal, written, electronic, and non-verbal communication.
5.4.1
Verbal communication
Employees communicate verbally more often than in any other way. Spoken
communication takes place face to face, over the telephone, during presentations
and via voicemail. However, some people prefer written communication because
it allows them to choose and weigh their words more carefully before sending
the message.
Effective verbal communication requires the sender to encode the message in
words (and non-verbal cues) that will convey it accurately to the recipient, convey
the message in a well-organised manner, and try to eliminate distractions.
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Face-to-face communication is, according to Lussier (2015), the appropriate
channel for delegating tasks, coaching, disciplining, sharing information,
answering questions, checking progress towards objectives, and developing and
maintaining human relations. Managers also spend one-on-one, face-to-face time
communicating with their managers, colleagues and peers.
In daily transactions, non-verbal and verbal messages are sent and received
simultaneously. Effective communication requires attending to both types of
messages when encoding and decoding information (Hellriegel et al, 2012: 445).
5.4.2
Written communication
Although spoken communication is quicker than written communication and
allows the sender and recipient to interact, organisations use many forms of
written messages (for example reports, memorandums, letters, emails, newsletters,
bulletin board notices and posters). Such messages are most appropriate when
information has to be collected and distributed to many people at scattered
locations and, if necessary, for keeping a record of what was sent. Furthermore,
written communication is appropriate for sending general information, for saying
thank you, for messages requiring future action and for formal, official or longterm messages. In Chapter 6 we will address written communication in more
detail.
5.4.3
Electronic communication
New technologies are rapidly changing the methods of communication available
to managers and employees. These technologies are changing the manner in which
employees communicate with each other and make decisions. Telephone answering
machines, teleconferencing, closed-circuit television systems, computerised report
preparation, videotaping and computer-to-computer transmission (the internet,
websites, intranet, extranet) are examples of electronic communication methods.
Chapter 7 will address various forms of electronic communication.
5.5
Non-verbal communication
All messages not spoken or written are referred to as non-verbal communication.
Non-verbal communication involves the use of facial expressions, body movement,
gestures and physical contact (often called body language) to convey meaning.
When people communicate in person, as much as 55 per cent of the content of
the message is transmitted through facial expressions and body movement, 38 per
cent in how we speak, and 7 per cent in what we say (Williams, 2013).
Several kinds of non-verbal communication and their importance for the
administrative manager are discussed next.
5.5.1
Body language
Body language refers to our gestures, expressions and body positions. This nonverbal form of communication conveys to us as senders and as recipients the
attitudes and feelings of the other and is just as important as the words being
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spoken. Body language may be consistent with the words we speak or it may
contradict our oral messages.
The ability to interpret facial expressions is an important part of communication.
Eye contact is a direct and powerful way of communicating non-verbally. In South
Africa, western cultural social rules suggest that in most situations, brief eye
contact is appropriate. However, if eye contact is too brief, people may interpret
you as being aloof or untrustworthy. Conversely, people often interpret prolonged
eye contact as either a threat or a sign of romantic interest, depending on the
context. Crossed arms or legs usually indicate defensiveness or that the person is
not receptive to the message or the sender. People also tend to smile frequently
when they are seeking someone’s approval.
Posture further communicates meaning by signalling a person’s degree of selfconfidence or interest in what is being discussed. The more interested you are, the
more likely you are to lean towards the person who is talking. Conversely, leaning
away may communicate lack of interest. Similarly, tension and anxiety typically
show in a person’s legs and feet. People are often able to hide tension from the
waist up but may give themselves away by crossing their legs tightly and tapping
their feet.
5.5.2
Physical space
How close you are to another person, where you sit or stand, and how you arrange
your office can have a real impact on communication. The term proxemics refers
to the study of ways people use physical space to convey messages. Proxemics has
identified three basic zones of physical space: intimate, personal, and social. An
understanding of proxemics helps us in planning and controlling the territorial
space in which communication occurs (Fielding & Du Plooy-Cilliers, 2014). For
example, the administrative manager will find that the success of a small group
meeting is affected by the amount of available space. When meeting in small
offices or conference rooms, the employees tend to become more argumentative
and more difficult to control. The small space also intensifies conflict. Therefore,
to hold a more efficient meeting and reduce potential conflict, the administrative
manager should seat everyone around a large table in a spacious room. The
amount of personal space, according to Fielding and Du Plooy-Celliers (2014) is
influenced by:
•
•
•
•
•
Cultural and social norms: In some cultures, people have a very small
interpersonal space while in others it is relatively large.
Situational factors: People are sometimes forced to reduce their personal
space, for example when they share a lift with other people.
Personal characteristics: Introverts are normally shy and reserved people and
are most likely to have a larger interpersonal space.
Level of familiarity: The better you know someone, the more comfortable are
you to have them in your personal space.
Status: The higher a person’s status, the more space other people will allow
them.
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5.5.3
Paralanguage
Paralanguage consists of those aspects of oral communication such as voice
qualities and vocalisations that are free of words. Voice qualities include pitch,
rhythm, resonance and tempo. Vocalisations are non-language sounds, such as
laughing, and non-words, such as uh-huh and uh-uh (for yes and no). Paralanguage
does not refer to what is being said, but rather how it is said.
Often, more meaning is communicated by paralanguage than by the words we
speak. Through training we can learn to vary our voice qualities and vocalisations
to convey a wide range of emotions such as enthusiasm, disappointment, sincerity,
interest or disinterest.
5.6
Multicultural communication
The ethos of multiculturalism is determined by the interactions of ordinary people
in their formal and informal encounters as they go about their daily lives, a large
proportion of which is spent in the workplace.
In broad terms culture refers to a shared system of values, attitudes, beliefs,
assumptions, expectations and symbols that a particular group of people share. It
involves all aspects of our daily lives and our interaction with other people. It is
really all the things that we take for granted, but also all the things we may need
to change and adapt, such as our values, our ideas and the way we behave.
Erasmus-Kritzinger et al (2010: 140–142) and Krizan et al (2010) list the following
aspects that are necessary for multicultural communication.
Get rid of external barriers: One should not focus on differences like skin
colour, accent, body language, social behaviour and manners. Rather focus on
those things that human beings have in common, like the need to be respected, to
be successful, to be loved and to be accepted. Accept that cultural differences exist,
that all people are different, but that we also have quite a lot in common.
Understand your own culture: Improve communication with others by
increasing awareness of your own culture and its influences on your beliefs, values
and behaviour patterns. Recognise that your cultural background and experiences
shape how you think, what you value and how you communicate. Consider how
you might have different beliefs and behaviours if you had been born a member
of the opposite sex or a different race, or had come to South Africa from another
country such as the US, Russia or Japan.
Improve your knowledge of other cultures: The more you know about other
cultures around you, the less tension and anxiety there will be in your interactions
with people from other cultures. The best way to learn more about other cultures is
to talk to colleagues or friends from other cultures. Talk openly and constructively
about the differences you discover.
Identify the recipient/target audience: In any communication situation, it is
important to know who you are talking to. In this way, you can adjust your message,
gestures, facial expressions, register and tone accordingly and so accommodate the
recipient better. This will enable you to communicate more effectively.
Have a positive attitude: In a multicultural communication situation, you
should realise that your culture is different from, and not superior to, other
cultures, and that other cultures are interesting, not strange.
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Provide feedback: By providing feedback, for example by way of a smile, frown,
question or answer, you can indicate to the sender that you are understanding or
not understanding the message. This will make communicating much easier, since
both parties can monitor the process.
Pay attention to language: Use a language understandable to both parties.
Use simple, clear language and check whether you attach the same meaning to
words or concepts used (remember different items could be called by the same
name). Learn how that culture’s verbal and non-verbal languages differ from your
own. Observe and learn the meaning of non-verbal communication signals such
as facial expressions, social distance for conversing and hand gestures.
Listen: It is important to be an attentive and appreciative listener in a
multicultural communication situation. Attentive listening means that you pay
attention to the speaker and show this by making eye contact and providing
feedback. This will make the sender feel special and comfortable, thus encouraging
them to communicate more freely. Appreciative listening means that you listen
with an open mind, and without prejudice, ethnocentricity or with stereotypes
in mind.
Maintain good conduct: Your conduct should be adjusted to the culture
involved in a particular communication situation. One should therefore be
aware of the culture of one’s communication partner and behave accordingly. A
good idea is to try to greet the person in their mother tongue and to avoid body
language or signs that might be offensive to that person.
Communication across cultures is complex. Participants may be using a
different set of symbols, or the same symbols, but with different understandings
of their meanings. We are therefore more likely to be conscious of the negotiated
nature of the interaction, and we may experience far more difficulty in achieving
similar understandings. Additional difficulties are caused by the non-verbal
dimension of intercultural communication. The main point is that if we accept
the existence of the cultural variable and work with this in an open, honest way,
it can enhance relationships and empower our consciousness. If we do not, or are
unaware, this affects our interactions and leaves us victims of cultural variables
to various degrees. Like anything hidden or unconscious in communication, it
can hinder the ultimate success and authenticity of the process.
The following aspects can assist organisations to improve their multicultural
communication:
•
•
•
An atmosphere of trust needs to be created in the organisation by helping
cultural groups to understand each other’s worldviews, values, specific hopes
and fears. The organisation should address people’s fears regarding people
from other cultures.
Organisations need to encourage employees to respect other cultures’ ways
of experiencing life. Both differences and similarities need to be accepted and
confirmed in a non-judgmental way.
Equal status contact: No group or individual should be thought of as having
or found to have more power or access to greater rewards than another.
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•
•
•
•
Intimate status contact: Participants need the opportunity to feel comfortable
to share inner feelings and intimate thoughts, as opposed to having
relationships that are formally structured at all times.
Organisations, in order to avoid cultural stereotyping, should encourage
employees to see each other as individuals rather than as members of a group.
Organisations should help employees to learn about other cultures through
the personal experience of individual relationships.
Organisational/administrative support: The desire to improve intergroup
relationships must be a priority for all members of the organisation and a firm
policy supported by top management.
So far we have looked at the communication process, communication channels
and communication media. Next we will be looking at the barriers to effective
communication and how to overcome these barriers.
5.7
Barriers to effective communication
In any type of communication (downward, upward, horizontal, diagonal or
grapevine) there are inherent difficulties or barriers that should be recognised
and overcome. A common breakdown in communication occurs when the
senders fail to transmit the message intended for those who should receive it.
In turn, many people for whom a message is intended either do not receive
it or receive a distorted version. As a result, the effective operation of the
communication system is hampered or blocked. Let us look at some of the main
barriers to effective communication. Rossouw (2000: 162−167) and Hellriegel et
al (2012: 460–463) divide the barriers to effective communication into two areas:
organisational and interpersonal.
5.7.1
Organisational barriers to effective communication
Hierarchical levels: As the organisation grows, so does the organisational structure.
This can lead to communication problems. If a message must pass through various
levels, it takes more time and the chance is greater that the message will lose some
of its accuracy by the time it reaches the recipient. The more levels there are, the
more opportunities there are for parts of the message to be left out or changed.
Flat organisational structures have relatively few authority levels and tend to have
fewer communication barriers.
Managerial authority: If there is no one in the organisation who can make
decisions and exercise authority, the organisational goals will not be reached.
Therefore, it is essential that the administrative manager exercises their authority
in the organisation. The mere fact that there are some people who supervise others
causes a barrier in the communication process. For example, a manager might feel
that they cannot admit certain problems because it would place them in a bad
light. Subordinates might hide information because they too do not want to be
placed in an unfavourable situation.
Specialisation: Specialisation is necessary in an organisation. However, it does
mean that workers are separated from one another even if they work side by side.
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Diverse task requirements may make people feel that they are living in different
worlds. This prevents communication and can lead to misinterpretation.
As knowledge becomes more specialised, professionals in many fields develop
their own jargon. The use of incomprehensible jargon makes communication
exceedingly difficult. Jargon consists of technical terms and idioms that are
peculiar to a special group or activity. When the recipients of messages containing
business jargon do not recognise and understand the terms, the messages become
merely a collection of words that are confusing and unintelligible.
Network disruptions: The communication process can be interrupted through
disruptions in the communication network. A secretary, for example, might omit
to pass on a memorandum or retrieve an email from the network, or the telephone
service could be disrupted. Professional jealousy also causes network disruptions.
Managers are often the culprits because they neglect to send the information
through to other departments.
Information overload: Information overload takes place when staff receive
more information than they can handle. This barrier is increasing because of
technological change and insecurity. More than ever organisations are exposed
to uncertainties such as inflation, resource shortages and strong competition,
and therefore need increasingly more information to solve problems. Too much
information can lead to certain important information being side-lined because
management does not work selectively.
Time pressure: Many instructions must be dealt with within a certain
timeframe. This might result in a message not being clearly formulated. Often
there is not enough time for detailed feedback.
5.7.2
Interpersonal barriers to effective communication
Every person in an organisation is unique and therefore there is always a chance
that one person will misunderstand another. Many misunderstandings develop as a
result of human and language problems. Let us look at the five major interpersonal
barriers that can affect the interpretation of a message.
Differences in perception: Communication is influenced by the way people
receive and interpret information from the environment – a process called
perception. Perception acts as a screen or filter through which information
must pass in interpersonal communication. The results of this screening process
vary because individual perceptions are influenced by such things as values,
cultural background and other circumstances of the moment. Because people
can and do perceive the same things or situations very differently, perception
can be an important influence on communication and interpersonal relations.
In particular, a variety of tendencies towards perceptual distortions must
be recognised for their impact on communication. They include the use of
stereotypes, halo effects, selectivity, and projection as we deal with and judge
other people.
Stereotypes
A stereotype occurs when someone is identified with a group or category, and then
oversimplified attributes associated with the group or category are linked back
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to the individual. Common stereotypes are those related to young people, old
people, teachers, students, union members, males and females, among others. The
phenomenon in each case is the same: a person is classified into a group on the
basis of one piece of information, such as age or gender. Characteristics commonly
associated with the group are then assigned to the individual. The generalisation,
for example, that young people dislike authority may or may not be true about
the individual. Stereotypes based on factors such as gender, age and race can bias
perceptions in some work settings.
Halo effects
A halo effect occurs when one attribute is used to develop an overall impression
of a person or situation. When meeting someone new, for example, the halo effect
may cause one trait, such as a pleasant smile, to result in a positive first impression.
By contrast, a particular hairstyle or manner of dressing may create a negative
reaction. Halo effects, like stereotypes, cause individual differences to become
obscured. This is especially significant in communication regarding someone’s
work performance. One factor, such as a person’s punctuality, may become the
halo for a positive overall performance evaluation.
Selectivity
Selective perception is the tendency to single out for attention those aspects
of a situation or person that reinforce or appear consistent with one’s existing
beliefs, values or needs. What this means in an organisation is that people from
different departments or functions (such as marketing and manufacturing) tend
to see things from their own points of view and fail to recognise others’. One
way to reduce its impact is to gather inputs actively from a variety of people and
perspectives.
Projection
Projection is the assignment of personal attributes to other individuals. A classic
projection error is to assume that other people share our needs, desires and values.
Suppose, for example, that you enjoy a lot of responsibility and challenge in your
work. Suppose, too, that you are the newly appointed leader for a team whose work
you consider dull and routine. You might move quickly to start a programme of job
enrichment to help members experience more responsibility and challenge. This
may or may not be a good decision. Instead of designing jobs to fit their needs,
you have designed their jobs to fit yours. In fact, team members may be quite
satisfied with jobs that, to you, seem routine. Projection errors can be minimised
by self-awareness and a willingness to communicate and empathise with others,
that is, to try to see things through their eyes.
The status of the communicator: A problem can develop in that a message that
is received is considered in terms of the character traits of the sender, especially
with regard to merit. This consideration is based on the sender’s expertise in a
specific field and the trust in the sender. Managers must try to win the trust of
subordinates in order to motivate and persuade them.
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Defensive behaviour: If the sender or recipient is defensive, communication is
affected negatively. A defensive attitude will bring about certain facial expressions,
body movements and dialogue in the other party. A defensive attitude in one
party might possibly elicit an aggressive attitude in the other party.
When people listen defensively, they concentrate on what they themselves
want to say and interference takes place with regard to what is being heard. As a
result, the person does not receive everything the sender wishes to convey.
Differences in semantics: Semantics is the study of word meanings and their
effect upon human behaviour. Since the meaning of words may be interpreted
differently by the sender and recipient, a barrier of communication may be
created. Often there is no connection between the symbol (the word) and what is
being symbolised (the meaning). Thus, the message that is received may be very
different from the intended message.
Listening skills: Listening skills are probably the weakest link in the whole
communication process. If the recipient does not listen, it creates a larger barrier
than all other barriers. Poor listening skills give rise to poor performance as well
as conflict between communicators. The primary cause of poor listening skills is
that people can hear four times as fast as they can speak. It is therefore possible for
the listener to think a lot of other things while the message is being transmitted.
5.8
Overcoming barriers to effective communication
Staff can overcome barriers to effective communication. They must first be aware
that barriers exist and can cause serious organisational problems. Then they must
be willing to invest the effort and time necessary to overcome these barriers. There
are several ways to overcome organisational and interpersonal communication
barriers.
Regulate the flow of information: Regardless of how much information is
needed to create feelings of overload in individuals, every organisation is capable
of producing that volume of information and more. Therefore, the administrative
manager should set up a system that identifies priority messages for immediate
attention. One way of doing so is to ask others to bring you information only when
significant deviations from goals and plans occur (known as exception reporting).
When everything is going as planned, you do not need to report. And if you want
to empower your subordinates, let them know that they do not need to send you
a copy of every email message they send and receive.
Encourage feedback: One should follow up to determine whether important
messages have been understood. Feedback lets you know whether the other person
understands the message accurately. Guidelines for giving constructive feedback
include the following:
•
•
•
Give feedback directly and with real feeling, based on trust between you and
the recipient.
Make sure that feedback is specific rather than general – use good, clear and
preferably recent examples to make your points.
Give feedback at a time when the recipient seems most willing or able to accept
it.
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•
•
Make sure the feedback is valid and limit it to things the recipient can be
expected to do something about.
Give feedback in small doses; never more than the recipient can handle at any
particular time.
Simplify the language of the message: Because language can be a barrier, you
should choose words that others will understand. Your sentences should be
concise, and you should avoid jargon that others will not understand or that
may be misleading. In general, understanding is improved by simplifying the
language used.
Listen actively: You need to become a good listener as well as a good message
sender. Rules of active listening are as follows:
•
•
•
•
•
•
•
•
Give the speaker your undivided attention: Try to ignore any distractions
(external or mental).
Stay open-minded: Try to keep your emotions intact and listen objectively and
empathetically, regardless of who the speaker is.
Don’t interrupt: Try not to get impatient. We often fall into the trap that as
soon as we’ve figured out what a person is going to say, we tend to interrupt to
finish the speaker’s sentence.
Listen for message content: Try to hear exactly what the speaker is conveying.
Listen for feelings: Try to identify how the speaker feels about the content in
the message.
Respond to feelings: Let the speaker know that their feelings are being
recognised.
Note all cues: Be sensitive to non-verbal and verbal messages; be on the alert
for mixed messages.
Paraphrase and restate: Repeat back to the speaker what you think you are
hearing for confirmation.
Robbins et al (2015) also add the following to the above-mentioned rules: make eye
contact, avoid distracting actions or gestures that suggest boredom, ask questions,
avoid interrupting the speaker, don’t over-talk, and make smooth transitions
between the roles of speaker and listener.
Restrain negative emotions: Like everyone else, you convey emotions when
communicating, but negative emotions can distort the content of the message.
When emotionally upset, you are more likely to phrase the message poorly than
at other times. When emotionally upset, both manager and subordinate are likely
to misinterpret a message. The simplest answer in such a situation is to call a halt
until the people involved can restrain their emotions.
Establish openness and trust: Openness and trust build good relationships and
contribute to effective communication. Although it is not always good to reveal
everything to everybody, it is still desirable to know as much as possible about a
person. There must be mutual trust between parties before one party will open up.
If there is trust, this not only benefits the sender or, in this case, management, but
management can also obtain valuable information from the staff. To maintain a
climate of trust, management must never punish the bearer of bad news otherwise
future bad news will reach the manager when it is too late. There should be an
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open-door policy at all times: the manager’s door must always be open for any
information, regardless of whether it is good or bad.
Manage the grapevine: As a manager, you could not get rid of the grapevine in
an organisation even if you tried, so you should use it to send information rapidly,
test reactions before announcing a final decision and obtain valuable feedback.
Also, the grapevine frequently carries destructive rumours, reducing staff morale
and organisational effectiveness. By being plugged into the grapevine, you can
partially counteract this negative effect by making sure that relevant, accurate,
meaningful and timely information gets to others.
Use of technology: Communication in organisations can benefit greatly from
advances in information technology. The new age of communication is one of
email, voice mail, videoconferencing, computer-mediated meetings and more. An
important development is the use of in-house intranets to provide opportunities
for increased communication and collaboration. Intranet sites allow employees
to share ideas and opinions easily. The purpose is to encourage freewheeling
communication, share information and help one another solve problems. Such
information-rich work environments are characteristic of the current emphasis on
organisational learning and knowledge management.
Valuing culture and diversity: The workplace abounds with subcultures
based on gender, age, ethnicity, race and other factors. As a result, the importance
of cross-cultural communication skills applies at home just as well as it does in
a foreign country. Cultural skills are gained by reaching out, crossing cultural
boundaries, and embracing and respecting differences. And they include an
awareness of ethnocentrism (the tendency to consider one’s culture superior to
others). Ethnocentrism can affect communication in at least three major ways:
•
•
•
5.9
It may cause someone not to listen carefully to what others have to say.
It may cause someone to address or speak to others in ways that alienate them.
It may lead to the use of inappropriate stereotypes when dealing with people
from other cultures.
Guidelines for effective communication
To be an effective communicator, you must understand not only the process of
communication, but also the guidelines for effective communication. Hellriegel
et al (2012: 327–328) propose the following guidelines to improve one’s
communication skills:
•
•
Clarify your ideas before communicating: Analyse the topic or problem to
clarify it in your mind before sending a message. Communication is often
ineffective because the message is inadequately planned. Part of good message
planning is considering the goals and attitudes of those who will receive the
message.
Examine the true purpose of the communication: Before you send a
message, ask yourself what you really want to accomplish with it. Decide
whether you want to obtain information, convey a decision or persuade
someone to take action.
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•
•
•
•
•
•
Consider the setting in which the communication will take place: You
convey meanings and intent by more than words alone. Trying to communicate
with a person in another location is more difficult than doing so face to face.
Consult with others, when appropriate, in planning communication:
Encourage the participation of those who will be affected by the message.
They can often provide a viewpoint that you might not have considered.
Be mindful of the non-verbal messages you send: Tone of voice, facial
expression, eye contact, personal appearance and physical surroundings all
influence the communication process. The recipient considers both the words
and the non-verbal cues that make up your message.
Take the opportunity to convey something helpful to the recipient:
Considering the other person’s interests and needs often presents opportunities
to the sender. You can make your message clearer by imagining yourself in the
other’s position. Effective communicators really try to understand the message
from the listener’s point of view.
Follow up the communication: Your best efforts at communication may be
wasted unless you succeed in getting your message across. You should follow
up and ask for feedback to find out whether you have succeeded. You cannot
assume that the recipient understands; feedback in some form is necessary.
Be sure that your actions support your communication: The most effective
communication is not in what you say, but in what you do. Actions definitely
do speak louder than words.
Conclusion
Organisational communication means different things to different people. For
some, it might be writing documents such as letters, memorandums and reports.
For others, it might be speaking, including interviews, group meetings and daily
interactions on a more informal level, such as the way a person shakes hands,
sits, dresses, talks, walks and moves. Organisational communication is a complex
process that consists of a wide range of message transactions: written, spoken and
non-verbal. Skill in communication is of utmost importance in today’s business
environment, especially in the administrative environment, which functions as
the heart of information collection, processing and dissemination. Being able to
listen, provide feedback, write and speak effectively is essential if organisations are
to survive.
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Self-assessment
1.
Explain the importance of good communication in an organisation.
2.
Illustrate and explain the communication process.
3.
If you were the administrative manager of an organisation, would you attempt
to eliminate the grapevine in your department? Explain your answer.
4.
Distinguish between the use of downwards and upwards communication.
5.
How can an administrative manager use the grapevine in a positive manner?
6.
Explain what paralanguage is and its importance in communication.
7.
Which communication medium would you use to communicate the following?
7.1 Information about a scheduled renovation of all offices in the building,
the starting date for the renovation, and steps each employee must take
prior to the renovation date
7.2 Information about a departmental picnic
7.3 An air-conditioning leak that is soaking the carpet in your office
7.4 Changes in procedures for the organisation’s purchase order system
7.5 Information about not receiving a promotion
7.6 Additional job responsibilities
7.7 The schedule for the organisation’s holidays for the upcoming year
8.
Discuss the importance of body language in communication.
9.
Which skills are required for multicultural communication?
10. What are the primary barriers to communication? Explain how individuals can
overcome them.
11. Explain the importance of listening effectively in the working environment.
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References
Daft, R. L. & Marcic, D. 2012. Management: The new workplace. 8th ed. Mason:
South-Western, Cengage.
Erasmus-Kritzinger, L., Swart, M. & Mona, V. 2010. Advanced communication skills:
For organisational success. Pretoria: Afritech.
Fielding, M. & Du Plooy-Cilliers, F. 2014. Effective business communication in
organisations. 4th ed. Cape Town: Juta.
Griffin, R. W. 2012. Management: Principles and practices. 11th ed. Mason: SouthWestern, Cengage.
Hellriegel, D., Slocum, J., Jackson, S. E., Louw, L., Staude, G., Amos, T., Klopper,
H. B., Louw, M., Oosthuizen, T., Perks, S. & Zindiye, S. 2012. Management. 4th SA
ed. Cape Town: Oxford University Press.
Jones, G. R. & George, J. M. 2014. Contemporary management. 8th ed. New York:
McGraw-Hill.
Krizan, A. C. B., Merrier, P., Logan, J. & Williams, K. 2010. Business Communication.
8th ed. Quebec: Thomson South-Western.
Lussier, R. N. 2015. Management fundamentals: Concepts, applications, skill
development. 6th ed. Thousand Oaks: Sage Publications.
Mersham, G. & Skinner, C. 2001. New insights into business and organisational
communication. Sandown: Heinemann.
Mosley, D. C., Megginson, L. C. & Pietri, P. H. 2005. Supervisory management: The art
of inspiring, empowering and developing people. 6th ed. Mishawaka: South-Western.
Ober, S. & Newman, A. 2013. Communicating in Business. 8th ed. Florence: SouthWestern, Cengage Learning.
Odgers, P. 1997. Administrative office management: Strategies for the 21st century.
Cincinnati: South-Western.
Rentz, K. & Lentz, P. 2014. Lesikar’s Business Communication. 13th ed. New York:
McGraw-Hill.
Robbins, S. P., DeCenzo, D. A. & Coulter, M. 2015. Fundamentals of Management:
Essential concepts and application. 10th ed. Boston: Pearson.
Rossouw, D. 2000. Focus on middle management: A general management perspective.
Florida: Technikon SA.
Schermerhorn, J. R. & Chappell, D. S. 2003. Introducing management. 2nd ed. New
York: John Wiley.
Thill, J. V. & Bovée, C. L. 2015. Excellence in Business Communication. 11th ed. Essex:
Pearson.
Van Staden, E., Marx, S. & Erasmus-Kritzinger, L. 2007. Corporate communication:
Getting the message across in business. 2nd ed. Pretoria: Van Schaik.
Williams, C. 2013. Effective management. A multimedia approach. 6th ed. Mason:
South-Western, Cengage.
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Chapter 6
Written communication
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
explain the steps in the written communication process;
distinguish between internal and external written communication;
compile a business letter according to the appropriate format of a business letter;
explain the importance and purpose of writing a report;
distinguish between an informal and formal report;
describe and apply the requirements for effective report writing;
compile an informal and formal report; and
compile a memorandum.
Introduction
In the previous chapter we indicated how important communication is in any
organisation. We can choose the communication medium (face-to-face, electronic
or written format) most appropriate for a particular situation.
In this chapter some elements of written communication will be explored.
Written communications are recorded messages, such as letters, memorandums
and reports, by which we transmit information from senders to receivers (as
indicated in the communication process in Chapter 5). In the case of written
communication, the sender is a writer, and the recipient a reader, both of whom
have responsibilities to ensure the effectiveness of the messages sent.
New generation mobile and cellular communication blurs the boundaries
between traditional and electronic communication by allowing users to combine
spoken, written and visual communication in one gadget (Grant & Borcherds,
2015). Sending messages, both visual and verbal, via cellular phones has become
a much cheaper, faster and more convenient way of keeping in touch, even in
a business environment. Conventional email can be sent via cellular devices or
computer-enabled systems and the use of short message service (SMS) is also a
growing business trend. In Chapter 7 we will look at some of these electronic
communication media.
Because written communication plays such a vital role in the business world,
this chapter focuses on the written communication process, internal and external
written communication, business letters, reports, memorandums and effective
writing techniques.
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6.1
The written communication process
Any form of writing goes through many steps. Usually the more complicated,
lengthy or important, the more steps you include. Penrose et al (2001) give eight
steps that most written communication will go through.
Step 1: Define the problem
It is not wise to start any writing if you do not know where you are heading.
Before you attempt any writing, first make sure you know what is expected (a
memorandum, report, letter, etc.). What will the writing style be (formal or
informal), and when must the assignment be completed?
Step 2: Determine the audience
Your audience is the person(s) to whom you write the letter, report or memorandum.
Some factors to keep in mind when you identify your audience are as follows:
•
•
•
•
•
What is their position in the organisation’s hierarchy and how does it relate to
you? Subordinates write differently when addressing superiors than superiors
do when writing to subordinates, and both use a different approach when
writing to peers. Messages downwards are often authoritative or motivational
in tone, while those going upward may have a softer tone. Also, be aware of
whether the audience is inside or outside the organisation. Messages going
outside the organisation are usually more formal in tone.
How much does the audience know about the subject? Ideally, your message
should be appropriate to their level of understanding. They must not be
confused when you use certain jargon. On the other hand, you do not want to
waste their time sharing information they already know.
What is the educational level of the audience?
What is likely to be their reaction? If the content is heavy with negative
information, think of the best way to organise the message.
Are there major differences in the demographics of your audience that you
should take into consideration? If there are dramatic distinctions in religion,
age, upbringing, values, income or other background characteristics that
will affect their interpretation or acceptance of what you transmit, consider
tailoring your message to those characteristics.
Step 3: Do your research
You will need to decide what information should be included. You should collect
as much data about the topic as you can from interviews, personal observation,
organisation reports, files, minutes of meetings, books, journals, articles,
newspapers and the internet, for example.
The two main characteristics of solid research are reliability and validity.
Reliability means that others researching the same topic in the same way would
draw the same conclusions. Validity means that the research measures or reports
what it is supposed to measure. Thorough research should lead logically to a
proposed solution to a problem.
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Step 4: Consider your layout and other elements
Letters, memorandums and reports have different uses and layouts. Some
layout considerations are: colour of ink and paper, quality of appearance, use
of illustrations and graphics, established corporate guidelines, longevity of the
message, and treatment of headings and subheadings.
Step 5: Draft your project
Effective writing usually takes more than one attempt. When the message you want
to transmit is simple, your familiarity with the situation high, the consequences
unimportant and the length short, you may be able to dictate a finished letter or
memorandum on the first try. However, as complexity, familiarity, consequences
and length change, you are more likely to first create a draft and then revise it.
Step 6: Revise, edit and proofread
After the draft is completed, you need to polish it by revising, editing and proofreading it. Try to allow some time to elapse between drafting and revising. This
will give you fresh thoughts on the subject and allow a different perspective to
emerge. Check to ensure that the manuscript still solves your definition of the
problem. Check for mistakes in language, spelling, consistency of style, etc.
Step 7: Produce the finished package
Final production may include the retyping of your manuscript, changing the
design, layout and typesetting.
Step 8: Conduct a post-writing evaluation
Now that you have transmitted the message, how would you change it? What
mistakes did you make and what did you learn that would guide you in future?
The time to conduct your evaluation is now, while the rationale for your decisions
is fresh in your mind.
6.2
6.2.1
Internal and external written communication
Internal communication
Internal written communications are created and used within the organisation.
They are used between management and employees at various levels of the
organisation in order to reach organisational goals. In this chapter we will
be addressing four types of internal written communication: interoffice or
interdepartmental memorandums, reports and related working papers, written
procedures (sometimes called standard practice procedures) and office manuals.
Interoffice or interdepartmental memorandums
Interoffice or interdepartmental memorandums are used within or between
departments of an organisation to record short messages, often in written form,
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with the aim of sending them to their destinations within the minimum time and
with little clerical effort. Interoffice memorandums are informal and brief, and
are produced at very low cost. Usually these memorandums are destroyed once
read, as with telephone messages. Nowadays, interoffice memorandums are often
replaced by emails. The electronic forms of communication will be discussed in
Chapter 7.
Reports and related working papers
As a rule, reports are longer and more formal than memorandums. Employees in
an organisation are frequently required to write reports for a variety of reasons
in order to give a logical, factual account after investigation or consideration of
information (Erasmus-Kritzinger et al, 2010: 293).
Written procedures
Written procedures are formal instructions that explain, step by step, how to
complete a task or solve a problem. Such communications, when properly prepared
and understood, ensure uniform, efficient work at a lower cost. Procedure manuals
or handbooks are developed in large organisations where considerable detail and
many people must be combined in order to accomplish work.
Office manuals
Office manuals are formal communications developed to acquaint employees with
the policies and regulations of the organisation. In addition, manuals are used to
assign responsibility for performing certain duties and to establish procedures for
performing those duties. With such information readily accessible in printed form,
time is saved and the need for constant repetition of instructions is eliminated.
A manual should be written in a simple, direct, readable style, prepared
as economically as possible and distributed to all employees requiring the
information. Such manuals should be revised regularly to ensure that they are
both usable and used.
Typically, four types of manuals are found in organisations:
1.
2.
3.
4.
Policy manuals: These communicate top-level decisions, resolutions and
pronouncements.
Organisation manuals: These explaine the organisation and the duties and
responsibilities of the various departments.
Administrative practice manuals: These contain the standard procedures
and methods for performing the organisation’s work.
Departmental practice manuals: These include the correspondence and
communication manuals.
•• The correspondence manual is designed to standardise the policies,
procedures and methods of creating correspondence in an organisation.
Typical contents of such a manual include the organisation and composition
of letters to create goodwill and achieve quality and cost control of the
organisation’s correspondence, word selection, sentence and paragraph
construction, formatting guidelines and supervision of correspondence.
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••
The communication manual guides employees in selecting suitable
communication and telecommunication services at the lowest cost to the
organisation. The advantages and disadvantages of the various media are
presented and their relative costs are compared. This information helps
the administrative manager, for example, in deciding whether to use the
telephone, send a letter, fax or email the message or arrange a computer
conference.
Examples of internal written communications are internal memorandums,
newsletters, telephone messages, reports, minutes, notices on the notice board and
employee magazines.
6.2.2
External communication
External communications are sent to recipients outside the organisation.
Examples of external written communications are business letters, fax messages,
advertisements and press releases.
The business letter remains in widespread use because of its value to
management, as it continues to be one of the best devices for getting attention.
6.3
Business letters
Despite the tendency in the business world to communicate by telephone, fax,
and email, the business letter remains a very effective, popular and important
medium of communication. According to Erasmus-Kritzinger et al (2010: 203), “a
letter provides a permanent record of a transaction and enables others to enter a
transaction at any stage and be in possession of the facts”.
The ordinary business letter can be used effectively for a variety of different
purposes:
•
•
•
•
•
to persuade, e.g. a sales letter;
to express an opinion, e.g. a letter to the press;
to get something done, e.g. a letter of complaint;
to supply somebody else with information, e.g. a letter of invitation or a letter
of application; and
to obtain information, e.g. a letter of enquiry.
Twenty-five per cent of the impact of a business letter comes from its visual
appearance. Organisations devote considerable expense to the design of their logo,
letterhead and choice of paper, in order to make a good impression on their clients.
Business stationery also has to comply with legal requirements of the Companies
Act so that the sender of a message can be identified and the board of directors of
the company can be held responsible if necessary (Grant & Borcherds, 2015). It is
also important to give special attention to the contents of a business letter.
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Organisation’s letterhead
(Organisation’s name and address)
Reference number
Date
Recipient’s name
Recipient’s address
Greeting
SUBJECT LINE
[Body of letter]
Complimentary close
Signature
Name in capitals
CAPACITY
Enclosure
Figure 6.1
Format of a business letter
Source: Adapted from Erasmus-Kritzinger, Swart & Mona (2010: 206)
6.3.1
Guidelines when writing a business letter
Erasmus-Kritzinger et al (2010: 203) and Stewart et al (1996: 38) provide the
following guidelines for effective business letters:
•
•
•
•
Write simply, briefly and clearly: Avoid long, difficult or fancy words, clichés,
slang or jargon. Always keep to the point and provide adequate information.
Write as you speak: Write the letter in such a way that if the recipient reads it,
it would sound quite natural. Choose the right tone (business-like, professional,
conversational, natural, courteous and polite). Do not be too familiar.
Check twice: Check the letter a final time before posting it. Check for spelling,
punctuation, format, layout and one idea per paragraph.
Create a favourable impression: Make sure the letter creates a business-like
professional impression by paying attention to the colour and quality of paper
and envelope, the quality of printing and photocopying, the letterhead, the
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•
format and the layout. The business letter reflects the image of the organisation
and the quality of products or services offered.
Be courteous and polite: It is important to be courteous, polite, tactful and
friendly at all times.
6.3.2
Layout of a business letter
The standard block form seems to be the most popular in South Africa. The block
form is modern and neat and can be used with any letterhead or logo. Figure 6.1
indicates in outline the shape of the blocked letter layout.
Let us look at the different parts of the business letter.
Table 6.1 Different parts of the business letter
Letterhead
The letterhead should contain the name and address (physical
and postal) of the organisation, the telephone and fax number
as well as the website and email address. The letterhead
should be well designed, neat and professional and reflect the
organisation’s corporate image. There are no rules about the
position of the letterhead.
Reference
numbers
Reference numbers are usually at the top, left-hand corner of
the page. “Our ref:” and “Your ref:” are used by organisations
to keep track of and file correspondence. The reference
number usually consists of the writer and typist’s initials as
well as the file code.
Example: Our ref: DG/bj PA 235.
Writer’s address
If the letter is written on a letterhead, it is not necessary
to type in the address again. If no letterhead is used, the
organisation’s name and address should be written in full on
the right-hand side of the page, in block form, against the
imaginary margin.
Remember the following:
No punctuation at the end of lines
Key words to begin with capital letters
No abbreviations
The name of the town or city must be written in
capital letters
Include the postal code
Example:
Creative Minds Educational Toys
Dellview Centre
29 President Street
DELLVIEW
4320
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Date
Leave a line between the writer’s address and the date. If the
letter is written on a letterhead, the date is indicated on the
left-hand side of the page against the imaginary margin. If a
letter is without a letterhead, the date is placed on the righthand side of the page against the imaginary margin. Write the
date in full, for example 18 March 2017.
Receiver’s
address
Leave a line between the date and the receiver’s address.
Put the receiver’s address on the left-hand side of the page.
Try to address the letter to a person, as this makes a better
impression on the reader. If you do not know the name of the
person, direct it to a specific position, for example The Human
Resources Manager. Write down the address of the receiver and
the name of the relevant organisation.
Examples:
Ms A. W. D. Jacobs
18 Jansen Avenue
JOHANNESBURG
2000
or
The Human Resources Manager
Private Bag X1116
CAPE TOWN
8000
Greeting
Leave a line between the receiver’s address and the greeting
or opening. Try to use the name of the person you are writing
to. If you do not know the name of the person, use “Dear
Sir” or “Dear Madam”. If you do not know the gender of the
person, use “Dear Sir/Madam”. The greeting is very important
and should not be omitted. It helps to establish a positive
relationship between the writer and the reader and creates a
polite and friendly tone.
Subject line
Leave a line between the greeting and the subject line, which is
placed against the left margin. The subject line is important as
it tells the reader what the letter is about. It should give a clear
indication of the contents of the letter. The subject line should
stand out, so it is best to use capital letters.
Example: PENSION FUND
Body of the
letter
Leave a line between the subject line and the body of the
letter. The body consists of several paragraphs containing
the information you want to convey. The opening paragraph
creates goodwill and establishes a good relationship with
the recipient. The middle paragraph contains the necessary
information and the closing paragraph promotes the goodwill.
Each paragraph should contain only one idea. Remember to
keep the letter as short as possible; use professional businesslike language and always be courteous and polite.
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Complimentary
close
Leave a line between the last sentence of the body of the letter
and the complimentary close. The closing is not centred, but
against the left margin.
End the letter by using one of the following terms:
Yours sincerely (for most business letters, especially if the name
of the person is known)
Yours faithfully (for very formal official letters and letters to the
press)
Kind regards/Good wishes (for an informal business letter)
Signature
Leave between three to six lines for a clear signature that
stands out. The signature is important as it makes the business
correspondence official and gives it authority.
Name
The name of the sender should be printed or typed in capital
letters below the signature to prevent any uncertainty about
the correct name. If you are signing on behalf of someone
else, type or write “p.p.” (which means per procurationem – by
procuration) or “for” in front of the sender’s name.
Example:
S. DAVIES
For J. Mashlango
In the past, women indicated their status by including Mrs,
Miss or Ms in brackets after the name. This is now considered
a personal preference. Many women avoid the issue by using
their full names.
Capacity/
position
If a letter is written on behalf of a business, the writer’s
capacity is indicated below the writer’s name in capital letters,
for example ADMINISTRATIVE MANAGER.
If additional pages need to be included, such as a statement
of results, a receipt or an order, write “Encl.” at the end of
the letter against the left margin and indicate the number of
enclosures.
Example: Encl. 2.
Different types of letters exist, for example letters of enquiry, letters of complaint,
letters of invitation, letters to the press, letters of acknowledgement, letters of
goodwill or public relations, sales letters and circular letters. No matter what type
of letter you write, the basic components of a business letter given above will help
you structure your letter.
6.4
Report writing
A report is an informative written document produced as the result of research or
observation. Reports are used regularly in the business world to convey an idea,
message or analysis effectively and clearly. They may be used, for example, as a
tool to address a management problem, to apply for funding, or to explain the
results of market research. Reports are circulated to a wide range of readers in the
organisation, people who are not necessarily experts on the subject of the report
and who vary widely in their level of knowledge as well as the kind of information
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that they require (Grant & Borcherds, 2015). Good reports provide information in
a standard format, enabling it to be quickly understood and helping the reader to
locate information that is of particular interest. It is important that the approach
to report writing is consistent, clear and easy to follow (Irwin, 2001: 89).
6.4.1
Definition and purpose of reports
Erasmus-Kritzinger et al (2010: 293) define a report as “a well-structured, objective,
informative document or presentation, which aims to provide the reader or listener
with information on a specific subject”.
Many reports are one-offs, structured according to the particular subject at
hand. Internal reports are normally used to assess management problems, to
consider new product development proposals, marketing issues, etc. Some reports
may be for external customers, for example funding applications, or reviews of
client problems.
Why write a report?
•
•
•
•
•
•
•
To analyse (study or investigate) a situation: For example, a report on
absenteeism or personnel turnover, or monthly sales figures.
To inform on progress: For example, if your company is building a new
facility, management will need periodic progress reports in order to judge
whether building is on schedule and to make plans accordingly.
To present a recommendation: In this type of report a situation is studied
and a recommendation made on the alternatives, for example whether to lease
or buy new equipment.
To suggest a programme of action: When a problem or situation has been
identified, a programme of action report will outline how to resolve it.
For example, in this technological age almost all employees need access to
computers and the use of the internet. Such a report will outline how this
should be carried out.
To give an account of conduct: If there has been an incident between
employees or between an employee and a customer, and if you were a witness
to this incident, you may be asked to write a report on the conduct of the
people involved in the incident.
To present the results of a survey: A survey may be carried out to determine
customers’ attitudes towards your company’s products. This type of report
will outline the results of the survey, from which management will make a
decision on marketing the product.
To report research findings: Many companies have a research department
for the purpose of monitoring their present products and developing new
products. The results of this research are presented in the form of a report to
management for policy-making decisions.
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Stages of writing a report
Grant and Borcherds (2015) suggest the following seven stages to write a report,
regardless of the type of report that you will be writing:
1.
2.
3.
4.
5.
6.
7.
getting your terms of reference and instructions;
defining objectives, criteria and methods;
gathering the facts for investigation;
organising the facts by using topic outlines or mind maps;
drawing conclusions and making recommendations;
inserting graphic aids and referencing; and
revising and editing the draft.
6.4.2
Requirements for effective report writing
Five requirements for effective report writing are identified by Erasmus-Kritzinger
et al (2010: 294). These requirements are discussed below.
1. Correct layout
The report must be presented in a prescribed format. It is important to find out:
•
•
•
the type of report you need to prepare (e.g. accident, progress, investigation);
the most appropriate structure (specific headings to use); and
the format of presentation (printed form, memorandum or formal style).
2. Objective reporting
Objective reporting means the ability to assume perspectives other than your
own. It involves detaching yourself, your opinions and feelings from the topic.
The main purpose of a report is to provide the reader or listener with relevant
information. The report should contain all the necessary facts. These facts
should be:
•
•
•
100 per cent accurate;
relevant to the specific situation; and
written in an unemotional, controlled and precise way.
The writer should not express a personal opinion, but state the facts. The reader
is interested in the information, not in the writer’s opinion. You can keep your
report objective by doing the following:
•
•
•
•
•
Avoid “I”, “we”, “you”; use “he”, “she”, “they”.
Avoid humour or exaggeration.
Avoid being biased or showing prejudice.
Avoid emotional expressions.
Avoid subjective descriptions. Refer to yourself as “the writer”, “the compiler”
or “the undersigned”.
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3. Concise and clear reporting
Provide the reader with relevant facts only and leave out any unnecessary
information. Conciseness does not necessarily mean writing a short report. It
means being economical in your use of words: using as few words as possible to
express what has to be said. Never make a report longer than it needs to be.
4. Language use
The language used in a report will determine its success. Use words that will be
understood by everyone; be simple and straightforward. Avoid using slang or
jargon and keep the tone formal.
5. Tenses
Reports are usually written after the event and should be written in the past tense.
When a recommendation is made, information supplied under the appropriate
heading should be written in the future tense.
6.4.3
Format of reports
Printed format
Most day-to-day business reports are presented on a printed form. The name of the
organisation and the questions to obtain the necessary information are printed on
the form. (It is also a good idea to compile your own forms that are used frequently
in your organisation. You can even create a template for this use.)
Informal (short) reports
Informal reports perform many different functions in an organisation to keep
management in touch with operations. They usually span one page and the most
common are proposal, progress, justification, periodic, and feedback reports. All
informal reports have similar formats. Let us look in particular at the format of the
investigative, feedback, and progress reports.
An investigative report describes situations as they exist at the time of the
research. In an investigative report you will be describing a particular situation,
physical location or process, or to ascertain whether a problem exists. Thoroughness
and accuracy is very important in an investigative report. There needs to be
a detailed method section, in which you set out precisely how and where you
researched your facts. If you are writing for a specialist audience (for example
scientists or engineers) you would need to explain technical data in great detail as
you should assume prior knowledge. If you are writing for a mixed audience, you
would select only those facts applicable to their needs.
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Name of organisation:
Number of form:
REPORT ON ACCIDENT DURING OFFICE HOURS
Name of injured person:
Occupation:
Department:
Time:
Place:
Date:
Description of accident:
Witness(es):
Report compiled by:
Signature:
Reference number:
Figure 6.2
Date:
Example of a printed report form
Source: Adapted from Erasmus-Kritzinger, Swart & Mona (2010)
A feedback report is compiled to provide the listener or reader with information
on a specific event that has taken place. Feedback can be provided on an
employee’s development programme, a training seminar attended by a delegate,
the organisation’s annual international conference which you organised, etc. It
can be structured according to the following subheadings:
•
•
•
•
•
Background: What is the report about?
Purpose of the report: Why is the report being written? What purpose is to be
achieved?
Subheadings containing the main content of the report: Summary of the
matter reported on
General evaluation: Positive or negative
Recommendations: Appropriate suggestions
A progress report provides information on the progress made towards
completing a specific project, task or assignment. Any project needs to be
monitored, controlled and reported on. The manager will submit regular, brief
interim reports to management on how work is progressing. These reports are
required at various critical stages, such as at the end of a particular phase of the
project, if a significant milestone has been reached, when something unusual
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but significant occurs, and at the end of the project. It is structured according to
the following subheadings:
•
Background: Information on the nature of the project, task or assignment.
What is it about?
Purpose of the report: Why should this report be compiled?
Work completed: Tasks which have been completed, date of completion,
responsible people
Work currently being attended to: Tasks being attended to at present,
responsible people, expected date of completion, problems being experienced
Work scheduled for the next period or future planning: Tasks which still
need to be completed, responsible people, expected date of commencement,
problems experienced
Conclusion: Evaluating the overall progress made
•
•
•
•
•
An introductory section
Title page
Letter of authorisation
Letter to the readers of the report
Table of contents
List of illustrations
Abstract (synopsis)
Contents
Introduction
Main contents
Summary
Conclusion
Recommendations
Appendices
Appendices
Bibliography
Figure 6.3
The format of a formal report
Formal (long) reports
Formal or long reports can span hundreds of pages. A formal report is analytical
and is usually compiled for external use or public distribution. They can be written
to summarise research into present recommendations on future possible action,
evaluate action already taken and provide solutions to problems.
One of the most important steps in the preparation of formal reports is the
identification of the problem with which the report deals. However, formal reports
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are not drawn up exclusively to solve problems. When a formal report is not aimed
at solving a problem, its purpose must be stated very clearly.
It is very important that when you write a formal report, you bear in mind the
readers of the report. The report must be written in such a way that it corresponds
with the readers’ reading and understanding abilities.
The format of a formal report usually consists of the different parts described
in Figure 6.3.
6.5
Presenting a report verbally
The oral presentation of a report is based on a written report that has already been
compiled. A guideline for presenting a report is shown below.
6.5.1
Guidelines for an oral representation
Introduction
Give a short explanation of the instructions given to the compiler and the name of
the person/organisation who asked for the report to be compiled:
•
•
•
•
•
•
•
•
•
Give the date on which the instruction was given.
Explain the exact instruction that was given.
Give a brief outline of the report, including why the audience should listen
to it.
Explain what the audience will gain from listening.
Give the background information to the report.
Explain the objectives of the report.
Give a summary of the findings.
Briefly outline the conclusion.
Briefly outline the recommendations.
Body of the report
Briefly explain how the information was gathered. Logically and systematically
discuss the information that has been gathered or the facts that have been
uncovered. Use visual support material such as an overhead projector, slides,
hand-outs, a PowerPoint presentation or a flip chart to illustrate the information.
Conclusion
This is a generalisation or synopsis of the situation as indicated by the information
gathered or the facts uncovered.
Recommendations
Practical and specific suggestions are made about the information gathered or
facts uncovered.
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6.5.2
•
•
•
•
•
•
•
•
•
•
•
•
6.6
Practical hints when giving a presentation
The speaker should prepare all the information in the form of key points on
postcard-size cards. The cards should:
•• be numbered individually;
•• contain the key points in large letters for easy reading;
•• contain writing on one side only; and
•• be tied together so that they cannot be dropped.
Prepare the written information in such a way that it is suitable for an oral
delivery.
Read the message at the same rate as you would have spoken it.
Practise beforehand by reading the presentation aloud.
Concentrate on pronouncing and emphasising words correctly; pay special
attention to difficult words or names.
Pause slightly before beginning a new sentence and a little longer before
starting a new paragraph.
Liven up your presentation with appropriate facial expressions and gestures (if
possible).
Try to make eye contact with the listeners as often and as naturally as possible.
Remember to lower your tone slightly to indicate the end of a sentence, or raise
your tone to indicate that a question is being asked.
Hold your notes in such a way that they do not create a visual or acoustic
barrier. Do not hold the paper close to your face or in such a way that forces
you to look down.
Project your voice so that it can be heard clearly.
Sound as if you are as familiar with the words on the paper as with your own
words.
Memorandums
A memorandum is an informal written communication sent through the
internal post of an organisation, for example from one department to another.
A memorandum is only for the internal use in an organisation. Nowadays the
memorandum is mostly replaced by emails. However, there are some types
of communication that are inappropriate for email, for example confidential
information or information that should not be forwarded. This should be printed
on paper and not sent as email.
A memorandum’s primary function as a communication source is to convey
information or instructions, or to make proposals for the future. The simpler,
shorter, more commonly used memorandum is a short message reminding,
authorising, instructing, informing or requesting the receiver.
The longer and more formal memorandum is a document resembling a
formal report, but this is infrequently used in the office as it lacks the simplicity,
effectiveness and economy of the short memorandum.
According to Satterwhite and Olson-Sutton (2007: 150), a memorandum is
valuable because it carries a special informality (because both the writer and reader
are part of the same organisation), provides a written record (unlike a phone call),
and can be delivered instantly by electronic mail/fax or delivered by hand.
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Memorandums should be directed only to persons within the organisation and
should be signed or initialled by the sender. If a memorandum is confidential, it
should be enclosed in a sealed envelope (Stroman, Wilson & Wauson, 2014).
Memorandum formats vary between organisations. Most organisations use
their own format.
6.6.1
Style of the memorandum
The style of the memorandum is not as formal as a business letter or a report,
although one must be careful to follow the general principles of good writing.
The style should be simple and straightforward, with special attention paid to
clarity, readability and brevity. Writing should show evidence of clear thinking,
facts should be logically presented and grammar should always be correct.
The memorandum is written in the first person (using I and we), as it is an
informal communication. The use of the first person allows for a more relaxed
tone, although this will obviously depend on the relationship between the writer
and the reader. Because the style of the memorandum is informal, a conversational
manner may be used.
6.6.2
Layout of the memorandum
As the memorandum is intended for a destination within an organisation,
addresses are not necessary, although you would include the name of the area if
the memorandum is being sent to another department within the organisation.
Organisation’s letterhead or logo
MEMORANDUM
TO: _____________________________________________ REF. NO.: ________________ FROM: __________________________________________ DATE: ________________ SUBJECT: _____________________________________________________________________
[Body]
Signature: ___________________________________________________________________
cc.
encl.
Figure 6.4
An example of the layout of a memorandum
Source: Adapted from Bell & Marais (1998)
Let us examine the various parts of the memorandum, according to the writings
of Satterwhite and Olson-Sutton (2007). (See next page.)
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Table 6.2
Various parts of a memorandum
To
Fill in the name of the person to whom your memorandum is
being sent. Memorandums may be addressed to an individual,
several individuals, a division/department, or all staff members.
Although courtesy titles (Mrs, Ms, Miss and Mr) are generally
omitted in memorandum headings, business titles such as Vice
President or Administrative Manager may be used in situations
where the addressee has various titles, where the name of the
addressee could be confused with that of another employee,
if the writer wishes to show respect to a superior, or when the
writer wishes to ensure prompt and accurate delivery of the
memorandum.
From
The writer does not use a courtesy title but may include a business
title, department, location and/or phone number for identification
purposes and to facilitate a response.
Date
The date should be written in full and not abbreviated or
expressed in figures. This is necessary to prevent oversights and
miscommunications, and will prove helpful for future reference.
Subject
The subject line serves as the title of your message and as an aid
in filing the memorandum for future reference. When writing a
subject line, remember to be concise (use a phrase that tells the
reader the content of the message). Be specific: for example,
do not use administrative information on all memorandums
written by the administrative department. Capitalise important
words, omit a period at the end of the subject line and leave
a double space between the subject line and the body of the
memorandum.
Body
The body of the memorandum contains the message. Follow these
guidelines for preparing the body:
Leave one blank line between the heading and the body.
Single-space the body text, leaving one blank line between
paragraphs.
Use block paragraphs to save time.
Signature
Memorandums should be signed before they are sent. The easiest
and quickest way for you to sign a memorandum is to write your
initials after the typed name in the “From:” line.
For example, FROM: Piet Nel PN
Some writers prefer to have their names and titles placed at the
bottom of their memorandums so that they can sign them just as
they would sign a letter. When this style is used, type the name
four lines below the message, starting in the centre.
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Chapter 6 – Written communication
Reference
lines
6.6.3
The reference lines on a memorandum are each placed below
the message at the left margin on separate lines in the following
order:
Reference initials (the initials of the person who typed the
document. After the person’s initials you can include the file
name under which the document will be stored electronically);
Attachment or enclosure notation (this indicates that another
item, such as a pamphlet, form, booklet or other printed
material is included in the memorandum); and
Copy notation (use “c”; an abbreviation that means copy to).
Copy notation is used when a copy of the memorandum is
sent to a third party who has an interest in the subject of the
memorandum.
Guidelines for effective memorandums
Stewart et al (1996: 37) offer the following tips for effective memorandums:
•
•
•
•
•
6.7
State the purpose of the memorandum. Is it to inform, request or remind?
Stick to one subject only. If you wish to write about more than one subject,
write separate memorandums.
Use a lean, informal style.
Use headings, numbers and other markers to structure the information so that
the reader can see what is important.
In the last sentence, tell the reader whether any action is required or whether
your purpose is simply to keep them informed.
Effective writing techniques
The following techniques can be used to assist you with writing effectively (Odgers,
1997; Newman, 2015):
•
•
•
•
Complete: A message that lacks important information may create inaccurate
impressions. A message is complete when it contains all the information the
reader needs in order to react appropriately. Are all of the reader’s questions
answered? Does the reader have enough information to evaluate the message
and, if necessary, to act on it?
Clear: Does the reader get the meaning you intended? Does the reader have
to guess what is meant? Use words familiar to you and your readers. Short and
simple words are more likely to be understood, less likely to be misused and
less likely to distract the reader. Avoid using clichés, slang and unnecessary
jargon.
Concise: Does the style, organisation and visual impact of the message help
the reader to read, understand and act on the information as quickly as
possible?
Coherent: Are the ideas presented in a logical, consistent manner that makes
it easy for the reader to follow and understand and, if necessary, lead to a
decision or conclusion?
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•
6.8
Correct: Is the information in the message accurate? Is the message free from
errors in punctuation, spelling, grammar, word order and sentence structure?
Accuracy is critical in business writing and involves more than avoiding errors.
The accuracy of a message depends on what is said, how it is said, and what is
left unsaid.
Using technology to revise your message
After your message has been written you need to revise and polish your message
before sending it out. With modern technology, software features can help you
add, delete and move text, using functions such as cut and paste and search and
replace. You can also do revision with revision marks or change tracking and
commenting. Using revision marks and commenting features is a great way to
keep track of editing changes made by multiple users.
Four software functions that can also assist you with revising your message
are a spell checker, thesaurus, grammar checker and style checker. A spell checker
compares your documents with an electronic dictionary, highlights unrecognised
words, and suggests correct spelling. A computer thesaurus offers alternatives to
a particular word. When you use the same word over and over again you can
use the thesaurus to find an alternative word. Don’t use the thesaurus to include
impressive-sounding words just to sound impressive. Remember the message must
still be simple and clear. The grammar checker can highlight items you should
consider changing, such as passive voice, long sentences and words that tend to be
misused. A style checker can monitor your word and sentence choice and suggest
alternatives that might produce more effective writing (Thill & Bovée, 2015).
Conclusion
Writing remains a key skill for all managers. Writing can be time-consuming and
difficult. It is not a skill that comes easily for everyone. Advanced writing skills
are obtained through exposure and practice. It is important to be aware of the
basics of written communications. Good, clear writing should be the aim of all
managers, and it is important to have a flexible style that can be adapted to meet
the needs of specific readers. In this chapter, we have focused on business letters,
reports and memorandums as forms of written communication. This information
should assist and guide you in your written communication attempts. As you
get more experienced in the skill of writing, you will develop your own style for
different uses.
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Self-assessment
1.
Explain the aspects that you need to keep in mind before you attempt to write
any form of communication.
2.
Explain the difference between internal and external written communications
and give two examples of each from your working environment.
3.
You want to buy new office furniture for the administrative department. Write
a letter to an office furniture supplier requesting a catalogue and a price list to
assist you in making your decision on what to buy.
4.
Explain the purposes of writing a report and also indicate what type of reports
you frequently use in your working environment.
5.
The photocopier in your office is not suitable for the office needs. A new
photocopier is necessary. Investigate various photocopier options and write a
report to top management where you request the photocopier most suitable
for your office needs.
6.
Write a memorandum to all the administrative office employees in which you
give them information on the teambuilding session that will be taking place
shortly.
7.
Indicate how technology can be used to assist with writing a written message.
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References
Bell, S. & Marais, T. 1998. Communication for managers and secretaries. Halfway
House: Thomson.
Erasmus-Kritzinger, L., Swart, M. & Mona, V. 2010. Advanced communication skills:
For organisational success. 9th ed. Pretoria: Afritech.
FitzGerald, S. S. 2011. Manager’s guide to business writing. 2nd ed. Wisconsin:
McGraw-Hill.
Grant, T. & Borcherds, R. 2015. Communicating@work. 3rd ed. Pretoria: Van Schaik.
Irwin, D. 2001. Effective business communications. 2nd ed. London: Thorogood.
Keeling, B. L. & Kallaus, N. F. 1996. Administrative office management. 11th ed.
Cincinnati: South-Western Educational Publishing.
Newman, A. 2015. Business Communication: In person, in print, online. 9th ed.
Stamford: Cengage.
Odgers, P. 1997. Administrative office management: Strategies for the 21st century.
Cincinnati: South-Western.
Penrose, J. M., Rasberry, R. W. & Myers, R. J. 2001. Advanced business communication.
4th ed. Cincinnati: South-Western.
Satterwhite, M. L. & Olson-Sutton, J. 2007. Business communication at work. 3rd ed.
New York: McGraw-Hill Irwin.
Stewart, G., De Kock, C., Smit, M., Sproat, B. & Storrie, G. 1996. Communicating for
the professions. Cape Town: Juta.
Stroman, J., Wilson, K. & Wauson, J. 2014. Administrative assistant’s and secretary’s
handbook. 5th ed. New York: AMACOM.
Thill, J. V. & Bovée, C. L. 2015. Excellence in Business Communication. 11th ed. Essex:
Pearson.
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Chapter 7
Electronic communication
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
••
explain the meaning and purpose of telecommunication systems;
explain the difference between analogue and digital signals;
give a brief explanation of the various telecommunication transmission modes;
differentiate between the various network connections;
explain the uses of personal area, local area, wide area and metropolitan area
networks;
list the key considerations for electronic communication media;
describe the role of the internet in organisational communication;
describe the use of intranets and extranets; and
explain the various modes of electronic communication and indicate how they
can be used in an organisation.
Introduction
Since the 1990s the two most important communication innovations to affect
organisations have been the personal computer and the internet. Through the
digital convergence revolution, organisations are combining older, traditional
mass media and newer cellular, satellite and radio technologies to create a whole
new communications environment.
In most organisations computers are linked together in some form of network,
bringing together the information that the organisation needs to function. The
electronic office provides the organisation with additional channels for sending
and receiving messages and gathering data. The automated electronic office
consists of information and communication devices linked together, many of
which can be accessed from individual workstations.
Electronic communication has become the new mode of organisational
communication, not just among employees in one building but also with
employees in other regions, other countries and even customers all over the world.
In the previous two chapters we discussed the basics of communication and
aspects of written communication.
In this chapter we will address various aspects of electronic communication
in the form of telecommunication systems, telecommunication networks, the
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internet and various modes of electronic communications to be used in modern
organisations.
7.1
Telecommunication systems
Telecommunications is the communication of information by electronic means,
usually over some distance. The purpose of business telecommunications is
to make it possible for employees, customers and suppliers to communicate
whenever necessary to accomplish their work (Laudon & Laudon, 2014). A
telecommunications environment provides connectivity on demand by providing
communication channels for text, voice and video images. Today, a great deal of
telecommunication transmission is digital data transmission, using computers to
transmit data from one location to another. Administrative managers nowadays
are continually faced with decisions about selecting telecommunication
technologies and services to enhance the performance of their organisations and
about how best to incorporate them into their information systems and business
processes.
According to Laudon and Laudon (2014), a telecommunication system is
a collection of compatible hardware and software arranged to communicate
information from one location to another. A telecommunication system can
transmit text, graphic images, voice or video information. A telecommunication
system consists of the following components:
•
•
•
•
•
computers to process information;
terminals or any input/output devices that send or receive data (for example a
telephone or a fax machine);
communication channels, that is the links by which data or voice are transmitted
between sending and receiving devices in a network. Communication
channels use various communication media, for example telephone lines,
coaxial cables, fibre-optic cables and wireless transmission;
communication processors, such as modems, multiplexers, controllers and
front-end processors, which provide support functions for data transmission
and reception; and
communication software, which controls input and output activities and
manages other functions of the communication network.
In this chapter, we will provide more detail about some of these telecommunication
system components.
In order to communicate, that is to send and receive information from one
place to another, a telecommunication system must perform a number of separate
functions. These functions include:
•
•
•
establishing the interface between the sender and the receiver;
routing the messages along the most efficient paths;
performing elementary processing of the information to ensure that the right
message gets to the right receiver;
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•
•
performing editorial tasks on the data (such as checking for transmission
errors and rearranging the format); and
converting messages from one speed (say, the speed of a computer) into the
speed of a communications line or from one format into another.
Finally, the communication system controls the flow of the information.
7.1.1
Types of signals: analogue and digital
Information travels through a telecommunication system in the form of
electromagnetic signals. Signals are presented in two ways: analogue and digital.
An analogue signal is represented by a continuous waveform that passes
through a communication medium. Analogue signals are used to handle voice
communications and to reflect variations in pitch.
A digital signal is a discrete, rather than a continuous, waveform. It transmits
data coded into two discrete states, which are represented as on-off electrical pulses.
Most computers communicate with digital signals, as do many local telephone
organisations and some larger networks.
However, if a traditional telephone network is set up to process analogue signals,
a digital signal cannot be processed without some alterations. All digital signals
must be translated into analogue signals before they can be transmitted in an
analogue system. The device that performs this translation is called a modem. A
modem translates a computer’s digital signals into analogue form for transmission
over ordinary telephone lines, or it translates analogue signals back into digital
form for reception by a computer.
Digital
1
Computer
0
Figure 7.1
Analogue
Modem
1
0
0
Digital
Modem
1
0
1
0
Computer
0
Analogue and digital signals
Source: Adapted from Quible (1996: 363)
7.1.2
Communication medium
Various communication mediums exist to transmit data from one device in
a network to another. A communication medium can use different kinds of
telecommunication transmission (Laudon & Laudon, 2014; Quible, 2005). Some
examples are described below.
•
Twisted-pair wire: Twisted-pair wire consists of pairs of twisted copper wires.
It is used to transmit analogue phone conversations, but can be used for data
transmission. Twisted-pair wire is used for voice and data communication over
standard-grade telephone lines.
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•
Coaxial cable: Coaxial cable is a transmission medium consisting of thickly
insulated copper wire that can transmit large volumes of data quickly. A coaxial
cable may contain as many as 100 different wires. Large-diameter coaxial cables
are mainly used for underwater intercontinental communication systems and
small-diameter coaxial cables for local area networks and cables in television
systems.
•
Fibre-optic cable: A fibre-optic cable is a fast, light and durable transmission
medium consisting of thin strands of clear glass fibre bound into cables. Data
is transmitted as laser (light) pulses. Although the signal is transmitted as
a beam of light, the nature of fibre optics allows the beam to bend around
corners. A fibre-optic cable consisting of approximately 150 fibres can carry
almost 100 000 simultaneous two-way phone conversations in a cable.
Fibre-optic cables carry ten times as many signals as a coaxial cable and
1 000 times as many signals as a microwave system. Fibre optics is safe to use
because it involves the transmission of light rather than electrical current, it
is not subject to electromagnetic interference or radio frequency interference
and it provides great security because the transmission of data cannot be
bugged.
•
Optical networks: Optical networks are high-speed networking technologies
for transmitting data in the form of light pulses. All types of communication
(voice, data and video) can be transmitted. Currently, fibre-optic networks are
slowed down by the need to convert electrical data to optics to send it over
a fibre line and then convert it back. In the future, an optical network will
be created in which light packets shuttle digital data at tremendous speed
without ever converting them into electrical signals.
•
Wireless transmission: Wireless transmission sends signals through air
or space without being tied to a physical line. An antenna attached to the
device (whether it is a telephone or a local area network device) enables it
to send and receive signals. Today, common technologies for wireless data
transmission include microwave transmission, communication satellites,
cellular telephones, personal communication devices, smartphones,
personal digital assistants and mobile data networks (see more about wireless
technologies in Section 7.2.3).
•
Microwave: A microwave is a high-volume, long-distance, point-to-point
transmission in which high-frequency radio signals are transmitted through
the atmosphere from one earthly transmission station to another. Microwave
technology is used extensively in sections of the country where the antennas
have been installed. The antennas are located on tall towers. Because
microwaves travel in a straight line, the sending and receiving antennas have
to be located in a precise line of sight. Even a small variance can cause an
interruption of service.
•
Satellite: A satellite transmits data using orbiting satellites that serve as relay
stations for transmitting microwave signals over very long distances. Earthorbiting satellites are located approximately 35 888 km above the Earth’s
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surface and are used to transmit voice, data and image signals. These satellites
travel at the same orbital speed as the Earth. Therefore, they are always
positioned above the same Earth location. With satellite technology, a signal
is transmitted from an Earth station to the satellite, from which the signal
is transmitted back to another Earth station. The signal may return directly
to the recipient’s location, or it may have to travel through another channel
(such as microwave) before it reaches the recipient’s location.
•
Cellular phones: Cellular phones work by using radio waves to communicate
with radio antennas placed within adjacent geographic areas called cells. A
telephone message is transmitted to the local cell by the cellular telephone
and is then handed on from antenna to antenna (cell to cell) until it reaches
the cell of its destination, where it is transmitted to the receiving telephone.
As a cellular signal travels from one cell to another, a computer that monitors
signals from the cells switches the conversation to a radio channel assigned to
the next cell. Older cellular systems are analogue while newer cellular systems
are digital.
•
Personal communication services: Personal communication services (PCSs)
are one popular type of digital cellular service. A PCS is a wireless cellular
technology that uses lower power and higher frequency radio waves than
cellular technology, and so can be used with smaller size telephones. Newer
models of digital cellular phones can handle voicemail, email and faxes; save
addresses; access private corporate networks as well as the internet; and provide
wireless voice transmission. These are called smartphones. They are equipped
with web browser software that allows digital cellular phones or other wireless
devices to access web pages formatted to send text or other information that is
suitable for small screens.
•
Personal digital assistants: Personal digital assistants (PDAs) are small handheld
computers capable of entirely digital communication transmission. They have
built-in wireless telecommunication capabilities as well as work-organisation
software. A PDA can display, compose, send and receive email messages and
can provide access to the internet. The device includes applications such as an
electronic scheduler, address book and expense tracker and can accept data
entered with a special stylus through an on-screen writing pad.
•
Bluetooth: Bluetooth is another wireless networking standard that is useful
primarily for creating small personal area networks linking up to eight devices
within a 10-metre radius, using low-power radio-based communication.
Wireless phones, computers, printers and computing devices can communicate
with each other and even operate each other without direct user intervention.
•
Wi-Fi: With a Wi-Fi wireless network, the user’s computer, smartphone or
other mobile device has a wireless adapter that translates data into a radio
signal and transmits it using an antenna. A wireless access point, which
consists of a transmitter with an antenna, receives the signal and decodes
it. The access point then sends the information to the internet over a wired
connection. The area covered by one or more interconnected wireless access
points is called a hot spot. Current Wi-Fi access points have a maximum range
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of 90 metres outdoors and 30 metres within a dry-walled building. Because of
Wi-Fi’s popularity, hot spots can be found almost anywhere: airports, coffee
shops, hotels, libraries, restaurants and homes.
•
3G Wireless communication: 3G Wireless communication supports wireless
voice and broadband speed data communications in a mobile environment. It
is called 3G as it is the third generation of solutions to wireless voice and data
communications. 3G wireless communication provides additional capabilities,
such as mobile video, mobile e-commerce, location-based services, mobile
gaming and the downloading or streaming of music.
•
4G Wireless communication: A 4G network is an improvement on the 3G
services. 4G broadband mobile wireless is delivering more advanced versions of
enhanced multimedia, smooth streaming videos, universal access, portability
across all types of devices and eventually worldwide roaming. 4G is 10 times
faster than 3G networks and is faster than most home-based broadband
services.
The reason behind the explosion in email, instant messages, wireless computing,
wireless internet and cell phones, according to Laudon and Laudon (2014),
is that organisations and managers derive extraordinary business value from
participating in communication networks. Other business value effects of the
telecommunications revolution are as follows:
•
•
•
•
•
•
Declining transaction costs: It becomes less and less expensive to purchase,
sell and bargain in both digital and traditional markets as networking becomes
less expensive and more powerful.
Declining agency costs: The cost of managing falls, as managers are able to
monitor the performance of employees and markets remotely over networks.
Increased agility: Managers and organisations can respond more rapidly to
changing business environment conditions.
Higher quality management decisions: Managers are more likely to make
the right decisions based on correct and timely information.
Declining geographical barriers: People all over the world (no matter where
they are situated) can easily be connected to do business without physically
being in the same space.
Declining temporal barriers: Some goods, such as software, can be produced
around the clock, seven days a week. For example, software production workers
in India come to work in the morning to work on software projects handed on
by South African software workers who have just finished their day.
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7.2
Telecommunication networks
The development of communication networks has facilitated the development of
the electronic office system. The ability to transmit data and information between
two sites makes the electronic office a reality. A network refers to two or more
devices connected so that they can communicate with each other and share
information, software, peripheral devices and/or processing power.
Understanding the telecommunications environment can be a very complicated
task for organisations.
The purpose of business telecommunications is to make it possible for employees,
customers and suppliers to communicate whenever necessary to accomplish their
work. A telecommunications environment provides connectivity on demand by
providing communication channels for text, voice and video images.
The network infrastructure for a large organisation, according to Laudon and
Laudon (2014), consists of many different kinds of networks for both data and
voice communication. At the centre of the corporate networking infrastructure
is a collection of local area networks (LANs) linked to other local area networks
and to organisation-wide corporate networks. For example, a series of servers
support a corporate website, a corporate intranet and perhaps an extranet. Some
of these servers link to other large computers which support back-end systems.
This infrastructure also supports a mobile sales force using cell phones, mobile
employees linked to the organisation’s website, internal organisational networks
using mobile wireless LANs (Wi-Fi networks) and a videoconferencing system. In
addition to these computer networks, the organisation includes a totally separate
telephone network that handles most voice data.
One of the major problems facing organisations today, according to Laudon
and Laudon (2014), is how to integrate all the different communication networks
and channels into a coherent system that enables information to flow from one
part of the organisation to another, from one system to another.
Laudon and Laudon (2014) identify a number of different ways of organising
telecommunications components to form a network, which provide multiple ways
of classifying networks. Networks can be classified by the way their components
are connected, or their topology, i.e. the way in which their constituent parts are
interrelated or arranged.
7.2.1
Network topologies
A star topology
The star network consists of a central host computer connected to a number of
smaller computers or terminals. This topology is useful for applications where
some processing must be centralised and some can be performed locally. All
communications between points in the network must pass through the central
computer. Because the central computer is the traffic controller for the other
computers and terminals in the network, communication in the network will
come to a standstill if the host computer stops functioning.
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The star topology has the following advantages:
•
•
•
•
•
Data or information, as well as software and certain hardware devices, are
centralised.
User sharing of hardware and software is cost-effective.
Cable layouts are easy to modify.
Centralised control makes detecting problems easier.
It is more effective at handling heavy but short bursts of traffic.
Disadvantages of the star topology are as follows:
•
•
The devices are generally interconnected by coaxial cables, which means that
significant amounts of cabling must be installed in floors, walls and ceilings.
Installing coaxial cables after a building has been constructed is typically
quite expensive.
If the host computer fails, the devices that depend on the host for their
operating intelligence will be inoperable. The devices that possess their own
operating intelligence may continue to be operable, although not for tasks that
require software or data/information stored in the host computer.
Terminal 1
Computer 1
Computer 2
Host CPU
Terminal 2
Computer 3
Terminal 3
Printer
Figure 7.2
A star topology
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A bus topology
The bus topology links a number of computers through a single circuit made of
twisted wire, coaxial cable or fibre-optic cable. All of the signals are broadcast in
both directions to the entire network, with special software to identify which
components receive each message. If one of the computers in the network fails,
none of the other components in the topology are affected. However, the channel
in a bus network can handle only one message at a time, so performance can
deteriorate if there is a high volume of network traffic. When two computers
transmit messages simultaneously, a “collision” occurs, and the messages must be
re-sent.
Advantages of a bus topology:
•
•
•
•
•
A reduced amount of network cable is required, especially when compared
with the ring topology, and this keeps the cost down.
It is easy to extend.
It is reliable.
It has the ability to handle steady (even) traffic.
It has the ability to function within a host computer.
The most significant disadvantages of the bus topology results from timing or
scheduling the transmission of data/information through the channel. In other
words, it can sometimes create a bottleneck and fault diagnosis is difficult.
Computer 1
Computer 3
Computer 2
Terminal
Figure 7.3
Printer
Computer 4
A bus topology
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A ring topology
Like the bus topology, the ring topology does not rely on a central host computer
and will not necessarily break down if one of the component computers
malfunctions. Each computer in the topology can communicate directly with any
other computer, and each processes its own applications independently. However,
in a ring topology the connecting wire, cable or optical fibre forms a closed loop.
Data is passed along the ring from one computer to another and always flow in
one direction.
The most significant advantage of the ring topology is its reliability. This network
does not require a host computer; therefore, individual computer workstations will
continue to be operable even if a problem occurs in the network.
The most significant disadvantage of the ring topology is the special care that
needs to be exercised in coordinating communication so messages do not become
garbled because of signal intermixing during their transmission. Communication
controllers are used to prevent the garbling. Diagnosing problems and modifying
the network are more difficult than with a star topology.
Computer 1
Computer 2
Computer 5
Computer 3
Printer
Computer 4
Figure 7.4
Hard disk drive
A ring topology
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Hierarchical topology
A hierarchical topology, also sometimes called a tree topology, combines computers
with different processing strengths in different organisational levels. For example,
the bottom level might consist of workstations, with minicomputers in the middle
and a server at the top. Organisations that are geographically dispersed and
organised hierarchically are good candidates for this type of network (Bidgoli,
2015). Failure of nodes at the bottom might not have a big impact on network
performance, but the middle nodes and especially the top node (which controls
the entire network) are crucial for network operation. Traditional mainframe
networks also use a hierarchical topology.
A hierarchical topology offers the advantage of a great deal of network control
and lower cost as compared to a star topology. Some disadvantages are that network
expansion might pose a problem, and there could be traffic congestion at the root
and higher-level nodes.
USS
USS
Update server (A)
DSS
DSS
USS
Update server (C)
Update server (B)
DSS
Client
computer
Client
computer
Update server (D)
DSS
Client
computer
Update server (E)
Client
computer
Figure 7.5
Client
computer
Client
computer
A hierarchical topology
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7.2.2
Types of networks
There are four major types of networks: personal area network, local area networks,
wide area networks and metropolitan area networks. In all these networks,
computers are usually connected to the network via a network interface card
(Bidgoli, 2015; Stair & Reynolds, 2014; Kroenke, 2013).
Personal area networks (PANs)
A personal area network (PAN) is a wireless network that connects information
technology (IT) devices close to one person. You will be able to connect a laptop,
digital camera and portable printer without cables in a PAN. A PAN will allow you
to download digital image data from the camera to the laptop and then print it
on a high-quality printer; all wirelessly. PANs also enable data captured by the
sensors placed on your body to be transmitted to your smartphone as input to
applications that can serve as calorie trackers, heart monitors, glucose monitors
and pedometers.
Local area networks (LANs)
A local area network (LAN) is a telecommunication network that requires its own
dedicated channels and that encompasses a limited distance, usually one building
or several buildings in close proximity. The network gateway connects the LAN to
public networks, such as the telephone network or to other corporate networks, so
that the LAN can exchange information with networks external to it.
According to Quible (2005), a LAN can be used for the following:
•
•
•
•
Accelerated communication: Employees in organisations are able to
communicate with one another using their computer terminals. This
communication mode is used as an alternative to face-to-face conversations or
telephone calls. The use of computers to communicate with another individual
is commonly known as electronic mail (email) or electronic messaging. The
LAN is used to connect the computer devices, thus facilitating their ability to
communicate.
Sharing computer and peripheral devices: Using a LAN makes it possible to
share as many computer and peripheral devices as possible. Shared equipment
is likely to be used more efficiently and more extensively.
Sharing computer files: Increasingly, organisations are storing their data and
information electronically. Through the LAN, these stored computer files are
available to all authorised users.
Reducing software costs: The vast majority of software packages are available
today for use on mainframe computers. A LAN makes the connection between
the mainframe and the user, which allows them to use the software package.
Having to purchase a separate package for each microcomputer would be
considerably more expensive.
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Server
Network
operating
system
Computer
Printer
Other
network
Computer
Network
gateway
Computer
Figure 7.6
Computer
A local area network
Wide area networks (WANs)
A wide area network (WAN) is a telecommunication network that spans a large
geographical distance. It may consist of a variety of cable, satellite and microwave
technologies. Switched lines are telephone lines that a person can access from
their terminal to transmit data to another computer, the call being routed or
switched through paths to the designated destination. Dedicated lines, or nonswitched lines, are continuously available for transmission, and the person leasing
the line typically pays a flat rate for total access to the line. The lines can be leased
or purchased from common carriers or private communication media vendors.
Most existing WANs are switched. Organisations may maintain their own wide
area networks.
WANs are used for the following (Quible, 2005):
•
•
•
Centralised electronic filing: Data/information generated at the remote sites
that might be of value to individuals at other sites are often transmitted to the
headquarters, where it is stored in the organisation’s database. Users at other
sites are then able to access and use this information.
Remote data entry: The use of a WAN allows data to be entered at a remote site
but transmitted to a centralised location where it is processed. For example,
point-of-sale terminals are often interconnected to a WAN that transmits data
to a centralised computer, where processing and storage take place. Using this
type of system may be considerably less expensive than purchasing a computer
for each remote site.
Centralised software storage: Some organisations store the software at the
centralised location, from where it is transmitted through the WAN each time
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•
it is needed at a remote site. This is an alternative to providing a separate
package at each remote site.
Electronic communication: The WAN is used for electronic communication
in much the same way as the LAN. The WAN facilitates computer conferencing,
email and electronic messaging (we will discuss these modes of communication
later in this chapter).
Figure 7.7
A wide area network
Metropolitan area networks (MANs)
According to Bidgoli (2015), the Institute of Electrical and Electronics Engineers
(IEEE) developed specifications for a public, independent, high-speed network
that connects a variety of data communication systems, including LANs and
WANs, in metropolitan areas. The metropolitan area network (MAN) is designed
to handle data communication for multiple organisations in a city and sometimes
nearby cities, too.
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Metropolitan Area Network (MAN)
Metropolitan Area Network (MAN)
City
City
Wide Area Network (WAN)
City
Metropolitan Area Network (MAN)
Figure 7.8
City
Metropolitan Area Network (MAN)
A metropolitan area network
The LAN is used in one building or on one campus, the WAN is used for intercity
to international locations, and the MAN is used from one city to several adjoining
cities.
7.2.3
Wireless and mobile networks
A wireless network is a network that uses wireless instead of wired technology, and
a mobile network (also called a cellular network) is a network operating on a radio
frequency, consisting of radio cells, each served by a fixed transmitter, known as a
cell site or base station. Bidgoli (2015) indicates that wireless and mobile networks
have the advantages of mobility, flexibility, ease of installation and low cost. These
systems are particularly effective when no infrastructure (such as communication
lines or established wired networks) is in place, which is common in many
developing nations and in old buildings that do not have the necessary wiring for
a network.
Wireless networks
In a wireless environment, portable computers use small antennas to communicate
with radio towers in the surrounding area. Satellites in near-Earth orbit pick up
low-powered signals from mobile and portable network devices. The wireless
communication industry has many vendors and rapid changes, but wireless
technologies generally fall into two groups:
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•
•
Wireless LANs (WLANs): These networks are becoming an important
alternative to wired LANs in many organisations. WLANs and WWANs are
characterised by having one owner and covering a limited area.
Wireless WANs (WWANs): These networks cover a broader area than WLANs
and include the following devices: cellular networks, cellular digital packet
data, personal communication systems, packet radio networks, broadband
personal communication systems, microwave networks and satellite
networks.
Typically, these technologies enable computing devices to communicate with
other devices or networks at any time and from any location. According to Bidgoli
(2015), these technologies use a protocol for communication between a cellular
network’s transmitters and receivers and users’ devices.
Mobile networks
In a mobile network, one usually gets a three-part architecture: base stations send
and receive transmissions to and from subscribers; mobile telephone switching
offices transfer calls between national or global phone networks and base stations;
and subscribers (users) connect to base stations using mobile communication
devices.
Mobile devices (like cellular phones and tablets) register by subscribing to a
carrier service (provider) licensed for certain geographic areas. When a mobile unit
is outside its provider’s coverage area, roaming occurs. Roaming is using a cellular
phone outside of a carrier’s limited service area. By doing this, users are extending
the connectivity service in a location that is different from the home location
where the service was first registered.
Today many organisations use wireless and mobile networks to improve
customer service and reduce operational costs.
7.2.4
Key considerations for electronic communication media
Communication media technology is vitally important in a network. To determine
the most appropriate electronic communications medium, according to Haag et al
(2012), you must consider the capacity, reliability, cost, and distance that your
network covers, as well as the mobility of your network users.
•
•
•
Capacity or bandwidth determines how much information can travel
over the communication medium at once, and how fast the information
can travel. Twisted-pair cable has the lowest capacity, and optical fibre the
highest.
Reliability is a measure of how much you can depend on your network. If you
need a network with the greatest reliability, you probably would not choose
wireless communications because wireless networks are the most susceptible
to outside interference.
Cost is always a very important consideration in the building and maintenance
of a network. Your choice of capacity and reliability will usually affect the
cost.
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•
•
Distance is a consideration when choosing a medium. Infrared, for example,
works only over small distances, whereas optical fibre and satellite work well
over great distances.
Mobility may be important to your organisation. If so, you may want to
investigate wireless communications so that connectivity becomes mobile.
7.3
The internet
The digital world is forcing organisations to react to change and giving them
the tools to stay ahead. Since the 1990s, the most important communication
innovations to affect organisations have been the personal computer, cell phones
and the internet. Now, through the digital convergence revolution, organisations
are combining older, traditional mass media and newer cellular, satellite and radio
technologies to create a whole new communications environment.
The internet is an international network of networks. It allows millions of
computers and other electronic devices of all kinds (e.g. cell phones, computer
networks, tablets and video cameras) to communicate with each other all around
the world, via telephone lines and satellites, in an economical, easy-to-use way.
One of the most important aspects of the internet is that it has a common
language or set of codes that are used to display various forms of media, such as
text, pictures, graphics, sound, video, and so on. The most important result of this
development has been that computers or any kind of digital device can now share
information of all kinds – something that was impossible just a few years ago, and
which is of huge significance to organisational communication.
The internet is playing a major role in terms of organisational communication.
The internet can be used for inter-organisational communication by means of an
intranet and for extra-organisational communication via the extranet.
7.3.1
An intranet
An intranet is an internal corporate network built using internet and World Wide
Web standards and products. Whereas the internet is accessible and accesses
information from around the globe, an intranet is accessible and accesses
information locally. An intranet facilitates communication within the internal
structures of an organisation; it is a kind of private network where the organisation’s
working information is shared among its management and employees.
Intranets are used to facilitate communication within an organisation and
to manage many internal business processes. Giving employees access, via their
web browsers, to information that used to be available only on paper can result
in tremendous cost savings, as well as provide assurance that the information
on the corporate intranet is the most current available (Haag et al 2012).
Intranets give organisations the capacity to provide just-in-time information to
any part of an organisation. In addition, intranets act as a resource to employees.
Employees, for example, can download all forms used in general business, check
the schedules for projects, read updated information about the organisation and
the organisation’s social events and find links to useful websites.
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Intranets have been adopted quickly by a wide range of organisations throughout
the world. Some of the features of an intranet include:
•
•
•
•
•
the ability to transmit timely, important information rapidly throughout the
organisation;
web browser software capable of browsing the internet as well as the intranet;
high bandwidth, which assures speedy communication;
security; and
front-end access to other internal software applications (for example
databases).
Intranets ensure that information can be disseminated quickly throughout the
organisation, that everybody has the same information, and that important tools
and resources are universally available.
Intranet applications can range from simple communications to putting
expense reports and other forms online, as well as newsletters, employee feedback
and sophisticated management systems.
7.3.2
The extranet
An extranet is a secure network that uses the internet and web technologies
to connect intranets of business partners so that communication between
organisations or between consumers is possible (Bidgoli, 2015). Extranets tend to
be used for business-to-business communications and transactions, for example
to share product and inventory information. The organisation can use firewalls
to ensure that access to its internal data is limited and remains secure. Firewalls
can also authenticate users, making sure that only authorised users can access
the site.
Extranets not only allow organisations to reduce internetworking costs, they
also give organisations a competitive advantage, which can lead to increased
profits. A successful extranet requires a comprehensive security system and
management control. The security system should include access control, userbased authentication, encryption and auditing and reporting capabilities.
Extranets can provide an organisation with the following advantages:
•
•
•
•
It improves coordination between business partners, such as suppliers,
distributors and customers. Critical information can be made available quickly
so that decisions can be made without delays.
It provides instant feedback from customers and other business partners to an
organisation and gives consumers an opportunity to express opinions on new
products or services before they are introduced to the market.
It provides customer satisfaction, as extranets link customers to an organisation
so that they can get more information on products and services. Customers
can also order products online. E-commerce is a major benefit of an extranet.
It can reduce costs by providing information to participants in a supply
network program.
Extranets improve communication by linking intranets for access to critical
information. For example, a travelling salesperson can get the latest product
information remotely before going to a sales meeting.
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7.4
Modes of electronic communication
The internet and other electronic telecommunication devices provide an array
of capabilities for electronic communication that can help organisations reduce
communication costs. Let us look at the most common forms of electronic
communication that can be used in an organisation.
7.4.1
Electronic mail (email)
The most popular internet application is email. Email systems allow you to send
messages from your computer to any other computer using the system. Email
allows not only the transmission of short messages, almost instantly, to locations
thousands of kilometres away, but also the transmission of entire computer files
containing other kinds of data such as graphics, video and sound.
There are two main types of email. Web-based email enables you to access
your email account from any computer and store your emails on a web server.
Yahoo Mail and Google’s Gmail are two examples of free web-based email services.
Many people use these. Online email services store messages on the server, not
the user’s computer, so that users need to be connected to the internet to view,
send and manage email. The other type is client-based email, which consists of an
email program you install on your computer. Email is downloaded to and stored
locally on your computer. Examples of client-based email programs are Microsoft
Outlook, Mozilla Thunderbird and Apple Mail.
In addition to making the task of communicating easier and more efficient,
email can significantly reduce telephone bills, the cost of postage, and secretarial
costs. As a result, email has become the preferred method of communication for
many organisations, especially those with large numbers of employees.
Many organisations operate their own internal electronic mail systems.
Employees’ use of email and the internet has become an important management
issue.
Email can be used for the following (English, Basckin, de Jager & Nassimbeni,
2012):
•
•
•
•
•
•
•
•
•
•
•
transmitting documentation between an organisation and its major clients;
transferring accounting documents, for example monthly financial statements,
between the head office and branches of the organisation;
documentation of payrolls, employment and salaries;
transactions between an organisation and its bank;
transmitting documents where time and safety of documents are critical;
transmitting documents that would normally have been sent by post;
communicating exactly the same information to different people, for example
the announcement of a meeting;
contacting someone that is difficult to reach by telephone;
putting on record the information, policies or decisions reached at a
meeting;
confirming, as a matter of record, a decision or agreement;
communicating a very brief but complete report;
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•
•
giving feedback to a colleague; and
allowing one to keep in touch in an informal way with the person or people
you will be addressing.
The following guidelines, given by Krizan et al (2010), will help you to apply high
standards to email messages:
•
•
•
•
•
•
•
•
•
Make the subject line count: Use a brief and descriptive phrase to convey
your real message, for example “request for deadline”.
Keep the subject line short: If you forward a message, change the subject line
to reflect the message you are sending or it could become a cumbersome mess
of commands such as “FW: RE: FW: FW: RE: Budget update”.
Cover only one topic in each message: Limiting yourself to one topic
allows you to use the subject line effectively, helps ensure that each item
gets the attention it deserves, and permits the receiver to take action on each
message.
Make your message inviting: Use short sentences, short paragraphs,
conversational language, positive words and traditional format. Take the time
to correct errors or your readers may find your message difficult to read.
Use text position wisely and keep messages brief: Deliver the most
important information in the opening sentence or paragraph. If the message
is longer than one screen, the receiver might not bother reading it. If you need
to transmit lengthy documents via email, use the attachment feature. Be sure
your message directs the receiver to critical parts of your attachment.
Use attachments carefully: Not all computer programs are compatible
when it comes to attachments. Confirm in advance that your receiver has
the software necessary to access what you send. When you have multiple
attachments, consider sending them separately. Some email programs do not
support multiple attachments; others have limited mailbox space.
Hold your temper: Remember you are communicating with a person, not a
machine. Do not send messages when you are angry or upset.
Eliminate emoticons, and use abbreviations and initialisms wisely:
Emoticons are the symbols, for example :-) to indicate a smile, that people
use to reflect emotions; use them only in personal emails. Abbreviations
are shortened forms of words (for example, Jan for January). Initialisms are
letter combinations that substitute for words (for example, FYI for For Your
Information or QFR for Quarterly Financial Report). Learn and use the
abbreviations and initialisms your organisation has adopted, and use only
those that your receiver will recognise quickly and interpret correctly.
Know when not to use email: Because it lacks the cues supplied by body
language, voice tones and shared environment, email lacks the communication
richness of a face-to-face or telephone communication and the formality or
authority of a letter. Consider other communication channels when messages
are time sensitive, when the message is simple and the receiver is nearby, when
the topic merits face-to-face discussion or when the message contains content
that will have significant emotional impact on the receiver.
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•
•
•
•
•
•
•
Choose “reply” or “reply to all” as appropriate to the situation: Ensure that
your message gets to its target audience and no one else. Using the “reply to
all” function when only replying to the original sender is poor email etiquette.
Set the context for your response: Edit the subject line, recap the original
message or include some or all of the original message in your reply.
Avoid email chains: Replying to or forwarding email messages without
deleting unnecessary text from earlier messages creates email chains. Long
chains increase the chance that confidential or potentially embarrassing
material will reach an unintended audience. Long chains also waste reader
time and storage space.
Respect confidentiality: Never forward confidential information unless you
are authorised to do so. If you receive a blind copy (BCC), recognise that the
primary receiver does not know you also received the message. Do not mention
the message to the primary receiver or anyone else. If you do not want your
message forwarded to others, explicitly request that it remain confidential.
Proofread the message before you send it: Most systems do not allow
messages to be cancelled or retrieved after a user gives the send command.
Be courteous: Courteous email users check their messages once or twice a
day and strive to respond within 24 hours. They read items once and decide
whether to respond immediately, delete the message or move the message to a
project-related folder.
View attachments with caution: Be careful before viewing attachments.
Computer viruses are often sent as email attachments; when the attachments
are opened the virus is activated.
7.4.2
Instant messaging
Instant messaging is a service for communicating with others via a private chat
room on the internet. Many instant messaging applications are available, such
as Windows Messenger, Yahoo! Messenger, Skype, Whatsapp, iMessage and
Google Chat, and the capabilities and features vary depending on the application.
According to Krizan et al (2010), one of the fastest-growing forms of electronic
communications is instant messaging. Instant messaging is text-based computer
and mobile conferencing, involving two or more people. Instant messaging allows
spontaneous interaction in real time. If the person you want to reach is available
in your instant messaging contact list, your message appears instantly in a window
on their screen. Flexibility in accessing remotely located users in a timely and
economical manner is extremely helpful for organisations.
Instant messaging lacks the expressive features of face-to-face communication.
Instant messaging is not totally secure, because the messages are maintained on
servers controlled by the provider of the utility. Features allow the instant message
user to create a chat room, share files and links to websites, use the internet instead
of the phone to talk, view images and stream content.
A message on instant messaging must be brief and concise. A thought or two
is all you should send at one time. The content is similar to that in an email or
memo. Keep your message casual but professional.
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7.4.3
Internet telephony
Internet telephony is using the internet rather than the telephone network to
exchange spoken conversations. The protocol used for this capability is Voice
over Internet Protocol (VoIP). Bidgoli (2015) indicates that to use VoIP, you need
a high-speed internet connection and usually a microphone or headset. Some
organisations have special adapters that connect to your high-speed modem and
allow you to use your regular phone. Because access to the internet is available
at local phone connection rates, international and other long-distance calls are
much less expensive. Many organisations use VoIP to offer hotlines, help desks,
and other services at far lower cost than with telephone networks. VoIP is also used
to route traffic starting and ending at conventional public switched telephone
network phones. One major drawback is the call quality, which isn’t as good as
with regular phone lines. However, the quality has been improving steadily.
The cost savings of VoIP has the following advantages:
•
•
•
•
•
Users don’t experience busy lines.
Voicemails can be received on computer.
Users can screen callers, even if the caller has caller ID blocked.
Users can have calls forwarded from anywhere in the world.
Users can direct calls to the correct departments and take automated orders.
7.4.4
Voicemail
According to Laudon and Laudon (2014), a voicemail system digitises the sender’s
spoken message, transmits it over a network and stores the message on disk for later
retrieval. When the recipient is ready to listen, the messages are converted back to
audio form. Various store-and-forward capabilities notify recipients that messages
are waiting. Recipients have the option of saving these messages for future use,
deleting them or routing them to other parties.
Telephone answering devices are the simplest and least expensive form of
voicemail, although voicemail systems have many additional features. A major
difference is that with voicemail systems, which include store-and-forward and
routing, the user plans to leave a voice message, not to talk directly with a person
by telephone. Voice messages are like letters in that they evoke no immediate
response.
Like written messages sent by email, voice messages are placed in mailboxes.
The same message can be broadcast to numerous mailboxes simultaneously.
Voicemail can conveniently replace short, rather routine letters, such as
requests, replies to requests, notices or announcements. Voicemail messages are
useful in replacing telephone calls for which no immediate response is needed.
Another feature of voicemail is that it provides information to enquirers who
do not use a computer, but only a touch-tone telephone. For example, banks
provide information about account balances and whether particular checks have
been cleared. This information is provided by a computer, although the enquirer
has the option of being transferred to a customer service representative.
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Many of the advantages and disadvantages that apply to written messages sent by
electronic mail also apply to voicemail. When voicemail is wisely planned and
used, however, advantages far outweigh disadvantages.
When using voicemail to transmit messages, be especially careful to plan your
communications so that they are complete, clear and concise. Your words must be
clearly articulated and free of tones, words or accents that would be confusing to
people from other countries or different regions. Show callers that you do actually
use the system by personally updating your voicemail daily, providing the date,
and telling callers when you will be checking your messages. Then remember to
follow through by checking your mail and returning calls.
7.4.5
Faxes
A fax machine scans and digitises images on a page and transmits them in analogue
form over a regular phone line to another fax machine, which then reproduces a
copy or facsimile of the image. This enables you to automatically receive and send
faxes from your computer to another computer or fax machine. If the document
you wish to send is not one that you created on your computer, you can scan it
into your system first with an image scanner.
A desktop fax unit links into a telephone and allows the user to feed hard copies
of documents through the machine for transmission to another fax machine.
Computer fax modems can send an electronic version of a document to another
computer or to a stand-alone fax machine. Certain software packages allow users
to create a document on a personal computer and automatically fax it to various
locations (Treece & Kleen, 1988: 69). Fax machines offer immediate transmission,
allowing an organisation to respond quickly to requests, send orders to suppliers
and send daily reports and contracts, to name a few.
When sending faxes, it is important to consider the document – what you
are faxing – and the person to whom you are faxing. You will need to scrutinise
the information you are sending. If the information is of a sensitive nature or is
confidential, you will want to confirm with the receiver whether the document
should be faxed. If the confidential document is to be faxed, ask your recipient
about a good time to send it, because the recipient’s fax machine may have multiple
users. Then notify the recipient as to what time the fax will be sent so that they
can be at the machine to receive it (Satterwhite & Olson-Sutton, 2007: 128).
Limit your faxes to three or four pages. Always include a cover sheet with your
fax. According to Satterwhite and Olson-Sutton (2007: 129), the cover sheet should
contain the following information:
•
•
•
•
•
the recipient’s name, department, company and fax number;
the sender’s name, department, company, fax number and telephone number;
the date sent;
the number of pages in the fax (including the cover sheet); and
a phone number to call for any problems in receiving the fax.
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7.4.6
Groupware
Groupware software, according to Treece and Kleen (1988: 70), is typically installed
on a computer network and allows many users to communicate in numerous ways.
Groupware are computer applications that allow users to share organisational
information and communicate widely through the organisation and support
collaborative efforts of work groups. Employees working in offices on different
floors of the same building or even thousands of miles apart can be assigned to
a project team and communicate easily with other members of their work group.
When employees are working on common projects, efficient methods of
communication and collaboration are a must. Workgroup computing refers to IT
that helps people work on a common job. Workgroup computing is made possible by
groupware: web-based software designed for use on computer networks that allows
people to share information, coordinate activities, and centralise all information
about a project. Groupware typically includes the following capabilities:
•
•
•
•
•
•
group writing and commenting;
electronic mail;
meeting and appointment scheduling;
shared timelines;
electronic meetings; and
shared files and databases.
Groupware allows a user to review others’ ideas at any time and to add ideas for
others in the group. Documents can be posted and other group members can
comment and edit these documents. Even work notes can be stored on groupware
so that other group members can see what progress has been made, what activities
are planned, what problems have emerged, and so on.
Web-based communication may force organisations to address their corporate
culture and work processes, and the relationships between individuals and groups.
For example, web-based communication provides a method of communication that
may be less hierarchical than people in the organisation are used to. Groupware
may upset an organisation’s traditional environment for getting work done and
lead to information overload. It may also meet with resistance from people who
view the possession of information as a personal competitive advantage.
7.4.7
Teleconferencing
Teleconferencing is electronic communication between two or more people at two
or more locations. In its simplest form, it is the telephone conference call that has
been available for many years. With speakerphones in each office, the number of
participants can be greatly increased. When using two-way calls, all participants
can speak with all other participants. In one-way conference calls, oral messages
(for example statements from an organisation’s chief executive officer (CEO)) are
delivered simultaneously to many locations.
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7.4.8
Dataconferencing
Teleconferencing that includes the ability of two or more people simultaneously
is called dataconferencing (Laudon & Laudon, 2014). With dataconferencing,
users at distant locations are able to edit and modify data files (text files, such
as word processing documents; numeric files, such as spreadsheets; and graphic
files).
7.4.9
Videoconferencing
Videoconferencing occurs over telecommunications links and includes televised
pictures of the participants, either as still shots or video, like regular television.
Videoconferencing can be one-way or two-way, with several variations of each.
A frequently used method, particularly appropriate for large groups, is video
presentation of the speaker or speakers, with opportunity for telephone feedback
from audiences at widely scattered locations.
Many managers spend a large portion of their time in meetings. Because
of increasing travel costs, some organisations hold meetings by using
videoconferencing, either nationwide or in limited geographical areas. An
advantage, besides economy, is that more employees are able to participate. A
disadvantage is that teleconferencing at its best cannot take the place of face-toface interaction.
Videoconferencing can help organisations promote remote collaboration
from different locations or fill in personnel expertise gaps. Videoconferencing
usually requires special videoconference rooms and equipment that can be
very expensive. Videoconferencing systems usually include video cameras,
headsets made up of microphones and headphones, large television monitors
and a computer equipped with a device that converts analogue video images and
sound waves into digital signals, and compresses them for transfer over digital
telephone lines. On the receiving end, another device converts the digital signals
back into analogue images for display on the receiving computer screen (Laudon
& Laudon, 2014).
7.4.10
Electronic bulletin boards, discussion groups and chat lines
The merger of computers and telecommunications has allowed people to
communicate on topics of common interest. Electronic bulletin boards, discussion
groups and chat lines provide a powerful set of tools for the organisation to gather
information and scan the changing external environment. A user anywhere in the
world can use their computer to dial aboard, then pick a topic of interest and write
or read messages. There are hundreds of thousands of these boards available on the
internet, focusing upon every conceivable topic available.
7.4.11
Blogs
A blog is a website on which entries about a particular interest area are posted on
a regular basis and displayed in reverse chronological order (most recent posting
at the top). The posting often contains hyperlinks to other topics or interests and
invites readers’ comments that may be read by all viewers.
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Blogs, according to Krizan et al (2010: 130), differ from standard web pages. For
example, blogs are designed to log real-time events. The home page is regularly
updated with new information, which makes it a dynamic web page. Blogs also
have a voice, which means they may contain the writer’s opinion and they may
invite comments from the readers. The participants in a blog, called bloggers, like
the ease of posting comments. Usually information is entered into a simple form
and then submitted.
In an organisation, blogs are used to promote and discredit organisations,
to argue economic concepts and mostly to disseminate information. Many
professionals rely on blogs to keep up to date in their field. Some organisations use
blogs on their intranets to keep employees aware of new projects and initiatives.
7.4.12
Cellular phones
The cellular phone is one of the most popular means of communication. Because
it operates on satellite signals, it can be used everywhere in the world. As indicated
earlier, a cellular phone uses wireless transmission that sends signals through air
or space without being tied to a physical line.
Cell phones are cheap, powerful and appear nearly everywhere in the world. Cell
phones today are not just for voice communication; they have become platforms
for delivering digital data. With faster computer chips, compression technology
and wireless networks, cell phones are finding new uses as mobile information
appliances; for recording and downloading photos, videos, music and games; and
for accessing the internet. Cell phones are also used as alternatives to cash or credit
cards as people use them to transmit payments to scanners on cash registers and
vending machines.
7.4.13
Wikis
A wiki is a type of website that allows users to add, delete, and sometimes modify
content. The online encyclopaedia, Wikipedia, is one of the best examples
of a wiki. On a wiki website the information user can also be the information
provider. Unfortunately, wikis have a serious problem in terms of the quality
of information, because it allows anyone to modify content and this affects its
accuracy. Organisations also get corporate wikis. Corporate wikis are used for a
variety of purposes, such as posting news about product development. Companies
are also creating wikis to give customers information.
7.4.14
Social networking sites
Bidgoli (2015) states that social networking refers to a broad class of websites and
services that allow users to connect with friends, family and colleagues online
as well as meet people with similar interests or hobbies. More than 1 000 social
networks are available on the internet. The most popular social network sites in
the world are Facebook and YouTube. LinkedIn is a professional networking site,
where you can connect with professional contacts and exchange ideas and job
opportunities with a large network of professionals.
Organisations are also using social networking sites like Twitter to keep track
of customer opinions on their products. Organisations also use social networking
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sites for advertising where they include their organisations’ websites or use payper-click features.
7.4.15
Podcasts
A podcast is an electronic audio file, such as an MP3 file, that is posted on
the internet for users to download to their mobile devices or their computers.
Users can also listen to podcasts online using the podcast’s specific URL. What
differentiates a podcast from a regular audio file is that users can subscribe to it.
Each time a podcast is available, the aggregator collects it automatically, using
the URL, and makes it available for subscribers. Subscribers can then sync the
podcast with their mobile devices and listen to it whenever they want. The
subscription model makes podcasts more useful and popular and increases their
accessibility.
Organisations use podcasts to update people on their products and services,
new trends, changes in organisational structure and merger/acquisition news.
Financial institutions, for example, use podcasts to inform customers about
investment strategies, market performance and trading.
Conclusion
The importance of being able to communicate effectively can never be
overemphasised. Communication forms the basis of all business transactions in
an organisation. It is important for every manager and employee to be aware of the
basic elements of communication, not just oral communication but also written
communication. In Chapters 5 and 6 we discussed the basics of communication
in general and written communication. Everything addressed in these chapters is
important when it comes to electronic communication, which is nothing more
than communicating by means of an electronic device.
In the modern age, IT is forcing organisations to communicate increasingly
through electronic equipment every day.
The technical expertise of the administrative manager is helpful in making
effective decisions concerning the modes of electronic communications in an
organisation. In most instances, the efficiency of the system will be affected by
the accuracy with which the electronic communication needs are assessed.
To assist the administrative manager in making decisions about electronic
communication modes, this chapter addressed issues like telecommunication
systems, telecommunication networks, the internet and various modes of
electronic communication, for example email, instant messaging, wikis, social
networking sites, podcasts, voicemail, faxing, teleconferencing, videoconferencing,
dataconferencing, groupware, electronic bulletin boards, discussion groups, chat
lines and cellular phones.
The widespread use of various electronic tools has opened the door for millions
of employees to become telecommuters. Telecommuters can work in virtual offices,
whether those offices are in their homes, in hotels, on aeroplanes or in motor
vehicles. We will address the issue of the virtual office or workplace in Chapter 11.
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Self-assessment
1.
Briefly explain why electronic communication is important in modern
organisations.
2.
What type of communication channels are used in telecommunications?
3.
How do digital and analogue signals differ from one another?
4.
Differentiate between the star, bus, ring and hierarchical network topologies.
5.
What role does the internet play in terms of inter-organisational
communications?
6.
Indicate for what functions PANs, LANs, WANs, and MANs are used.
7.
What factors can be used to determine the most appropriate electronic
communication medium?
8.
What is electronic mail and how can it be used?
9.
Indicate how voicemail can be used effectively in an organisation.
10. How can groupware be used in an organisation?
11. Differentiate between tele-, data- and videoconferencing.
12. How can organisations use social networking sites to their advantage?
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References
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Bidgoli, H. 2015. MIS5. 5th ed. Boston: Cengage.
English, J., Basckin, V., de Jager, K. & Nassimbeni, M. 2012. Professional
communication: Deliver effective written, spoken and visual messages. 3rd ed. Cape
Town: Juta.
Haag, S., Cummings, M. & McCubbrey, D. J. 2012. Management information systems
for the information age. 9th ed. New York: McGraw-Hill.
Krizan, A. C. B., Merrier, P., Logan, J. & Williams, K. 2010. Business communication.
8th ed. Mason: Thomson South-Western.
Kroenke, D. M. 2013. Using MIS. 5th ed. Essex: Pearson.
Laudon, K. C. & Laudon, J. P. 2014. Management information systems: Managing the
digital firm. 13th ed. Essex: Pearson.
Lawrence, E., Corbitt, B., Fisher, J., Lawrence, J. & Tidwell, A. 1998. Internet
commerce. 2nd ed. Milton: John Wiley.
Mersham, G. & Skinner, C. 2001. Business and organisational communication.
Sandown: Heinemann.
Nel, R. 2000. Office practice for management assistants. Book 2. Sandton: Heinemann.
Quible, Z. K. 1996. Administrative office management: An introduction. 6th ed. New
Jersey: Prentice-Hall.
Quible, Z. K. 2005. Administrative office management: An introduction. 8th ed. New
Jersey: Pearson.
Satterwhite, M. L. & Olson-Sutton, J. 2007. Business communication at work. 3rd ed.
New York: McGraw-Hill.
Stair, R. M. & Reynolds, G. W. 2014. Fundamentals of Information Systems. 7th ed.
Boston: Cengage.
Treece, M. & Kleen, B. A. 1988. Successful communication for business and management.
7th ed. New Jersey: Prentice Hall.
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Chapter 8
How to conduct effective meetings
Learning outcomes
After you have studied this chapter, you should be able to:
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••
••
••
explain the nine stages in the cycle of meetings;
explain what a meeting is;
explain the purpose and objectives of a meeting;
explain the difference between the various types of meetings;
discuss how to prepare for a meeting;
draw up a notice for a meeting;
draw up an agenda for a meeting;
explain the duties of a chairperson;
explain the duties of the secretary before, during and after a meeting;
understand the basic meeting terminology;
explain the correct procedure to follow at meetings; and
take down and draw up minutes.
Introduction
Meetings in today’s organisations are a fact of organisational life. Meetings are at
the heart of management and holding effective meetings is an essential managerial
skill. Research has shown that managers spend about 25 per cent of their day in
meetings and consider about a third of them to be unproductive (Ober, 2009: 87);
a lot of managers find that meetings are a waste of time.
Gutman (2013) has developed a formula to calculate the expense of a meeting.
Given the fact that “time is money”, an organisation can determine the cost of a
meeting and maybe this will be a motivation to conduct effective and efficient
meetings. The formula to calculate the cost of a meeting is as follows:
Add up the annual salaries of those attending the meeting
Add 25% on cost + 25%
Divide by 52 (weeks of the year) ÷ 52
Divide by standard hours per week (for example 40) ÷ 40
Multiply by time of meeting (for example 2 hours)
Add in any costs of room hire or refreshments
Juta_administrative_management_4th_01_EV.indd 169
=
=
=
=
=
×2 =
+
=
R____________
R____________
R____________
R____________
Cost per hour
R____________
R____________
Cost of meeting
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Meetings can be inspiring, energising and fun. They can also be dispiriting,
demotivating and dull. Unfortunately, too many meetings are ineffective and
unproductive. Stewart et al (1996: 49) advise: “When the outcome of a meeting is
to have another meeting, it has been a lousy meeting”.
It is therefore necessary for the administrative manager to have a very good
understanding of everything about meetings to be able to conduct effective
meetings. To help the administrative manager in developing this skill, this chapter
will focus on clarifying the purpose of meetings, the different types of meetings,
how to prepare for meetings, what the duties of the chairperson and secretary are,
basic meeting terminology used, the correct procedure to follow at meetings and,
lastly, how to compile the minutes.
The following elements may lead to more meetings within an organisation: the
development of teams in organisations, project-based working, cross-functional
teams, self-managed teams, outsourcing, partnerships with clients, internal market
relationships, increasing numbers of associates, contracted workers, the growth in
consultancy, and networking within departments of organisations.
8.1
What are meetings?
Erasmus-Kritzinger et al (2010: 263) define a meeting as follows: “A meeting is a
gathering of two or more people to discuss matters of mutual concern, and to take
and implement any necessary decisions relating to these matters.”
A meeting provides the opportunity for communication on any subject. In
an organisation, a meeting is used for various purposes, such as the following as
outlined by Penrose et al (2001) and Mosley et al (2005: 296):
•
•
•
•
•
•
•
•
•
•
•
•
•
to accept reports from participants;
to reach a group judgement or decision;
to analyse or solve a problem;
to gain acceptability for an idea, programme or decision;
to achieve a training objective;
to reconcile conflicting views;
to communicate essential information to a group;
to relieve tension or insecurity by providing information and management’s
viewpoints;
to ensure that everyone has the same understanding of information;
to obtain quick reactions;
to reactivate a stalled project;
to demonstrate a product or system; and
to generate new ideas or concepts.
Meetings should not be held without a reason or purpose. This wastes time and
is counterproductive and frustrating for the employee who has work to do. On
the other hand, meetings do serve to promote two-way communication, because
everyone’s inputs, reaction and feedback are immediately available.
To hold a successful meeting, the right people must be invited and must be
well prepared in advance about the purpose of the meeting, so that they are
in a position to make a contribution. Those who should attend must therefore
receive prior notice, and additional information must sometimes accompany the
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agenda, which we will look at later. In addition to these factors, the skill of the
chairperson and the environment in which the meeting takes place will also
play a role.
It is often difficult to get all the role players together on a specific day and at
a specific time. As a result of irrelevant discussions, meetings can also become
long and boring. To ensure that meetings are successful and that the objectives
are achieved, they must be carefully planned and the necessary preparations must
be made with everyone who needs to attend the meeting. Before we look at the
preparations of a meeting let us determine all the different types of meeting.
8.2
Types of meeting
There are many different types of meeting. They may differ in terms of the number
of people who attend the meeting and the degree of formality with which they are
conducted. The procedures of statutory meetings, for instance, are determined by
law, while other formal meetings are controlled by the rules and regulations of the
constitution of the society or the memorandum of association of the organisation.
Meetings can also be very informal, such as departmental and sports club meetings
and also some management meetings.
8.2.1
Public meetings
Public meetings are open to anybody who may wish to attend them, for example
a ratepayers’ association meeting, a political party meeting, a nature conservation
meeting or a public religious meeting. Public meetings are usually held to discuss
important socio-economic and political topics. No binding decisions are taken
at these meetings. Notice of public meetings is given in the mass media and by
means of posters. Public meetings are not held on a regular basis – only when a
need for such a meeting arises.
8.2.2
Private meetings
Private meetings are normally restricted to those who have officially been elected
as members of a committee of some sort. They deal with issues that are of interest
only to a select group of people in the organisation. These meetings are often open
to others (by invitation only), but their role is limited to that of observers without
the right to participate freely in discussions or to vote.
Private meetings are held according to the constitution of the organisation. A
constitution is a set of rules to control the activities of the organisation. Binding
decisions are made and members are free to vote.
Examples of private meetings include (Stewart et al, 1996: 57):
•
•
•
committee meetings of voluntary associations, such as church groups and
social and sports clubs;
meetings of statutory (law-making) bodies, such as central and regional
parliament, local authorities, governing bodies of schools and councils of
universities, annual general meetings (AGMs), board meetings; and
business meetings of organisations, that is, the frequent meetings as well as ad
hoc committee and standing committee meetings.
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8.3
Cycle of a meeting
Taking the cycle of a meeting into consideration when planning and arranging
meetings will assist in adhering to deadlines and making sure that everyone
involved knows when they can expect what to happen.
The stages in the cycle of a meeting that takes place monthly normally include
the following (Gutman, 2013):
1.
2.
3.
4.
5.
6.
7.
8.
9.
8.4
Deadline of agenda items. This is normally eight days before the next meeting.
Any item received after this date can be dealt with under General or needs to
stand over until the next meeting. All papers for discussion at the meeting
must be submitted by this date so they can be included in the agenda.
Draft agenda (seven days before the meeting). The secretary should put
together the agenda and pass it to the chairperson for approval.
Agenda dispatched (one week before the next meeting). Each participant
should receive an agenda and all the papers that are to be discussed. The
agenda should be cross-referenced to indicate which papers relate to each
agenda item.
Briefing (one or two days before the meeting). The chairperson and minutetaker should meet to discuss the content of the meeting, identify any problem
areas and deal with any concerns either party has about the meeting.
The meeting. If everything was planned and organised properly, the meeting
should be a success (see the rest of the chapter for the three phases in planning
and conducting an effective and efficient meeting).
First draft of minutes (one day after the meeting). The first draft of the minutes
is normally typed as the minute-taker perceived the discussions. The minutes
may well contain gaps where the chairperson’s guidance is needed, but should
be as near complete as possible.
Chairperson’s approval (two to three days after the meeting). The chairperson
should check the minutes for factual accuracy and political correctness, i.e. no
phrasing that may cause offence or does not represent the view of the group.
No extra information may be added by the chairperson or be changed to suit
personal views.
Minutes dispatched (two to three days after the meeting). The minutes should
be sent to all committee members and anyone else who needs a copy. Any
papers that were distributed at the meeting should be attached for those who
did not attend.
Routine administration. This includes aspects like the booking of the venue
for the next meeting and making all the necessary arrangements for the next
meeting.
Steps in meeting management
After the primary purpose of a meeting has been determined, it is essential to give
attention to the following three phases of meeting management: planning the
meeting; conducting the meeting; and following up after the meeting has been
held. These three steps will ensure that the discussion is productive and efficient
(Walker, 2015).
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8.4.1
Planning the meeting
When a meeting is considered, the initiator must recognise that they have an
obligation to show respect for all participants and the time they spend attending
the meeting. Before notifications are sent out to initiate any type of meeting, Walker
(2015) and Newman (2015) suggest that the following questions be answered:
•
•
•
•
•
•
•
To achieve the purpose of the meeting, which participants should be
considered?
Meetings can only be productive when attended by the right people; do not
invite people who may not be interested. The meeting must be attended by
individuals who have direct experience with the issues to be discussed or
decided and have a stake in the outcome of the discussions.
What are the key roles of each participant in the meeting?
Will the setting be formal or informal?
What agenda will be most effective and efficient for the purpose of the
meeting?
What will be the best format for the meeting?
A decision needs to be taken on how to bring the participants together in terms
of when and where they will meet. Will the meeting be by teleconferencing,
videoconferencing, on-site of the business premises or away from its premises?
•• Face-to-face meetings are best for building strong relationships, increasing
social interaction, allowing for difficult discussions and complex decisionmaking and keeping people focused. The downside of face-to-face meetings
is that they can lead to excessive socialising, that they are expensive and
that they have an unproven return on investment when large groups have
to travel.
•• Online meetings are best to allow teams to work on documents together
(with screen-sharing capabilities), provide an inexpensive alternative to
a face-to-face presentation and are free for small groups and limited use.
Online meetings can fail because of the technology, which sometimes
requires a separate telephone connection and leads to distractions when
people multitask or forget to mute the call.
•• Conference calls can be used to accommodate one-way and two-way
communication, and to connect multiple people in other locations on one
medium. They cost little and are easy to set up. Conference calls can be
negative as they can cause overlapping conversations because participants
lack nonverbal cues, they can fail when connections are lost and, as with
online meetings, they can lead to distractions.
•• Videoconferences can provide the best alternative for face-to-face meetings
and the cost is very low, as people are using their smartphones and desktop
systems. The disadvantages of videoconferences are that they can fail
because of technical problems (or because people do not know how to
use the technology) and require equipment that is too expensive for most
businesses.
What information, equipment, and tools are required to conduct the meetings?
How much time will be needed for decision-making or to obtain the
information needed to achieve the results of the set objectives?
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After answering the above questions, the following guidelines can assist in
conducting a successful meeting (Walker, 2015):
•
•
•
•
Give advance notice to all participants.
Provide information such as the date, time (starting and predicted ending),
location (include travel arrangements, if needed) and include the name of
participants, their key roles, titles and business affiliation.
Design a structured agenda with the stated objectives, a list of the main topics
of interest, and time allocated for each topic of discussion. Attempt to group
related topics together in order to keep the meeting flowing in an orderly
fashion.
Provide the agenda in advance to all participants so they can be prepared.
Confirm that all participants have received the notice and agenda of the
meeting.
To hold a valid, legal meeting, certain requirements must be met. This means
that:
•
•
•
the person holding the meeting must have the authority to do so;
a proper agenda must be drawn up and sent out to each member in good time;
and
the procedure followed must be in accordance with the written constitution of
the organisation.
An organisation’s constitution, also known as the memorandum of association or
terms of reference, consists of the following elements:
•
•
•
•
•
•
•
•
•
Name of the organisation
Date of approval of the constitution
Objective(s) and function of the organisation
Requirements for membership
Executive committee:
•• composition of the committee by election
•• duties and privileges of office-bearers
•• term of service of office-bearers
•• provision for co-option (appointment of committee members by
nomination instead of election)
Nomination of members
Procedure at meetings:
•• notice of meetings and how many full days before a meeting notice should
be given
•• requirements when motions are raised
•• how large the quorum should be, or if the members present will constitute
a quorum
•• voting
•• procedure regarding the amendment of the constitution
•• proxy to vote
Arrangements regarding the suspension of a member because of misconduct
Conduct at the dissolution of the organisation
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•
•
Commencement of the constitution
The kinds of meetings and how often meetings should be held
Normally a secretary is responsible for the preparations for a meeting. The secretary
must therefore inform all the members who must attend the proposed meeting.
Before the meeting takes place, there are also various other duties for which the
secretary is responsible:
•
•
•
•
•
•
•
•
•
•
•
Type up and send out the notice. Matters to be discussed must be determined.
An agenda must be typed up or written out.
Type up or write out the minutes of the previous meeting.
Note the names of the members who have excused themselves and the reason
for their absence.
Reserve a venue. Make sure that the venue is large enough and arrange for
refreshments if necessary.
Provide items such as pens, notebooks, an overhead projector, etc. in the
venue.
Prepare the documents for the meeting, for example reports, files, notepaper
and stationery.
Gather information and reports that may be required. Place together the
documents to be handed out to everyone. Examples of such documents are the
following: an agenda, investigation reports, budgets, minutes of the previous
meeting, annual reports, financial reports, attendance register and voting
papers (if necessary).
Arrange for parking for people who must attend the meeting from outside the
organisation.
Make the necessary arrangements when someone must be collected, for
example, from the airport.
Start working on the chairperson’s agenda, in cooperation with the chairperson.
Prepare name tags if some members do not know each other.
8.4.2
Determining the logistics
When scheduling a meeting, the purpose and type of meeting will influence
the length and time of the meeting. For example, if a meeting requires extensive
discussion and creative problem-solving, do not schedule it for the end of the
workday when members may be exhausted, emotionally and physically. A
meeting’s success will depend on the timing and location of the meeting, room
arrangements, types of audio-visual equipment and any other materials needed for
the meeting. If these aspects are determined carefully it will increase the likelihood
of achieving the goals of the meeting. With regards to seating arrangements, the
following arrangements can be considered:
•
•
•
A rectangular arrangement is most commonly used for formal meetings, with
the chairperson sitting at the head of the table, farthest from the door.
A circular arrangement is more informal and encourages equal sharing of
information and leadership functions.
A U-shaped set-up is desirable for larger meetings because it allows each
attendee to see all other meeting participants.
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•
•
A satellite arrangement is often useful for training sessions or when participants
are to be divided into groups. This arrangement allows the chairperson to
move freely around the room, addressing each group separately.
A classroom arrangement is appropriate when most of the information is one
way – from the leader to the audience; but even in this set-up, the leader should
encourage interaction among group members.
Rectangular
Satellite
Circular
Classroom
U-shaped
Figure 8.1
Meeting room set-up
Source: Adapted from Ober (2009: 90); Barker (1997: 37–38); Dobson (1999: 72–73);
ASTD (2009: 52)
For virtual meetings Newman (2015) states that the following aspects need to be
considered:
•
•
•
•
Prepare the main meeting room. If there are several people in one location,
use the same guidelines as for face-to-face meetings.
Send instructions with your meetings invitation. Specifically include detailed
instructions for using the technology and encourage people to log on early.
Using the technology should be practised well in advance.
Have technical support and all participants’ email and phone numbers ready
in case you need it.
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•
•
Log on five to ten minutes early. Great the people as they enter and make sure
they can see and hear you.
Always have a backup plan. Bring a speakerphone for a videoconference in case
the system fails. For an online meeting, prepare the email materials in case
participants can’t see them. This can even be emailed before the meeting starts.
8.4.3
The notice of the meeting
The notice of the meeting announces information about an upcoming meeting.
The notice is usually sent between three days to two weeks before the meeting,
depending on the type of meeting.
The secretary can inform the members verbally by telephone of the meeting, or
in writing via email or by distributing a hard copy. The intended readers and type
of meeting determine whether a formal or an informal layout and style of writing
should be used.
The notice must comply with the following requirements:
•
•
•
•
•
•
•
•
•
It must be sent out in accordance with the constitution of the organisation
and rules must be adhered to.
Look at the regulations. They indicate how notice must be given and the
period of notice required.
The notice must be brief yet specific. A specific place, date and time must be
given, and the reason for the meeting. If people do not know exactly where
the place is, clear directions must be included.
The nature of the meeting (for example an annual general meeting) must be
given.
A notice must contain the name and signature of the office-bearer responsible
for serving the notice.
The date on which the notice is sent out must be stated.
All members who are entitled to attend the meeting must receive notice of the
meeting. If this is not done, the meeting is invalid.
The most important matters to be discussed must appear on the notice. The
agenda is also attached.
After notice has been given, the meeting must take place. It may not be
cancelled.
An example of the notice can be seen in Figure 8.2. (See next page.)
8.4.4
The agenda
The agenda is a written list of matters to be discussed at the meeting. The agenda
is compiled and sent out to the members with the notice of the meeting. This will
help the members to prepare for the meeting.
The sequence in which matters will be dealt with (and will therefore be placed
on the agenda) is decided by the organisation. The agenda is binding and no
deviations may be made from the sequence, except in exceptional circumstances,
and with the permission of those present at the meeting.
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EBCIS enterprises
Notice of meeting
Notice is hereby given that the next management meeting will be held on
Tuesday, 21 October 2017 at 08:30 in the Executive Auditorium, ground floor,
EBCIS Enterprises, 69 Darling Street, Alberton. The chairperson is
Mr H. van Niekerk.
E. Dlamini
E. Dlamini [signature]
CONVENOR
69 Darling Street
ALBERTON
1450
14 October 2017
AGENDA
Time
Item Topic
Discussion leader
8:30–8:35
1.
Opening and welcome
Hardie van Niekerk
2.
Attendance register
Elli Dlamini
8:35–8:40
3.
Apologies
Elli Dlamini
8:40–8:45
4.
Finalisation of the agenda
Hardie van Niekerk
8:45–8:50
5.
Ratification of the minutes of the
previous meeting
Hardie van Niekerk
6.
Matters arising
8:50–8:55
6.1
Item 4.3 New telecommunication
system
Louise Jacobs
8:55–9:00
6.2
Performance appraisals
Toby Naidoo
7.
New matters for discussion
9:00–9:15
7.1
Staff development
Toby Naidoo
9:15–9:30
7.2
Teambuilding
Hardie van Niekerk
9:30–9:40
7.3
Annual golf day
Mohammed Kara
9:40–9:50
7.4
Upgrading of computers
Cyril Fatoki
9:50–9:55
8.
General
Hardie van Niekerk
9:55–10:00
9.
Date of next meeting
Hardie van Niekerk
10:00
10.
Termination
Hardie van Niekerk
Figure 8.2
Example of a notice and an agenda
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Chapter 8 – How to conduct effective meetings
The purpose of the agenda is to:
•
•
•
•
•
•
identify the objectives of the meeting;
list the person responsible for each item of business;
define the time allocated to each topic, if appropriate;
ensure that no matter is left out of the discussion;
ensure that matters are dealt with in the correct sequence; and
give members the opportunity to prepare themselves for the meeting.
Let us briefly discuss some of the points mentioned in the agenda example in
Figure 8.2.
Opening and welcome: The chairperson welcomes the members and continues
with proceedings.
Attendance register: A list is circulated on which all the members present fill
in their names and sign. The chairperson must now declare the meeting properly
constituted and therefore legal. To do this, proper notice must have been given of
the meeting, a quorum (discussed later in more detail) must be present and the
properly-appointed person must chair the meeting.
Apologies: The names of the members who have excused themselves are read
out and minuted.
Finalising the agenda: This is when additional matters may be placed on the
agenda under Matters arising or General.
Minutes of the previous meeting: The chairperson requests that the secretary
read out the minutes of the previous meeting. The reason for this is that the
meeting must approve the minutes of the previous meeting (declare them an
accurate record of proceedings). If the minutes have been circulated among all the
members in advance, a motion may be passed to have the minutes taken as read,
in which case the minutes are not read out.
Someone who was present at the previous meeting may propose (suggest) that
the minutes be approved (or adopted) as correct. A seconder is requested. These
people’s names and the fact that the minutes of the meeting were approved are
then minuted. Amendments may be made. They will also be minuted, and the
chairperson and secretary will then initial them.
Matters arising: An issue that has appeared once on the agenda and has not
been dealt with must appear on all following agendas until it has been finalised.
Points for discussion and general: The matters mentioned are discussed and
decisions taken.
Date of the following meeting: This is announced and minuted.
Termination (conclusion): A meeting is terminated once all the points on the
agenda have been dealt with. The time of conclusion is minuted. The chairperson
announces that the agenda has been worked through completely and declares the
meeting terminated.
Note: A meeting is terminated, not closed or adjourned. Closure is the term used to
stop the long discussion of a formal motion, and adjournment applies to a meeting
that is postponed due to disorderliness, a late hour or for some other reason.
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When the agenda is drawn up, the secretary keeps a special copy for the chairperson.
The chairperson’s agenda is divided into three columns. In the left-hand column is
the ordinary agenda. The centre column contains particulars for the chairperson
about who proposed the motion and any matter that should be remembered with
regard to the issue. The right-hand column is used for details on decisions, names
of people elected to committees or members who have been charged (entrusted)
with special duties.
8.4.5
Duties of the chairperson and secretary
The two most important office-bearers at any meeting are the chairperson and
the secretary.
The chairperson
Every meeting must have a chairperson. If it does not, one must be chosen. The
constitution of an organisation will determine how the chairperson should be
chosen. The chairperson is usually chosen for a certain period, and must chair all
the meetings in that period.
In the absence of the chairperson, the vice-chairperson will hold the meeting.
In that case, however, although the chairperson may return while the meeting is
in progress, the vice-chairperson will stay in the chair. The acting chairperson
may, however, voluntarily leave the chair, and in this case they will be regarded as
having resigned as acting chairperson.
If the meeting is properly convened (called together by notice etc.) and neither
the chairperson nor the vice-chairperson arrives, those present may, if they
constitute (make up) a quorum, elect an acting chairperson and continue with
the activities for which the meeting was called. The acting chairperson then has
the same rights and duties as the chairperson until the meeting is concluded.
Duties of the chairperson
A chairperson will typically have the following duties:
•
•
•
•
•
•
•
•
•
•
to help the secretary to draw up an agenda;
to open the meeting;
to “constitute” the meeting (that is, declare the meeting valid);
to ensure that a quorum is present before the meeting starts;
to obtain the approval of the members for the minutes of the previous meeting;
at the start of the meeting, to ask whether there are matters additional to the
agenda and ensure that the points are handled in the order in which they
appear;
to ensure that all the rules and regulations of the constitution of the
organisation are observed during the meeting;
to maintain order – the chairperson should ensure that members do not talk
too much and that quieter members are also encouraged to have their say;
to ensure that speakers are not interrupted and that they get a chance to state
their points of view;
to ensure that no deviation is made from matters on the agenda;
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•
•
•
to ensure that voting takes place according to the rules of the meeting;
to conclude the meeting and give permission for its termination; and
to be responsible for signing the minutes once they have been approved.
Powers of the chairperson
Everyone attending a meeting is required to obey the chairperson. If this is not
done, the offending person may be excluded (removed) from the meeting. Order
must be maintained and the discussion must be kept as impersonal as possible.
Speakers may address only the chairperson.
The chairperson has the same rights as the members. They have an ordinary
vote like a member. The chairperson may even propose and vote for themselves.
However, the chairperson may not chair the meeting while voting takes place if
their name is included. The right to vote for oneself is seldom exercised.
The chairperson has the power to adjourn the meeting when disorderliness
(including organised opposition or resistance) makes it impossible to continue. In
any other case, the chairperson would not be able to do this without a majority
decision. The chairperson may summarise the discussions before a vote. However,
this must be done objectively and impartially. If a chairperson acts irregularly, an
interdict may be obtained from a court to prevent them from continuing with the
meeting. If time does not allow for this, the decisions following such irregularities
may be set aside (declared invalid) by the court.
The secretary
The role of the secretary (sometimes also called a committee officer if there is a
meeting secretary) depends on the type of meeting and whether this person is
secretary for the chairperson or the committee. Whatever the role, however, the
secretary will probably be expected to keep minutes. (The minutes are discussed
later.)
When the secretary acts as secretary to the chairperson, the role will be mainly
supportive during the meeting, having the right documentation available, and
conducting follow-up actions with the chairperson.
When the secretary acts as secretary to the committee, the involvement is even
greater. More detail and documentation will have to be attended to. Individuals
must be contacted and follow-up work done. Proceedings must also be planned
and organised. When you are the official committee secretary, you can delegate
the tasks, but you must ensure that they are done.
Duties of the secretary before a meeting
Before a meeting can take place, certain tasks are the responsibility of the secretary.
These tasks were discussed earlier in Section 8.4.1.
The secretary can draw up a list of duties to assist in the preparation. Not all
situations are the same and it may not be necessary to perform all the tasks. On
the other hand, additional tasks may need to be performed.
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The secretary can use the following template when preparing for a meeting, giving
the date and time under “When to start” and “When to finish”, e.g. the people in
charge of reserving venues under “Who else is involved?”, and how they will know
the duty has been completed under “Check before meeeting”. This template can be
adapted to suit a specific situation.
Duty
8.5
When to start
When to
finish
Who else is
involved?
Check before
meeting
Conducting the meeting
Planning for a meeting is very important and contributes a great deal to the
success of the meeting, but the manager’s job actually starts when the meeting
begins. A manager must be a leader during the meeting, keeping the group
focused on the point being discussed and encouraging participation. Grant and
Borcherds (2015) indicate that a chairperson (the manager) must prepare very
well before a meeting.
A meeting that starts badly will take time to recover. It is a good idea to work
out an opening procedure in some detail; it will steady nerves and put everybody
at ease.
•
•
•
•
•
•
Start on time. If you do not, there will definitely be late arrivals for the next
meeting. Anybody who arrives late at a meeting that started promptly will
soon get the message.
State the purpose of the meeting. Refer to the agenda, and indicate the common
ground that exists within the group to reach this goal.
Make all suitable introductions. Check that people know one another. Attend
in particular to new members.
Announce the procedures and timetable of the meeting. Tell members
attending how long the meeting will last, and times of breaks. Indicate how
they are expected to contribute and how discussion will be controlled.
If a new group is chaired:
•• identify and agree to the group’s purpose;
•• give information on everybody attending; and
•• invite everybody to introduce themselves.
If the group is well established:
•• identify the purpose of the particular meeting;
•• note any changes in circumstances since the last meeting;
•• introduce new members or guests;
•• praise achievements of the group or individuals since the last meeting;
•• acknowledge new difficulties; and
•• reaffirm the determination of the meeting to meet the challenges.
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8.5.1
Managing each item
Lead by example and keep the members focused on the purpose of the meeting.
Manage the conversation by asking questions, listening, energising, praising,
accepting and occasionally disciplining. The chairperson may wish to keep the
following suggestions in mind:
•
•
•
•
•
•
•
•
Refer to the agenda at all times.
Do not start an item before concluding the previous one.
Clarify the purpose of the item.
Start the discussion positively.
Remind the group how much time is allocated.
Give any relevant background information.
Try to change your approach from time to time.
Ensure that the meeting does not waste time.
8.5.2
How to handle motions
A motion is a proposal made by a member of the meeting for discussion by the
meeting. After the discussion, those attending the meeting vote on the motion
and take a decision. In most cases, a motion must be submitted to the chairperson
in writing before the meeting starts.
A motion is therefore a suggestion or point of discussion that introduces an
exchange of ideas or a debate that must lead to a decision.
If a debate or discussion arises without a motion being submitted, such a debate
will have no direction and will waste time. This should not be permitted. A motion
is intended to introduce a plan or suggest a possible solution.
A motion must always be put positively. A negative motion must immediately
be ruled out of order.
A motion must be seconded, because if only one person at a meeting is in favour
of a motion, it would waste time to debate it. The proposer and seconder must sign
the motion. The motion should be introduced with the words: “Mr Chairman”, or
“Madam Chair, …”, “I propose that…”.
A motion must have relevance to the meeting. When the motion is debated,
the chairperson must ensure that anyone who wants to speak has a turn. The
chairperson acts almost as a gatekeeper. If someone talks too much, the chairperson
must “close the gate”, and if someone wants to say something, the chairperson
must “open the gate” by allowing the person to speak. At the end of the discussion
the proposer will reply. However, this happens only if there is resistance to the
motion.
A motion may be withdrawn only with the permission of the meeting. The
same motion may then be proposed again at the next meeting. If the motion is
then rejected, it may be proposed again only after a certain period (for example
four months).
Only one motion may be discussed at a time, and it must be dealt with
completely before the meeting continues to the next one. A motion that is adopted,
becomes a decision. A decision cannot be revoked at the same meeting. However,
if a misunderstanding occurred or there was some irregularity with regard to a
decision, it may be amended immediately.
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8.5.3
How to handle amendments
An amendment is an alteration in terms of a motion for discussion at a meeting.
Amendments may consist of the deletion of words, the insertion of words or the
replacement of words by other words.
A motion for amendment must be properly proposed and seconded. It is
desirable that it is put in writing and signed, but it may also be proposed at a
meeting without notice. A motion for amendment of another motion is often
proposed while the original motion is being discussed.
An amendment may not deal with matters beyond the proposed motion. If it
does, it may be set aside. An amendment must also, like a motion, be seconded.
It may be withdrawn if the seconder and the rest of the members present at the
meeting grant their permission. Any number of amendments may be proposed
during a meeting, but any one member may not propose or second more than one
amendment. The person proposing the amendment has no right of reply after the
debate, although the proposer of the original motion may reply to the amendment.
If an amendment is rejected, the original motion still stands. Other amendments
may be made to it. When an amendment is adopted, it takes the place of the
original motion, which no longer exists.
The approved amendment of the original motion is now known as the
substantive motion and is dealt with in the same way as a motion, and voting
takes place on the issue. The proposer of the original motion may also participate
in the voting.
Any member may propose an amendment, and the chairperson may not refuse
permission for this. They may only decide whether the motion for amendment
constitutes a point of order or not.
8.5.4
Revoking decisions
A decision may not be revoked at the same meeting at which it is taken. This may
happen only at the following meeting. Sometimes the regulations attach a certain
period to a decision, and this period must then pass before the decision may be
revoked.
When members wish to revoke a decision at a meeting, all members must first
be informed. If the decision must be revoked urgently, an extraordinary meeting
must be called for this purpose.
However, when a decision has been taken but a misunderstanding occurred
concerning the circumstances, or if an unlawful or impractical decision was taken,
it may be revoked immediately.
The chairperson must guard against partiality, particularly when concluding
the debate.
8.5.5
Holding a vote
Once a motion has been discussed and concluded, the chairperson reads out the
motion or amendment and asks the gathering to vote on it.
If the chairperson sees that the meeting is fairly unanimous about a motion,
they may ask whether anyone opposes the motion. If no-one does, the motion can
be adopted. If anyone objects, voting must take place.
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The chairperson may also ask those members who are in favour of a motion to
answer yea (yes) and those against to answer nay (no). The members will answer
simultaneously, and the chairperson will determine the majority depending
on what they hear. The motion is then accepted or rejected, depending on the
majority decision.
If someone objects in one of the above cases, a formal vote is held. The
chairperson asks the members in favour of the motion to raise their hands. After
that, those who are against will be asked to raise their hands. The chairperson
may do the counting, but they will usually ask one person from each side (for
and against) to help. If there is any doubt, the voting must take place again. No
discussion of the motion that is being decided is now permitted.
Immediately after the results of a vote are publicised, any member may
demand a division or a voting by division and the chairperson must grant this.
The chairperson asks every member for their vote, and it is recorded. When the
meeting is too large for this, the members are divided physically into two groups
and the votes of each group are counted.
A member may also, immediately after the first announcement of results,
demand a secret ballot, and the chairperson must then comply with this request.
Ballot papers are distributed to everyone and are collected once they have been
filled in. One person opens the ballot papers and reads out the contents (for
instance for or against), or reads out the name indicated (when voting is for the
election of a person). Papers with similar ballots are placed in a pile, counted, and
the number of votes recorded. The papers are destroyed after the announcement
of the result, unless the constitution states otherwise. A secret ballot is usually held
when voting is for the election of members, or when it is possible that members
may withhold their vote if it takes place openly.
There are various ways of voting. Any method is right so long as it fairly
reflects the decision of the majority at the meeting. When the results end in a
draw, the motion is rejected or the chairperson may exercise a casting vote, and
the motion is then accepted or rejected on this basis. After a vote the chairperson
must announce the number of votes for and against. If the voting was unanimous
one way or another, the chairperson may, for the sake of the minutes, announce
that the motion was unanimously accepted or rejected. Where the majority is very
large, they may say that the motion was voted in or out by a large majority. But
what happened to the vote of the proposer if everyone rejected the motion? The
member may have changed their mind and voted against their own motion.
A new chairperson is elected as follows:
•
•
•
•
The candidates are nominated and seconded. Voting is by secret ballot.
To be elected, the person must get more than half of the votes (a clear, absolute
or overall majority), unless the regulations determine otherwise.
If there are more than two candidates, rounds of voting take place and in each
round the candidate with the fewest votes falls away. The voting is repeated
until only two remain, one of whom must eventually receive a clear majority.
Where more than one person must be elected, each must get a clear majority
before they are appointed. Voting therefore takes place separately for or against
each candidate to obtain a clear majority.
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•
•
Where the votes end in a draw, the result can be determined, for instance, by
flipping a coin.
Remember, the outgoing chairperson also has a vote.
8.5.6
Summarising
All meetings go through periods of relative calm: between or within items.
The group is uncertain of the next move, the conversation dries up, begins to
go in circles or degenerates into chat. At times like these the chairperson should
intervene with a summary. Good timing is essential. The chairperson should
not try to summarise when the discussion is in full swing. The chairperson can
summarise as follows (Barker, 1997: 60):
•
•
•
Summarising within items: Control contributors by summarising what they
said when they ramble, repeat themselves or become anecdotal. Mark the end
of one phrase of the conversation with a summary before inviting further
comments. Summarise to bring together the strands of a discussion, or to
check how much agreement is achieved and to reopen the discussion.
Summarising at the end of items: This will seal an agreement or clarify
exactly what has been agreed.
Summarising at the end of the meeting: A brief summary will remind the
group of its achievement and point the way forward to the actions that will be
taken.
8.5.7
Closing the meeting
Closing the meeting well is as important as opening it. The members must be
reminded of what the meeting has achieved in terms of its tasks and objectives. All
agreed actions should have a responsible person allocated to them. Actions must
be scheduled to happen as soon as possible. Back up all decisions and actions in
writing. A summary action sheet distributed with (or before) the full minutes can
be useful.
______________________________________________________________ Meeting
Meeting date: _____________________ Secretary: _______________________
Chairperson: _________________________________________________________
_______________________________________________________________________
MEETING ACTION PLAN
Action to be taken
Person responsible
Deadline
Completed
Key issues or discussions:
Figure 8.3
Example of a meeting action plan
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The chairperson must do the following when closing the meeting:
•
•
•
•
•
•
•
Summarise what has been decided and point the way ahead.
Briefly announce what actions are to occur, by whom and when.
Test for commitment.
Check that the secretary is happy with the record of the meeting.
Set the time and date of the next meeting if possible.
End positively and emphasise the achievements of the meeting.
Thank everybody for their attendance and their contributions.
8.5.8
Conducting an effective meeting
When conducted poorly, meetings represent a substantial productivity drain.
By adhering to the following suggestions of DuBrin (2010) and Walker (2015),
an administrative manager can increase any meeting’s effectiveness as a
communication vehicle:
•
•
•
•
•
•
•
•
•
•
•
•
Meet only for valid reasons.
Start and stop on time and offer refreshments.
Keep comments brief and to the point.
Try to see things from each participant’s point of view.
When someone is speaking, never say “you’re wrong”.
Avoid rights and wrongs. Treat different opinions as different ways of looking
at the same issue.
Avoid electronic distractions.
Encourage critical feedback and commentary.
Strive for wide participation.
Congratulate members when they reach a decision.
Resolve small issues ahead of time by email.
Ensure that all follow-up action is assigned and recorded.
8.5.9
Duties of the secretary during a meeting
The primary role of the secretary is to help the chairperson. Usually the secretary
sits to the right of the chairperson. The duties of the secretary may vary and be
different from meeting to meeting. They may include:
•
•
•
•
•
•
ensuring that all members sign the attendance register;
helping the chairperson determine whether a quorum is present and also later
with voting, if this takes place;
reading out the minutes of the previous meeting, if requested to do so;
making sure that the previous minutes are signed by both the secretary and
the chairperson, and that any changes are initialled;
noting the names of the proposer and seconder for the acceptance of the
previous minutes; and
keeping the minutes (this is usually the case). A tape recorder can be used as
an aid. (Taking minutes will be discussed later.)
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8.6
Following up after the meeting has been held
After the meeting has concluded, minutes should be distributed as soon as possible,
and within two days at the most. The meeting minutes should include key topics
covered, any decisions or conclusions that were drawn, any projects due and their
deadlines, as well as specific information on future meetings.
It may also be appropriate to communicate to participants any progress made on
the implementation of decisions or plans of action arrived at during the meeting.
8.6.1
Compiling the minutes
Minutes are the written reflection of matters discussed at a meeting and the
decisions that arose from the discussion.
Minutes are therefore an official report and form part of the official documents
of an organisation. The minutes must be factually correct and objective, and
must put matters in the right light. They must contain all the decisions taken at a
meeting. They are confidential, and only members have access to them.
Minutes also contain instructions to members and management, and
authorisation for certain issues to be undertaken and certain costs incurred.
Minutes may therefore be used as evidence in court.
The secretary keeps the minutes, but they must be approved as a correct
reflection of the meeting and be signed by the chairperson and the secretary.
The purpose of the minutes
The minutes have the following purpose:
•
•
•
to refresh the memory of members who attended the previous meeting and to
inform those who were absent;
to authorise the undertaking of certain matters or costs incurred; and
to compile a history of the organisation’s actions and achievements.
The importance of minutes
Minutes serve as the official record of the meetings of an organisation. They may be
used as evidence in court. It is therefore important that the correct procedures be
followed in meetings. Minutes are the official historical record of the proceedings
and decisions of an organisation over the years.
Contents of the minutes
The minutes contain the following:
•
•
•
•
•
•
date, time and place of the meeting;
name of the chair and secretary, as well as members present and absent;
motions tabled before the meeting, amendments to these, together with the
names of the proposers and the seconders;
decisions taken at the meeting with the allocation of votes for each decision;
reports tabled at the meeting;
important arrangements made by the chairperson;
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•
•
•
•
•
•
•
•
all other matters noted at the meeting;
the exact wording of all decisions;
the main ideas for and against a proposal;
full particulars of all contracts undertaken, as well as of all monetary
transactions;
precise and full particulars of all appointments made, with related conditions
of service;
particulars of instructions to members and office-bearers;
particulars of all changes with regard to office-bearers or membership; and
particulars of reports presented to the meeting. These can be:
•• in the form of a supplement to the minutes;
•• filed in a special file with cross-reference; and
•• filed in the usual way.
The minutes may not be left partially blank to be completed at a later stage.
Depending on circumstances, it is sometimes preferable to note the proposer and
the seconder of a motion. A member has the right to demand that their vote against
a motion be noted. The chair of the meeting must sign the minutes immediately
after they have been accepted by a majority vote as a true reflection of proceedings.
Suggestions for the writing of minutes
The following suggestions can be taken into account when writing the minutes:
•
•
•
•
•
•
•
•
•
•
•
•
•
Use a scribbler to take notes during the meeting.
In order to take down as much information as possible, use key words and
telegram style.
Use unofficial abbreviations to save time.
Get explanations from speakers where necessary.
Compile the minutes as soon as possible after the meeting, while particulars
are still fresh in your memory.
The test for good minutes is if an absent member can acquire a full picture of
the proceedings from the minutes.
The minutes are drawn up in the order that was followed for the agenda.
Try to obtain proposals/motions in writing. This will make it easier to minute
the decisions/resolutions of motions carried.
Tape recordings may be used at meetings and the advantage is that they serve
as irrefutable proof of what was said by a speaker.
Listen with your full attention and try to capture the core of each speaker’s
point of view.
Good language use is important in minutes.
Never hesitate to ask the chairperson that a member repeat a motion or
decision.
If the meeting is moving too fast and you are not able to keep up with the
minutes, ask the chairperson to give you time to write down the relevant
information.
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Example of a set of minutes
Minutes contain the same elements as the agenda and follow the same sequence.
The following information must appear in the heading to the minutes:
•
•
•
•
•
the name of the organisation;
the type of meeting;
the time and place of the meeting;
the venue of the meeting; and
the number of the meeting.
Example:
Minutes of the 8th management meeting of EBCIS Enterprises held at 8:30 on
Tuesday, 21 October 2017 in the Executive Auditorium, EBCIS Enterprises.
The minutes follow the points on the agenda as closely as possible. The first
paragraph will contain the chairperson’s welcome, and then details on the
attendance of members.
Special welcomes of a guest speaker, for example, are minuted, along with the
topic of the guest speaker’s address. However, no detail is given on the address
itself.
All the names of the members attending the meeting are minuted, or a note
can be made that attendance was in accordance with the attendance register.
The names of those who excused themselves must also be minuted, and those
who acted as chairperson and secretary. It is a good idea to minute that a
quorum was present, so that there is no doubt that the meeting was properly
constituted.
Example:
1.
Opening and welcome
The chairperson, Mr Van Niekerk, welcomed all present.
2. Present
Mr H. van Niekerk [Chairperson]
Mr T. Esterhuizen
Mr P. Naidoo
Ms C. Vorster
Ms R. du Plooy
Ms E. Dlamini [Secretary/Committee Officer]
3. Apologies
Mr J. Benade
Ms W. van Rooyen
The next heading is usually “Ratification of the minutes of the previous meeting”
or “Approval of previous minutes”. If the minutes were circulated to all the
members, this must be minuted, and a note must be made that they were taken
as read. All amendments to previous minutes must be minuted. The acceptance
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and approval of the minutes must also be minuted. A proposer and seconder are
required for this.
Example:
4. Ratification of the minutes of the previous meeting
The minutes of the meeting held on Tuesday, 16 September 2017 were taken
as read and were approved.
Matters arising and points for discussion or new matters are now minuted, each
under its own heading. The precise wording of motions submitted must be minuted,
and whether they were accepted or rejected. Particulars of discussions need not be
recorded. Main ideas may be minuted so that it is clear how those present at the
meeting motivated for the decision. The precise wording of a decision must be
recorded.
If a member votes against a motion, they may demand that their negative
vote be minuted. Where a member is instructed to perform a task, the member
responsible must also ensure that the time of completion of the task is minuted.
Specific instructions on how something should be done can also be minuted.
Points of order and an appeal against a decision must be minuted. Complete
details of all contracts that have been or will be entered into and all financial
transactions must be recorded.
Reports submitted to the meeting may be dealt with in various ways. They
may be:
•
•
•
attached as annexures to the minutes;
kept in a special file; or
placed in an ordinary file in the filing system of the organisation.
In the last two cases, a note is made in the minutes of where the report can be
traced.
Example:
5.
Matters arising
5.1
Item 4.3 New telecommunication system. Mr Esterhuizen reported
that the new telecommunication system has been implemented and that
everybody was satisfied with the results so far.
5.2Item 7.4 Performance appraisals. Mr Van Niekerk confirmed that the
performance appraisals will start in November 2017 and must be finalised
during the first week of December 2017. The same format used in 2016 will
be used.
6. New matters for discussion
6.1 Staff development
Mr Van Niekerk informed the members of the meeting that the staff
development plans for 2018 must be submitted by 10 November 2017.
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6.2 Teambuilding
Ms Du Plooy reported that the teambuilding session will take place during
the first weekend in November at Kwa Lata Game Ranch. Specific detail
will be forwarded to the members before 23 October 2017.
6.3 Annual golf day
The annual golf day will take place on Saturday, 22 November 2017 at
Reading Country Club. Mr Naidoo reported that almost all the arrangements
were finalised and that there is a wide variety of sponsorships.
6.4 Upgrading of computers
Mr Van Niekerk asked Ms Vorster to make an analysis of the current status
of all computer equipment and what needed to be upgraded.
This analysis must be completed by 17 November 2017.
7. General
When all the matters on the minutes have been dealt with, the date of the next
meeting is determined, and the meeting is then concluded.
Example:
8.
9.
Date of next meeting
The next meeting will take place on Tuesday, 18 November 2017 in the
Executive Auditorium at 08:30, EBCIS Enterprises.
Termination
The chairperson terminated the meeting at 10:00.
Approval and signing of the minutes
The minutes are approved at the following meeting by someone reading them out
and then asking those present at the meeting for approval. Someone proposes a
motion for approval and a seconder is requested. The chairperson of the present
meeting signs the minutes to certify them as an accurate record of proceedings.
They need not have been chairperson at the previous meeting. To make doubly
sure, the secretary also signs the minutes.
If the minutes were circulated before the time, the chairperson may ask that the
minutes be taken as read. The chairperson does not need to see them again after
circulation, because those attending the meeting will approve them. However,
where confidential information is involved, the minutes are not circulated.
Index of decisions
Minutes, paragraphs in the minutes and even decisions in the minutes are
numbered. The latter is not a requirement but facilitates later reference to decisions.
The last two figures of the year should be part of the decision number, for instance,
decision number 10/17. All the decisions can also be recorded separately and filed
alphabetically. As you have already learnt, there are various ways in which you can
store the minutes and decisions. Choose the method that you find most convenient
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for tracing later. You may even keep a copy of the decisions on a matter under the
file dealing with that topic.
Distribution of minutes
Email may be used to distribute the minutes as an attachment. Many organisations
distribute the minutes by mail or email to allow participants to verify the accuracy
of minutes, review decisions and responsibilities assigned and to note actions taken
or to be taken. Minutes of formal meetings are not part of any permanent record
until submitted for approval at the next meeting (Satterwhite & Olson-Sutton,
2007: 429).
Filing the minutes
An original copy with the chairperson’s signature must be kept in the organisation.
It may be kept in a file, but to ensure that it is not removed and gets lost, it is better
to stick it in a book. It is best to keep a separate book for each different type of
meeting, such as sports meetings, management meetings or annual meetings.
Follow-up actions
A motion is in force immediately after it has been accepted. Remember to appoint
someone to be specifically responsible for every instruction and to give them a
date for completion. When the minutes are sent to members, the secretary may
include a note to remind the member of the duties to which they are committed.
Correction of minutes
Accuracy in the recording of transcription of minutes is absolutely essential.
Careful proofreading of the minutes is a necessity so that errors are corrected
before the minutes are distributed. Many groups will ask the person facilitating the
meeting to review a draft of the minutes before they are distributed to members to
eliminate the necessity of later corrections. When it is necessary to correct minutes
which have already been distributed or read, you should draw a line through the
error using a contrasting ink colour and then write the correction above it and
initial the correction.
If several lines must be corrected, draw a line through each incorrect line, make
a note “See page …”, type in the correction on a separate sheet with the appropriate
page number and write the date when you made the change in the margin near
the correction.
8.6.2
Duties of the secretary after the meeting
After the meeting, the secretary’s duties and responsibilities are not complete. The
secretary is still responsible for the following tasks:
•
•
•
The venue must be left as it was found.
The switchboard must be notified once the meeting is over.
Guests should be accompanied to the exit.
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•
The minutes, notes, files and other documentation should be returned to the
office.
The minutes must be typed up as soon as possible, and then be given to the
chairperson to be checked for correctness.
A final copy of the minutes must be prepared and duplicated for all the
members.
One copy must be placed on file with the agenda and supporting documents.
Keep your original notes or tape until the minutes have been approved at the
next meeting.
Complete any correspondence and letters of appreciation.
Schedule relevant dates in your and the chairperson’s diary.
Open a file for the next meeting.
Start preparing the agenda for the next meeting, with the cooperation of the
chairperson.
If necessary, remind members of certain actions and duties that they have
committed themselves to during the meeting.
Ensure, with the chairperson, that the follow-up actions are carried out
properly.
•
•
•
•
•
•
•
•
•
•
8.7
Basic meeting terminology
To be able to make valuable contributions during meetings, it is important to
know and understand meeting terminology. The basic meeting terminology is as
explained in Table 8.1.
Table 8.1 Explanation of basic meeting terminology
Abstain
To make a deliberate decision not to vote
Ad hoc
committee
A committee appointed temporarily to perform a duty or
investigate an issue; it functions temporarily until a specific
instruction or duty has been completed, such as a fête
committee, dance committee, Christmas party committee,
etc.
Addendum
Something, like a document, to be added at the end of the
minutes; an addition
Additional
members
Members elected in addition to the chairperson, secretary
and the treasurer to assist with various tasks
Adjournment
Declaration that a meeting is closed before all the topics
on the agenda have been covered, with the intention of
resuming discussion within a short period of time
Adopt minutes
When the minutes are accepted by the members of the
meeting and the chairperson signs the minutes
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Agenda
A list of matters to be discussed at a meeting; the points on
an agenda are arranged in a specific sequence
Amendment
A proposal to change (amend) a motion. This may happen
by adding a word or words to a motion, or by removing
or replacing a word or words. The person who originally
proposed the motion may propose the amendment or it
may be proposed by any other member of the meeting.
Once the amendment has been proposed and seconded,
it is first discussed. If the meeting accepts the amendment,
it is added to the original motion. The motion is then
discussed as one motion and the meeting will again vote
for or against it
Appeal
A formal objection to a decision. In a meeting anyone may
appeal against a decision
Attendance
register
Minutes of a meeting must always indicate how many
members were present at a meeting. When a meeting
has many members, a register is usually sent around that
every member must sign. When someone wishes to make
apologies on behalf of someone else, this can be indicated
on the attendance register. It is regarded as very rude not
to apologise for absence at a meeting. When minutes are
drawn up, the names of those who were absent without
apology are indicated under the heading “Absent without
leave”
Ballot
System used to indicate a choice by voting in secret or
voting anonymously
Casting vote
Deciding vote given to the chairperson when there is a
deadlock in members’ votes
Chairperson
Person elected to preside and act as the referee at the
meeting
Closure
Request by a member to close discussion and vote on a
matter if it has been discussed at length
Committee
Group of people appointed to attend to certain duties of
the organisation
Conflict of
interest
Where a member of a committee has personal interests i.e.
something to lose or gain, that might prevent them from
acting objectively as a committee member. An example
might be if the committee member runs a business
providing a product or service that the organisation
wants to buy. Conflicts of interest should be declared
and managed
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Consensus
A situation in which those attending the meeting have
reached agreement
Constitute the
meeting
Starting a meeting according to the stipulations of the
constitution
Constitution
Set or list of rules to control the activities of the
organisation
Convene
Inform or give notice that a meeting has been arranged
Co-opt
Appoint a member onto a committee – usually members
are elected
Counterproposal
The counterproposal is not used much nowadays, having
been replaced by the amendment. It was introduced as a
way of opposing a motion
Deadlock
Situation where there is an equal number of votes for and
against a proposal; the meeting is equally divided over an
issue
Decision
Once the majority of members of a meeting have voted in
favour of a motion, the motion becomes a decision. The
meeting is bound by a decision and must ensure that it is
carried out (a decision is sometimes called a resolution)
Defer
A decision might be deferred if, for example, not enough
information is available, or someone raises a point that
hadn’t been thought of. It is left for the next meeting or
another meeting in the future
Ex officio
Authority acquired by virtue of one’s position
For the record
Items may be brought to a committee only because they
need to be recorded in the minutes; a committee might
all be fully aware of a funding application that has been
successful, for example, but the news is brought to a
committee meeting so that the committee can record the
fact in the minutes
Formal meeting
A meeting that takes place according to fixed rules or
regulations. The members of the meeting determine in
advance what the rules are and then put them into their
constitution and so legalise them. This type of meeting
is usually a fixed practice, such as a directors’ meeting,
production meeting, financial meeting or
auditors’ meeting
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General
members’
meeting
A meeting that may be attended by members only, for
instance, shareholders of a company or members of a
tennis club. The members draw up the constitution of the
meeting and only they may change it again. The members
choose a managing body from their own ranks
Guillotine ruling
This is a time restriction placed on:
discussing a proposal;
the time given to a speaker; or
the duration of the meeting
Holding a debate
Once a motion has been submitted, it is debated. Every
person gets the chance to state their point of view with
regard to the motion. The length of time each person
is allowed to speak is limited so that the debate is not
unnecessarily lengthy
Honorarium
Sum of money allocated to a person in recognition of a
service rendered (a voluntary gesture)
In absentia
If someone is not attending the meeting they are referred
to as being in absentia
In attendance
People who are present at a meeting but are not members
of the committee or body that is meeting and have no
voting rights, e.g. guest speakers / advisers / staff of an
organisation at a committee meeting
In camera
When the proceedings of a meeting take place behind
closed doors because the information is confidential or very
sensitive
Informal meeting
A meeting without a fixed form or pattern. The meeting
takes place according to members’ needs. An agenda may
be drawn up just before or during the meeting
Management
meeting
A meeting attended only by the members of management
of an organisation, association or company. The
management meeting performs certain functions and acts
on behalf of the association or organisation
Matters arising
The minutes of the previous meeting should be gone
through, and any matters arising from them must be
dealt with – this is normally a minor thing e.g. to check if
an action did take place. Bigger issues that need further
discussions or a decision should be included as an
agenda item
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Minutes
Unbiased or impartial record of the proceedings of a
meeting, including the decisions taken at the meeting. The
secretary compiles the minutes after the meeting has taken
place
Motion
A proposal made by a member of the meeting for
discussion by the meeting. After the discussion, a vote is
taken on the motion. In most cases, a motion must be
submitted to the chairperson in writing before the start of
the meeting
Notice
Information about the venue, date and time of a meeting
issued to those entitled to attend the meeting
Point of order
When someone infringes on the rights of other members
or contravenes the rules and regulations of the constitution
of the organisation at a meeting, the members can indicate
to the chairperson that the person is acting incorrectly
and ask them whether this does not constitute a point of
order. Any member may at any time call the chairperson’s
attention to a point of order. The chairperson will then
decide immediately if this is so. If they agree, they call the
person to order. In the following cases a person’s attention
may be called to a point of order:
When the person displays immoral behaviour;
When the person proposes something that offends the
rules of procedure of the meeting;
When voting takes place without a quorum being
present; and
When matters are discussed that are not on the agenda
Precedent
Similar incident in the past used as a basis for future
decisions
Proposal
Suggestion to be considered by the meeting
Proxy
Permission or authorisation given to a person to vote on
behalf of another member who will be absent
Quorum
Minimum number of members who must be present to
declare a meeting valid; only when the minimum number
is present will decisions taken at the meeting be legally
valid. The number of members who constitute a quorum is
determined by the organisation or the constitution of the
institution. It is often half the number of members plus one
Ratify
To confirm a decision or agree to something; for example,
a sub-group may draft a policy for the organisation, but it
will need to be approved or ratified by the
main committee
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Reconvene
If a meeting is adjourned for any reason and it will continue
later, it is reconvened – that is, a meeting is organised to
carry on the unfinished business (but not to deal with any
new business)
Resolution
Decision taken at the meeting, for example a majority of
the members approve a motion
Right of reply
The proposer of a motion has the right of reply. This means
that once discussions have been held and before voting
takes place, they have the opportunity to answer the
arguments raised against the motion. However, they must
limit themselves to the comments made and not raise new
arguments. There is no right of reply to formal motions and
amendments. The chief opposer of a motion has no right
of reply
Second
Supporting a proposal put to the meeting by a proposer
Secretary
Person who keeps the minutes of a meeting as clearly and
accurately as possible
Show of hands
A method of voting, where people raise their hands
Status quo
Situation remains as is
Suspension
Expulsion of a member (temporarily or permanently) from
participating in the activities of the organisation
Terms of
reference
The constitution of a specific committee. It usually
defines the responsibilities and the reporting lines for the
committee
Treasurer
Person responsible for the financial aspects of the
organisation
Unanimous
All members voting in favour of a motion
Verbatim
Exact words of a speaker or proposer (word for word)
Vote
Method to reach a decision
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Conclusion
Well-run meetings are generally the best way of maintaining good communication,
and many managers are finding that a great deal of their working day is spent
attending meetings. It is essential, then, that meetings be conducted as effectively
and meaningfully as possible, because inefficient meetings result in significant
loss of productivity owing to loss of valuable time, poor planning, reluctance to
take decisions, poor follow-up, tardiness in carrying out necessary action, and lack
of commitment.
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Self-assessment
1.
Define the term “meeting” and indicate why meetings take place.
2.
What is the formula for calculating the cost of a meeting?
3.
Distinguish between the various types of meetings.
4.
Compile a checklist to use when preparing for a meeting.
5.
Indicate the information that needs to be included in a notice and agenda.
6.
Write down the duties of a chairperson during a meeting.
7.
What can those present at a meeting do if the chairperson does not arrive?
8.
Explain the secretary’s duties during and after the meeting.
9.
What is the difference between a motion and an amendment?
10. Describe the process of revoking a decision.
11. Find the correct term in the frame below to match the explanations given.
Write the correct term next to each explanation.
Private meeting
Minutes
Motion
Committee
Vice-chairperson
Co-opt
Addendum
Verbatim
Seconder
Secretary
Adjournment
Chairperson
Proposer
Casting vote
Amendment
Affiliate
Status quo
Resolution
Point of order
Consensus
Quorum
Ad hoc
Attendance register
Proxy
Constitution
Ballot
Public meeting
Guillotine
Agenda
Treasurer
11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10
A meeting that can be attended by anyone
A proposal or suggestion at a meeting
Someone who offers a motion
A meeting which members only may attend
To reach agreement
An addition
A group of people with a specific task
Word for word
To be adopted as a new member
An alteration
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References
ASTD. 2009. 10 steps to successful meetings. Alexandria: ASTD Press.
Barker, A. 1997. How to hold effective meetings. London: Kogan Page.
Dobson, A. 1999. Managing Meetings: How to prepare for them, how to run them and
how to follow up the results. 2nd ed. Oxford: How To Books.
DuBrin, A. J. 2010. Essentials of management. 9th ed. Mason: South-Western,
Cengage.
Erasmus-Kritzinger, L., Swart, M. & Mona, V. 2010. Advanced communication skills:
For organisational success. 9th ed. Pretoria: Afritech.
Grant, T. & Borcherds, R. 2015. Communicating@work. 3rd ed. Pretoria: Van Schaik.
Gutman, J. 2013. Taking minutes of meetings. 3rd ed. New Delhi: Kogan Page.
Mosley, D. C., Megginson, L. C. & Pietri, P. H. 2005. Supervisory management: The art
of inspiring, empowering and developing people. 6th ed. Mishawaka: South-Western.
Newman, A. 2015. Business Communication, in person, in print, online. 9th ed.
Stamford: Cengage.
Ober, S. 2009. Business communication. 7th ed. Mason: South-Western, Cengage.
Penrose, J. M., Rasberry, R. W. & Myers, R. J. 2001. Advanced business communication.
4th ed. Cincinnati: South-Western, Cengage.
Satterwhite, M. L. & Olson-Sutton, J. 2007. Business communication at work. 3rd ed.
New York: McGraw-Hill.
Stewart, G., De Kock, C., Smit, M., Sproat, B. & Storrie, G. 1996. Communicating for
the professionals. Cape Town: Juta.
Stroman, J., Wilson, K. & Wauson, J. 2012. Administrative assistant’s and secretary’s
handbook. 4th ed. New York: AMACOM.
Van Staden, E., Marx, S. & Erasmus-Kritzinger, L. 2007. Corporate Communication:
Getting the message across in business. 2nd ed. Pretoria: Van Schaik.
Walker, R. 2015. Strategic management communication for leaders. 3rd ed. Mason:
South-Western, Cengage.
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Part B
The office
Part B will equip you to become an invaluable asset to the organisation as it
deals with the office. The topics relating to the office discussed in this part of the
text are: the planning of the layout of the physical office, organising the office
environment, the role and function of office equipment and furniture, office
procedures, and the flow of work and productivity in the office. The discussion in
this part of the text intends to provide the administrative manager with sufficient
knowledge and skills to advise and assist with the management of the assets of the
organisation that are becoming increasingly valuable. This refers, among other
things, to the planning and positioning of workstations by considering the factors
of office design.
The administrative manager should consider the very important issues of
colour and lighting, the location of the office, and how to deal with issues that
are becoming more important such as ergonomics, health, safety and security.
Because these issues are important, the topic of sick building syndrome also
receives attention in the discussion.
Another topic that is increasingly becoming part of office design is facilities
management. Any prospective administrative manager should have a sound
knowledge of facilities and logistics management practices. A study of facilities
management requires the student to examine the practices of coordinating the
physical workplace with the people and work of the organisation. It integrates
the principles of business administration, architecture, behavioural sciences, as
well as engineering sciences. We include this topic in the text, because a position
in facilities management is a natural career progression possibility for any
administrative manager.
There are currently a large number of developments in the field of office design
and new trends in the way in which we do business, as well as a wide variety of
developments in information and communication technology. It is also important
for the future administrative manager to take note of the emergence of the virtual
office. Therefore, an in-depth discussion of the features, feasibility, benefits and
dangers of the virtual office is included in this part of the text.
As previously mentioned, electronic communication is playing an increasingly
important role in today’s office. We therefore include a discussion of information
systems that, among other things, covers the components of information systems,
information systems problem-solving, the life cycle of an information system,
designing an information system, as well as electronic commerce, which forms
the final section of this part of the text.
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Chapter 9
Office design and layout
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
advise management on the design and layout of the office to ensure the
advantages of an effective design and layout are fully utilised;
plan and position workstations economically and in such a manner that the
position of the workstations contributes to workflow and productivity;
make the necessary provision for specialised office areas;
design an office so that the design facilitates the flow of information; and
describe facilities management and discuss facilities management by paying
attention to space planning and design, project management, planning the
facilities, and asset management.
Introduction
The layout of an office is very important for a number of reasons. In most instances
the office layout ensures that general office operations run smoothly, has a positive
impact on workflow patterns, ensures the uninterrupted flow of information, as
well as enhances the productivity and morale of employees. The office layout
should, however, not only address these technical issues. Attention should also be
paid to the creation of a pleasant appearance.
A pleasant appearance will, among others, be achieved by paying attention to
factors such as colours, textures and the general combination of materials with
the right light fittings and floor coverings. We discuss these factors in detail in
Chapter 10.
In this chapter we look at factors such as the positioning of the workstations in
relation to the available floor space, especially because the costs of office space are
continuously escalating.
It is important that sufficient provision is made for enough space for the various
office functions and office staff to move around, as well as for the furniture and
equipment. We often refer to this as facilities management. Because furniture and
equipment play such an important role in the office layout, it is essential that
the administrative manager pays attention to the effect these will have on the
design of the office, especially with the wide variety of furniture and equipment
available on the market. The required atmosphere that you want the furniture and
equipment to create should therefore be planned carefully.
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9.1The importance and advantages of effective office
design and layout
The office environment has a crucial impact on the achievement of an organisation’s
strategic goals (Grobler & Wärnich, 2011; Haynes, 2008; Myerson et al, 2010).
Bearing this in mind, we look at eight reasons why it has become important to
invest in the layout of the office.
The office layout has an impact on employee morale. The office environment
can raise or depress employee morale and, in this manner, have an impact on the
functioning of the organisation (Saha, 2016). In addition, empowering employees
to have input into the design of their workspace will enhance employee wellbeing and productivity (Knight & Haslam, 2010: 160). The office layout does
not only involve décor and facilities, but also the relationship between the
office environment and the people occupying the office. They refer to this as
organisational ecology. More often we refer to this concept as ergonomics, which
is discussed in depth in Chapter 10.
The ways in which we do our work are changing quickly. We are moving away
from the traditional perception that work needs to be done at the office, or that
you have to work at the office from nine to five, for example, or that one office
or workstation should be occupied by only one person. According to Robbins et al
(2009: 15), the ways in which we do office work nowadays has changed because
of a combination of unprecedented global economic pressures and extraordinary
information technology (IT) developments. These pressures have not only
impacted upon the office, the physical environment of the office or the way office
work is done − the impact is much wider. It has forced organisations to assess and
re-engineer their organisational structures. More is said about this in Chapter 11,
where we look at the virtual workplace.
The layout of the office is also important, because it has a direct impact on the
business success. The layout of the office affects turnover, which subsequently
influence the success of the business (Grobler & Wärnich, 2011: 150). The
importance of the office for business success is discussed further in Chapter 10.
In addition, the new way in which we work has eroded the idea of the nineto-five office hours, which necessitates an effective office layout (Upward, 2015).
Furthermore, the time that people spend in offices has become erratic and often
extends beyond the traditional office hours. The impact of this phenomenon
on the utilisation of space is difficult to predict. The reason for this is that in
most cases we experience uneven patterns of high-density use of space. The
design and layout of the office has to adapt not only to accommodate this
uneven distribution of workers at the office, but also to enable office staff to
exploit this possibility to its full potential. Designing the office and planning
the layout to meet the emerging needs of office workers, is therefore not a
simple issue.
A further reason for an effective office layout is the fact that the layout of an
office has the potential to be used as an instrument to manage change.
The management of change involves the simultaneous creative utilisation of
human resources (HR), new applications of IT and a total redesign of the working
environment.
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An effective office layout will lead to higher productivity (Saha, 2016). It will utilise
floor space to the maximum, thereby saving floor space, and this will eliminate
delays and lead to shorter periods of time to complete work because the flow of
work is not interrupted.
An effective office layout will also facilitate supervision, because managers
and supervisors are well positioned in relation to their staff (Sailer et al, 2010).
Communication will also be smoother, because the layout will lead to the
elimination of unnecessary movement of staff and a decrease in the use of internal
phone calls and memorandums. This, in turn, contributes to better working
conditions, because workstations will be well placed in relation to the nature of
the work done, and the needs of office staff, and the amount of natural light and
the supply of artificial lighting will be optimised.
In addition to this, equipment will be used more effectively. Equipment will be
better placed and a sufficient number of power sockets for the use of computers
and other equipment will be provided. This will lead to the correct positioning of
noisy equipment away from areas where silence is necessary.
By now you should understand that the positioning of workstations is very
important and that issues such as the provision of sufficient space, assessing the
needs of the staff, and the design of the workstation itself are important. We
therefore continue to discuss how these issues can be considered.
9.2
The principles of office design and layout
The main aim of an effective office layout is to achieve the maximum and
uninterrupted flow of work. This aim is achieved by supplying each workstation
with all the necessary items in such a way that all tasks can be performed in the
best possible sequence and combination. The aim is also to use the available office
space in the most economical way so that the aims and objectives of the office
and the organisation can be achieved. The layout of the office will therefore be
most effective when the workstations are planned and positioned in such a way
that data is processed at the lowest possible costs and information can flow with
minimal disruptions and delays. The handling of documents should also be kept
to a minimum.
The following general principles should be taken into consideration when
planning the office layout to ensure greater efficiency at the workplace:
•
•
•
•
•
•
Offices that face north have more natural light and are warmer.
Desks should be placed in such a way that staff do not sit with their backs or
faces to the windows.
Office staff should ideally not face one another as this can lead to unnecessary
disruption of work; this principle is especially important when adopting the
landscape design approach.
Where possible, the number of people approaching the field of vision of an
employee should be restricted.
Work should ideally flow in one direction only, but not necessarily in a straight
line.
The design should not only be functional but also pleasant in appearance.
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9.3
Steps followed in planning the office layout
In addition to the above principles, the following steps can be followed when
planning the design and layout of a new office:
1.
2.
3.
4.
5.
6.
7.
8.
Obtain a scale drawing of every floor of the office building. The plan should
show the position of doors, windows, pillars and lifts, etc.
Arrange the different workstations using one of the following tools: cutting
out patterns of paper according to scale, three dimensional models, magnetic
tables and/or Modulex design equipment.
Discuss all factors with as many users as possible.
Change the design where it seems necessary.
Discuss the final design with all the functional heads.
Plan the supply of power sockets and telephones lines.
Obtain the final approval from top management.
Make arrangements for the installation and commence with the installation.
9.4
Factors to consider when planning the office layout
The following factors should be taken into consideration when making a choice
between the various layouts: security, adaptability, coordination, use of space,
accessibility, workflow and workstations, distance, comfort and safety. We briefly
look at each of these below.
9.4.1
Security
The type of organisation and the extent to which the information is of strategic
value determine the importance of and level of security to be implemented and
maintained in the office.
However, the following general security principles will be useful to implement:
•
•
•
•
Offices where information is processed should be situated separately and only
authorised people should have access to these offices.
Passwords should be installed on computer folders and directories.
People entering the office building should also be monitored.
There should be secure strong-room facilities for sensitive and confidential
information and there should be additional regulations to ensure that
information does not fall in the wrong hands.
9.4.2
Adaptability
During the planning stages it is a necessity to anticipate and make provision
for an expanding number of staff as well as an increase in equipment and the
amount of space that will be required. Possible ways in which these changes can be
accommodated should be considered. Computer hardware should also be of such
a nature that it can easily be expanded when the needs of staff and work change.
Hassanain (2006: 213) suggests that organisations should consider the concept of
designing flexible workplaces to meet the emergence of new technologies and the
increase in business competition.
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9.4.3
Coordination
The best possible coordination between employees, equipment and work, as well
as different components of equipment, should be achieved. This is often referred
to as ergonomics, which has been mentioned earlier and will be addressed in
Chapter 10.
9.4.4
Use of space
The best use should be made of every square metre, vertical as well as horizontal.
Building costs per square metre are high, and any organisation will have to incur
costs to acquire space, whether it owns or leases or rents space. Planning should
therefore be thorough and the costs of the use of space should be considered. The
renting and leasing of office space is discussed in Chapter 10.
9.4.5
Accessibility
Employees should have easy access to their workstations or resources. In an office
environment this is achieved by placing all equipment and tools that are in
regular use within reaching distance of staff. Equipment such as general printers
and photocopiers should also be within easy reach of the staff members who need
them regularly.
9.4.6
Workflow and workstations
When planning the layout of the office, it is necessary to take the uninterrupted
flow of work into consideration. Workstations should be positioned in such a way
that documents can be distributed with the minimum interruptions and delays,
so that tasks are completed within the scheduled times. When you plan the
positioning of workstations, space should be provided for the work in progress,
the equipment that is necessary to perform the various tasks, and office staff
to move around. A needs assessment should be done when planning how and
where workstations should be positioned. This needs assessment will include
consideration of the following:
•
•
•
•
•
•
•
•
the adequacy of available physical working space;
to what extent staff can work comfortably;
which forms are used regularly so that they can be kept within reach; forms
associated with a particular task should also be kept together;
the extent to which office staff will be able to use both hands;
the positioning of the workstations in such a way that supervision is facilitated.
This means that the supervisor should be placed in such a way that all relevant
employees can be seen;
the security of the work done by staff occupying the workstations;
the suitable provision for the personal belongings of office staff such as bags
and umbrellas; and
the extent to which it would be possible to clean the area around the
workstation.
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When designing the workstation, the following design factors should be considered:
•
•
•
•
the amount of time that will be spent at the workstation;
how frequently reference works and other manuals will be accessed;
the extent to which equipment such as the computers or telephones and
calculators will be used; and
the necessity of having regular face-to-face communication.
There are a number of workstation designs available that optimise workflow and
space management. The latest designs on the market have taken developments
in information and communication technology into consideration (Waber et al,
2014). Workstations are designed with the nature of the work as well as the user
requirements in mind, and consist of modular units put together ergonomically.
As already mentioned, the trend nowadays is to design the workstation in such a
manner that it includes a number of features, not only to accommodate the users,
but also to accommodate a variety of office functions.
In addition, a number of new features entered the field of workstation design,
such as hot-desking and clear-view systems.
Hot-desking refers to the design of the workstation in such a way that it
makes provision for use by multiple users. Hot-desking refers to a model by
which work space is shared in a situation where the number of employees
are more than the available desk or office space. In some environments every
workstation can have its own computer, and when office staff enter the office
they can log on to a virtual desktop. A virtual desktop is the particular office
staff member’s interface in a virtualised environment. In most instances the
virtualised desktop is stored on a remote server rather than on the server within
the office building. According to Searer (2012), the idea behind hot-desking is
that each employee is not allocated a specific desk, but rather given a variety of
places to work in an office.
Clear-view systems are made up of a see-through panel in the desktop that
allows the user to view the screen of the computer in the same position as they
would when reading a book. Clear-view systems also contribute to maintaining
the security of computer data.
A more elaborate discussion of these features and its relationship to the virtual
workplace is found in Chapter 11.
9.4.7
Distance
Movement and distance go hand in hand; energy and time are consumed with
actions such as walking, pulling and carrying. The use of time adds to the
processing costs and the use of energy leads to tiredness. Therefore, to decrease
the costs and the waste of energy, distances should be kept to the minimum.
9.4.8
Comfort
The main aim of applying ergonomics to the office layout is to obtain maximum
comfort (Saha, 2016). The influence of ergonomics on the office layout is divided
into two categories. Firstly, a situation should be created where processes can take
place effectively. Secondly, the office environment should have a positive impact
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on staff motivation and morale. If these aspects are taken into consideration when
designing the office, the comfort levels of office staff will be optimal.
9.4.9
Safety
Safety in the offices should not be taken lightly; regulations should be implemented
to avoid accidents. Staff should also be trained in safety and supervision
regulations. Regulations on the maintenance of equipment should be documented
and adhered to. The safety of office work has also become a big part of the quality
assurance mechanisms implemented nowadays in organisations worldwide. Most
external accreditation and registration bodies require that health and safety audits
are conducted by independent accredited health and safety auditors to ensure that
all the requirements of the Occupational Health and Safety Act are met.
9.5
The costing of office space
Because of the rise in building costs and the cost of space in general, organisations
have become increasingly aware of this aspect when they manage space.
Nowadays, special space management programmes are designed for this purpose.
A prominent part of space management is the calculation of costs; when doing
this, an organisation should look at the following factors:
•
•
•
the amount to be paid towards the rent of the office space or, alternatively, the
down payment on the loan of the building;
the number of facilities and utilities, such as cafeterias, that will be made
available; and
the rates and supply of maintenance services such as, cleaning services, taxes,
insurance and operating licences.
Quible (2005: 61) mentions that consideration should be given to the inefficiencies
in operations that may affect the manner in which space is managed. These
inefficiencies may add to unnecessary costs. The inefficiencies can include
inefficient design of the office that will impact on the workflow and employee
productivity. The inefficiencies can also refer to environmental elements that
affect the well-being of employees.
Careful consideration should also be given to the nature of office work done
in the particular office. Some office staff are away from their workstations for
extended periods of time. These staff can therefore share workstations or offices
to minimise unnecessary costs of space. This is called hot-desking which we have
referred to earlier.
Another factor to consider in terms of the costing of office space is the occupation
options, such as the purchasing, leasing or renting of office space. Each of these
occupation options has advantages as well as disadvantages. Ownership of an
office block allows the owner and occupants to change the interior of the building
to suit specific needs. In addition to this, there is a certain prestige attached to
ownership of a building or office block.
The name of the organisation can be used for the office building, which
enhances the publicity value for the organisation. Ownership also provides a
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relatively safe investment and adds to the feeling of continuity and permanency
at the desired location, name and address.
On the other hand, the main advantage of renting or leasing is that it releases
top management from the concerns that go along with ownership. Leasing avoids
the problems of building maintenance and repairs. The lessee retains financial
flexibility and does not have large amounts of capital tied up in one, relatively
long-term investment. Leasing leaves the company free to invest any surplus
in other areas of the business. Furthermore, changes in a leased office location
can usually be made more easily than changes in an owned location since the
organisation is not bound to the leased location. Leasing is also a better option
for smaller organisations that do not have large amounts of capital to acquire
buildings or office space.
9.6
Types of office layout
There are two popular approaches to adopt when considering office layout, namely
the general office layout and the private office layout. The general office layout
includes the open-plan office and the landscape office. Private offices mostly refer
to cellular offices.
The current trend is flexibility in working arrangements and the expectation
that the office layout should foster a collaborative and creative working style
(Leddy, 2016).
The general office layout may be preferred for the following reasons (Quible,
2005: 75):
•
•
•
•
•
General offices are more cost-effective.
General offices facilitate supervision.
General offices enable more creative designs.
Heating and cooling of general offices are easier.
Smoother communication is possible in general offices.
9.6.1
The open-plan office layout
With this design and layout, all workstations are arranged in one open space.
All the workstations face the same direction and no interior walls separate the
workstations and equipment. Separation of workstations and equipment is done
by means of screens, cabinets, bookshelves or even plants. The open-plan office
design eliminates walls and passages and, as a result, saves space and costs.
Remember that we mentioned in the introduction that costs play a role when
a design approach is adopted. Eliminating walls and passages also leads to the
accommodation of more people in the space that would normally have been taken
up by these structures.
Advantages of the open-plan office layout
The open-plan office layout facilitates communication since office staff can move
around more freely. This means that fewer telephone calls need to be made and
less internal correspondence needs to be distributed. The open-plan office layout
is much more flexible and adaptable in terms of changes than private offices
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since fewer interior walls are used to separate workstations and equipment. When
everybody in the office shares the same open space, supervision is facilitated
because the supervisor is in a good position to monitor all staff working in the
office directly. This, in turn, contributes to a considerable cut in costs.
The absence of interior walls facilitates savings on and increases the effectiveness
of heating, air-conditioning and lighting systems. Another advantage of this
layout is that the pleasant working environment contributes to a high level of staff
motivation and higher productivity levels and the cabinets used to separate work
environments now have a dual purpose, which makes the design cost-effective.
Disadvantages of the open-plan office layout
The open-plan office design and layout can, however, sometimes lead to an
impersonal atmosphere, and noise and movement of people be distracting. Another
disadvantage of the open-plan office layout is the lack of privacy for confidential
matters. Brennan et al (2002: 279) also reported that the open-plan office layout is
negatively related to workers’ satisfaction with their physical environment.
9.6.2
The landscape office layout
The landscape office design and layout is very similar to the open-plan design,
to the extent that one general open space is utilised for the positioning of the
workstations and equipment. The biggest difference between the landscape office
and the open-plan office is that the workstations in the landscape office all face
different directions.
This approach is often favoured because studies show that humans prefer
landscapes that give them a clear view of what’s happening around them (Evans,
2016). The landscape approach is a blend of the modular and cluster workstation
approaches, and makes excessive use of plants in the décor (Quible, 2005: 75).
The disadvantages of the landscape office layout include the lack of privacy, and
becoming tired due to the noise levels and the continuous movement of people
around one. Some critics feel that the landscape office layout is merely open-plan
with added plants, and is seen as a way of getting more people onto a given floor
area instead of creating generous flexible space. However, the flexibility of this
design can increase engagement and satisfaction of employees and could therefore
be regarded as an advantage.
9.6.3
The private or cellular office layout
A private or cellular office is characterised by interior walls that stretch from the
floor to the ceiling. The private or cellular office is normally occupied by one
person, but can sometimes, to save costs, be shared by two or three people.
Although private offices are still widely found, the trend is that these are mostly
occupied by senior management to allow for privacy. They are also still used to
indicate seniority in the organisation. According to Quible (2005: 67), private
offices were previously used to indicate prestige and status. Private offices are also
valuable for employees that need a quiet place to accommodate the specific nature
of the work they do. The main aim of having private offices is to secure privacy.
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They indicate a high level of confidence in the people occupying the office and
the work they do.
Private offices are mostly arranged in a line on the sides of passages. This is why
these offices are sometimes referred to as cellular offices. This is, however, not the
only way these offices can be positioned. Private offices can also be distributed in
an ad hoc manner on the available floor space, depending on the way the total
design and layout is planned. Private offices offer a high degree of privacy and
allow for higher concentration levels as well as high security because the doors of
the offices can be locked.
9.6.4
Trends in office layout
When considering the latest trends in office design, it is clear that mobile
technology is currently one of the biggest drivers in terms of office layout. Leddy
(2016) suggests three major office design trends:
•
•
•
Home-like offices: Employees want to be comfortable when they work long
hours in the office, so a major trend is offices that feel like a comfortable
home. Plush couches, plants, natural lighting and perhaps a pool table, for
example, are features of this trend. The office should be an attractive, relaxing
place to work.
Multipurpose workspaces: Office space should promote transparency and
support different purposes, from large group meetings to quiet reflection.
Therefore, space should support collaboration as well as allow for privacy
when needed.
Modular layouts: As space and function become increasingly interchangeable,
modular layouts are preferred to fixed layouts. The modular layout allows
organisations to move furniture around quickly to meet their evolving
needs. Workspaces are customizable which eliminates the need for dedicated
workstations.
As working relationships become more flexible and mobile technology allows
people to work almost anywhere and anytime, workspaces must match this
flexibility and adaptability.
9.7
Specialised areas
It is important for the administrative manager to keep the space requirements
of specialised areas in mind. Not all specialised areas need the same amount of
space. In addition to this, every specialised area will, due to the nature of tasks
and operations performed in that area, have unique space requirements. We will
now discuss the following specialised areas: the reception area, the boardroom
or functions room, the mailroom, the central printing/processing room and the
records management room.
9.7.1
The reception area
The reception area is the first area that visitors enter when visiting an organisation.
It is of the utmost importance that this area displays an attractive appearance
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since favourable first impressions of the organisation may attract clients, which
may eventually lead to increased or decreased profits. To determine the space
requirements of the reception area, the maximum number of people using the
area at any given point in time should be considered. It is also important to allow
sufficient space for the necessary workstations and the flow of work and people in
this area. According to Quible (2005: 67), the design of this area should facilitate
the movement of people through it without disturbing the people working in it.
Other factors influencing the appearance of the reception area include the colour
scheme, furniture, equipment and lighting, and the location of other offices in
relation to it.
9.7.2
The boardroom/functions room
Owing to increasing building costs, fewer organisations, especially smaller ones,
can afford the luxury of having a dedicated space for functions as well as board
meetings. As a result, more organisations are designing venues that can be used
for more than one type of meeting. These venues are then decorated in such a way
that they display the corporate identity of the organisation. At the same time, they
are designed and equipped to such an extent that a variety of types of functions
can be accommodated. This means that sufficient power sockets and network
plugs as well as other equipment should be installed in this venue.
9.7.3
The mailroom
Correspondence plays a major part in any organisation, and larger organisations
have dedicated mailrooms to deal with incoming and outgoing mail. The
organisation that handles this function in an efficient manner will be strong
in a fundamental area of business. The layout of the mailroom is therefore an
important factor in the overall management of mail operations. The mailroom
should be designed in such a way that only necessary motions are required and
that machines and equipment are positioned to enable the proper sequence of
operations as well as productive utilisation. Too often the mailroom is crowded,
the flow of mail is disorderly, and this causes delay in the receipt of documentation.
9.7.4
The central printing/processing room
Should the organisation be large enough to have a central computer printing and/
or copying section, it should be centrally located where it is most accessible to
all staff. The office should also be equipped with additional soundproof walls
and should be properly ventilated due to the heat that is normally generated by
electronic equipment.
9.7.5
The records management room
According to Quible (2005: 70), the records management area should also be located
as centrally as possible for maximum convenience. Special provision should be
made to protect the records management area against fire and unauthorised entry.
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9.8
The role of effective office layout in the flow of
information
It is well known that there is a significant relationship between the flow of
information and the layout of the office (Myerson et al, 2010: 104). Sailer et al
(2010) says this relationship between the office and the flow of information
depends on the office being an open, dynamic socio-technical system. In this
system, information and communications technology are utilised in a socially
coordinated manner to achieve the objectives of the organisation. It is therefore
clear that the layout of the office is an important aspect in the flow of information.
A few decades ago, Ross (1970: 106) already said that the office “is composed
of procedures, equipment, information, methods to compile and evaluate
information”. If the office truly wants to facilitate the flow of information in the
manner described above, the design of the office, the position of the workstations
and the methods to distribute information should be assessed critically on a
continuous basis. We look at this aspect a little more closely in Chapter 10.
9.9
The role of furniture and equipment in the office layout
Furniture and equipment play an important role in the appearance of the office
environment. It is not enough to simply design the office correctly and effectively;
furniture and equipment should also contribute to the design and layout.
Therefore, the manner in which furniture is positioned in an office is important.
The arrangement of office furniture is sometimes also used to display the power
relationships of the people working in the organisation. Furthermore, it has been
suggested that personalisation of an employee’s space enhances employee wellbeing and job satisfaction (Wells, 2000: 239).
In addition to the role that furniture plays, equipment currently performs just
as important a function in displaying the image of the organisation. Since more
and more electronic equipment is used in offices, office designers have to take
it into consideration when designing an office, because electronic equipment
can enhance the appearance of the office. However, when equipment is placed
incorrectly, it can have a negative impact on the design and layout of the office.
It is important to involve staff wherever possible when buying furniture and
equipment. Some equipment has a very restricted range of colours. Sharp edges and
corners should be avoided. It should be fairly easy to dismantle the components of
equipment, and computer furniture should be adjustable. Desk tops should be able
to tilt and the administrative manager should choose furniture that best suits the
needs of the office. Legs of chairs should be protected so that they do not damage
the floor covering. The base of a swivel chair should also have five rather than four
legs to ensure stability.
It is important to purchase the right furniture, because it is a fairly long-term
investment. Therefore, a needs assessment of exactly what furniture is needed
should be carefully done. Furthermore, furniture should be multipurpose and
durable. The position of employees in the organisation should be taken into
consideration and the size of the furniture in relation to the size of the office
should also be considered. Make sure, where possible, that furniture is fireproof.
Certain new developments in furniture designs also facilitate a variety of office
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designs. These are the modular, portable, functional and the ergonomical design
approaches.
The modular design refers to the design of furniture in such a way that the
different components can be used separately and arranged in different ways; for
example, a module can consist of a desk, working space, space for storage and
shelves. The portable design is in high demand when the open-plan or landscape
office design is used. Screens to divide working environments are examples of
portable furniture. The functional furniture design is based on individual
needs and ergonomics, which is the scientific study of the relationship between
people and their physical environment (Saha, 2016). The study of ergonomics
leads to furniture that is more comfortable, less tiring and less of a physical and
psychological strain to use. This design definitely contributes to higher levels of
productivity.
9.10
Facilities management
Facilities management is the practice of coordinating the physical workplace with
the people and work of the organisation. It integrates the principles of business
administration, architecture and the behavioural and engineering sciences.
Facilities management combines management practices with the most current
technical knowledge to provide humane and effective work environments.
Best et al (2003) define facilities management as “the practice of integrating
the management of people and the business process of an organisation with the
physical infrastructure to enhance corporate performance”. Atkin and Brooks
(2005) state that facilities management covers a broad spectrum of real-estate
management, financial management, change management, HR management,
health and safety and contract management, as well as building and engineering
services, domestic services and other utility supplies.
Le Roux and Esterhuysen (2007) state that facilities management is about
more than managing the facilities: facilities management forms part of the entire
resource optimisation plan that management should implement. In addition,
facilities management ensures continued sustainable performance improvements
for the organisation (Finch & Zhang, 2013: 305).
Nearly every type of organisation utilises a facilities manager: colleges and
universities, hospitals, government agencies, airports, hotel chains, industrial
plants, recreational complexes, and many others. The facilities manager’s role is
as a generalist, managing teams of specialists (architects, engineers, designers,
technicians, etc.) to plan, provide, and manage a productive work environment.
People are often surprised to learn that most organisations spend most of their
budget on costs related to their facilities. Organisations can significantly improve
their financial bottom line through the effective management of their facilities. In
today’s dynamic business world, more knowledge and skills are required than ever
before to manage an organisation’s physical assets. We will now look at the areas
that facilities managers should pay attention to.
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9.10.1
The focus areas of facilities management
Facilities management concentrates on the non-core business of the organisation.
Essentially core activities are defined as those generating income or the productive
output of the organisation. An organisation will not exist without the core
activities but without non-core activities the organisation will also not survive.
Broadly speaking, the non-core activities that are common to most organisations
are space planning, project management, asset management, routine maintenance
and operational services.
The most important requirement of the facilities manager is to know and
understand the organisation’s business. The questions below are some of the typical
questions to ask in order to establish a sound knowledge of the organisation’s
business:
•
•
•
•
•
•
•
•
•
•
What is our core business?
What kind of image do we want to project to our clients and suppliers?
Where are we located in relation to our clients?
Where are we located in relation to our suppliers?
If we employ factory staff, are we located near enough to the resource pool?
Are all services available in the area: electricity, water, telephones, access to
highways or roads, etc?
Can we expand the facility if needed?
Where will the company be in three, five or ten years’ time?
What equipment and technology do we need to carry out day-to-day functions?
What amount do we have in the budget to achieve this?
Once the facilities manager is clear on the above issues, it is possible to plan and
manage a facility.
9.10.2
The responsibilities of a facilities manager
The responsibilities of a facilities manager may include the following: space
planning and design; project management; operations and maintenance; human
and environmental management; finance and asset management; delivery of
quality facility services; communication; facility, strategic and tactical planning;
facility financial forecasting and budgeting; real estate procurement; leasing and
disposal; procurement of furnishings; equipment and outside facility services;
facility construction; renovation and relocation; health, safety and security –
essentially implementing the Occupational Health and Safety Act (OHSACT);
environmental issues; development of corporate facility policies and procedures;
quality management (QM), including benchmarking and best practices; architecture
and engineering planning and design; building operations; maintenance and
engineering; supervision of business services such as photocopying, transportation
and food service; facilities management risk; telecommunications; and code
compliance. You will note that the role of the facilities manager can be quite
comprehensive.
We continue our discussion by looking at some of the responsibilities that are
common to most organisations’ non-core activities.
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Space planning and design
Space planning and office design were covered earlier, but we briefly discuss this
again against the background of the discussion about facilities management. A
good starting point for space planning is to have a set of space standards according
to which the planning and design can be done. Space standards refer to the
particular size of office space that may be allocated to the various employees. The
setting of standards is of great importance to the facilities manager and should be
agreed to by management. This will prevent the facilities manager from being put
under pressure from staff members to make offices bigger, buy expensive furniture
or allow junior staff to move into larger offices, etc.
The setting of space standards normally includes gathering information on
the following aspects: the allocation and distribution of private offices, the size
of offices, the type of office layout the organisation wants to utilise, the type
of furniture to be installed and the choice of systems furniture, conventional
furniture or designer furniture.
The method of filing
The following factors will play a role in implementing the various filing methods:
the type and size of files, whether the files will be central or part of the workstation
and whether filing will mostly be done electronically. There are several advantages
of electronic filing, including the time that is saved looking for files since they will
be available on your desktop; the time saved because files can be emailed directly;
and electronic filing allows multiple employees to retrieve the same document at
the same time.
Project management
The facilities manager will have to run and administer the facilities under their
control effectively and keep tight control of the budget. It is best if the facilities
manager makes use of a project management software program to achieve this.
Project management software can be used to keep track of the most important
aspects of the project, namely time, costs and labour. One of the most important
activities of project management is to plan the facility. This consists of four
stages: the information stage, the design stage, the requirements stage and the
implementation stage. Once the standards have been set, the facilities manager
has to decide on the type of office design and then establish the project plan.
Asset management
Asset management can be approached in two ways, basic and advanced. The
basic approach would initially look at a way to meet the minimum legislative
and organisational requirements for financial planning and reporting purposes.
The basic approach would generate technical outputs, such as statements on
current levels of service, replacement programmes and cash-flow projections. The
advanced asset management approach tries to optimise activities and programmes
to meet agreed service standards by developing management tactics based on the
analysis of information regarding condition, performance, risk and life-cycle costs.
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Your basic plan gives you a snapshot of the current situation while the advanced
plan will contain optimisation and asset management strategies. Selecting which
plan an organisation wishes to implement depends on various factors, namely
costs and benefits to the organisation, condition and complexity of the assets, risks
associated with failures, and skills and resources available within the organisation.
The facilities manager would in all instances need an asset register to manage the
organisational assets. An asset register is a list of information on various aspects of
the asset portfolio in a form that allows data to be cross-referenced and retrieved
as required.
Typical categories of an asset register are: physical properties, technical data,
financial information, replacement data, property title details, key operational
data, maintenance data and performance records. A fixed asset, as well as a
moveable asset register, is needed by the facilities manager.
The fixed asset register contains all items relating to the property, while the
movable asset register contains all items of furniture, computers, equipment, etc.
Even the software an organisation uses on its computers needs to be controlled
and listed on the asset register.
Routine maintenance
The facilities manager has the full responsibility of the day-to-day maintenance of
the facilities. Maintenance can be very costly if not planned correctly.
Most organisations cut the planned maintenance budget first when trying to
keep costs down or if times get tough. This often results in maintenance costing a
lot more than if the budget had been maintained.
The facilities manager must keep a good record of maintenance costs and of the
budget spent. Records of expenditure for each item in the maintenance budget is
the best way to track maintenance costs. This way it is easy to see which items are
costing the most to maintain and why. The facilities manager can then formulate
a plan of action to rectify the problem areas.
Operational services
Basically, everything that is not core business is the facilities manager’s job. These
include the photocopiers, conference rooms, office equipment, switchboard, rest
areas and canteen, and safety and security. The facilities manager is responsible
to ensure all operational services are maintained and kept up to date.
Photocopiers: The facilities manager needs to address the use of photocopiers
within the organisation. This entails looking at how much copying gets done and
by whom, how many machines are required, where they are positioned in the
facility, whether printing should be outsourced, whether the machines are on a
service contract, and what they are costing to maintain.
Conference rooms: Conference rooms need to be managed very carefully by
an organisation. This is one area of the facilities manager’s job that can be very
controversial. Conference rooms take up a lot of office space and if the usage of
these areas is not controlled and monitored an organisation could end up spending
a lot of money on wasted space. The facilities manager will need to keep a record
of all meetings and usage of the area to ensure that there is proper utilisation of
this facility.
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Office equipment: When it comes to office equipment and furniture, the facilities
manager needs to know and understand the core business of the organisation.
Choosing the office furniture will depend on the role and function of each
employee within the organisation. The type or design must be considered in
relation to the organisation’s image, method of operation and use of technology.
The facilities manager should also pay attention to the data projectors, overhead
projectors, computers, printers and the local area network.
Filing: The filing system plays a major role and so must also be considered
carefully. The following should be taken into consideration: the place of filing and
duration of time it should be filed, the place of storage once it has become archive
material, the type of filing, namely A4, lever-arch or suspended.
Switchboard: The switchboard is the first line of communication with the
organisation and the facilities manager must ensure this runs effectively. Someone
must always be on duty and the line must not ring for long. Enough lines must
be available to conduct the organisation’s core business. The upgradeability of the
board and the cost of this should be considered, as well as the supplier and the
ability of the supplier to render the required services.
Rest areas and canteens: Any organisation needs an area where staff can take
a break or have a snack. The facilities manager must ensure this area is kept clean
and is pleasant for staff usage. Some organisations offer canteen facilities for their
staff. If this is the case, the facilities manager will need to assess whether this
facility should be outsourced or maintained in-house.
Safety and security: The safety and security of all staff is the responsibility
of the facilities manager. The facilities manager must ensure all safety and fire
regulations are met and maintained within the facility. Fire marshals should be
appointed and fire drills should be carried out on a regular basis. Fire equipment
and fire routes should be kept up to date. Security on the site must be maintained
according to the standards set by management. Again, this could be an in-house
function or outsourced.
Conclusion
This chapter dealt with the effective layout of the office. The issues discussed
in this chapter are very important for you as a future administrative manager.
Although you may never really be the person responsible for the actual design
and layout of the office, your role as an adviser will be important. It is therefore
necessary that you understand the nature, extent and complexity of the issues
raised. A wrong design decision can be a costly affair and sometimes impossible
to correct.
As the administrative manager, due to your knowledge of a variety of fields,
such as office layout, workflow, communication, equipment and furniture, as well
as the relationship between these factors, you are in the ideal position to be of
value to management.
In addition, there are prospects for a career in facility management due to the
wide range of knowledge areas that the position of administrative manager covers.
You will never be restricted when it comes to career choices.
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Self-assessment
1.
Why is the effective layout of the office so important?
2.
When planning and positioning workstations, you should make provision for
enough space, do a needs assessment and design the workstation. Describe
how you would go about this task.
3.
Differentiate between the following office design approaches: the general
office and the private office.
4.
Explain how you would make provision for specialised office areas.
5.
Define the role of the facilities manager in the following aspects of facilities
management:
5.1 Asset management
5.2 Planning the facilities
5.3 Project management
5.4 Space planning and design
5.5 Communication
References
Atkin, B. & Brooks, A. 2005. Total facilities management. 2nd ed. Oxford: Blackwell
Publishing.
Best, R., Langston, C. & De Valence, G. 2003. Workplace strategies and facilities
management. Oxford: Butterworth-Heinemann.
Brand, J. L. 2008. “Office Ergonomics: A review of pertinent research and recent
developments.” Reviews of Human Factors and Ergonomics, 4: 245−282.
Brennan, A., Chugh, J. S. & Kline, T. 2002. “Traditional versus open office design.”
Environment and Behavior, 34(3): 279−299.
Evans, C. 2016. “2016 Workplace trends: Preparing for the future today.” https://
www.linkedin.com/pulse/2016-workplace-trends-evolving-office-environmentconor-evans (Accessed: 5 June 2016).
Finch, E. & Zhang, X. 2013. “Facilities management.” Design and Management of
Sustainable Built Environments, pp 305−326.
Grobler, P. A. & Wärnich, S. 2011. Human resource management in South Africa. 4th
ed. Singapore: South-Western, Cengage Learning.
Hassanain, M. A. 2006. “Factors affecting the development of flexible workplace
facilities.” Journal of Corporate Real Estate, 8(4): 213−220.
Haynes, B. P. 2008. “An evaluation of the impact of the office environment on
productivity.” Facilities, 26(5/6): 178−195.
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Knight, C. & Haslam, S. A. 2010. “The relative merits of lean, enriched, and
empowered offices: An experimental examination of the impact of workspace
management strategies on well-being and productivity.” Journal of Experimental
Psychology: Applied, 16(2): 158−172.
Leddy, C. 2016. “2016 Trends in office design: Think outside the cube.” www.adp.
com/spark/articles/2016-trends-in-office-design-think-outside-the-cube-8-281
(Accessed: 18 May 2016).
Le Roux, P. & Esterhuysen, W. 2007. “Revitalisation of a historic building through
performance evaluative research into workplace environmental conditions.” Acta
Structilia: Journal for the Physical and Development Sciences, 14(1): 1–32.
May, D. R., Reed, K., Schwoerer, C. E. & Potter, P. 2004. “Ergonomic office design
and aging: A quasi-experimental field study of employee reactions to an ergonomics
intervention program.” Journal of Occupational Health Psychology, 9(2): 123−135.
Myerson, J., Bichard, J. & Erlich. 2010. New demographics new workspace: Office
design for the changing workforce. Surrey: Gower Publishing Limited.
Quible, Z. K. 2005. Administrative office management: An introduction. 8th ed. New
Jersey: Prentice Hall.
Robbins, S. P., Judge, T. A., Odendaal, A. & Roodt, G. 2009. Organisational behaviour.
2nd ed. Cape Town: Pearson.
Ross, J. E. 1970. Management by information systems. New Jersey: Prentice-Hall.
Saha, S. 2016. “A study on impact of workplace design on employee’s productivity
in selected IT companies in Pune region.” International Journal of Business and
General Management, 5(1): 25–38.
Sailer, K., Budgen, A., Lonsdale, N., Turner, A. & Penn, A. 2010. “Pre and post
occupancy evaluations in workplace environments.” The Journal of Space Syntax,
1(1): 199−213.
Searer, S. 2012. “Thinking through hot desking in an office.” http:officesnapshots.
com.2012/01/2012/thinking-through-hot-desking-in-an-office (Accessed: 7 June
2013).
Upward, J. 2015. “5 ways the workplace will change in the next 5 years.”
www.talk-business.co.uk/2015/09/17/5-ways-the-workplace-will-change-in-thenext-5-years/ (Accessed: 17 May 2016).
Waber, B., Magnolfi, J. & Lindsay, G. 2014. “Workspaces that move people.” Harvard
Business Review, October 2014.
Wells, M. M. 2000. “Office clutter or meaningful personal displays: The role of
office personalization in employee and organizational well-being.” Journal of
Environmental Psychology, 20(3): 239−255.
Acknowledgements
Thanks to Denis Peens from HQZQ Consulting Pty Ltd (Reg 2001/011703/07) for
the valuable input on the topic of facilities management covered in this chapter.
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C ha pte r 10
The office environment
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
advise management on the best location for an office;
apply the right colours in the office by paying attention to colour schemes,
colour combinations and the textures of materials used;
choose the most appropriate type of lighting system;
create an office environment with a sufficient amount of fresh air, as well as
recommend the places where air conditioning can be used productively;
identify the factors that will lead to sick building syndrome, so that these may
be avoided as far as possible;
design and plan the office environment in such a way that safety and security
requirements are adhered to; and
use screens, plants and artwork effectively in the office.
Introduction
Organisations are becoming increasingly aware that the office environment should
be a comfortable, safe and pleasant to work in to ensure that offices can make a
contribution to organisational productivity. The nature of work that is being done
in offices is also changing fast. Work is becoming more fluid, creative and less
defined, as opposed to being very routine and predictable (Grobler & Wärnich,
2011: 150). As a result, the office environment has had to become flexible to meet
the diversity of new demands. This means that the office environment should be
designed to accommodate the needs of office staff, rather than office staff trying
to work within the boundaries and limitations of the office environment. This is
often referred to as ergonomics, briefly discussed in Chapter 9.
Because the office is the central place in any organisation and serves internal as
well as external clients, it is important to pay the necessary attention to the office
environment. Organisational productivity, which to a large extent means keeping
costs to a minimum, depends on how well the office functions. Because of this,
the office environment should be well planned and designed and the available
space should be well managed. This topic was also discussed in Chapter 9.
We take the discussion of ergonomics a little further in this chapter by
focusing on the factors to consider when planning and designing the office
environment, positioning the workstations and managing space. Together with
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this, the manner in which office buildings are acquired is just as important.
This, according to Balachandran and Chandrasekaran (2009: 51), has the same
impact on the quality of the working environment as the physical structures and
the interior appearance of the office. A discussion on the location of the office is
therefore also included in this chapter.
10.1
Locating the office building
Many people do not realise the impact that the office building has on business
success. It is important that businesses are able to change and adapt to survive
in turbulent economic periods (Waber et al, 2014). As a result, it is necessary
that office buildings should be able to adapt and change to the same extent to
facilitate and accommodate these changes. Because office buildings have become
so expensive, the influence that the office building has on the success level of the
organisation is tremendous.
Office building costs can, among others, include high maintenance costs,
leases that cannot be honoured in tight economic times, floor space that
becomes abundant or scarce, weak designs that make face-to-face internal
communication costly, space areas that are not divided effectively, office
designs that place too much emphasis on status, and inadequate equipment
that negatively affects the operations of electronic networks (Balachandran &
Chandrasekaran, 2009).
In addition, there is the decision of whether to buy or rent office space. When
buying an existing office, the organisation can experience problems with the
layout and improvements will cost money. When building new offices, provision
should be made for later developments. The current trend is to build a bigger office
than what is necessary and to rent some of the space out until required.
When renting an office in a multi-storey building, the most applicable floor
should be selected on which the office should be located. When regular contact
with the public forms a main part of the operations of the organisation, the office
should be on the ground floor. It should also be remembered that the rent for a
ground floor office is higher than the rent on other floors.
When selecting an office building, attention should also be given to the
construction of the building since this must be strong and, to a large extent,
fireproof.
Office equipment is often both large and heavy. There should therefore
be enough space to position office equipment effectively. The office should be
neat, clean, have a calm environment and should have the right colour scheme.
Furniture should be of high quality and the layout should be designed to serve the
purpose of the office.
There should also be enough offices with windows to the south as well as
the north. Ideally, private offices should face to the north and general offices
to the south. You will remember that some of the aspects related to this topic
were discussed in Chapter 9. We will now discuss the location of the office.
This decision entails a basic decision, namely whether to move to a new office,
renovate an existing office or expand an existing office. We will now look at
each of these decisions.
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10.1.1
Moving to a new office
The location of an office plays a very important role. The employees, the type of
business conducted and the client profile must be taken into consideration when
making the decision to relocate the existing office or locate a new office. For
example, the location of a bank will be influenced by other factors than the location
of a factory office. See if you can identify some of the most important factors that
will play a role in the location of a bank versus the location of a factory office.
10.1.2
Renovating the existing office
When you decide to renovate the existing office rather than look for a new office
that will meet the needs of the organisation, you can take the following factors into
consideration: the suitability of the current space, the facilities that are available in
the building, the proximity of other business centres, the cost of the renovations
as opposed to relocating the office, the amount of natural lighting and ventilation
and lastly, the features of the building.
10.1.3
Expanding the existing office
The administrative manager either has to carry out the task of planning the
expansion of the office, or seek advice from the suppliers of office equipment, or
make use of the services of architects or consultants.
Should the organisation decide to perform this task, the appointed person
should have sufficient knowledge on this issue because mistakes can cost the
organisation money. Secondly, it might be wise to seek advice from suppliers of
office furniture. Some suppliers offer this as a free service. In this case, it will be
helpful to buy the whole range of furniture from the supplier, because it will add
to continuity and conformity of style. It is also more expensive to buy from a
variety of suppliers.
Thirdly, the organisation can make use of the advice of architects. It should,
however, be remembered that most architects will prefer that the nature of the
building falls within the scope of their expertise. Lastly, the organisation may use
consultants. Consultants may be expensive in the short term, but in the long term
they can save a great deal of time and money because they are specialists in their
field. The management should, however, make sure that they choose a reputable
consultant.
So far, we have discussed the factors to take into account when looking for a
suitable location for your office building. We have also considered the options for
locating to a new office, expanding your current office or renovating your office.
We now turn our attention to the factors that you have to consider for the décor
of the office, namely the office environment itself. You will once again note that
ergonomics plays an important role.
10.2
Factors to consider in the décor of the office
Office ergonomics provides a framework for the design of office environments to
optimise the health, safety, comfort and effectiveness of their human occupants
(Brand, 2008: 245; Saha, 2016: 30). According to May et al (2004), ergonomics
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describes the science of adapting work and working conditions to suit the worker,
rather than forcing the workers to adapt to the design of the machine.
We can deduce from the nature of this science that it is very much an individual
science. If everybody were the same height and size, and if their arms were the same
length and their hands the same size, the answers to ergonomic problems would
be much easier to find. But, of course, this is not the case. People have so many
different dimensions that the combinations are practically endless. This is why
we have to consider a number of factors when planning the office environment
and the positioning of workstations. In the discussion that follows, we look at
the following factors: colour, lighting, sound, temperature and air conditioning,
employee health, safety and security, cabling, screens, plants and artworks and,
finally, furniture and equipment.
10.2.1
Colour
The importance of colour in the office
The use of the right colours in the office is just as important as the textures and
materials used to decorate the office. Kwallek et al (2005: 473) believe that we
generally find office colour schemes fairly uninspiring, despite the fact that office
colours are significant and have an effect on perceived performance and job
satisfaction.
Colours in the office are influenced by fashion trends. Colours can be quite
useful in the overall design of the office, so when management wants to create a
specific atmosphere in the office, they can do it very effectively with colour.
Colours that range from pastel shades to bright colours make the workplace
a more pleasant place to work in, without having a negative impact on the
professional image that the company wants to project. Colour can also make an
office appear warmer or cooler, larger or smaller.
With colour, poor architectural features can be also corrected, centres of
attention can be created and individual workstations can be blended.
Colour also has a psychological effect on employees and affects their morale,
because colour influences moods and elicits emotional responses. Even more
importantly, colour affects employee productivity and both physical and mental
health. For example, blue is universally considered to be an excellent colour for
productivity. It is also a stable and calming colour that assists employees to focus
on the task at hand. Green is a good colour for employees who work long hours as it
does not cause eye fatigue whilst it assists in keeping employees calm and efficient.
Yellow is known as an optimistic colour and can stimulate creativity. When you
consider all this, you will understand how important it is for the administrative
manager to know the impact of colour on the office environment and to use it
effectively.
The impact of colour on the office environment in its entirety should be
considered. Black and white will influence all the other colours. Black will make
the other colours lighter and more defined while white will make other colours
look darker. Any colour that is used against a darker colour will appear lighter
than it is, and vice versa. Colours appear faded in sharp light and darker in softer
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lighting. Warm colours make walls seem to come closer and cooler colours make
walls seem to move away. At the same time, light colours make a room appear
bigger. Two contrasting colours can tire the eyes quickly.
Small areas where bright secondary colours have been used to balance the
colours in the bigger areas will appear very attractive. The choice of colour and
texture of materials in workstations is as important.
A number of changes have also taken place over the years regarding the
materials and colours used for workstations. Designers have moved away from
using veneer to melamine for the surfaces of desktops. The popular shades are now
oak, maple and rosewood. The edges of workstations are also rounded to add to the
general safety features of the workstations.
Colour schemes and combinations
With regard to colour schemes, the following should be considered:
•
•
•
•
•
•
•
•
•
the character of the office, such as the size, shape and the number of windows;
the image that the organisation wants to project;
the amount of each colour that is used;
the location of workstations;
the colour combination;
the effect of light on colour;
the impact of colour on the rest of the interior;
the reflecting value of colours (that is, the lightness or darkness of colour); and
the colour of carpeting, walls and furniture.
The impact of light on colour
The colour combination and the effect of light on colour should also be taken
into consideration. The system of lighting can also have a significant effect on
the colour in the office because different forms of artificial lighting can have a
different effect on the colours used. The source of light will only reflect the colours
falling within its own spectrum of colours. Fluorescent lighting does not light up
red and orange very well. Incandescent lighting does not light up blue very well.
In view of this, it is important that any colour considered for an office should be
tested in both natural and artificial light.
Under fluorescent lighting, cool colours are likely to go grey and greens and
yellows intensify. A soft white fluorescent light warms up reds. To overcome the
unpleasant effects caused by fluorescent light, a deluxe warm‑white fluorescent
tube can be used.
Selecting colours for the office
When selecting colours for the office, careful planning is necessary. All the
characteristics of the office need to be considered. The size of the office, the
number of windows, how the office will be used and how the office furniture and
equipment will be positioned all play a role when you have to select the colours for
the office. The amount of each colour used is important in the overall appearance
of the office. Therefore, it is useful to work with a large-scale floor plan of the
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office to determine the colour scheme. To make sure you choose the correct colour
scheme, the colour of the floor covering is first applied and then the floor plan is
exposed to different lighting effects. The most important factors to consider when
selecting colours for the office follow.
The location of the office
Offices facing north tend to be hot and can be made cooler by using cool colours.
Offices that are located in warmer areas of the country are more pleasant when
they are decorated with cool colours. The opposite effect is created in offices that
are located in cooler parts of the country.
The size of the office
Colour can be used to make an office appear smaller or bigger. Light colours closer
to grey in shade will make an office appear larger and cool colours will lend a
spacious quality. Dark tones define space and will make the office appear smaller.
The shape of the office
Different colours or textures can be used to compensate for poorly shaped areas
and add emphasis or create a focal point. A short wall in a long, narrow office can
appear taller by painting it a light colour, and a high ceiling will seem lower if
painted a darker colour.
The operations performed in the office
The task area should be well lit and bright in tone. A dark working area surrounded
by bright or white walls makes a task more difficult. Overly bright walls, the
ceiling, desks and even the computer keyboard can project a glare.
The floor covering, walls and furniture
The use of carpets is now in bigger demand than tiles. To combine colours is no
problem since a wide variety of colours in carpets is available. Carpets present an
advantage in that they decrease noise. They are also more comfortable for staff
who have to stand for long hours. A wide variety of industrial carpets as well as
laminated flooring have become popular for use in offices.
10.2.2
Lighting
In addition to choosing the right colours for your office, lighting also plays an
important role in the overall appearance of the office. So, before we pay attention
to the important theoretical points, let us look at a few general issues to consider in
terms of the office building, lighting and the position of the workstations.
Ideally, the office building should not be shaded by other buildings. The
building should also face away from the sun and have large windows. Such a
building, however, is seldom to be found and it is the administrative manager’s
responsibility to arrange the office so that the best possible use is made of the
available natural light.
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Those office employees who do work that needs good lighting should be positioned
near the windows. The desks, however, should not be placed so that employees
face the light since the glare created by lighting, both direct and reflected from the
desk top, is a source of distraction. The ideal position for a workstation is one on
which the light falls from behind and slightly to the left of the employee. Where
office windows face the sun, blinds should be provided so that the intensity of
light and glare can be reduced in sunny weather.
Apart from the above very necessary factors to take into consideration, it should
be remembered that lighting plays a significant role in the atmosphere that you
would like to create in the office. According to Myerson et al (2010: 93), atmosphere
consists of a combination of factors. Wall and floor coverings, main lighting,
secondary lighting, floor lamps, desk lamps, curtains and blinds all enhance the
atmosphere you want to create in the office. If the lighting is too white, you may
not achieve the desired level of friendliness that you want to create. The danger
of over-lighting is that, instead of lighting putting people in a good mood and
enhancing productivity, it will irritate office employees and decrease the morale.
It is therefore important that the right light be chosen to create a comfortable work
environment (Saha, 2016).
Choosing the right lighting
With regard to the impact of the lighting system on the office environment and
the positions of the workstations, the following issues should be considered:
•
•
•
•
•
Lighting should adapt to the nature of the work done.
Lighting should be measured with a light meter to test visibility.
Shades and flashing of lights should be eliminated.
All reflectors, lamps and windows that have anything to do with the lighting
should be cleaned regularly.
A trained person should be consulted on the matter of lighting.
Earlier we referred to the glare that can be created by lighting, directly or when
reflected from the desktop, as well as by natural or artificial lighting. You have
to decide, depending on the location of your office building, which source of
lighting (for example, natural or artificial) will work best. A study done in 2005,
which aimed at isolating causes of dissatisfaction within a large open-plan office,
highlighted the danger of glares created by lighting on people’s perception of
their visual environment. The study found that there “seems a possibility that
daylight glare from windows destabilized the visual function and set adaptation
levels that caused well illuminated spaces to appear inadequately lit” (Speed,
2005: 229).
Natural light versus artificial lighting
Normally we have a choice between natural light and artificial light. Natural light
has a positive impact on employees’ morale and is effective but not very reliable.
Therefore, it has to be accompanied by artificial lighting. In an ideal situation,
staff who are right-handed should have the natural light over their left shoulders,
and staff who are left-handed should have the light over their right shoulders.
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Increasingly, fluorescent lighting is used in offices, because this type of lighting
closely resembles natural light. It is more expensive to install than incandescent
light bulbs, but it has some advantages. For example, it produces less heat and
flashing, the tubes have a longer lifespan than bulbs, it uses less electricity, and
the lighting is more equally distributed than when using incandescent bulbs. This
is important in preventing glare.
In addition to fluorescent lighting, you can use incandescent light bulbs in
the office to break the monotony of light panels and to draw attention to certain
features of the office layout. You can also make use of high-intensity lamps. These
were originally used to light up streets and sport stadiums. This is a very effective
system, but has a bad effect on colours.
Lighting systems
Once you have determined how much natural and artificial lighting there is and
determined the balance between them, you can choose between the various types
of lighting systems (Myerson et al, 2010: 100). To a certain extent, all lighting
systems create a glare, some to a lesser degree than others. The lighting systems
that we will discuss are:
•
•
•
•
•
•
direct or directional lighting;
semi-direct lighting;
indirect lighting;
semi-indirect lighting;
generally distributed lighting; and
task or ambience lighting.
Direct or directional lighting: This type of lighting sends about 90 to 100 per
cent of its light downwards in the form of a cone of light to the workstations that
it is directed at. It throws hard shadows with sharp contrasts between the lighted
areas and the shadows. Directional lighting systems are recommended for offices
as working lights only where the general illumination is high enough to reduce
the impact of the contrast mentioned.
Indirect lighting: This type of lighting throws 90 per cent or more of its
light on the ceiling and walls. The ceiling and the walls then reflect it back to
the office.
This system will be most effective when the ceiling and walls are painted with
a light colour. This is the type of lighting mostly recommended for offices, but a
combination of direct and indirect lighting is mostly used in offices.
Semi-direct lighting: This type of lighting throws between 60 and 90 per cent
of the light straight down on the surface it is directed at. The rest of the light goes
up and then down again. Some of the shadows of direct lighting are eliminated
with this type of lighting.
Semi-indirect lighting: This is an alternative to semi-direct lighting. This type
of lighting throws between 60 and 90 per cent of the light up and then straight
down. This type of lighting may lead to shadows.
Generally distributed lighting: This system throws between 40 and 60 per
cent of light directly to the working surface while the rest is thrown downwards.
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Task or ambient lighting: The latest trend in lighting is task or ambient lighting,
which makes use of lamps that are installed on or in desktops. This type of lighting
has a number of advantages. Areas are not lighted equally, which leads to a better
sense of dimension. Less energy is used and the cost of the installation is less.
There is also less of a need for bulbs to be replaced.
To help you choose the most correct lighting system from the list above, you
can take the following factors into consideration: the type and nature of work for
which the lighting is necessary; its contribution to efficiency levels; the cost of
maintaining the system; the dependability of the system; the physical appearance
of the system; the adaptability of the system; the contrast between the illuminated
area and the rest of the desktop; the glare that the lighting system can create;
whether direct or indirect lighting would be most appropriate; whether there is a
need for a task system; and the desirability of a fluorescent system.
10.2.3
Sound
Office acoustics contribute to performance and well-being in the workplace and is
a factor that needs to be considered in the office.
Sounds can distract employees’ attention and reduce their productivity. The
administrative manager should therefore endeavour to control sounds and try to
keep them to the minimum. Many sounds that move through an office building
can be eliminated by using windows and doors that close properly, or by using
building materials that will not cause a vibration. Ceilings and walls can also be
treated with sound-absorbent materials.
In cases where offices are situated near busy streets or noisy industrial processes,
the effect of external noises can be reduced by using double-sided window panels.
In addition, the following practical points can be implemented fruitfully to
control sounds created inside the office. Noisy equipment should be positioned
in spaces separate from the main office. Doors should be fitted with hydraulic
controls to prevent them from banging. In addition, the edges of doors can be
fitted with rubber or felt stops. Switchboards and staff who conduct the most of
their business on the telephone should also be positioned away from the general
office or should be screened with dividers that are covered with sound-absorbing
materials.
Lengthy interviews or conversations between office staff in the general office
can cause distraction. For this purpose, a conference or interviewing venue should
be provided. Noise that is caused by the movement of staff in the main office can
be reduced by covering the floor with carpets, rubber flooring or linoleum with
underfelt.
Music is successfully used to absorb and neutralise normal office sounds.
Music also increases productivity and satisfies staff because it reduces boredom
and monotony. In a study measuring the effect of listening to music on work
performance, Lesiuk (2005: 173) highlights the value of listening to music for
positive mood change (while working). The results confirm the use of music for
positive mood alteration.
Music decreases physical and psychological tension. It therefore has a positive
influence on the attitude of the employees. The success rate of the music will be
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determined by the type of music that is used as well as the time of day that it is
played. It has been established that employees become tired halfway during the
morning as well as just before closing time. Music with a faster rhythm should
then be played. The same music should, however, not be repeated in cycles, as this
will become boring. It is also advisable to switch the music off for short periods of
time.
10.2.4
Temperature and air conditioning
When one considers the issues related to office staff’s well-being and productivity,
there is clear evidence in favour of improving the quality of the office environment
(Zhou & Haghighat, 2009). It is important that there should be a constant flow of
clean fresh air through the office in order to combat fatigue. Many offices are
air conditioned, with the airflow, temperature and humidity automatically or
centrally controlled. In these cases, the required conditions would be provided for
as long as the air-conditioning system is maintained.
In the absence of an air-conditioning system, problems may be encountered in
maintaining a healthy atmosphere while simultaneously avoiding draughts, which
are a source of irritation to office staff. A number of devices can be used to reduce
draughts. Office spaces with internal and external doors should have sufficient
space between them so that when a person passes through these doors, both doors
are not open at the same time. Transparent plastic screens can be placed inside
sash window frames so that when the window is opened at the bottom, the stream
of air does not come straight in. Wood, metal and glass screens can also be placed
around doorways.
One of the requirements for productive levels of work in any working
environment is that staff should not be conscious of themselves. The minimum
comfortable temperature for offices is between 19 and 21 ºC (Quible, 2005). Anyone
who is uncomfortably hot or cold cannot concentrate fully on the task at hand.
According to the results of a study by Seppänen et al (2006), performance increases
with the temperature up to 21−22 ºC, and decreases with the temperature above
23−24 ºC. The highest productivity is at a temperature of around 22 ºC. The ideal
heating system for offices is one that gives an even heat throughout the office,
without excessively hot or cold areas. Office buildings with large areas of glass in
the walls, whether as windows or as cladding, can become overheated in sunny
weather. This effect can be neutralised best by using exterior sunblinds.
With regard to the impact of temperature on the office environment and
position of the workstations, the following factors should be considered:
•
•
•
•
the extent to which a constant flow of clean fresh air can be obtained;
the position of doors and windows so that draughts can be minimised;
the availability and type of fans and air-conditioning systems; and
the type of systems that can neutralise the impact of uneven temperatures.
10.2.5
Employee health
As a result of publicity given to workplace-related illnesses such as SBS, stress,
tenosynovitis and repetitive strain injury, organisations are now giving more
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attention to health issues in the workplace. It has been established that the
central control of lighting, ventilation, cable management and the positioning
of furniture in the office buildings of the late 1980s led to a decreased feeling
of personal and local control by employees. These factors contributed to high
levels of employee discontent, sickness and absenteeism. Together with this, it also
became more and more important for individual staff to have autonomy over their
workplace conditions, which range from being able to open windows themselves
to switching desk lights on and off (Myerson et al, 2010).
Evans (2016) is of the opinion that the issue of an ergonomical office design is
receiving more and more attention because of the increase in costs for healthcare.
In addition, a healthy workforce is a happier and more productive workforce. By
increasing the productivity of employees, the organisation’s competitiveness can
be enhanced. All those who work in an office would like to have a pleasant place
in which to work.
Physical and logistical limitations in the workplace can quite easily make
workers less effective, less productive and less accurate in their work.
In the following section we pay attention to the phenomenon of sick building
syndrome (SBS). We answer the questions:
•
•
•
•
What is sick building syndrome?
What causes sick building syndrome?
What are the symptoms of sick building syndrome?
What are the solutions to the impact of sick building syndrome?
What is sick building syndrome?
SBS is used to describe a situation in which the occupants of a building experience
acute health- or comfort-related effects that seem to be linked directly to the time
spent in the building; no specific illness or cause can be identified (Joshi, 2008).
Certain factors, however, such as the lack of natural ventilation and lack of
dust-free and pollution-free air, have been identified as key contributors to the
symptoms caused by this syndrome (Grobler & Wärnich, 2011; Heslop, 2007).
SBS is further defined as the chronic and typical low-level experiencing of a
number of general symptoms that occur during working hours and which are
absent in the evenings and over weekends. In other words, these are symptoms
that people experience only when they are at work, and not when they leave the
building or the office. The phenomenon can cause black moods and a depression
in some people. SBS has also been blamed for allergic reactions, skin problems,
aggravated asthmatic conditions and feelings of nausea or dizziness. A study done
in the US revealed that there is a distinct relation between what researchers call
respiratory morbidity and prevailing dampness in the office environment (CoxGanser et al, 2005: 485).
Research conducted in 2007 showed “that employees in ‘sick’ buildings
reported significantly higher levels of stress, lower levels of environmental control,
lower levels of job satisfaction and lower overall environmental satisfaction. There
was a significant relationship between job stress, job satisfaction and overall
environmental satisfaction respectively, and the number of SBS symptoms reported
by employees in each building” (Heslop, 2007: 14). Heslop’s study also refers to the
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quality of office air, which relates to the issue of quality management (QM) in
administrative management. The role of the administrative manager, therefore,
stretches much wider and further than simply running the administrative
processes and executing administrative procedures.
What causes sick building syndrome?
SBS results from unfavourable environmental conditions (Quible, 2005: 86).
It can be because employees are not completely comfortable in the working
environment or because there are elements present in the environment that cause
health problems, such as pollution or a lack of heating. Many office staff these
days spend many hours in front of the computer and a weak interaction between
people and machines can cause great discomfort. In addition, certain physical and
social environmental elements, such as whether an employee can really work well
in an open-plan office, can also cause stress. Some people believe air conditioning
is one of the main reasons for SBS. Others believe the phenomenon is due to the
rising costs of energy and the various ways in which management attempts to
cut costs. Temperatures are often allowed to exceed the maximum. Conditions in
larger offices can also vary extensively from one workstation to another.
There are a number of physical factors causing SBS. These are:
•
•
•
•
•
•
•
•
internal pollutants such as bad odours, carbon dioxide, radiation, asbestos and
ozone (released by the photocopier);
varying temperatures and fresh air as a result of the conservation of energy;
pieces of furniture or equipment that interfere with the movement of air;
the noise of office systems;
inadequate heating, ventilation and air-conditioning systems and maintenance;
poor heating, ventilation and air conditioning as a result of the change in the
system or office layout;
poor office design; and
inadequate lighting.
What are the symptoms of sick building syndrome?
It is necessary to be on the lookout for symptoms to identify areas in the office design
that possibly contribute to SBS so that the correct solutions can be implemented.
Some of these symptoms are eye, nose and throat irritations, a feeling of dry skin,
rashes on the skin, headaches and a high occurrence of infection of the airways,
as well as coughing fits, hoarseness, itchiness and unspecified hypersensitivity,
nausea and faintness, and drowsiness (Joshi, 2008: 61).
What are the solutions to the impact of sick building syndrome?
There are solutions to implement in order to minimise the effect of SBS on
employees. The starting point is to study all the physical ergonomics and social
aspects of an office environment to determine improvements to be made to the
ventilation, lighting and noise problems. The following can be done: vacuum and
clean the offices regularly, allow the building to get enough fresh air at night, relax
rules regarding clothing, and buy indoor plants.
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10.2.6
Safety and security
Safety and security in the office is important for those working in the office, the
equipment as well as the information resources. All these factors are vital to the
success of the organisation and a safe and secure environment should therefore be
created to safeguard these resources. Safety and security issues cover a wide range,
such as the protection of your office against fire or theft, as well as the internal
safety of office staff. The main reasons for getting hurt at work are people who
fall when they handle equipment, accidents when people carry furniture or the
careless handling of equipment such as staplers and guillotines. It is therefore an
important task of the administrative manager to be responsible for the control of
circumstances that may cause accidents.
There are a number of ways in which the office can be protected against fire,
such as the clear marking of fire exits, regular fire drills, instructions posted at
key areas throughout the office, a sufficient number of fire extinguishers, regular
servicing of the fire extinguishers, a sufficient number of external fire doors and
specific people appointed to act as fire officers. It is the task of these appointed
people to see that fire drills take place regularly, that people are fully informed and
that equipment is in full working order.
With regard to the impact of safety and security on the office environment and
position of the workstations, the following should be considered:
•
•
•
•
•
•
•
external theft, which covers theft of equipment;
external or internal sabotage;
internal negligence resulting in loss of information;
fire and flooding;
fraud, especially with computers;
accidents in which employees are involved; and
the external environment, such as power failures that can damage systems.
To maintain security in the office, the following measures can be applied:
•
•
•
•
•
•
•
•
Access, information and keys should be monitored.
Dissatisfied people should be identified.
Employees should constantly be reminded about security.
Since filing cabinets can easily be opened although locked, extra measures for
the security of filing cabinets should be implemented.
All important paperwork should be destroyed after it is used if it does not need
to be stored.
Only permanent staff should deal with confidential matters.
Desks should have no confidential items lying on them during lunch times;
keys of drawers should not be left unattended.
All people entering and leaving the premises should sign in and out in a
visitors’ book.
10.2.7
Cabling
Effectively managing the cabling in the office environment can be a challenge for
the administrative manager. Therefore, office environments should be designed
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and workstations positioned in a manner that facilitates the cabling and the
interfaces between the distribution systems. Cable management refers to an
important step during the installation of building services and the subsequent
installation of equipment providing means to tidily secure electrical, data, and
other cables. Managing cables means routing them in an orderly manner between
devices in your network, whether those devices are servers, phones, monitors or
other devices (Hulland, 2014).
Wireless technology has also grown in popularity, which means that individuals
no longer have to be connected to a particular workstation. This has opened the
potential for office staff to have access to a wider range of work options. We also
refer to this as alternative work options or virtual offices, discussed in Chapter 11.
Some innovations that accommodate the ever-increasing presence of
information technology (IT) in the office include the following:
•
•
•
•
•
office furniture that is designed to accommodate a multitude of cables;
desks that have tubes under the desktops to hide the cables and also assist in
the effective distribution thereof;
cable channels that relay power and data from a variety of sources;
networking and power outlets that are available throughout the office building;
and
places to recharge cellular phones, which have become an integral feature of
offices.
When planning the cabling for the office and workstation, the following should
be considered:
•
•
•
•
the safety of the cabling;
the visibility of the cabling;
the compatibility of the cabling with the furniture; and
the age of the building.
10.2.8
Screens, plants and artwork
Screens (room dividers), plants and artwork can be used very effectively in the
office environment and in the positioning of workstations. Knight and Haslam
(2010: 158) believe that the value of offices are enriched by plants and art, which
contributes to employees’ feelings of well-being. To divide large spaces, the
administrative manager has a choice between cupboards, medium-height storage
units, glass partitions or mini-partitions covered with material. These dividers can
be used effectively by office staff to partition off their particular work space from
the rest of the office environment.
Some offices use screen plants instead of office partitions, as the screen plants
help to reduce noise and stress, and improve the well-being of office workers.
Studies show that offices ornamented with plants can increase productivity
significantly since employees perceive the workplace as more enjoyable and
comfortable (Evans, 2016).
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With regard to the impact of screens, plants and artwork on the office environment
and the positioning of workstations, the following factors should be considered:
•
•
•
•
•
the types of screens, plants and artwork;
the colours of the screens and artwork;
the textures of the screens;
the designs of the screens and artwork as well as the designs of the frames; and
the framing of graphs.
10.2.9
Furniture and equipment
The way the administrative manager plans, designs and equips the office says
a great deal about the culture of the organisation (Myerson et al, 2010). In this
section we highlight a number of characteristics of furniture and equipment to
consider when planning and designing the office environment and positioning
the workstations, namely:
•
•
•
•
•
•
•
•
•
•
•
the design and shape of the furniture;
the size of the furniture;
the type of work that will be done at the workstation;
the position of the work in the workflow;
the construction of the furniture, which can be of wood, steel or plastic;
whether the workstation will be shared or used by an individual;
the user-friendliness of the furniture;
the contribution of the furniture to productivity and production costs;
the amount of time spent at the workstation and equipment stations such as
photocopiers, printers and computers;
the frequency with which reference material is used at the equipment
workstations; and
the extent to which other facilities such as scanners are used at the workstation.
In addition to these issues, there are a number of factors to consider in terms of the
installation of equipment in the office. In the following sections we discuss the
planning considerations, the different acquisition options and the maintenance of
equipment. In considering the planning of office equipment, the administrative
manager should consider the following factors:
•
•
•
•
•
•
•
•
•
•
the budget;
the purpose and functionality of office equipment;
allocated office space;
productivity;
the specifications of the equipment;
the dependability of the equipment;
the costs of acquisition, maintenance and operation of the equipment;
the effect of the installation of new equipment on existing office activities;
the benefits of the equipment to the organisation; and
supplier considerations.
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The budget
One of the first things to do when planning to acquire office equipment is to
check the budget. This will tell you whether the organisation has budgeted for the
acquisition of new office equipment, as well as how much has been budgeted. The
administrative manager should do a check on the affordability of the equipment
as well as the viability. This means they should check how well the equipment
matches the needs (Knickelbein, 2003).
The purpose and functionality of office equipment
When planning to acquire office equipment, the purpose and functionality of the
office equipment should be considered.
The work that the equipment will be used for will either partially or wholly
determine the purpose of the equipment. Often, organisations acquire office
equipment that is far too sophisticated for their needs, with the result that some
of the functions of the equipment are underutilised. This increases the cost of the
equipment and lowers the return on the investment the organisation has made.
To avoid this, it is recommended that someone who knows the equipment well
and knows what the equipment will be used for be involved in making the final
decision to acquire the equipment. This should be addressed when selecting the
committee during the decision-making process.
To determine the purpose of office equipment, the administrative manager
should have a meeting with the department that needs the equipment. The aim
of this meeting is to ensure that the department really needs what it says it needs.
It might be the case that the department’s capacity can be enhanced with the
introduction of a slightly more sophisticated machine than was originally thought
necessary. In this manner the department’s purpose can be re-aligned because of
the new possibilities opened up by the technology that is introduced (Knickelbein,
2003).
The purpose of the equipment is first of all determined by analysing the need
for the equipment. This means that you need to determine what is required of the
equipment: What does the user expect to put in and get out of the equipment?
In addition, the following factors should be considered when determining the
purpose of equipment: size, appearance, robustness, frequency of use and the
number of users (Linden, 2003).
Productivity improvement
The performance of and the contribution that the equipment will make towards
productivity improvement should also be considered. A simplistic but commonly
accepted definition for productivity is that it is the result of the relation between
output and input.
According to Knight and Haslam (2010: 166), productivity in the office is
improved by enriching a space, for example by plants and equipment, and
further enhanced by empowering employees. The equipment acquired must
improve productivity and thus profits, otherwise it will not be considered. Since
it is really the human resources who (HR) will add to a rise in productivity,
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equipment is currently designed to meet the psychological and physiological
needs of employees. We refer to this as the ergonomical design of equipment.
It is good to mention again that employees should have a say in the choice of
equipment. For the employee, flexibility goes hand in hand with professional
growth, responsibility and better remuneration.
By accepting the challenges posed by new equipment, employees can develop,
grow and explore new fields. It is the responsibility of the management to see
that productivity is improved. Thus, labour, materials and capital are effectively
combined to produce the maximum output at the minimum cost whilst maintaining
or improving quality. It is important to remember that technology plays a very
important role in productivity. When, in general, we refer to technology, we mean
any tool or technique, product or process, physical equipment and method of
doing or making something whereby human ability is expanded.
Specifications
When planning to acquire office equipment, you must look into the specifications
of the equipment. According to Linden (2003), they should conform to the needs
and requirements of the organisation.
Design: With regard to design, modular construction is very popular today.
Modular construction allows for similar equipment units to be added to the initial
base of the equipment unit. This will lead to flexibility and effective use for a
variety of office work.
Brand: According to Quible (2005: 111), it is also important to make a decision
on the specific brand of equipment one is looking for. He writes: “Because
equipment needs often can be adequately met by several brands of equipment, a
fairly comprehensive equipment search should be undertaken.” It is best to provide
suppliers with a full description of what will be required of the equipment. This
will assist suppliers to recommend the most suitable equipment, especially in the
case of high-cost equipment.
Photocopier specifications: The following specifications are important with
regard to photocopiers: size, electrical requirements, installation requirements
and special structural requirements to accommodate the new piece of equipment.
Another specification that is important is the volume of copies per month. The
photocopier should be able to handle peak periods. Furthermore, the following
are important: the document feeder, the stapling and sorting function, the size of
copies (that is, the minimum size and the maximum size that a photocopier can
make), the warm-up time, the enlarge and reduction function and, lastly, whether
a colour function is required (Knickelbein, 2003).
Ease of operation, flexibility, upgradeability and speed: Regarding the
number of specifications mentioned here, the organisation should consider the
amount of time that would be necessary to train staff if they are not familiar
with the equipment. It is also important to ensure that equipment is upgradeable
(Randall, 2003). Furthermore, flexibility and ease of use are linked to whether users
of the equipment are capable of being trained to operate the equipment. Sometimes
a non-technical perspective of office equipment can give a better understanding
of whether the equipment will be able to be used successfully or not. Certain
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equipment types may fail, not because they do not meet the requirements, but
because they may be too complex to operate (Linden, 2003).
Compatibility: With equipment being interlinked, the compatibility between
various hardware should be investigated, as connectivity has become a key issue
in today’s offices (Knickelbein, 2003).
Standardisation: Sometimes standardisation is necessary and provides farreaching benefits across the board. However, the support infrastructure should be
in place to accommodate the selected brands and models and the preferred brand
should remain the main consideration (Linden, 2003).
According to Quible (2005: 112), most standardised office equipment is not a
threat to safety in the office, but equipment could be hazardous if misused. It is
therefore recommended that when planning is done to acquire office equipment,
the safety features offered by the various equipment should be compared.
Safety: Linden (2003) says that the safety features of the equipment are of
paramount importance. This is non-negotiable: if the equipment poses any form
of safety risk, either to the end user or the environment, then the risks certainly
need to be assessed.
Dependability
A further factor to consider when planning to acquire office equipment is its
dependability. An assessment of the dependability of equipment should be done
once the brand decisions have been made. This investigation should especially be
done when acquiring office equipment from a supplier that is not well known. A
number of ways can be used to assess the dependability of office equipment. One
method is to contact other administrative managers involved in the acquisition
of office equipment to enquire about their experiences. The names of satisfied
customers can also be obtained from suppliers and these can then be contacted to
find out how satisfied they are with the equipment.
Apart from these two methods it is imperative that the administrative
manager keeps abreast of the latest developments in office equipment at all times
by reading catalogues that are distributed by suppliers. When investigating the
dependability, the administrative manager can be led by the reputation of the
supplier (Knickelbein, 2003).
An important factor that impacts on the dependability of the equipment is the
number of moving parts. The fewer moving parts there are, the more dependable
the equipment will be. One should also look at the volume of digital characteristics
of the equipment, because this also makes the equipment more dependable. It will
be worthwhile to study reports of the performance of the equipment; valuable
information can also be obtained from other users of the equipment. Most major
brands nowadays have extremely reliable features (Linden, 2003).
Costs of acquisition, maintenance and operation
Another very important factor when planning to acquire office equipment is the
cost. Because of continuously rising costs, the administrative manager should
always be looking to office equipment as one of the methods to reduce office costs.
The cost of equipment plays a significant role in the organisation’s return on its
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investment. Costs should, however, not be overemphasised, because this may lead
to administrative managers selecting cheaper equipment that, in the long run,
does not yield the required results. The maintenance costs of cheaper equipment
might be higher and in this manner erode the profit margin of the organisation’s
production.
When the organisation purchases office equipment, these costs will be for
their own account and can become very expensive. So, a good way in which to
approach the cost issue is to investigate equipment that performs more or less
the same function as the equipment the organisation considers to acquire. This
process might entail viewing pricing options over a range of brands and models.
The administrative manager should check to see that the price the organisation
will be paying does not include functions and facilities that are just nice to have
but in reality would not be justifiable in terms of the additional cost. It is also good
to check international pricing agreements between an organisation and suppliers
(Linden, 2003).
It is more advantageous to acquire office equipment by means of a lease and
maintenance agreement than to purchase, since the replacement of parts is the
responsibility of the leasing company (Knickelbein, 2003). Regarding maintenance
costs, the lease and maintenance agreement is recommended because of the
number of benefits that the organisation can enjoy. It is recommended that the
maintenance plan be negotiated with the supplier. The higher the volume of
work to be handled by the equipment, the shorter the lease period should be. The
standard lease period is five years, but a shorter period can be negotiated.
Choosing the most appropriate service and maintenance plan is part of
planning to acquire office equipment. To formulate a service plan, a choice can be
made between service contracts, call basis and internal service. When choosing
between these, the following issues should be considered:
•
•
•
•
•
•
•
the costs and availability of the service contract;
the frequency of repairs to equipment;
the impact of preventative maintenance on increasing the life of the equipment;
the availability of trained personnel and the costs of possible further training;
the type of equipment that needs to be maintained;
the cost of administrative work associated with the maintenance of equipment;
and
how soon the equipment needs to be repaired.
Another cost factor to consider is the cost of operating the equipment. It is
important to determine the cost of each unit that is produced by the equipment.
Some equipment, such as multifunctional copiers, may require the use of expensive
cartridges. Replacing the high-tech parts may also be costly.
The effect of implementing new equipment on existing office activities
When planning to acquire office equipment, it is also important to determine
the effect that implementing the new equipment may have on existing office
activities. The introduction of new equipment may have a tremendous impact on
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current office activities and operations. An attempt should be made to anticipate
the nature and extent of this impact and plan how it will be accommodated.
The benefits of the equipment to the organisation
It is important to establish the benefits of introducing the new equipment in
relation to the needs of the organisation. The type of equipment needed, namely
what the equipment is used for, will emphasise the factors to be considered. This
is done by defining the needs and then comparing these with the existing systems
and objectives. The role of the equipment should thus be clearly defined. Then it
can be decided whether the organisation, in fact, needs to acquire the equipment.
To make this decision, the administrative manager can consider simplifying,
rescheduling or changing the work so that the need for the equipment is eliminated.
The work can also be subcontracted. You should determine if the machine will be
cost-effective. Factors to consider when deciding if the equipment meets the needs
of the organisation are the following: price, after-sales service provided, and the
volume of work the equipment can handle. Finally, you should plan the period
during which the equipment is intended to meet your needs.
Supplier considerations
Another very important factor to take into consideration when planning to acquire
office equipment is the supplier. When selecting a supplier, it is worthwhile to pay
attention to the reputation of the supplier. This entails the following information:
the age of the supplier, the size of the supplier, the services provided by the supplier,
the financial stability of the supplier, and the range of equipment and variety of
models that the supplier can provide (Quible, 2005: 113).
You should check what after-sales services are provided by the supplier, as well
as what guarantees and warranties they offer. The proximity of the supplier, which
will influence response time, is also very important (Randall, 2003).
One factor that is often ignored is the supplier’s attitude to finance/accounting
queries. It is all very well to have the technical department satisfied with the
supplier’s technical skills, but the finance team should also be impressed with the
supplier’s answers to queries. Another issue to consider is how big the supplier’s
customer base is and whether they have the capacity to handle multiple call-outs.
The training and guarantees provided by the supplier are important. When
acquiring highly specialised equipment, it is important that training and a
demonstration be provided by the supplier. The modern tendency, however, is that
fewer suppliers offer training, but substitute this by including training manuals as
part of the sale. This can become a problem since many of the manuals use highly
technical language with little consideration for the users. In order to keep up
with technological trends, ask the supplier for electronic copies of their training
manuals and also whether they are web-based or not. This certainly provides an
easier method for users to access directions on how to operate the equipment.
It is also important to know the acquisition plans that the supplier offers.
You should establish whether suppliers prefer to sell or lease equipment. Because
organisations cannot always determine the exact moment in time when new
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equipment will be needed, it is important to establish if the supplier offers a
delivery service.
You need to know whether the supplier can supply equipment on demand. You
also have to find out about the kind of backup service that is available and whether
staff are competent to support the product they are selling. It is important that the
supplier always keeps the organisation informed of new developments as well as
when they have specials on offer (Randall, 2003).
The cost and quality of the service provided by the supplier is also important.
The response rate of the supplier is a very important aspect when a choice between
suppliers is made (Knickelbein, 2003). It is imperative that suppliers respond
quickly to organisations’ calls to avoid equipment downtime. The supplier’s track
record should definitely be taken into consideration, as well as their technical
abilities and their call-out procedures. Another important factor is the supplier’s
ability to deal with user queries.
The extent to which the supplier’s service agreements are in place and the
general reputation of the supplier within the area are also important (Linden,
2003).
10.3
The acquisition of office equipment
The following general points should be taken into consideration when the
administrative manager has to acquire office equipment:
•
•
•
•
•
Before you talk to a salesperson or delve into the brochures, make sure you
know what you want to do with whatever it is that you are buying. If you
are a one-person concern, for example, and your business plan depends on
staying that way for the next five years, do not be persuaded into paying for a
switchboard that can expand up to 100 extensions.
Never buy or lease machines that do things you do not fully understand.
Never buy or lease anything if the salesperson cannot satisfactorily explain its
function.
Before you sign on the dotted line, ask yourself: Does this piece of equipment
have any functions I do not need right now? Will I definitely need those
functions for business purposes in the next two years? How much extra am I
paying for the privilege of having them?
Business relationships are based on ethics and good business practices exercised
by all parties involved. In dealing with both customers and suppliers, honesty
and openness are a must (Linden, 2003).
10.4
The maintenance of office equipment
To assist in maintaining equipment, it is important to remember that the various
assets should be easily identifiable during stocktaking. The service and maintenance
should be carried out according to plan and details should be recorded properly.
An appropriate plan should be worked out for replacement. Provision should be
made for the re-evaluation of assets at specific times.
Take into consideration that replacement of equipment nowadays can lead
to structural changes in the organisation because equipment is much smaller
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than in the past and information is now stored on disks rather than in filing
cabinets.
Technological changes will necessitate better trained staff and the employment
of specialised staff that may, in turn, lead to retrenchment of some existing staff.
Staff numbers will also decline with the automation process.
Office equipment maintenance plans
The most widely used office equipment maintenance plans are: the service contract
lease and maintenance agreement, and in-house maintenance. The choice of
maintenance plan depends on the importance and availability of the required
equipment.
Maintenance agreements can be signed with suppliers of very important
equipment, especially when downtime means a loss of money (Linden, 2003). The
maintenance plan can also include a service-level agreement. This maintenance
plan should suit the needs of the organisation best, because the organisation
can pay only for what it needs. It is, however, important that the full details are
discussed with the supplier, as well as what is needed and what level of service
they can deliver. It is very important to read the contract carefully before signing.
The maintenance done by in-house staff is sometimes referred to as front-line
support. In many instances the faults can be diagnosed quite accurately by in-house
staff. The advantage of the in-house method is that preventative maintenance
reduces repairs and increases the life of the equipment.
Some of the disadvantages of maintenance agreements are high costs and
the inability of some suppliers to complete repairs in time due to distance.
The advantages of the in-house service option are that repairs can be executed
immediately. Preventative maintenance is carried out regularly and equipment
cleaned and serviced regularly. The disadvantages are that members of staff have
to be trained regularly due to technological advances. Costs can become high
when salaries and fringe‑benefits are brought into account.
Part of the maintenance of office equipment is the replacement considerations.
Office equipment is normally replaced at the end of the life cycle of the equipment.
Every piece of office equipment has been designed to render a service for a
specific period of time and therefore has a certain life expectancy. Equipment
is replaced when the end of this period is reached. Equipment should, however,
also be replaced if regular downtimes are experienced with the equipment or
the suppliers have to be called out regularly. This shows that the equipment has
some or other malfunction. Here again, we must emphasis the value of the lease
and maintenance agreement, because the technicians also perform preventative
work on the equipment on a regular basis, which enhances the equipment’s life
expectancy (Knickelbein, 2003).
10.5
Space management
A number of the issues that have been discussed already relate to the effective use
of space, we mostly refer to this as the management of space. Specific reference to
this was made in Chapter 9.
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A study by Knight and Haslam (2010: 169), investigating the impact of space
management on the well-being and productivity of employees, found that design
and empowerment both have an important role to play in determining employees’
responses to their work environment. According to Duffy (1999: 47–48) there
are two fundamental issues to consider in the management of space. These are
efficiency and effectiveness. Duffy refers to Peter Drucker, who is perhaps one of
the most influential American management gurus, and who defines efficiency
as “doing something right” while effectiveness means something rather more
fundamental, namely “doing the right thing”.
Applying efficiency in the office environment refers to cutting down the
occupancy costs. Occupancy costs are the costs that are incurred in accommodating
the business, namely the rent, property taxes, heating, cooling and lighting, the
interior decorating costs and the costs of managing the office space and keeping
it secure.
On the other hand, applying effectiveness in the office environment refers to
using space in a manner that will improve the quality of the work being done and
in this sense add value to the business performance.
In addition to focusing on efficiency and effectiveness, no conventional work
practice should be left untouched, instead office design should be re-engineered
(Waber et al, 2014). This means that there should be more diversity in the workplace
as well as a greater emphasis on ways to change workplace layouts more rapidly
and completely. You will remember that we referred to this type of re-engineering
in Chapter 9 and you are encouraged to read more about business process reengineering (BPR) (see Chapter 12). This knowledge will enable you to understand
the organisation and its processes in its totality. BPR is also closely related to the
management of quality in administration, which we discuss later.
You will also be encouraged to adopt the philosophy of total quality management
(TQM), which will lead to an enormous improvement of the level of quality of the
services provided by administrative management.
Planning and organising an efficient and economic space management
programme requires careful periodic study. Within the organisation a project
team approach is often used to plan and approve the new office design. The
administrative manager and key office personnel play a significant role in
outlining the workflow needs of administrative services in the organisation. Space
management for administrative services involves managing the physical features
of the office as well as the functional work requirements.
Equipment and staff should function together in the office to create information
at the lowest possible cost. Both factors should be combined and arranged in the
space that is available in such a way that the maximum level of efficiency and
effectiveness is achieved.
Information should flow in the office like materials flow along the production
line in a factory. The number of workstations that receive and distribute information
must be kept to a minimum without sacrificing the availability of the information
support services or the quality of service supplied. Information services refer to
those support functions that are responsible for meeting the information needs
of administrative staff. Examples of these are data processing, word processing,
mailroom services, telecommunication, records management and micro- and
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reprographic services. All information support services require space and the
amount of space has an impact on the number of administrative staff using the
space.
Conclusion
As stated in the introduction, for a number of reasons, of which sick building
syndrome certainly stands out, it has become important for organisations
to pay attention to their office environments. Organisations have become
increasingly aware that they will only obtain the maximum support from their
staff if the environments in which these staff members work are pleasant, safe
and secure.
This awareness also ties in with the new way in which people and their
relation to work are viewed. In the past, work was viewed as very mechanistic
and procedural and it was expected of people simply to do their work. Not much
attention was paid to the needs of staff in relation to the demands of their work.
Nowadays, however, because we spend so much time at work, the manner in
which we do our work and the place where we do our work are viewed in a new
light.
This has led to a fresh outlook on the planning and design of the office.
Issues such as the location of the office, the colours to be used in the office,
the lighting system, sound, temperature and air conditioning, safety and
security, cabling, the use of screens, plants and artwork, and the use of furniture
and equipment in the overall planning and design of the office environment
have become important. Also as a result of the above, issues such as employee
needs, communication networks, the accommodation of disabled staff and
organisational hierarchies need to be taken into consideration when planning
and organising the space management programme. Effectiveness in the office
plays an important role in space management and this relates strongly to the
management of quality in administration. It has therefore become necessary for
any administrative manager to have a thorough knowledge of business process
engineering, discussed at length in Chapter 12.
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Self-assessment
1.
Give the factors you would consider when you are deciding whether to locate
to a new office, expand an existing office or renovate your office.
2. Why is the office so important for business success? Elaborate on the
importance of space management for quality in administration.
3. When choosing colours for the office, you should pay attention to colour
schemes and combinations and the impact of light on colour. Discuss how
you would go about doing this.
4. Describe how you would consider the location, size and shape of the office
when choosing colours for the office.
5. Differentiate between the different types of lighting systems and mention the
factors you would take into consideration when choosing the most appropriate
system.
6. Why should the administrative manager take notice of sick building syndrome?
Describe how you should deal with the causes and symptoms.
7. Describe how you can make use of screens, plants, artwork, furniture and
equipment in the office environment.
8. The space management programme requires you to do a space analysis and
make spatial provision for working, support services, workflow, movement,
personal, and functional areas. Suggest to management how this should be
done.
9. Which factors would you consider when choosing a supplier?
10. Describe how you would go about considering the following issues when
planning to acquire office equipment: the budget, productivity improvement,
the dependability of the equipment, and the benefits of new equipment to
the organisation.
References
Balachandran, V. & Chandrasekaran, V. 2009. Office Management. New Delhi:
McGraw-Hill.
Brand, J. L. 2008. “Office ergonomics: A review of pertinent research and recent
developments.” Reviews of Human Factors and Ergonomics, 4(1): 245−282.
Cox-Ganser, J., White, S. K., Jones, R., Hilsbos, K., Storey, E., Enright, P. L., Rao, C. Y.
& Kreiss, K. 2005. “Respiratory morbidity in office workers in a water-damaged
building.” Environmental Health Perspectives, 113(4): 485ff.
Duffy, F. 1999. The new office. London: Conran Octopus.
Evans, C. 2016. “2016 Workplace trends: Preparing for the future today.” https://
www.linkedin.com/pulse/2016-workplace-trends-evolving-office-environmentconor-evans (Accessed: 5 June 2016).
Grobler, P. A. & Wärnich, S. 2011. Human resource management in South Africa. 4th
ed. Singapore: South-Western, Cengage Learning.
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Heslop, K. 2007. “Psychosocial factors associated with sick building syndrome
amongst office employees.” Ergonomics SA: Journal of the Ergonomics Society of South
Africa, 19(1): 14–23.
Hulland, R. 2014. “How to manage cables in an office.” https://www.netfloorusa.
com/blog/how-manage-cables-office (Accessed: 2 June 2016).
Joshi, M. 2008. “The sick building syndrome.” Indian Journal of Occupational &
Environmental Medicine, 12(2): 61–64.
Knickelbein, N. 2003. Administrative manager. Interview. East London: Border
Technikon.
Knight, C. & Haslam, S. A. 2010. “The relative merits of lean, enriched, and
empowered offices: An experimental examination of the impact of workspace
management strategies on well-being and productivity.” Journal of Experimental
Psychology: Applied, 16(2): 158−172.
Kwallek, N., Soon, K., Woodson, H. & Alexander, J. L. 2005. “Effect of color schemes
and environmental sensitivity on job satisfaction and perceived performance.”
Perceptual Motor Skills, 101(2): 473−486.
Lesiuk, T. 2005. “The effect of music listening on work performance.” Psychology
of Music, 33(2): 173−191.
Linden, T. 2003. Systems manager. Questionnaire. East London: Johnson &
Johnson.
May, D. R., Reed, K., Schwoerer, C. E. & Potter, P. 2004. “Ergonomic office design
and aging: A quasi-experimental field study of employee reactions to an ergonomics
intervention program.” Journal of Occupational Health Psychology, 9(2): 123−135.
Myerson, J., Bichard, J. & Erlich, A. 2010. New demographics new workspace: Office
design for the changing workforce. Surrey: Gower Publishing Limited.
Quible, Z. K. 2005. Administrative office management: An introduction. 8th ed. New
Jersey: Prentice Hall.
Randall, D. 2003. Systems administrator. Questionnaire. East London: Yarntex.
Saha, S. 2016. “A study on impact of workplace design on employee’s productivity
in selected IT companies in Pune region.” International Journal of Business and
General Management, 5(1): 25–38.
Seppänen, O., Fisk, W. J. & Lei, Q. H. 2006. Effect of temperature on task performance
in office environment. Berkeley: Lawrence Berkeley National Laboratory.
Speed, R. 2005. “The effect of adaptation levels and daylight glare on office
workers’ perception of lighting quality in open plan offices.” Architectural Science
Review, 48(3): 225ff.
Waber, B., Magnolfi, J. & Lindsay, G. 2014. “Workspaces that move people.” Harvard
Business Review, October 2014.
Zhou, L. & Haghighat, F. 2009. “Optimization of ventilation in office environment.”
Building and Environment, 44(4): 651−665.
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C h a p t e r 11
The virtual workplace
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
describe the evolution of the electronic and the virtual office;
explain the features of the virtual office;
highlight the advantages and disadvantages of the virtual office; and
conduct a study to determine the feasibility of the virtual office.
Introduction
Workplaces are developing all the time to demonstrate more features of the virtual
workplace. The traditional workplace consisted of a designated physical space
with distinct and basic furniture and technical, stand-alone, single-function
pieces of equipment. Over the years, equipment became mechanised, automated
and later electronic. As a result, processes and procedures could be automated,
and the ability of office equipment to take over the mundane and routine tasks
of managers and office assistants became greater.
This type of office, where computer-based information technology (IT) was
being used for office work, became known as the electronic office or e-office. Due
to the fact that all modern offices today are electronic offices, the term electronic
office is not used much today.
The processes of mechanisation and automation evolved into a process of
electronic communication, and file and data transfer by means of networks,
modems and routers became common practice. This development created many
possibilities; for example, some work could now be done from any location in
the world as long as you had access to the internet. So the virtual office became
a possibility. The virtual office is just an alternative worksite to the traditional
office where employees can still do the work they are assigned to do. The
alternative worksite could be at home, at a supplier’s or client’s worksite or even
in a coffee shop.
One of the main developments in creating the virtual workplace was the
addition of broadband communication via telephone lines, cellular network
modems and routers. Networks and modems enable us to download information
electronically from one site and workstation to another, which eliminates the
necessity for employees to be office bound.
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In this chapter, we look at the features of the electronic and virtual offices. This
includes the benefits as well as the possible dangers or disadvantages of the virtual
office – both to be taken into consideration when deciding the extent to which
one should and can go virtual.
11.1
The development of the electronic office
It is important to acknowledge the characteristics of the traditional office in
order to understand the nature of the workplace from which the electronic office
evolved. The work in a traditional office in trade and industry was done according
to a set routine. The activities were geographically centred in one building, for
example, and the administrative staff would normally have a space designated to
them with their own furniture and equipment. Staff had to deal with a variety
of equipment and tasks, such as typewriters, files, filing cabinets, phone calls,
typing and other clerical services. They were mostly limited to offering basic
clerical services.
Although many enterprises still operate within a traditional office, it is no
longer the predominant form in which work is organised and conducted. There
are a number of factors that contributed to the transformation of the traditional
office. Certainly the biggest factor that contributed to the emergence of the
electronic office is IT and the related technological developments.
While office work was traditionally done according to a set routine – and in
many cases still is today – the office work that is done in the electronic office
is inherently more interactive than the previous set office routines. As a result,
people have more control over their time, the content of their jobs, the tools at
their disposal and the place where they do their work.
This means that office staff of the electronic office now have more freedom
to decide when to do a particular piece of work. They normally fit their work
in between their own schedules and according to their personal preferences. In
the past, they had to come to work at a specific time in the morning, remain at
work for the required number of hours and go home at the prescribed time. They
also had to be physically present at the office and had to do their work with the
equipment that was available.
The more flexible situation is of course not possible in all types of businesses or
for all types of jobs. Certain tasks need to be done at specific times, and some form
part of a process where you cannot choose when to do the task. The following are
among the types of jobs that suit a virtual office arrangement:
•
•
•
sales and marketing jobs done outside the main or head office;
jobs that are done electronically on a computer such as data capturing; and
jobs related to online electronic communication with clients and suppliers.
There are also certain employees with specific circumstances who might prefer
this arrangement if their jobs allow it. They are:
•
•
employees who are not needed on site all of the time;
employees who are physically disabled and would better cope in their home
environment;
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•
•
employees with small children or elderly parents who are in need of personal
care; and
employees in other cities or even other countries who have the right skills for
the job.
As a result of the variety of options that computer software and hardware offer,
office staff now have more tools at their disposal. This means that office staff
can adapt and adjust the content and nature of their jobs where possible so that
it fits their personal work styles. The place of work is one of the biggest features
of emerging virtuality, because networking abilities allow office staff to do some
work from any location.
Looking back at history, Duffy (1999: 53) mentions that the ORBIT (Office
Research: Buildings and Information Technology) studies recognised, even as early
as 1982, that IT would have far-reaching implications. He refers to the emergence
of a new kind of office worker who will have expanding aspirations, be more
demanding and will be much better paid than is currently the case. These new
kinds of office workers will not only aspire for a better life in the office, but also
for more personal control over their own environments.
Other factors that contributed to the transformation from the traditional office
to the electronic office include the varied and creative nature of office work, the
automation of straightforward procedures and the fact that office workers can do
their work in a mobile way.
11.2
Features of the electronic office
Before we can go into a discussion of the electronic office and the virtual workplace,
it is important to look at what makes an office electronic.
11.2.1
Automation
It has been recognised that the jobs of the clerical workforce will be increasingly
automated. Automation in the office refers to the all computers (hardware
and software) and other machinery used in the office to collect, transform or
manipulate, store, maintain, protect and distribute information. IT is used to assist
with this process and integration of information systems.
The concept of the electronic office can be used as an alternative for the
automated office and this premise is used throughout this chapter. The electronic
office will make use of new types of technologies that will make office work
faster and more accurate. This of course will only be possible if those who operate
these technologies are trained to use it and are productive. These technologies
will mainly be electronic. The following technologies have been identified as
major technologies in the electronic office: technologies to process data, words,
graphics, images and voice, and networking technologies. Cloud technology is
a fairly new addition to traditional computing and makes the virtual office even
more of a reality. Strickland (2013) explains cloud computing as follows: “Instead
of installing a suite of software for each computer, you’d only have to loan one
application. That application would allow workers to log into a web-based service
which hosts all the programs the user would need for their job. Remote machines
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owned by another company would run everything from email to word processing
to complex data analysis programs”. This internet-based system can provide
processing or calculating, networking, capacity and storage on demand.
11.2.2
Networking
Networking is another characteristic of the electronic office. A computer network
refers to a telecommunications network where data is exchanged amongst different
computers. These devices are linked by either a cable or wireless media. The internet
is such an example. Because of networking, the ability of electronic hardware
components is enhanced and the different devices in the office can communicate
with each other. Networking allows a high level of file sharing as well as local area
and wide area electronic communication at a relatively low cost. The provision
of network services has mushroomed in the last 20 years with Telkom and the
different cellular telephone service providers competing for the market share.
11.2.3
User-friendly, multifunctional technology and equipment
Another distinct feature of the electronic office is user-friendly, multifunctional
technology and equipment. Modern designers of office equipment take the needs
of users into consideration more than ever before. Equipment has also changed
from being single stand-alone machines to electronically linked components that
perform a variety and series of tasks. In addition to this, computers and other
electronic equipment used in the electronic office are becoming increasingly
multifunctional. An example of this is the multifunctional printer that has become
a familiar sight in modern offices. Such printers include not only the functions
of printing, scanning and faxing, but also cater for security enhancements that
protect sensitive information; offer multi-destination scanning with expanded
file format support, Super G3 fax options, internet access, integration advantages
where it is ready to interface with third-party software for print management; have
cost control and networking functions; and include multiple finishing options,
including sorting and grouping, booklet, tri-folding, z-folding, post insertion, holepunching and stapling (Konica Minolta, 2016). The computer equipment should
at least be able to do word and data processing, electronic filing and mailing,
prepare graphics and also perform electronic functions such as scheduling and
calendaring.
Computer technology and equipment have become very flexible, and there
are many options available on the market today to meet the specific needs of
individual businesses. Such equipment includes multifunctional terminals,
workstations, personal computers, networks, printers, micro recording systems,
and optical character and speech recognition hardware and software.
It is especially the developments that have taken place in software design
that contribute to the electronic office. The possibility of having multifunctional
technology and equipment allows for a much more broad-based combination
of diverse applications, such as office applications (Microsoft Word, Excel and
PowerPoint) and web-driven applications.
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11.3
Advantages of the electronic office
Although the electronic office can be costly to set up, the advantages outweigh
this issue in the long run. In today’s changing technological environment,
it will in be near impossible to be profitable without keeping up to date with
these developments in some way. In some cases, doing business would become
impossible.
The following are some of the benefits of the electronic office:
•
•
•
•
•
•
•
•
•
Documents can easily be stored electronically. Hard copies can be scanned
and stored. This makes them easy to retrieve and send electronically again to
those decision-makers who need them.
The electronic process is also much quicker. Productivity is increased if
employees are properly trained.
Many documents can be stored electronically which does not take up physical
space in an office.
Business is simplified by using a digital document management system.
Passwords can be used to protect information. Backup documents could also
be stored more securely by making use of a data warehouse, for example.
Documents do not get lost as easily.
It can provide increased control over certain operations, which enhances the
degree to which actual results will match expected results.
It saves overhead costs related to, for example, paper and filing cabinets. Using
less paper is also the greener option.
Finally, it creates the opportunity for employees to do their work in any
location and for the business to consider the virtual office an option.
The disadvantages are mostly related to costs involved and include upgrading
hardware and software, maintaining the systems, training employees to enable
them to use the equipment, security and human error.
11.4
The virtual scenario
In the above sections, the traditional office and the electronic office were discussed.
However, in some organisations the virtual office has become a reality and is
successfully being used as an alternative office arrangement. The virtual office or
distributed e-workplace is an alternative worksite to the traditional office where
employees can still do the work they are assigned to do. As mentioned before,
this alternative worksite could be at any location. Mayhew (2013) is of the view
that virtual offices, telecommunicating and telework essentially all mean the same
thing, namely that employees work from locations outside the traditional office.
Although there are many advantages of such an arrangement, it is not
necessarily a viable option for any type of job or organisation. Different factors
need to be taken into account when considering such a work force. These factors
include determining which tasks are suitable, which employees are suitable, the
needs of the teleworkers, equipment and ergonomics, policies for such workers,
training, performance measurement guidelines and control measures. Although
there are some disadvantages of this arrangement, there are numerous advantages
for the organisation, the individual and the environment.
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Although the virtual office is a growing trend, the overall number of organisations
who make use of this arrangement is still quite small. It seems that it will also not
become the reality for the majority of organisations. The complexity of managing
and supporting both virtual and office workers remains a concern. The advantages
and disadvantages, the effect on management as well as on employees, and the
availability and cost of the latest technology to support this idea need to be
considered (Shah, 2014).
The equipment and technology needed in the virtual office needs to enable the
employee to provide the same service and perform the same tasks as they would
have done in the traditional workplace. In cases where the virtual office is viable,
it is one of the best ways to give the organisation a professional edge.
11.4.1Factors that led to the nature of the workplace becoming
more flexible
Together with and due to technological development, globalisation is another
factor that led to the nature of the workplace becoming more flexible. In order
to remain profitable and successful, some organisations had to look at expanding
their business to the global markets. As more countries are trading with one
another, this situation exposes all of them to additional economic opportunities.
The challenges that managers face in coping with globalisation and international
competition are, amongst others, to reduce and control costs, compete in the global
market, improve the quality of products and services, speed up the services and
product development cycle, and attract and retain a skilled and diverse workforce.
Managers and owners of such organisations have to consider all possibilities of
how to manage their resources to enable them to cope with these challenges. The
resources referred to include technological as well as human resources (HR).
The virtual office also came into existence because of the demands and needs
of employees. Many employees either want or have to take care of their families
or live certain lifestyles while they are working to earn an income. To manage
the virtual workplace also means that a new way to manage its HR has become
necessary. The management of the virtual workplace is therefore also a human
resource management concern.
11.4.2
Descriptions of the virtual workplace
According to Hoffmann (2000: 17), virtual implies the use of technology. It is
mainly due to the influence of developments in IT that the virtual office emerged.
Hloma and Ortlepp (2006: 29) quotes Brunt and Maloney (2001), who say that
virtual workplace arrangements refer to “any work arrangement in which the
worker performs a significant portion of his/her work at a location other than his/
her employer’s workplace”. Technology, therefore, replaces the traditional physical
office space.
11.4.3
Historical concerns of technological development
The impact and extent of the virtual office scenario is enormous. Many years
ago, Davis (1990) referred to the impact of the invention and proliferation of the
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computer being a cause for concern for humans because it influenced the way
in which they organise themselves socially and technically. The impact of the
computer is often compared to the invention of the steam engine, which led to the
mechanisation and industrialisation of human work. Furthermore, the computer
introduced the information age. It has changed not only the way work and work
groups are organised, but also the nature of the workplace.
Pélegrin-Genel (1996: 218) said that the fast development of communication
technology such as multimedia, the internet and information highways led to a
new way of work being done. This consisted mostly of operation chains involving
several people in a network. It promoted a higher degree of flexibility and hastened
the disappearance of the traditional office. The observation was also made that
the mobile office was not a modern invention: “the scribes invented it more than
five thousand years ago”. The concept of mobilility is described as “freely moving
balanced parts, indicating an office that is not limited to a specific geographic area”.
The growing importance of information and the increase of available digital
information caused the administrative function to develop and spread into all
the other functional areas of an organisation. This meant that the management
of information became even more important to the administrative function
and that each functional area in the organisation had to start managing its own
information. This explosion of information together with the possibilities created
by IT were two of the main reasons for the development of the virtual office.
The changing role of the office and the administrative management function and
the impact of these on the organisation as a whole, were so revolutionary that
it necessitated the administrative manager to be familiar with the possibilities
offered by the virtual workplace.
11.5
Features of the virtual workplace
There are quite a number of features or characteristics that indicate the presence
of the virtual workplace. Not all of them are present in one organisation and the
full extent and range of each of the features are also not always present. Duric
(2012) highlights very interesting aspects of the concept of the virtual office,
saying that small business owners can save on operating expenditure by making
use of virtual office systems such as virtual telephone systems, virtual office staff
and virtual office space. The virtual telephone system refers to the provision
of a fully automated answering system. Virtual office staff are staff who don’t
necessarily belong to the organisation, but provide the necessary office support
from a remote site. Virtual office space is space that can be rented for office jobs,
tasks and functions that need to take place. Whiteford (2013) adds to this, saying
that workers have “… been redefining their office needs and the way they work.
Mobile devices have provided the freedom for workers to work from practically
anywhere they choose.”
Some of the more prominent features of the virtual workplace will be discussed
next.
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11.5.1
The independence of the virtual workplace
The virtual office is independent of space, time, particular employees and
equipment and procedures:
•
•
•
•
Independence of space means that work being done no longer depends on
space being allocated for work to be done. The employee and the designated
place for work to be done function independently from each other, and work
can be done from any location outside the actual workplace.
Independence of time means that work no longer depends on time allocated
for work to be done, such as during normal office hours. Less emphasis is
placed on when work has to be done and more emphasis is placed on the result
of work, focusing on the output of employees.
Independence of particular employees means there is less dependence on work
being done by specific members of staff. Employees form informal relationships
and obtain informal assistance from groups outside the organisationally
assigned roles.
Independence of particular equipment and procedures means the work and
its tools become less dependent upon each other. Managers are less concerned
with which equipment employees use to perform work, as long as work is done
and results are obtained.
The virtual office is also characterised by the approach and attitude of management
and employees. The willingness of management to confer the responsibility of
work to be done onto employees is a demonstration of the growing acceptance
of the virtual office. Transferring responsibility is dependent on appropriate
technology to get the job done. This could include electronic communication
and data and file transfer from the employee working outside the office to the
employees within the office.
11.5.2
Fewer boundaries
One of the outstanding features of the virtual workplace is that it hardly has any
boundaries. This means that more attention is paid to the best use of space and
time, more internal and external communication takes place, the ability to solve
more complex problems needs to be present, and little tolerance of hierarchies
and status exists. This happened because organisations and management realised
the negative impact that confining employees to dedicated spaces, time and
hierarchies has on performance (Duffy, 1999).
11.5.3
Changed office work
Office work has also changed in nature. Today it mostly takes place in a more
parallel and lateral way, rather than a sequential and linear manner. There is a
tendency towards using smaller organisational units that have the ability to adjust
to change quickly. Organisations outsource more of their non-core functions.
The functions that do not make a direct contribution to profit are becoming
redundant and group activity is emphasised and provided for in office designs
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and layouts. These designs and layouts encourage interactive, complex and openended teamwork. It is also mostly conducted in open-plan spaces.
11.5.4
Specialised support services
Another feature of the virtual workplace is the high occurrence of specialised
support services that are often provided in a number of different kinds of groups.
Normally these groups are arranged around projects and therefore the life span
of the group depends on the length of the project. Clerks and clerical ways of
doing work have disappeared in some cases because routine clerical tasks have
been automated or outsourced. These functions are now separated from creative
teams and decision-makers. There is total confidence in the creative use of IT and
a new flexibility has been adopted in all areas of work. The number and range of
work settings have been enlarged to respond better to the choices that office staff
can exercise in terms of the times they would like to do their work.
11.5.5
A fundamental shift in work patterns
A fundamental shift has taken place in work patterns. As a result, new ways of
owning or sharing space have emerged. This has led to an explosion in the variety
of office designs and layouts. Instead of having one conventional, stereotyped
office that fits all positions and jobs, a wide range of designs and layouts appear
in organisations. Anyone who recognises the size and complexity of the emerging
virtual workplace understands that people do not all use space in the same way.
11.5.6
A paperless environment
Certainly one of the earliest manifestations of the virtual office, as it is known today,
was the decline in the use of paper. At the earliest electronic integration of office
equipment, it became clear that less and less information would be transmitted
by means of paper. The electronically integrated office, by implication, means a
paperless office. Instead of using paper to transmit information, information is
mostly transmitted by means of electronic technologies.
11.5.7
A worksite outside the traditional office
Although the virtual office is described as a site of work outside the traditional
office, the type of work done in a virtual office is mostly the same work that is
associated with the traditional office. Please refer to the definition of the virtual
workspace at the beginning of this chapter.
11.5.8
Distributed intelligence
The concept of distributed intelligence is another important feature of the virtual
workplace. It means that, instead of all the skills and expertise being concentrated
in one physical space, these are now distributed over a variety of geographical areas,
enabling employees to act upon and relate to their environments with decisions to
be made and action to be taken at a particular point in time. It is essentially this
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feature that makes the virtual office such a viable option, and when the possibility
of the virtual office is considered, this feature should be strongly considered. Due
to the fact that intelligence is distributed across employees, the environment they
find themselves in and their situations, it offers the organisation a number of
possible scenarios, different options and information from which they can benefit.
This could include substitute and new resources, new clients, and alternative
suppliers. Distributed intelligence is a key aspect that is enabled by the use of IT.
11.5.9
A different conception of space, time and distance
Employees of the virtual workplace can communicate and do their jobs at any time
and at any place, irrespective of distance from the main or head office. Instead of
making use of transport to get to work, employees can do their work anywhere.
This of course is possible through IT. Employees can be linked to one another and
to the same data bases and systems to accomplish their tasks. The task is in no way
delayed, unless there is a problem with the equipment or the internet connection.
11.5.10 Teleworkers and telecommuting
Teleworkers are employees who can work at any alternative worksite other than a
corporate office (the virtual office) whilst maintaining their current employment
status with an employer. The terms telework, telecommuting, flexible workplace,
remote work, virtual work, and mobile work are all used to refer to work done
outside of the traditional on-site work environment. These terms are defined in
different ways and used in different contexts to refer to anything from jobs that
are completely virtual or mobile, to arrangements that enable employees to work
from home a few days per week or per month.
11.5.11 Alternative workplace arrangements
An alternative workplace arrangement is a work arrangement that combines nontraditional work practices, settings, technologies and locations to complement the
traditional office. Some of the reasons for doing this are to improve productivity,
save space and related costs and improve the work life of employees.
Arrangments away from main/head office
The home office
This is office space that is in the employee’s privately owned or rented home. The
employee performs all work-related duties at this location. The employee needs
to be equipped with all the IT needed to perform their job. This arrangement is
usually defined by a contract between the employer and the employee.
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The mobile office
This arrangement is also called a non-territorial or unassigned office. These offices
are not limited to a specific area where the work could be done in a car, coffee
shop, an aeroplane or pre-fabricated building. Of course the employee would also
need the necessary equipment to do the job.
Telecentres
These are also called telecottages and televillages, and provide workstations with a
number of facilities and services that employees can make use of to do their job.
The totally mobile worker
This person may not even have a home office and is mostly on the road or at
customer sites to do their jobs.
Arrangements at main/head office
Hot-desking
These are non-dedicated, non-permanent workspaces usually found at the offices
of the organisation where employees take turn to do their jobs. These workspaces
are used for a limited time span as needed. Sometimes there are different such
workspaces where different types of jobs are performed. This allows employees to
move from one facility to another depending on the job.
Hoteling
This arrangement is mostly used by professionals such as consultants and
accountants. A number of offices are dedicated to a larger number of employees.
These employees share this pool of offices by reserving a space when needed.
These offices are also non-dedicated and non-permanent.
Desk sharing
Here two or more employees share the same work station on a pre-arranged
schedule. Those sharing need to agree on the allocated times and days.
Flexitime
This alternative work arrangement offers employees the choice of when, how and
where they do their job. Time is calculated as the total hours worked, irrespective
of what time of day the work is performed. Of course there are often limitations
built into such an arrangement, for example the employee having to do an eighthour shift anytime between six in the morning and six in the evening.
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A combination of the above could also be implemented and companies arrange
it to meet the particular need of the company, the section and/or the employee.
Employees could also work from home occasionally or according to a specific
schedule while they still have their own office. Virtual office employees are also
sometimes required to report to the main or head office at specific times. This
could be to coordinate with the other employees or to get things done that are not
possible from another location.
Most companies that make use of alternative workplace arrangements still have
a core set of people working at the organisation (the main or head office). They
are at the office on a fairly regular or permanent basis and maintain more or less
traditional hours. This core usually consists of a group of people for whom it does
not practically make sense to work from home, such as technicians and managers.
11.6
The feasibility of the virtual workplace
Not every type of organisation is suitably equipped to introduce the features
of the virtual office. The virtual office offers advantages, but at the same time
there are disadvantages attached to implementing it. Sometimes advantages or
benefits to individual employees may not be beneficial to the organisation or
to the employees maintaining the traditional office hours and work at the fixed
location. One should therefore carefully consider all advantages as well as possible
disadvantages when determining the feasibility of the virtual office.
11.6.1
The benefits of the virtual workplace
Benefits for the employee
The fact that employees can be given the option to work from home leads to
improved work experiences. Individual control over work and work schedule is
becoming more important to employees. Because of the change in demands made
on working women especially, many women prefer to maintain flexible working
hours. This factor also enhances their quality of life in general because they
have an opportunity to spend more time at home with their families. Personal
freedom can also have a positive effect on morale and stress of the individual.
Another advantage is that these employees do not have to travel to work every
day, which means they save on travel expenses, fuel, and time, and experience
less frustration caused by traffic. Other advantages include decreased absenteeism,
fewer interruptions from colleagues, an increase in the ability to handle equipment
during downtimes, and a general increase in the ability to integrate work and
private lives. Employees with disabilities might also prefer to work from home
where they are more comfortable and have their environment set up for their
specific needs.
Benefits for the organisation
The organisation will benefit from adopting the virtual office approach because
this arrangement will lead to reduced office space costs; fewer formally allocated
offices will be required, and all the other costs related to office occupancy, such
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as electricity, paper, parking and catering, will be reduced. Organisations that
make use of the virtual office will, to a large extent, gain a competitive advantage
because employees are not restricted to the office. Wherever employees are, they
can make contact with the office and relay tips almost instantaneously. Sometimes
the timing of a tip makes the difference between an organisation closing or losing
a deal. This is also referred to as distributed intelligence as discussed earlier. The
flexibility of the workforce usually has a positive impact on the overall productivity
of the organisation. Absenteeism and sick-leave could decrease. Because people
feel they have individual control over their working environment and the way in
which they work, they work harder. They are prepared to work longer hours, and
because they enjoy their work more, it is also of a higher quality. It is also easier to
recruit employees from other areas without incurring relocation costs.
Managers will be able to measure performance of virtual office workers entirely
by looking at their outputs and results and not by looking at hours spent in the
office. There are also enormous environmental benefits. As these employees do
not have to travel to work there are fewer cars on the road which implies less fuel
used, less carbon emissions and less risk of accidents. The total saving in cost
related to all the above adds up and becomes an enormous advantage.
11.6.2
Possible disadvantages of the virtual workplace
In spite of the numerous benefits attached to creating a virtual workplace,
management should recognise that there are also disadvantages. However, if
anticipated and identified early, these can be accommodated in management’s
approach when implementing the virtual workplace.
Due to the presence of virtuality, less communication is an obvious possible
disadvantage, but managers need to ensure continuous contact with the virtual
workforce. The office is the place where new employees are introduced to the
organisational culture. Because they do not work at their offices on a regular
basis, the opportunity to become part of a group decreases. The office is the place
where employees learn to identify with the organisation. If employees do not visit
the office regularly, group identity and norms may take a very long time to be
established. This can also lead to a lesser degree of loyalty towards the organisation
and its philosophies.
The office is the place where frequently unplanned communication takes place.
Face-to-face conversations convey not only information, but also attitudes, levels
of motivation and concerns. Organisations that do not want to lose out on the
value that face-to-face conversation adds will have to create specific opportunities
for communication. They should rely on electronic communication facilities only
to distribute key information. How well the organisation will be able to adopt this
practice will depend on its level of self-discipline.
Employees who remain working in the traditional office may develop a
feeling of resentment or jealousy towards the virtual employees. Part of the
training that managers receive should therefore include equipping them to
deal with the possible feelings of preferential treatment, inequalities and
favouritism.
The next factor is more of a challenge and relates to the systems that
management have to put in place to ensure that their virtual workers do not
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suffer from feeling excluded from the organisation and that their full potential
is always maximised.
Since virtual employees mostly function in isolation, managers will have to
come up with creative ideas to sustain the productivity of virtual employees,
communicate with them regularly to avoid them getting distracted and spending
unnecessary time with tasks falling outside the scope of the task at hand, and
even create some forms of socialising opportunities for them. Finally, employees
who are being considered for the opportunity to work as virtual employees must
be screened properly. They must be assisted to make a smooth transition into
the virtual workplace, creating an environment that works well for both the
employee and the organisation.
11.7
Managing virtual employees
As virtual employees remain part of the team who work at the main or head office,
they all still work for the same organisation and all of them need to work towards
the same goals. Therefore, employees working in the virtual environment also
need to be managed. Managers should employ effective management techniques to
involve these employees in the decision-making process and keep them motivated.
Many of the issues that follow here are usually found in the HR policies of the
organisation.
At this stage, we assume that the task is suitable for the virtual office environment
and the employee involved is the right person for the job.
The employee needs to be trained in all the equipment related to doing the
job from another location. This is crucial as all communication and work is done
electronically. The link between the virtual location and head office needs to be
established and the employee needs to be able to access the information needed to
do the job from head office. It is usually the responsibility of the organisation to
supply the employee with all equipment to enable the employee to do the job. The
organisation must make sure that the virtual location is suitable and occupational
health issues are in order. Such employees must know exactly what is expected
of them in terms of work outcomes or objectives, work standards, due dates and
availability.
The job of the manager of such employees remains mostly the same as in the
traditional office. Of course most communication will be by email, phone or
Skype. Managers need to make sure these employees have the necessary support
to be productive. Assistance from the organisation regarding the financing of
furniture and equipment and the paying of allowances for internet and telephone
service are usually contained in the HR policies.
Finally, remember that communication is important, set clear objectives and
expectations and judge these employees only by their outcomes. Not all employees
have the discipline and even the office space at home where they can work. Make
sure everything is in order and if these employees cannot reach their objectives in
this way, you can always revert back to the traditional office.
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Conclusion
The virtual workplace evolved from the traditional office, which consisted of
designated workspaces, single-function machines and physical places of work.
The electronic office evolved with electronic integration and interconnection of
hardware and software as the main feature.
These abilities and facilities further advanced to such an extent that many
organisational employees now do not physically have to be at the office to perform
their work. We refer to this as the virtual workplace. The virtual workplace is
a workplace outside the office made possible by communication, word and data
processing, distribution features of electronic equipment, and the facility of
networking that these offer. The remarkable feature of the virtual workplace is the
fact that we can recreate traditional administrative functions associated with the
office outside the office.
The virtual workplace displays a fundamental shift in work patterns, draws on
distributed intelligence, promotes a new conception of space, time and distance,
and sees the emergence of new employee types, like the teleworker. Management
should at all times be aware of the possible disadvantages of the virtual workplace,
but can also reap the benefits and gain a competitive advantage for their
organisation with careful implementation of virtual office features.
Self-assessment
1.
What are the main differences between the traditional office, the electronic
office and the virtual workplace?
2.
Discuss the features of the electronic office by referring to automation,
networking and equipment.
3.
Do you think the virtual workplace has an impact on employee morale? Discuss
to what extent you think this happens.
4.
Would you be able to recommend the virtual workplace to your management?
Support your answer by discussing the benefits and possible disadvantages of
the virtual workplace.
5.
Make a comparison between the virtual workplace and the traditional office
and highlight the differences in the features of each of these workplaces.
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References
Cooper, C. L. 2005. Leadership and management in the 21st century. Oxford: Oxford
University Press.
Davis, H. L. 1990. Ergonomics in computerized offices. In E. Grandjean. London:
Taylor & Francis.
Duffy, F. 1999. The new office. London: Conran Octopus.
Duric, D. 2012. “Can virtual office save you money?” http://www.channel4updates./
com/can-virtual-office-save-you-money/ (Accessed: 18 May 2013).
Hloma, X. & Ortlepp, K. 2006. “People management implications of virtual
workplace arrangements.” Acta Commercii, 28–37.
Hoffmann, E. C. 2000. Contextual implications of information technology on the
administrative function. Doctoral thesis. Johannesburg: Vaal Triangle Technikon.
Kampas, S. R. 2016. “System and method for cloud enterprise services.” http://
www.google.com/patents/US9235442 (Accessed: 15 April 2016).
Mayhew, R. n.d. “Demand media.” http://smallbusiness.chron.com/advantages­
disadvantanges-virtual-offices-telecommuting-1167.html (Accessed: 13 April 2016).
Pélegrin-Genel, E. 1996. The office. Paris: Flammarion.
Shah, R. 2014. “The Workplace of the Future is Still the Office.” http://www.
forbes.com/sites/rawnshah/2014/09/09/the-workplace-of-the-future-is-still-theoffice/#3f427f4d3cab (Accessed: 13 June 2016).
Strickland, J. 2013. “How cloud computing works.” http://www.howstuffworks.
com/cloud-computing/cloud-computing.htm (Accessed: 13 April 2016).
Strydom, E. A. 2014. Information administration technologies, ergonomics and health:
regulatory compliance in an e-environment. Pretoria: University of South Africa.
(DAdmin-thesis.)
Whiteford, B. 2013. “Rockefeller group business centres.” http://www.prnewswire.
com (Accessed: 13 January 2013).
Anon. 2015. “Top 10 benefits a paperless office can provide.” https://www.fpb.org/
business-support/top-10-benefits-paperless-office-can-provide (Accessed: 15 April
2016).
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(Accessed: 15 April 2016).
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C h a p t e r 12
Quality administrative management
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
define the concepts of quality, quality management and total quality
management;
discuss how the administrative manager will provide a stable administrative
environment for effective decision-making and good administrative practice;
explain the role of administrative systems and processes in quality
administrative management;
discuss systems and process thinking as an approach to quality administrative
management; and
discuss the concept of business process re-engineering (BPR) and its impact
on quality administrative management.
Introduction
Being an administrative manager in the contemporary business environment
means being the leader of administrative activities in your organisation.
Effective leadership in administration requires the administrative manager to
provide direction in terms of developments in administrative management and
create a stable administrative environment for the employees of the particular
organisation. This means that the administrative manager should manage
the quality and all quality-related aspects of the administrative function. The
administrative manager will only achieve this by successfully managing the
administrative policies, procedures, systems and processes as part of the total
quality management (TQM) system of the organisation. The backbone of sound
administration is well-designed policies and procedures that provide a framework
as guidance for administrative decisions to be made and executed in terms of the
systems and processes involved in the execution of the procedures.
Yadav and Khanna (2014: 71) emphasise the importance of good administrative
leadership, saying the “organisation’s quality of work–life is an important
responsibility of managerial and administrative leaders”. Thompson (2005: 170)
links the management of quality to the South African Government’s Batho Pele
principles of service delivery, saying “South Africa’s Batho Pele Initiative aims are
to enhance the quality and accessibility of government services by improving
efficiency and accountability”.
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When we focus on Thompson’s statement on the importance of good administrative
leadership, we will notice that work–life balance forms an integral part of the
statement (Deery, 2010; Deery & Jago, 2015). So, what is work–life balance, and
what are the implications to an organisation? The authors suggest that the levels
of conflict between work and family will be affected or moderated by the level of
support employees receive from their employers, their unique personal attributes
they bring to the job, industry norms, and the way all these components are
addressed and managed in the workplace. The authors furthermore found that
there should be a balance between how employees spend their time on workrelated activities and non-work-related activities to create equilibrium.
The management of all these components leads us to the concept of TQM, which
is key to our discussions in this chapter. Within this framework, we firstly look at the
management of administrative policies and procedures, the role of administrative
systems and processes in QM, the relation of service delivery to administrative
management and systems and finally, process thinking as an approach to quality
administrative management.
12.1
Quality management
Before we discuss QM, we need to define quality. Defining quality depends on the
role that individuals play while defining it; for example, consumers will determine
the quality of goods before they purchase it. Quality can furthermore be viewed as
performance to standards, meeting the needs of customers or satisfying customers.
Jaccard (2013: 19) stresses that quality can be seen as a form of both management
and leadership that has a dual approach: “a call for and an approach toward
excellence” focusing on processes, products, services, knowledge and behaviours;
and “a commitment to comply” with all the legal requirements, prescriptions and
overall standards of a particular product that have the ultimate intention to satisfy
authorities, stakeholders and their clients with complete confidence.
In the world of quality, we can identify the following principles as outlined in
Figure 12.1.
QM in its simplest form refers to the management of all the various aspects of
quality in an organisation. The management of quality has gained momentum
over recent years and, as an organisational function, essentially involves
determining specific standards so that managers and employees can measure
performance against predetermined criteria. One of the essential features of QM is
the standardisation of organisational policies, procedures, systems and processes.
These standards and criteria can then be used by organisations as a QM tool and
to benchmark (compare) systems and practices.
When we look at the birth of QM as a concept, Dr Joseph Juran, born in
Romania in 1904, is considered to be the person who initially helped to invent
QM systems long before they became standard practice in organisations. Dr Juran
is acknowledged as the person who was responsible for adding the managerial
dimension to the quality function of management.
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PRINCIPLE 1: Logical and reproducible methods to perform tasks and to
manufacture goods by taking achievements into account
THROUGH: Intelligence, rationality and logic
PRINCIPLE 2: Execute what is communicated
THROUGH: Integrity, credibility and consistency
PRINCIPLE 3: Communicate actions that are executed
THROUGH: Honesty, transparency and openness
PRINCIPLE 4: Keep track of executed actions
THROUGH: Responsibility, reliability and the history of organisation
Figure 12.1
Principles of quality
In 1979, at the age of 75, Dr Juran founded the Juran Institute, Inc. (JII). This
institute “initially focused on providing training and techniques to improve
organisation quality [and] it grew over the years to provide clients and society with
a full complement of tools and techniques to improve business results” (Crosby,
2009).
This reference to business results is important because QM in business concerns
itself with the continuous improvement of each and every process. Its aim is to
achieve higher levels of efficiency, to ensure the highest possible profit margins and
lowest costs, to avoid unnecessary expenditure, eliminate wastage and optimise
human resources (HR), etc. Continuous improvement is also a strong feature of
business process engineering. We look at this topic later in this chapter.
Recent trends in QM include a shift in emphasis. Initially the mere
compliance or conformance to standards, often referred to as meeting minimum
requirements, was the focus of quality efforts. This has changed to the realisation
that opportunities for the enhancement of quality levels and raising the levels
of excellence, be it in products and services or systems and procedures, should
be created. This has recently become known as quality promotion. As a result,
many organisations are moving towards the adoption and implementation of QM
models. The sustainability of organisations relies on QM to ensure that they are
able to perform optimally in the competitive business environment, both locally
and globally.
In South Africa, the South African Excellence Foundation (SAEF) is responsible
for the evaluation of organisations who have implemented the South African
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Excellence Model that was developed as a benchmark for quality. The aim of the
model is to help organisations separate the various business processes to address
the management of quality throughout the organisation. This is mostly referred to
as TQM. We look at the South African Excellence Model, that is adopted to focus
on QM criteria, later in this chapter.
12.2
Total quality management (TQM)
TQM is a management philosophy and a set of guidelines that form the basis for
the continuous improvement of the entire organisation, including the planning
of improvement activities, and implementing and evaluating these actions
continuously. Thus, TQM incorporates all the organisational functions such as
finance, external relations, marketing, and administration to meet the needs of
customers as well as the objectives of the organisation. A number of different
definitions, descriptions and perceptions of TQM are used in organisations today.
As a result, there is widespread ambiguity in terms of the concept of quality.
Oschman et al (2006) accepted the following definition of quality for a study
they conducted: quality is the degree of added value to products and/or service
delivery as perceived by all the stakeholders through conformance to specifications,
and the degree of added excellence to products and/or service delivery through
a motivated workforce in the organisation’s aim to meet customer satisfaction.
Manohar (2012: 46) describes TQM as a “method by which management as well as
employees can become involved in the continuous improvement of the production
of goods and services”. It includes both quality and management tools that focus
mainly on increasing business and reducing any losses as a result of inappropriate
practices. Another definition of TQM describes it as the continuous process of
minimising or eliminating errors during manufacturing, streamlining supply
chain management, improving the experiences of customers, and guaranteeing
that employees are suitably qualified to perform.
You will note a number of key elements present in the definitions above. The
first element is that of the value that a product or service can add to a certain
aspect if the quality of a product or service is continuously addressed and improved
– the higher the quality, the higher the added value. The second element is that
of conformance to standards and refers to the process of managing the quality
in such a way that the customers are aware of the fact that the organisation sets
and maintains certain standards. Normally organisations also use the fact that
they take pride in the setting and maintenance of standards as a marketing tool
to differentiate between the quality of their product and their competitors. The
third important point addresses excellence. There are a number of approaches to
the management of quality, but many organisations make striving for excellence
part of their mission statements as a strategy to set them apart from the other
providers of similar services in the market. The fourth point to be highlighted
from the definitions mentioned is that quality cannot be achieved without a
motivated workforce. We often hear quality costs money and that is certainly true
in the corporate environment. Your organisation needs suitably a qualified HR
department to be able to produce products of the required standards and to deliver
high-quality services. Finally, is it important to note that managing quality in
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an organisation is a continuous process that needs to be evaluated and revised
continuously.
Service delivery is therefore an important aspect of the management of
quality and, in South Africa, the Batho Pele initiative was developed to draw
employees’ attention to the importance of enhancing the quality and accessibility
of government services by improving efficiency and accountability. Batho Pele’s
service delivery principles include:
•
•
•
•
•
•
•
•
regular consultation with customers;
setting service standards;
increasing access to services;
ensuring higher levels of courtesy;
providing more and better information about services;
increasing openness and transparency about services;
remedying failures and mistakes; and
giving the best possible value for money (DPSA, 2014).
To address service delivery, an organisation has to invest continuously in staff
development initiatives and look after the welfare of its people to ensure that
staff buy into the vision and mission of the organisation. The organisation also
needs the right people to establish and maintain a quality culture. A hot topic for
discussion in South Africa is the lack of service delivery. Government departments
invest annually in initiatives to improve this. Although the government does
not manufacture goods, it still deals with productivity and efficiency. The same
principles are applicable as in industry. QM in the public sector will focus mostly
on norms and procedures, affectivity, and customer satisfaction.
The final aspect from the definition is that of customer satisfaction, which
refers to a certain dimension of quality, namely that a quality product or service
is one that satisfies the customer. This means you have to get your products and
services to the level at which you succeed in keeping the sales figures up. The
management of quality is therefore never a process on its own or one that takes
place in isolation; all aspects of the organisation must be managed in such a way
that standards are achieved and exceeded, hence the concept of TQM.
We referred to a quality culture earlier on. The definition of TQM adopted by
Gimenez-Espin et al (2013) strongly refers to this aspect of QM. The authors see
TQM as inclusive of a way of life, a passion, something that everybody should do,
a culture which should be lived by everybody in an institution, and as something
that should be modelled by those in positions of leadership. However, they point
out that the responsibility for quality should eventually become a matter of
personal leadership which is practised by all members of institutions. This view
of TQM demonstrates some of the philosophical aspects of the management
of quality. TQM furthermore consists of two key aspects, namely the technical
facets (hard techniques, for example statistical control techniques) and intangible
elements (soft elements, for example leadership, commitment of management,
culture, teamwork and empowerment).
Sheikholeslam and Emamian (2016) add to this by describing TQM as a
philosophy: a way of thinking and working that is concerned with meeting the
needs and expectations of customers (both internal and external customers).
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This, they say, applies to all parts, departments and sections of the institution
and is the responsibility of all people in an organisation. You will once again
note the reference to customer satisfaction, the sum of the parts, and the fact
that QM can only be successful if everybody in the organisation adopts quality
in whatever they do, no matter how small or indirect their contribution to the
business results may be. Management should always remember that customers
have to be at the centre of all the decisions and actions before they are made or
taken. TQM became popular as the key to survive in this competitive world that
organisations function in.
In addition, Dale (2010: 443) refers to the development of quality and its
management, which they mention has moved through phases. In phase one
the emphasis was very much on the quality of the product, mostly managed
by inspection. In phase two the emphasis was on the quality of the institution,
managed by quality control and quality assurance. In phase three the emphasis
was on the quality of life, encompassing a wide scope of elements, hence the
reference to TQM. You will remember that we referred to the quality of life in the
introduction to this chapter.
Probably the most important issue to note from this model is the changing
paradigm of quality and, with it, the way in which it is measured, implemented
or observed and finally adopted as a suitable approach to the organisation in its
totality. There is also a shift away from inspection, which may be expienced as the
policing of quality control and quality assurance.
In contrast to inspection, in which an external person or body measures
performance against standards, the object of quality assurance is for organisations
to identify areas of improvement, assess themselves, and continually recommend
improvements of their own accord. In other words, organisations do not improve
quality because they have to be ready for an inspection. They improve quality
because they believe it is important to deliver quality products and services to
their customers.
Kelchner (2016) discusses TQM as one of the management processes. She says
that it is the emphasis on continuous improvement that differentiates TQM as
a management process from other management processes. Organisations that
make use of a TQM system strive for continuous improvement to positively affect
the quality of their business’s processes as well as their products. Following a
continuous-improvement approach motivates employees to strive for zero defects
and maximum efficiency during all the processes involved in their organisation.
Through the use of continuous-improvement activities, organisations continuously
try to identify possible areas that need improvement proactively.
In order to improve performance, people need to be given clear instructions
and feedback. This refers strongly to the involvement of HR in TQM: you can
only improve performance if you equip your staff, not only on one level, but by
focusing on their intrinsic and extrinsic needs. Staff must not be uncertain of
what is expected of them, they must be equipped in terms of tools, they must be
involved in the measurement of performance and you have to give them feedback
on their performance. If an organisation wants to encourage performance and
excellence, both key components of TQM, management cannot afford to keep
their HR uninformed and uninvolved in any of the stages of product development,
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or in the improvement of service levels. Organisations should encourage their staff
to give constructive input in various levels, as management can also learn from
their experiences.
Oschman et al (2006: 196) explain that QM evolved from quality control and
mention that quality assurance (QA) “widened the responsibility for quality to
include functions other than direct operations of an institution”. We have referred
to this earlier.
They mention a number of principles of TQM; all the principles should
continuously be applied for TQM to be an effective management tool. If one of the
functions is neglected, the end result might not be as expected.
Figure 12.2 provides a schematic diagram of the key components that contribute
to the concept of TQM.
KEY COMPONENTS OF TOTAL QUALITY MANAGEMENT
TOTAL
QUALITY
MANAGEMENT
Figure 12.2
Participation of the entire institution
Meeting all the customers’ requirements
and needs
Enabling conditions for total quality
Key components of Total Quality Management
A number of countries have developed TQM models that include certain principles
according to which quality is managed. In South Africa, the SAEF developed a
model, the South African Excellence Quality Management Model, consisting of
eleven outlined criteria which is adopted by a number of organisations.
The South African Excellence Model for the management of quality of the
entire organisation is illustrated by Table 12.1 and consists of the criteria being
either enablers or results. Certain criteria are considered to be the factors that will
create an enabling environment for certain business results emanating from the
application of the enablers. The enablers that form part of this model consist of six
points outlined in the first column; the second column reflects the five identified
results that can be used to evaluate the performance of an organisation.
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Table 12.1 South African Excellence Quality Management Model
Enablers
Results
1. Leadership
How the behaviour and actions
of the executive team and all
other leaders inspire, support and
promote a culture of performance
excellence
7. Impact on society
What the organisation is achieving
in satisfying the needs and
expectations of the local, national
and international community at
large
2. Policy and strategy
How the organisation formulates,
deploys, reviews and turns policy
and strategy into plans and actions
8. Customer satisfaction
What the organisation is achieving
in relation to the satisfaction of its
external customers
3. Customer and market focus
9. People satisfaction
How the organisation determines
What the organisation is achieving
needs, requirements and
in relation to the satisfaction of its
expectations, enhances relationships
people
and determines satisfaction of
customers and markets
4. People management
How the organisation releases the
full potential of its people
10. Supplier and partnership
performance
What the organisation is achieving
in relation to the management of
supplier and partnering processes
5. Resources and information
management
How the organisation manages
and uses resources and information
effectively and efficiently
11. Business results
What the organisation is achieving
in relation to its planned business
objectives in satisfying the needs
and expectations of everyone with
a financial interest or other stake in
the organisation
6. Processes
How the organisation identifies,
manages, reviews and improves its
processes
Source:
The South African Excellence Foundation and
DDS Technologies – www.ddsonline.co.za/new_page_5.htm
The enablers that form part of this model consist of six points outlined in the first
column and the second column reflect the five identified results that can be used
to evaluate the performance of an organisation.
12.3
Management of administrative policies and procedures
So far we referred extensively to the importance of involving all the aspects of
the organisation in the management of quality. Every functional area of the
organisation has to take responsibility for high levels of quality and this also applies
to administrative policies and procedures. Organisations fail to be successful if
organisational goals, policies and procedures are not well planned and carefully
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thought through. One should not see these goals, policies and procedures in
isolation as they are interlinked and related to each other. In fact, it is only by
having well-designed administrative policies and procedures in place that the
administrative manager will be able to create a stable administrative environment
and exercise the kind of leadership we referred to earlier.
The management of policies and procedures refers to the functions concerning
the making, implementation and evaluation of executive decisions (Ministry of
Business Innovation and Employment, 2016: 1). In other words, the management
of administrative policies and procedures refers to the decisions to be made,
implemented and evaluated in terms of the policies and procedures governing
sound administration.
Examples of administrative policies in the organisation are the policies on
the use of the telephone for external calls, photocopying equipment, the use of
the internet and email or the format and layout of corporate documentation to
maintain a standardised appearance. Examples of administrative procedures are
those procedures we normally find in the procedures manual of an organisation
on how to access information, sign out files from the central filing management
division or deal with incoming and outgoing mail and telephone calls, etc.
For everybody to adopt a uniform approach and standardised norms and
establish a quality culture, it is important that every person in the organisation
adheres to the administrative policies and procedures. When organisations employ
new staff, it is imperative that they receive proper induction to eliminate future
uncertainties. Standardised and accepted group norms are a crucial element of
TQM and employees feel safe if they know exactly what to do and how.
If you refer back to the South African Excellence Quality Management Model,
you will see that the manner in which an organisation manages its information
is one of the criteria for assessment when evaluators determine how well your
organisation performs in terms of TQM. The most important fact to acknowledge
here is that the administrative manager will not be able to manage administrative
quality without the necessary policies and procedures. In other words, decisions
that the administrative manager will have to make in terms of staff that abuse
the privilege of having access to the telephone of the organisation, will be guided
by the administrative policy. Performance of staff in terms of this area can and
should only be measured against policy (for example performance management
policy) and it is important that policy issues are communicated clearly to staff.
The reason for this is that staff cannot be expected to conform if they are not
clear on what is expected of them or, alternatively, what they are and are not
allowed to do.
A good example of administrative policy is the presence of at least one staff
member in a shared office during lunch time. If a high service level is of importance
to the organisation, which it should be if the organisation subscribes to the TQM
philosophy, staff should work on a rotation schedule. The reason for this is to
ensure that there is always a staff member of the administration department
available to deal with calls and enquiries. It is important that staff understand
their contribution to the quality of the entire organisation.
Another good example of administrative policy is the manner in which petty
cash and office finances are dealt with. Many organisations keep a petty cash box
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at a certain point of access and the policy and procedures to deal with the petty
cash box should be clearly outlined. Violation of policy can only be determined if
the policy is well defined and documented.
Many organisations make use of a Quality Management System (QMS) to ensure
that all aspects of managing the quality in the organisation are covered. RochaLona et al (2013: 2) define a QMS as “an integrated business approach to plan and
deploy QM models, methods, and tools across the organization with alignment of
business strategy”. The QMS consists of the entire set of organisational policies and
procedures and indicates the documentation and instruments to use to implement
the policies and procedures.
In spite of the presence of such a document, we still find gaps in many
administrative areas and this makes it necessary for the administrative manager to
become what is referred to as a systems thinker. It is vital that the administrative
manager applies the systems and process approach to the management of
administrative procedures and processes in order to identify gaps in policy and
procedures. The administrative manager must be able to see both the parts and the
sum total of the combination of the processes.
If this ability can be developed, the administrative manager will achieve synergy
between the administrative processes and the other organisational processes as
well as be able to isolate processes from each other, focus on and improve individual
processes and put them back into the global organisational systems.
12.4
Systems and processes in quality administrative
management
The establishment of effective administrative systems and processes is almost
as important as the management of administrative policies and procedures.
One cannot separate administrative systems and processes from administrative
policies and procedures. Policies provide a decision-making frame of reference,
and procedures are the steps to be followed to ensure correct implementation of
policies. Systems and processes are the mechanisms that are in place to ensure that
procedures are executed in such a way that every organisational function adheres
to the policies in totality, which is the embodiment of the vision and mission of
each organisation.
Examples of administrative systems are: the financial management system,
the system according to which the human resource records are captured and
maintained, the administrative system for the marketing function, the information
management and database systems, and the records and document management
systems.
Policies will determine for how long certain records need to be kept secure and
where. Procedures will describe how staff should manage the records to ensure the
integrity and safekeeping of the records. To enable staff to execute the procedures,
effective systems must be in place and communicated to them. In each of these
systems there are certain processes in place to ensure procedures are followed,
which, in turn, feed into policy and eventually into the vision and mission.
The size and nature of the activities of the organisation will determine whether
the administrative systems, for example the marketing function or the human
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resources management function, are centralised or decentralised. If these systems
are centralised, the administrative manager will be responsible for the management
of the quality of these systems and processes. If the systems are decentralised, it
means that each functional manager is responsible to manage the quality of these
systems. Administrative managers should also ensure that they communicate any
shortcomings or gaps to the relevant line managers to ensure that the policies and
systems are up to date.
It does not matter how the organisation operates. The philosophy of TQM
requires that no matter where the systems and processes are located, the quality
must be managed properly at all times. That means the systems and processes must
continuously be assessed for effectiveness, fitness for purpose, cost-effectiveness,
and the contribution of the system and processes towards the achievement of goals
so that areas for improvement can be determined and addressed.
Peter Senge is known for The Fifth Discipline (1990), in which he outlines 11 laws
of what he calls the Fifth Discipline and states that “Sometimes, the knottiest
dilemmas, when seen from the system’s point of view, aren’t dilemmas at all. They
are artefacts of ‘snapshot’ rather than ‘process’ thinking” (McGowan, 2010: 1).
What Senge is referring to is that we sometimes perceive something as a problem
because we see processes in isolation, rather than in relation to each other or as
parts of the entire system.
Senge’s statement, when applied to administrative management, can help
the administrative manager to identify, for example, an ineffective process in
their records or forms management system; instead of focusing on the particular
process itself, the whole records management or forms management system
should be investigated. McGowan (2010: 2) continues by pointing out that it
is important to understand how basic improvements in work processes can
eliminate reworking, eliminate quality inspectors, reduce customer complaints,
lower warranty costs and increase customer loyalty. This means that a problem
which arises in the administrative systems and processes should always be
addressed in relation to the others because each system and process has an
impact on the others.
It is therefore important for QM in administration that the administrative
manager adopt a systems and process thinking approach to administrative
management to assure that quality is maintained.
12.5
Systems and process thinking as an approach to quality
administrative management
So far we have discussed the concepts of QM and TQM. We saw how the
administrative manager will manage administrative policies and procedures to
enable TQM and we also looked at the management of systems and processes
as enablers of quality administrative management. We discussed the value
of applying the principles of business process engineering and Batho Pele in
administrative management for TQM. In this section we will discuss systems
thinking and process thinking as approaches that the administrative manager
can apply to achieve QM. It is advisable that you revise the section in Chapter 2
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that define and broadly discuss what a system is to fully grasp what the two
approaches is what will be discussed.
12.5.1
Systems thinking
Systems thinking is exactly what it says, that the entire system functions as a
unit. It is a strategy implemented in a number of fields to study processes and
the improvement thereof. Systems thinking is applied successfully in information
science, which is primarily concerned with the collection, classification,
manipulation, storage, retrieval and dissemination of information. Information
science also studies the application and usage of knowledge in organisations and
the interaction between people, organisations and information systems (Zhu,
2015: 1).
Managing organisations as an entire system can be a very complex task.
Through the identification of various subsystems within a business model and key
processes can be a good strategy to simplify this task. A systems thinking approach
is valuable when it comes to understanding the case–effect relationships that
occur daily within organisations. Throughout the discussion, the important role
that systems play in TQM was noted and we therefore now continue our discussion
by focusing on the importance of the ability of the administrative manager to be
a systems thinker.
We referred to the work done by Peter Senge, which is probably most noteworthy
when it comes to a discussion of systems thinking. Systems thinking is the
conceptual cornerstone – also called the fifth discipline – of Peter Senge’s approach.
Systems thinking is the discipline that integrates the other four disciplines, namely
personal mastery, mental models, building a shared vision and team learning, into
a coherent body of theory and practice (Senge, 2006: 11). These five disciplines,
according to Senge, are the requirements for an organisation to become a learning
organisation.
A discipline is viewed by Peter Senge as a series of principles and practices that
we study, master and integrate into our lives. His five disciplines can be approached
at one of three levels (Senge, 2006: 373):
•
•
•
Practices: What you do.
Principles: The ideas and insights that guide you.
Essences: The state of having high levels of mastery in the discipline.
Systems theory has the ability to comprehend and address the whole, and
to examine the relationship between the parts. It is therefore vital for the
administrative manager to be a systems thinker so that they are able to understand
the organisation as a whole and thereby understand how administrative policies,
procedures, systems and processes relate to the other parts of the organisation.
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Another definition of systems thinking (Bellinger, 2004) is that it is:
… a mind-set for understanding how things work. It is a perspective for going
beyond events, to looking for patterns of behaviour, to seeking underlying
systemic interrelationships which are responsible for the patterns of behaviour
and the events. Systems thinking embodies a world-view … which implies
that the foundation for understanding lies in interpreting interrelationships
within systems … which are responsible for the manner in which systems
operate.
If a system is an entity that maintains its existence through the mutual interaction
of its parts, it is perfectly understandable that the organisation as a system functions
through the mutual interaction of the policies, procedures, systems and processes
of the various divisions sustained by the approach of TQM adopted in each of
its divisions. It is systems thinking that makes it possible for the administrative
manager to view the role of quality administrative policies, procedures, systems
and processes in the maintenance of quality of the whole organisation.
As Rocha-Lona et al (2013: 20) quite rightfully say, managers are responsible for
creating the systems while employees are responsible for ensuring that the systems
are functioning properly. The way to improve the systems is for those working on
the systems to listen to feedback from those working in the systems. They continue
attributing the success of QMSs to effective leadership (McKinney, 2015: 1):
Leaders are responsible for creating a culture for quality. Aside from visible
actions, they are responsible for making sure that employees’ work is interesting.
The organisation’s quality of work–life is an important responsibility of
managerial and administrative leaders.
12.5.2
Process thinking
The following section will be dedicated to process thinking as an approach. What
is a process? It is a smaller part of the larger system and is a sequence of different
activities that have the intention to produce a specific predetermined result. A
system comprises of various processes and process thinking should be compatible
with the approach of systems thinking. The majority of organisations operate with
functional areas that often get lost within the daily activities and lose sight of
all the key processes which might have an effect (negative or positive) on the
performance of the organisation or business and their values. A process-centred
approach assists administrative managers to focus on those things that add value
to all the stakeholders that are part of the business.
To identify core processes within an organisation is not an easy task because
management may not always have a good understanding of exactly what
contributes to activities and how they are related to the other organisational
structures, people, and technology. If the organisation does not use a systems
thinking approach, it may be challenging to identify the core processes and
the value that it adds to the organisation. An organisation should have core
processes as well as supported processes (e.g. accounting, maintenance and
communication), that will ensure that core processes successfully achieve the
goals and objectives of the organisation.
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12.5.3
Systems thinking versus process thinking
Table 12.2 outlines the different characteristics of a systems thinking versus a
process thinking approach.
Table 12.2
Systems thinking versus process thinking approaches
Systems thinking
Process thinking
Entire system works together
Smaller part of the larger system
Can adapt to its environment and can
change its purpose or objectives
Cannot adapt to its environment and
has to be redesigned by using another
process
View the interconnected whole (an
orderly, interconnected, and often
complex arrangement of different
principles that are linked to form a
coherent principle)
More focused and specific (series of
actions, changes and activities that
proceed from one to the next)
Systems are the what
Processes are the how
A visual-spatial right brain perspective
A focused left brain perspective
Identify where actions and decisions
have an adverse impact on
predetermined outcomes
Essential to ensure that a system is
functional
Macro or broad-based in nature
Micro or focused on specifics
To summarise, systems thinking as an approach used to identify where actions and
decisions have a measurable impact on the desired outcomes, whereas processes
are vital for a system to be regarded as functional. Without process thinking,
systems are the isolated aspects which function without any interaction with their
environment which includes other systems.
12.6
Business process re-engineering (BPR) and quality
administrative management
Looking at the discussion so far, one can understand when it is said that QM
relates strongly to BPR, which is a management approach to improving processes
by making them more efficient and effective. According to Grimsley (2016) BPR
is related to other process-oriented views, such as TQM. He describes BPR as
involving “the examination and redesign of business processes and workflows in
your organisation”. A business process can be seen as a set of related work activities
executed by employees to achieve business objectives and goals. A business process
describes the manner in which we perform our work; BPR involves the process of
changing the way we do our work to improve on the existing ways to accomplish
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the goals of the business. The aim of BPR, however, is one of radical change rather
than of mere continuous improvement. The motivation behind this is to escalate
the efforts of TQM to make the orientation to processes a strategic tool and a core
competence of the organisation. In other words, BPR takes TQM a step further and
highlights that the success of the organisation will depend on its focus on processes
as a core competency for strategic purposes. This means that the organisation will
focus on its processes to improve its competitive advantage (locally and globally)
and this takes us back to what we have mentioned in terms of the aim of TQM
being the improvement of business results.
Satayanarayana (2014) discusses the field of BPR at length and refers to Hammer
and Champy (1993: 32), who say that re-engineering is the “fundamental rethinking
and radical redesign of business processes to achieve dramatic improvements in
critical, contemporary measures of performance, such as cost, quality, service, and
speed”. Note the reference to the performance issues, namely cost, quality and
service, raised a number of times earlier in the chapter.
Organisations that implement BPR seem to be more flexible, responsive,
effective and efficient for all their stakeholders that include the customers,
employees (people) and the owners. For BPR to be successful, business should
consider the following changes:
•
•
•
•
•
•
•
•
Empower employees to take ownership in the decision-making processes and
to be actively involved during all the processes.
Transfer the focus from management to customers.
Change the emphasis from the management of activities to rather focus on
the results.
Instead of keeping scores, rather focus on leading and teaching to empower
employees to measure their own results.
Change the organisation’s orientation from being functional to a crossfunctional orientation that includes processes. Employees will be more
involved and offer them greater flexibility whilst accomplishing tasks.
Multitasking rather than executing tasks in isolation.
Streamline processes. The KISS Principle is a good guideline: Keep It Simple,
Stupid.
Invent new systems and processes that focus on the future.
It is therefore worthwhile to investigate to what extent the functions of BPR can
be applied to administrative management to increase the quality of administrative
management practices.
The reason for this is that the relationship between BPR and TQM strongly
relates to administrative management practices, since the essential nature of
administrative management is the effective management of processes to ensure the
smooth running of the administrative function. Earlier, we referred to the role of
the administrative function in the organisation in terms of reporting in its widest
sense, with a focus on the management information system and its coverage of the
whole network of records of the organisation, providing information for general
management purposes.
Due to the importance of this, we addressed the whole issue of information
systems (Chapter 2) that have the theory of systems at its core. We also refer to
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the tools to assist systemic and procedural changes, such as workload and flow
process charts. If you study the field of BPR you will see a close resemblance
between the aim of these tools and the aims of applying BPR to organisational
processes. We also discussed the management of information (Chapter 3) and
we pay attention to the technical side of the systems supporting information
management in Chapter 14. From these discussions we see that the systemic
nature of administrative management positions it well for the application of BPR
to enhance the quality of the practices.
Caraballo (2015) discusses McKinsey’s seven Ss model, which can be used as a
framework (see Figure 12.3) to assess the impact of BPR on the organisation. The
seven Ss refer to the following six elements of the organisation: strategy, structure,
systems, staff, style and skills, all in relation to the central element, namely shared
values or culture. We have discussed all of these elements so far, so this model is
simply another illustration of the importance of addressing factors in their totality
when wanting to manage organisational quality and implement continuous
improvement. This model can be used successfully to review the effectiveness of
organisations, to determine how to best realign an organisation to support new
strategic directions, and finally to assess how to assess the changes that are needed
in that specific organisation.
1.
STRATEGY:
Resolving
conflict
through
mission
6.
SKILLS:
Engagement
and diversity
in workforce
2.
STRUCTURE:
Communication channels
SHARED
VALUES
5.
STAFF:
Recruitment
and
selection
4.
STYLE:
Transformational leadership
and open
communication
3.
SYSTEMS:
Procedures for
information
flow
Figure 12.3 McKinsey’s seven Ss model
Different authors define systems as the processes, methods, procedures, rules,
techniques, technology, and manuals that ensure that work is undertaken efficiently
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and accurately. These are the instructions that guide staff and management in their
daily tasks. Note again, the applicability of these BPR concepts to the practices of
the administrative manager.
Conclusion
In this chapter, we focused on the QM aspect of administrative management. A
number of issues are key to the discussion, such as the importance of managing
the quality of the entire organisation by addressing the quality of each of the
various entities. For the purpose of this text, the most important entity is the
quality of administrative management and the administrative function. Quality
administrative management leans strongly on good management practices by
means of administrative policies, procedures, systems and processes; hence the
discussion of TQM.
Flowing from this discussion, we noted the importance of the systems and
process approach of the administrative manager to the management of the
administrative function. We looked at the role that a quality model and a QMS
can play in the overall management of quality in the entire organisation, but,
more specifically, in administrative management. We looked at the service
delivery character of quality administrative management and the importance of
establishing a quality culture in the organisation, especially in the administrative
function. Finally, we focused on BPR, which could very effectively be applied to
the management of quality in administrative management.
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Self-assessment
1.
Briefly describe quality, QM and TQM, indicating the relationship between the
three concepts.
2.
Discuss the role of the following elements in TQM: added value, conformance
to standards, excellence and a motivated workforce.
3.
What was Dr Joseph Juran’s contribution to the field of quality management?
4.
Outline the Batho Pele service delivery principles and discuss how these
principles relate to quality management.
5.
Describe the role of well-designed administrative policies and procedures in
the management of administrative quality.
6.
Distinguish between the important characteristics of systems thinking and
process thinking. Motivate your answer.
7.
Elaborate on your answer in Question 6 by relating your discussion to the
importance of good systems and processes for quality administrative
management.
8.
What is meant by the reference to the administrative manager as a systems
thinker?
9.
Distinguish between systems thinking and process thinking in a table format
to display the differences.
10. What is the potential value of BPR for managing quality in administrative
management?
11. Briefly discuss the advantages of implementing BPR in a specific business
environment.
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Chapter 12 – Quality administrative management
References
Bellinger, G. 2004. “Systems Thinking: An operational perspective of the universe.”
http://www.systems-thinking/systhink/systhink.htm (Accessed: 28 August 2016).
Caraballo, J. 2015. “Using McKinsey’s 7-S Framework to Foster Effectiveness and
Break Organizational Silence.” https://www.linkedin.com/pulse/using-mckinseys7-s-framework-foster-effectiveness-break-caraballo (Accessed: 2 June 2016).
Crosby, P. B. 2009. “Total quality management: Quality is free.” (Accessed: 28
August 2016).
Dale, B. G., Wu, P. Y., Zairi, M., Williams, A. R. T. & Van Der Wiele, T. 2010. “Total
quality management and theory: An exploratory study of contribution.” http://
dx.doi.org/10.1080/09544120123930 (Accessed: 10 June 2016).
Deery, M. 2010. “Talent management, work–life balance and retention strategies.”
http://www.emeraldinsight.com/0959-6119.htm (Accessed: 17 February 2013).
Deery, M. & Jago, L. 2015. “Revisiting talent management, work–life balance and
retention strategies.” http://www.emeraldinsight.com/doi/full/10.1108/IJCHM-122013-0538 (Accessed: 12 June 2016).
Department of Public Service and Administration (DPSA). 2014. “The Batho
Pele Vision.” www.dpsa.gov.za/documents/Abridged%20BP%20programme%20
July2014.pdf (Accessed: 12 June 2016).
Gimenez-Espin, J. A., Jiménez-Jiménez, D. & Martínez-Costa, M. 2013.
“Organizational culture for total quality management.” http://www.tandfonline.
com/doi/abs/10.1080/14783363.2012.707409 (Accessed: 13 June 2016).
Jaccard, M. 2013. The objective is quality: Introduction to quality, performance and
sustainability management systems. Lausanne: EPFL Press.
Kelchner, L. 2016. “Theories of Total Quality Management.” http://smallbusiness.
chron.com/theories-total-quality-management-55715.html (Accessed: 10 June
2016).
Manohar, E. 2012. Total quality management: Stress and human performance. Delhi:
New Century Publications.
McGowan, G. 2010. “Management Theory of Peter Senge.” http://www.business.
com/management/management-theory-of-peter-senge/ (Accessed: 12 June 2016).
McKinney, M. 2015. “Being a responsible leader.” http://www.leadershipnow.com/
leadingblog/leadership_development/ (Accessed: 15 June 2016).
Ministry of Business Innovation and Employment. 2016. “Policies and procedures.”
http://www.business.govt.nz/staff-and-hr/managing-employees/policies-andprocedures (Accessed: 12 June 2016).
Oschman, J. J., Ströh, E. C. & Auriacombe, C. J. 2006. “A conceptual analysis of total
quality management (TQM).” Journal of Public Administration, 41(2.1): 191–205.
Rocha-Lona, L., Garza-Reyes, J. A. & Kumar, V. 2013. Building quality management
systems: Selecting the right methods and tools. New York: CRC Press.
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Satayanarayana, J. 2014. “Making your business more competitive with business
process reengineering (BPR).” https://www.cleverism.com/business-competitivebusiness-process-reengineering-bpr/ (Accessed: 2 June 2016).
Senge, P. M. 2006. The fifth discipline: The art & practice of the learning organisation.
London: Random House.
Sheikholeslam, M. N. & Emamian, S. 2016. “TQM and Customer Satisfaction
towards Business Excellence.” International Journal of Learning Management Systems,
4(1): 35–42.
Thompson, F. D. 2005. “Transforming through total quality management (TTQM)
− simple but not obvious.” Journal of Public Administration. Conference proceedings,
October 2005: 167–175.
Williams, J. C. 2008. A retrospective view of the South African excellence model. MBA
Thesis. University of Stellenbosch. Unpublished.
Yadav, R. & Khanna, A. 2014. “Literature Review on Quality of Work Life and Their
Dimensions.” Journal of Humanities and Social Science, 19(9): 71–80.
Zhu, P. 2015. “System thinking versus process thinking.” http://futureofcio.
blogspot.co.za/2015/04/system-thinking-vs-process-thinking.html
(Accessed: 8 June 2016).
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C h a p t e r 13
Productivity, workflow and office
procedures in the administrative office
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
••
explain the terms productivity and productivity improvement;
describe the key elements of productivity;
discuss the importance of involving subordinates in the productivity
improvement process;
measure productivity and suggest improvements in the administrative office;
improve the workflow in the office;
identify workflow problems and rectify them;
explain the uses of office manuals;
argue for or against the use of office manuals; and
prepare and draw up an office manual.
Introduction
Globalisation, business sustainability and the increase in international
competitiveness have escalated the problem of low productivity, especially in
developing countries like South Africa, as productivity accelerates economic
development. Looking at productivity in the country as a whole, statistics show
that since 1967, output per worker per unit of capital in South Africa has fallen
from R7 297 to R4 924 a year: a decline of 32.5 per cent. From its peak in 1993, this
measure of labour productivity has fallen by 41.2 per cent, bringing it down to
the lowest level in 46 years (Jones, 2013). South Africa today is less efficient than
many of its emerging market competitors, its labour force is uncompetitive, and
labour productivity is much lower than that of the rest of the developing world.
In 2015 South Africa was ranked number 53 out of the 61 economies covered
by the International Institute for Management Development’s World Competitive
Scoreboard (WCS). These rankings are done by taking the competitiveness of an
economy in consideration.
The job of a manager surely includes taking care of productivity, and it is the
administrative manager and their staff who are responsible for maximising the
productivity within the administrative section. Rendering the best service to
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the organisation puts the other sections in a better position to function at an
optimum level.
The continuing development of new technology and the ever-changing
environment in which we work put an added responsibility on the shoulders of
administrative managers. They need to keep up with these changes, as it affects
the administrative systems and procedures in the organisation and also gives a
possible competitive advantage to those acting on these changes. It is essential
that the administrative manager has a system in place to monitor and manage the
implementation of new technology and its influence on the performance of the
administrative section on a continuous basis. This will enable them to detect any
deviation from the set objectives and to take the necessary corrective action to
ensure the required level of productivity.
It is important to note that productivity not only refers to the output or
profit of the organisation or a specific section, but is also influenced by what is
put in. The old saying often used in the information technology (IT) industry,
“garbage in, garbage out”, is also applicable when it comes to productivity. For
this reason, the administrative manager also needs to look at the input factors
such as the workflow and work procedures within the section. These factors
support the output and have a definite influence on the productivity of the
organisation. Managers often focus too much on the job to be done and on
the product or service itself and do not give proper attention to aspects of the
working environment that affects the output.
13.1
13.1.1
Productivity
Defining productivity
Productivity is an economic measure of output per unit of input. Productivity
is not production or profit, but it is concerned with how effectively outputs are
produced. Output is what you produce such as products and information and/
or services rendered. Output can be expressed in money, hours or physical units.
Input is what you use to produce the output and can include capital, labour,
materials, and information. These can be expressed in money spent, hours
worked and materials used. Productivity in the broadest sense can be defined
as the arithmetical ratio between the output and the input used to achieve an
objective. Productivity is computed by dividing the average output in a specific
period by the total input of that same period. The answer will only give you a
number which does not mean much, unless it is compared with a pre-determined
standard or another period.
13.1.2
Key elements of productivity
Before the productivity ratio is discussed in detail, the following key elements of
productivity need to be examined.
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The outcome of productivity is the continuous improvement of performance
To be productive means to strive to have a continuous improvement, which
means that there should be a continuous improvement on the set standards and
not just a once-off peak. The implication of this is that the basis from which the
improvement will take place (a standard as a starting point) has to be set, and
the improvement will have to be measured against this standard over a period
of time.
The improvement must be measurable
Inputs and outputs must be measureable in order to determine whether there is an
increase or decrease in productivity. You need to know what is to be measured and
the instruments that are going to be used to measure it. Measurements could be
done in money spent, hours worked, units produced, amount of wastage, number
of errors made, and number of client complaints.
The key drivers of productivity
The drivers discussed below are important areas on which managers need to focus.
It can also be seen as a checklist to see where improvements could be made to
increase productivity.
Attitude of management and employees: The reason why attitude is a key
driver of productivity is that without commitment and the willingness to be
productive, everything can be in place and there will be no increase in productivity.
Effectiveness: As this means doing the right thing, it surely means that the
processes and the procedures in place should ensure that the worker actually does
the right thing. This key driver is affected by many factors such as giving the
correct instruction and accurate communication.
Efficiency: This driver relates to the methods of doing things, the equipment
used to do the work, and the training that should be in place and in good condition.
Utilisation of resources: When the optimum use of human capital and
physical resources is called for, you need to realise that utilisation must be limited
to acceptable boundaries, meaning that an employee can only do so much in a
day. Of course this depends on many factors such as experience, capacity and
training of employees.
Elimination of all forms of waste: There is a global movement towards
being environmentally friendly, which does not only require organisations to
cut on waste, but also to use the available resources sparingly. There is a social
responsibility in conserving what is available. Organisations and countries are
being held accountable for their wastage. Eliminating or reducing waste also saves
money and increases productivity.
The beneficiaries of increased productivity
An increase in productivity not only improves the profit margin, but also benefits
other role players.
The individual: In the first instance, it is the individual that will benefit,
because an increase in productivity brings increases in the profit margin and maybe
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the added benefit of a salary increase. However, being able to make a contribution
towards the success of the organisation, builds a reputation that could benefit the
individual in the future.
The organisation: It benefits from all the factors that are affected by an increase
in productivity such as the increase in profit, the decrease in wastage, and being a
sustainable business.
Society: If and when the individual and the organisation benefit, society will
also benefit, because they are part of society.
The environment: This beneficiary needs no explanation, as everyone can see
the benefits of having a cleaner environment, having less wastage and using the
limited available resources more effectively and efficiently.
The economy: The economy benefits as a whole, as it assists the country
to become more competitive in the world economy, for example by saving on
imports, producing more exports, and creating employment.
13.1.3
The productivity ratio
One of the most important objectives of the administrative section is to render an
effective, efficient and economical service to the other sections in the organisation.
This service is rendered as a support function to the organisation. The existing
factors of production (leadership, capital, labour and physical resources) must be
managed in such a way as to ensure a high level of productivity. The importance
of what some writers call the fifth factor of production, namely information,
sometimes seems to be ignored, especially the influence that it has on the
productivity of an organisation. How it affects productivity and the role it plays
in productivity improvement will be discussed later in this chapter. Regarding the
productivity ratio, there are many different scenarios. Productivity increases when
the following happens regarding input and output:
•
•
•
•
•
output increases ( ) and input decreases ( );
output increases ( ) and input remains constant ( );
output increases ( ) and input increases less than output ( );
output decreases ( ) and input decreases more than the output ( ); and
output remains constant ( ) and input decreases ( ).
Consider the following example:
One of the employees (person A) responsible for the maintenance of the
programmes in use in the organisation can only attend to five or six problems
in one day. The other two employees in that section attend to almost double the
number of problems per day. After some investigation, it is found that person A
was never trained properly in the maintenance of the programmes in use. The
administrative manager sends this employee on a training course to enable them
to improve their skills regarding the maintenance of the programmes. On their
return, progress is once again monitored and it is found that person A can now
also attend to almost double the number of problems than before. What happened
here? Did productivity increase or not? We can see that person A’s output almost
doubled, while the input was only the time and money spent on their training.
Productivity definitely improved, because the output increased ( ) and input
increased ( ) as well, but less than the output. It is important to realise that output
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is not only about quantities and time; the quality of the output is also part of the
measurement.
The statement that the management of an organisation is largely responsible for
productivity in the organisation, is by no means exaggerated as is clearly illustrated
by the key elements of productivity. If the management of an organisation does
not conduct its management function effectively and take care of the productivity
of the organisation, it is doomed to failure.
13.2
The role of employees in raising productivity
The phrase “work smarter, not harder” can be used as one way to describe the
role employees have in increasing productivity in the organisation. Productivity is
raised not only by working harder, but particularly by working more effectively. By
training and utilising employees more effectively, a smaller number of motivated
employees can do the same amount of work as a larger number of unmotivated
employees. The keyword here is motivation, which management must address by
creating a working environment where employees do their best, not only for the
money, but because they want to.
Managers must gain the trust of their employees. If employees feel that they
have no share in the greater profit generated by their input, or that the behaviour
of management is not ethical, management will not be able to motivate them
to be more productive. Employees need to feel part of the process of increasing
productivity and that is why participative management is so crucial. Compensation
must be in relation to performance and employees must have no fear that they will
lose their jobs in the process. Management needs to create an environment where
employees do their best for the organisation out of their own choice. Managers
could do many things to assist with this process, such as managing effectively,
improving communication, establishing objectives, creating plans of action,
recognising good work, and supporting employees. (See Chapter 17 for more on
leadership and motivation.)
A further advantage of participative management is that employees at the
lower levels of an organisation often have very good ideas about improving
productivity. They are the ones directly involved in the daily tasks and can add
value if they are consulted. There are so many situations and activities in an
organisation where productivity can be improved that it is impossible for any
manager to realise or even be aware of all of them. Any activity, task, method or
procedure should be considered for possible improvement. In most cases it could
be the employees themselves who play a direct role in improving productivity,
especially regarding operational matters. It is at the operational level that the
work is carried out by implementing the procedures and methods, and it is here
that improvement really begins.
The following points could be considered when you would like to increase
productivity:
•
Create self-esteem incentives: Because every employee is different,
the organisations need to customise the praise and recognition they
offer employees. Incentives must be shaped according to the employee’s
personality to be able to have the most impact. This can be a promotion,
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•
•
•
•
being in charge of a project or further training and education. The correct
manner of giving praise and recognition can increase the effort employees
put into their work.
Eliminate unnecessary tasks: Tasks that do not have an impact on
productivity, sales or quality should be removed to free up more time. This
will enable employees to work more efficiently and effectively on tasks crucial
to the success of the organisation.
Attempt to make the work of employees easier: Ask them what can be done
to assist them. This will not only free up more time, but will also increase their
productivity and motivate them to work harder.
Help out and engage: Managing by communicating and checking up might
not be as efficient as pitching in and assisting with the tasks where practically
possible. When helping out with employees’ tasks, you can check in on
them and interact with them in a more natural manner. Employees will also
appreciate the gesture of assisting them.
Streamline expectations: Every project or task has a primary goal. Employees
need to direct all efforts as well as their focus towards achieving that goal.
Refrain from adding your own ideas and trying to influence employees to do
tasks your way. Let employees decide on following their own course and what
needs to be done to accomplish the primary goal. Employees will not only do
a better job, but will also have more time to devote to critical tasks or projects.
13.3
The increase of productivity in the office
13.3.1 Measuring productivity
In order to see whether productivity has increased, it needs to be measured over a
period of time, either continuously or at the beginning and at the end of the period
in question. The measurement requires that there be objectives and standards
(quantity and quality) in place against which to do the measurement. This means
that proper planning is needed where work schedules and deadlines, methods and
procedures, cost allocations, and workloads are to be determined.
To determine productivity, measurements of the actual work being done need
to be made. For a measurement programme to be effective, it is vital that top
management supports the programme wholeheartedly, and that they use the
information obtained through the programme. It is also extremely important
that all staff members be fully informed about the programme. They must be
convinced that:
•
•
•
•
They will not lose their jobs as a result of the programme.
Measurement techniques will be applied fairly.
They will be fully informed on how the results of the programme will affect
them.
The organisation’s staff numbers will be adapted to take account of the
anticipated increase in productivity.
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13.3.2
Methods used to measure productivity
If you cannot measure the outputs of a job, you cannot compare it to set standards
or improve it. So, in order to measure productivity, there have to be specific
objectives and standards against which the outputs or jobs can be measured. Such
a standard is a valid and reliable measure or norm of volume, quality, behaviour,
attitude, action and time against which results, products, services or any other
objectives can be measured. A standard must also be realistic in terms of what
the average employee can accomplish, be flexible enough to accommodate any
changes, be valid regarding time and circumstances, and be clearly defined and
understandable. Employees must know exactly what is required of them.
Productivity can be improved by setting obtainable objectives together with
the subordinates and equipping them to reach these objectives. Progress is
reviewed periodically and changes made where necessary. This method is also
called Management by Objectives (MBO).
The work of subordinates can also be measured by simply counting the products
produced or number of tasks performed in a particular time and comparing it on a
daily or monthly basis. Such measurements can easily be recorded on a spreadsheet.
Another method is getting subordinates to record how their time is spent during
a particular period. This could reveal how much time is spent on specific tasks and
how much is spent on things not related to the set objectives, such as distractions,
social media and non-work conversations. There are different software programs
that can assist managers with this method, such as iDoneThis, Producteev, and
Knowledge Sync.
Measuring quality is not as easy as counting products, but it can be measured.
In order to measure the quality of a product or a task, there needs to be a standard.
This standard needs to be described in such terms that all involved can understand
exactly what is expected. Sometimes manuals can also be used as standards.
A procedure and method study, and work measurement are two further
techniques that will be discussed in more detail. These can be used to determine
the productivity of organisations and departments and to make recommendations
for increasing productivity.
The procedure and method study
This is a systematic recording and critical analysis of existing and proposed
methods of doing the work with the aim of developing easier and more efficient
methods of getting the work done.
The main objective of a procedure and method study is to improve productivity
in the organisation or section. Existing procedures and/or methods are adapted or
replaced so that production factors are used more effectively and wastage is kept
to a minimum.
The objectives of a procedure and method study can be explained as:
•
•
facilitating the planning and design of workplaces and offices so that the
flow of work, work layout, ergonomics, and general working conditions will
contribute to increased work performance;
improving the use of all resources;
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•
•
increasing profits and, in the case of the administrative section, increasing
service levels and performance; and
creating a working environment (including lighting, ventilation, safety and
noise reduction) to enhance productivity.
Improvements can usually be made in any process, procedure or method. This
does not mean that you must now doubt all the existing procedures and methods.
There are certain circumstances that necessitate the desirability of a procedure and
method study. Think of the changes that have to be made when the organisation
acquires new equipment, implements a new system, or acquires new offices.
Managers should be observant enough to notice problems and decide whether
a procedure and method study will be able to contribute to solutions. These
problems could include defects such as a lot of wastage, existence of bottlenecks,
varying quality, and too much overtime.
When you want to do a procedure and method study, it is important that you
consider all the aspects and consequences of the study. You will have to keep the
following in mind:
•
•
•
•
The result of the change might mean that certain employees become
redundant. Keep them well informed to prevent any labour dissatisfaction.
A change is associated with an increase in productivity. You must be careful
not to expect immediate, extraordinarily high standards from employees.
New methods must first be learnt and this usually takes time.
The influence of the change on the remuneration of the employees must be
known to them. They may have less work as a result of the changes. Will you
also pay them less now?
It is essential that all the employees concerned know what the method study
involves. Tell them what is going to happen and what you want to achieve
with the study so that they know exactly what it involves.
The following basic steps can be followed to improve procedures and methods:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Determine and define the goal of the investigation.
Select and define the work to be investigated.
Plan the investigation. (See Chapter 15 where planning is discussed.)
Note all the relevant facts of the present or proposed procedure.
Investigate the facts critically.
Develop the most practical, economical and effective procedure or method.
Take all relevant factors into consideration.
Analyse the proposed method critically.
Implement the procedure or method as standard practice.
Maintain the new procedure or method.
To make the steps a little clearer, we will briefly study each step separately.
Note that the principles are discussed here and no specific reference is made
to examples. Situation and organisations differ and those working in specific
departments would probably know the best ways to consider when looking at
improving productivity.
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Step 1: Determine and define the goal of the investigation
With such an investigation, you must first identify the actual problem and put
it in writing. You could make use of the steps given in Chapter 19 on problemsolving to assist you in finding the core problem.
Step 2: Select and define the work to be investigated
There are different aspects that must be taken into consideration. The first one is
the economic considerations. Is it economically justified to do a method study?
Look at the impact of the problem on the profit of the organisation and how many
employees are involved.
Secondly, keep in mind the technical considerations. The method study analyst
must have adequate knowledge of the technical aspects of the work. For example,
if one is not familiar with the functioning of the machine, the quality of the
output may be poor if the machine is set faster.
Finally, the attitude of the employees must be taken into consideration.
Preference is usually given to the reduction of direct labour, machinery and
material costs, but you must remember the indirect costs of welfare services, labour
turnover and absenteeism of employees, which could possibly be associated with
the change.
Step 3: Plan the investigation
Draw up a work plan before you begin the physical investigation. In order to do
the physical investigation, the questions of why, where, when, who and how must
be answered. It is good to write everything down.
Step 4: Note all the relevant facts of the present or proposed procedure
The success of a procedure and method study is determined mainly by the
accuracy with which data is recorded, because these facts form the basis on
which a critical investigation rests and a new method can be designed. Precise
notes or descriptions indicate what the present procedure looks like and how it
is performed.
Step 5: Investigate the facts critically
To be able to determine where changes and improvements are necessary, it is
essential to investigate the current method or process critically. Activities are
divided into productive and unproductive elements. The activities to be eliminated
or activities to be improved are then determined.
Step 6: Develop the most practical, economical and effective procedure or method
After the critical investigation, a new method can be designed. The work study
division/consultant could assist with designing a new method. This method must
be developed in such a way that it is acceptable to management and the people
who must work with it. More ideal methods are sometimes proposed, but owing
to large capital investment, for example, they cannot be accepted. Remember to
obtain input from the employees, particularly those who are directly affected.
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When choosing between alternative proposals, it is usually the cost aspect
that carries the most weight. Other factors that are also considered are time
(the shortest method is usually the most effective), number of work activities
(the method which requires the least number of movements), and work balance
(where all the team members are best utilised).
Step 7: Analyse the proposed method critically
To ensure that the proposed method of work functions smoothly as a whole,
it must be analysed. A number of movements that work most effectively when
performed separately may not fit together when they are combined. Some or other
modification may be necessary. The new procedure or method is then defined.
Step 8: Implement the procedure or method as standard practice
A motivated report is submitted to top management. The problem, alternative
solutions, criteria used for the latter, an explanation of the new method, and the
cost and time implications are set out in this report.
Once it has been approved, a standard practice guide is compiled in which
the new method is recorded. Here you can also use process or other charts to
illustrate the new method. The method is explained to everyone and then tested,
after which it is accepted as standard practice. The necessary training must also
be done.
Step 9: Maintain the new procedure or method
The supervisors, managers and work study division (where applicable) must ensure
that the new method is maintained. They must check whether the expected results
and advantages are achieved in practice.
At this stage, you might think that the information given here is not sufficient
for you to do a procedure and method study. It is not, but you must remember that
this work is usually done by specialists in the field of work study and we cannot
teach you everything about the subject in one chapter. This is not our objective.
The administrative manager needs this background to assist them in identifying
problems and realising that there are ways to overcome them. These specialists
usually cost a lot of money and it is important to have a basic knowledge of what
they can do and how they do it.
Work measurement
Work measurement is the application of techniques designed to establish the
standard time in which a trained employee can accomplish a specific task in a
certain situation at a fixed rate. We can also say that it is the determination of
the standard time that a trained employee takes to complete a task at standard
performance. Standard time means the total time a trained employee takes to
complete a task at standard performance. A trained employee is someone who
has the necessary knowledge and skills and the right attitude to perform the task
satisfactorily.
After a standard time has been properly determined with the aid of work
measurement techniques, it must first be submitted to the relevant supervisor,
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employee and manager for approval and then to all other departments in the
organisation that might want to use it.
Standard performance means the optimum performance that employees
can maintain daily according to a certain method, without experiencing any
detrimental physical and psychological effects in the process.
Work measurement involves two different types of measurements, namely
qualitative and quantitative. Qualitative measurement measures the accuracy and
appearance of the work. Quantitative measurement measures the volume of work
and the time taken to complete it. The balance between quality and quantity must
always be maintained.
When tasks are measured, of course they need to be performed in the same way
each time, they must be countable or measureable, and the amount of work must
justify the cost of the measurement programme.
However, measurement is more difficult when tasks are semi-creative, such as
programming, proofreading, or writing specifications, but such tasks can still be
measured by looking at the completed product and the time it took to complete it.
The work measurement process involves the following steps:
1.
2.
3.
4.
5.
Conduct the work measurement by applying work measurement techniques.
Use the results of this investigation to develop work standards for all activities.
Compare actual performance with the set standards.
Identify any deviations from the set standards.
Correct deviations by making changes that will ensure that the set standards
are complied with.
The way in which office tasks are measured depends mainly on the types of tasks
measured. For instance, it is easier to set standards for tasks that involve routine
work and are repetitive than for non-repetitive and semi-creative work. In practice,
there are a great variety of work measurement techniques. Some measure volume
and quality while others measure the time taken to complete the work.
These techniques can be divided into two basic groups. We find direct techniques
such as time studies (which we will briefly look at) and indirect techniques such
as predetermined motion time.
Time studies are a direct observation technique in which the time taken by
each element comprising an activity is observed and recorded, together with the
pace at which the employee is working. Time studies are normally done with the
aid of a timing device. The quickest way of completing the task is then regarded as
the most effective way of performing the task. Although this is the only possible
way of measuring how long it takes to perform specific activities, many employees
still regard this procedure with suspicion. However, much of this suspicion could
be cleared up if the employee concerned was clearly informed about what the
study aimed to achieve, the employee’s working time was openly measured and
the employee was given an opportunity to get into a working rhythm.
If you go back to the steps in the work measuring process, you will see that
these techniques are used to determine the standards with which the work
performance can be compared. Once you have something to compare, you can
see whether the work is being done productively or not, that is, according to the
predetermined standard or not. The rest of the steps are the same as those used in
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the control process. Once you have the standard, you can measure the actual work
performance and compare it with the standard. If you are not satisfied, you can
investigate why there is a difference and take the necessary steps to improve the
performance and thus improve productivity. This control process will be discussed
in detail later in this book.
Problems with measuring work in the office
Work measurement is often not willingly accepted in organisations. Managers
give various reasons for this. There are claims that it is impossible to measure
work or that it wastes time and is too difficult and expensive. It is also said
that as a result of the variety of tasks that employees perform every day,
such as preparing orders, arranging appointments, answering calls, handling
enquiries and filing, it is impossible to measure outputs. Other opponents of
work measurement feel that measurement is not necessary in offices with a low
number of employees.
Improving productivity is not just about using an official technique and specific
steps. It should become part of the working culture in a section. If managers
and employees are alert and focused on opportunities to improve productivity,
they will see how much can be accomplished. It need not always be official
programmes and major changes. On the contrary, very often it is the small things
done on a daily basis that can make a big difference for the organisation and for
the employees. Creating an effective and efficient work culture is part of this and
is part of ethical behaviour.
As you have seen, productivity has to do with the input and output ratio of
work performance. If we only look at this ratio, then it might seem that the task
and job itself are the only aspects that influence productivity. There are, however,
other aspects in the work situation that influence productivity. Although these
influences are indirect, it is still very important to look at them, because it could
have a major impact on the work itself. In this regard, we will be looking briefly at
workflow and office procedures.
13.4
Workflow
Workflow is where information, tasks or documents are sent from one member to
another for actions to be taken. This occurs according to pre-set regulations. There
are many benefits to workflow, such as the following:
•
•
•
•
•
•
•
Employees just follow the steps and do not have to decide what to do next,
minimising mistakes.
Unnecessary steps can be identified and eliminated.
The order of the steps could be changed or steps could run simultaneously to
determine effects on productivity.
Steps could be linked to persons.
This process shows the bigger picture and one has a clear view of the entire
process.
It makes it easier to see if a step has been omitted.
It reduces wastage and time.
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•
•
It improves consistency in quality and time spent on the task.
It facilitates control as there is a clear process.
In order to be productive, your workstation and your office need to be well
designed. When an office is planned or reorganised, it is important to consider the
relationship between people, equipment and the flow of work. In this regard, you
need to use your floor space effectively, create a pleasant working environment for
yourself and others, create a positive impact for visitors, provide for effective work
areas, and organise your work area for effective workflow.
To improve operations in your office, it is essential that procedures flow in the
simplest and most effective way. This is established by investigating the existing
system and making the required changes to it. To assist you with this, you can
make use of an office layout chart.
An office layout chart shows the location of the office employees in the office and
the way work moves from one person to another. Use a pen and paper to physically
draw these locations and moves. When you connect all these movements, you will
have a type of a rope diagram.
Let us look at an example. The present procedure is as follows:
During the day, the office assistant places all the copies of documents in
one tray. These documents must be sorted and filed alphabetically, numerically,
according to subject or according to locality at the end of each day. The problem is
that it takes a lot of time every afternoon to complete the filing.
Do you have any suggestions to improve the workflow in this case? Remember
the aim is to be more productive. As you can see, a great deal of time in your working
day will be saved by improving the workflow of operations of all procedures in
the office. The examples we looked at are really quite simple, but can still have
an effect on productivity. Even if these processes are automated, you still need to
ensure that the flow is optimal and productive.
Another aspect of workflow is the simplification of office work. It entails
clear thinking and sound understanding in order to limit wastage of material,
equipment, time, energy and space in the performance of office work. It is about
working smarter, not harder. It is about improving productivity.
The possibilities of improvement are unlimited. The only limits on improvement
are if the people who analyse the problem lack imagination and enthusiasm.
Behind the work simplification concept is the basic philosophy that all work
operations can be improved and that there must always be a better way to perform
each task. Work simplification means that the production rate is accelerated by
performing only the necessary steps in the best way and at the normal rate.
The objectives of simplifying office work are to:
•
•
•
•
•
limit the cost of office work to a minimum;
institute the most efficient method for handling paperwork;
make staff, office space and finance available for the more important
activities;
provide management with timely and correct information; and
ensure that the objectives of office administration are achieved.
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The simplification of office work can be applied to office work as a whole or to
any part of it. It can be applied to office systems, procedures and/or methods. It
can also be applied to any defined product or concept of the office, such as layout,
arrangement, forms used in the office, or the use of office equipment.
Simplification of work also enables the manager to find ways of rectifying
possible undesirable conditions.
Various guidelines or principles for simplifying office work have been compiled.
You can try the following:
•
•
•
•
Promote the expertise of every office employee. Office employees must receive
training and must be encouraged to become involved in work simplification.
Combine activities so that duplication is eliminated.
Limit the distance over which the movement of paper and/or people occurs.
Limit delays in the workflow to a minimum.
If you decide to increase the productivity of your section by simplifying work, you
should follow the following steps, which are essentially the same as the steps for
problem-solving:
Step 1: Select the work/section you plan to simplify
Tasks that are repetitive in nature or that demand a great deal of labour usually
have the greatest possibility of improvement. The following are examples of this
type of task or situations:
•
•
•
•
•
Bottlenecks: This is work that holds up all the other work done before it, as
well as the work that has to be done after it.
To-and-fro work: This is work requiring the employee to get up and bustle
about often, looking for files or checking references, before sitting down again.
Work that takes a long time to complete: This is work that takes a substantial
amount of time to finish, and for which an extension is often requested.
Work that takes a long time to get ready: In this case, special documents
may have to be obtained first. The work itself then takes only a short while to
complete, and afterwards all the documents and resources must be put away
again.
Work done without achieving very much: This work is done with great fuss
by people who are very busy, but an investigation might show that very little
is actually achieved.
Step 2: Gather all the relevant information
During this step, information must be gathered about how the work is being done
at present. Additional information can be obtained by speaking to the supervisor
and inspecting the work.
Use the question method and gather all relevant information. The question
method is probably the most acceptable and fruitful method. Of every activity the
following questions are asked: What is done? Where? When? By whom? With each
of the questions, the big question of how? is also asked.
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The first question, namely what is done and how, is the most important. If the
activity is already eliminated here, no purpose is served by studying it further.
Other more specific questions can, of course, also be asked.
Step 3: Develop a more effective method
To develop a more effective method, the way in which the activity is done at
present must be analysed in detail with a view to establishing where employees
deviate from the basic guidelines for the simplification of office work. The work
can then be improved by rectifying or correcting these deviations. New or updated
technology could also be considered here. Workflow automation is one example
where the use of computer software can be used to automatically process and route
documents and information through an organisation.
Step 4: Implement the new method
The last step is relatively simple to apply because the employees have participated
in the process and understand why and how the new method will be implemented.
The purpose of simplifying the work must be clear, and the reasons for its
importance must be spelt out for all those involved. Where possible, it is good
to use visual aids that reflect facts clearly and fully. It is also important to write
down the procedures that need to be followed once you have decided on the
new method.
13.5
Office procedures
A procedure is a number of activities or tasks performed in chronological order to
achieve a specific result. Formal procedures offer specific and detailed instructions
for the performance of plans in an organisation.
Procedures cannot always remain the same in our changing environment.
There are certain circumstances that necessitate the desirability of a study of the
existing procedures. These circumstances could point out some sort of a problem
that, if not attended to, may lead to a decrease in productivity if it has not already
done so. Look at the following:
•
•
•
•
•
•
•
•
the fact that new techniques, equipment and materials are becoming available;
a redistribution of functions, which makes proven methods ineffective;
poor utilisation of materials, labour or machinery, which can lead to wastage
and reprocessing costs;
poor office layout and unnecessary movement of people and/or material;
the existence of bottlenecks;
varying quality of services or products;
employees complaining of exhausting work; and
too much overtime by employees.
The objectives of such a study are to redesign workplaces, improve methods and
procedures, improve the use of materials and equipment, improve the working
environment, and improve quality in every aspect. All improvements are aimed at
improving productivity.
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13.5.1
Written procedures and office manuals
Employees usually follow methods and procedures in many of the jobs done
in their organisations. These methods and procedures are sometimes conveyed
verbally from one person to another. In this process important details can be
lost, and people may forget certain things. The same type of work may also
be done in different places in the organisation. To obtain a uniform standard
and quality, it is necessary that the same procedures and methods be used
throughout the organisation. In some sections there are many different types of
tasks and some of the tasks are performed only occasionally. The result is that
employees may forget what to do in certain situations. It is thus essential for
the organisation to set out the proposed procedures in writing. These written
procedures must also be available to specific employees at all times. A procedure
manual is usually used for this purpose. Procedure manuals could be written for
manual and automated tasks.
It is important to remember that no organisation can function without
certain basic guidelines. These guidelines are often summarised in such
a manual. These manuals vary from being one page long to a document of
considerable length.
Office manuals are a formal method of management control developed
to familiarise employees with the policy and regulations of the organisation.
We can distinguish between functional manuals and procedural manuals.
Functional manuals contain information on certain tasks or subjects, while
procedural manuals give detailed descriptions (step by step) of how activities
should be performed.
In many organisations the recording of information presents a considerable
problem. While products and services of high quality may be delivered, the
relevant procedures are not always properly documented. When a new employee
is appointed, it is very difficult to maintain the existing standard. Many managers
and supervisors feel that if one learns things for oneself, one remembers them
more easily than when one learns them from a manual. Manuals are therefore
sometimes not taken seriously in an organisation. In reality, however, manuals
can be a very valuable resource in improving productivity.
New employees often find that they cannot perform the work without proper
guidelines, but such guidelines are not given to them because experienced
employees in the office regard the work as routine and do not see the necessity
of training the new employee. It is often held that manuals are not necessary in
smaller departments, because every member of staff knows exactly what they must
do. These departments are more vulnerable than larger departments because the
only person who knows how a certain activity must be performed may fall ill or
leave suddenly.
Because an organisation is always subject to change, manuals become
outdated and lose their relevance. Manuals should therefore periodically be
revised, which is another reason why manuals must be dated. When procedures
are set or revised, it is important that every employee who must perform the
procedure receives a copy of the section applicable to their job. It is good policy
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to have the employee sign that they have received a copy of the manual so that
receipt cannot later be denied.
Because the drafting of manuals is a process that involves much time, effort
and money, it is important that the employees’ cooperation in the use of manuals
is gained and maintained. It has been proven that employees are sometimes
unwilling to use manuals, irrespective of how effectively they were compiled.
There are generally two ways of motivating employees to use manuals. If
employees understand the value of a manual during the initial training and
induction phase, they will be motivated to use it again later. Secondly, when
you exercise control over an employee’s work you could ask the employee to
refer to the correct procedure in the manual, thus forcing the employee to use
the manual.
13.5.2
The uses of office manuals
Some office manuals can help to improve the efficiency of certain activities, while
others may serve as a guideline to the exact way in which an activity should be
performed.
Office manuals are a form of communication aimed at formal management
control. Such manuals are developed to familiarise employees with the procedures
and methods of their tasks.
Office manuals are used during the orientation process to pass information to
new employees. They are also used as a source of reference to other employees on
matters such as leave, remuneration and other conditions of service.
When a new system is implemented, it is important that the guidelines for
using the system are clearly spelt out to all the relevant employees. A manual can
be used to achieve this aim. It can also be used when an employee is transferred to
a new department and must learn the procedures of that department.
Certain tasks are not routine tasks, but are performed only now and then. An
example of this is the drawing up of the budget, which is not done on a continuous
basis, but usually only once a year. Manuals are vital for such tasks.
Manuals help employees to acquire new skills when new programs or equipment
are purchased. One must first study the manual step by step before the new
procedure can be mastered. These manuals are known as user manuals. Think, for
instance, of a new computer program that must be learnt, or a manual for the use
of a new telephone system.
Manuals spell out to workers how their work should be done in order to comply
with the ethical conduct that is expected from them.
If information of this nature is freely available in printed form or online, it is
not always necessary to repeat instructions and the training of employees requires
less attention from supervisors.
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13.5.3
Advantages and disadvantages of office manuals
There are many good reasons for procedures and methods being set out in writing,
such as the following:
•
•
•
•
•
•
•
•
•
•
•
It eliminates confusion when a task must be completed according to a specific
method and procedure. Suppose a person becomes ill after completing only
part of a task, any other person can now complete the task according to the
written manual.
The actions of employees are purposeful. They know that they are doing their
tasks the way they should be done.
Supervising employees’ work becomes easier.
It facilitates division of work, decentralisation and delegation of authority.
When a manager delegates a task, the employee must know exactly what is
expected. If the procedure and method for the task are set out, the employee
can continue without effort and does not have to go to the manager all the
time for assistance. Questions and doubts can be directed to the manual.
It facilitates the control process, because the procedure manual serves as a
standard with which the task can be compared.
It serves as a reference source or fixed guideline, particularly when the work is
performed in remote factories, offices and district outlets.
It is a practical instrument in which the policy and objectives of the organi­
sation are set out step by step.
It balances the workload between employees and officials.
It facilitates the training of employees in the organisation as a whole. The
trainee can see exactly how the task must be performed. Everyone in the
organisation is taught to perform the task in the same way. It can also be used
to evaluate the trainee to see whether the task can be performed or not. It also
reduces the cost of training.
It makes it possible to grant certain positions and incumbents responsibility
and liability.
Since the legality of acts is often determined by the correctness of the procedure
or method followed, written manuals make such action legal.
Of course, written procedures also have their limitations. We cannot simply regard
the existing procedures and methods as law that can never be changed. Written
procedures can therefore sometimes be a disadvantage because of the following:
•
•
•
•
Some managers are so rigid in their thinking that they regard such manuals
as inflexible: something that cannot be amended. This could hamper change,
creative thinking and the initiative of employees.
People become so comfortable with what they are doing that they do not
realise that the methods and procedures they are using have become obsolete.
Sometimes there may be so much work and the work may be so demanding that
there is no time for adaptations and the development of new work methods.
The interpretation of written procedures is sometimes so narrow that no
flexibility and departures from the norm are allowed. Each situation is not
exactly the same, and if procedures are followed closely without taking other
factors into consideration, it can have a negative effect on productivity.
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•
Manuals must be written simply and clearly so that all the users will interpret
the contents in exactly the same way. This yet again highlights the need for
accurate communication.
13.5.4
Types of office manuals
It is important to realise that office manuals are not limited to a specific subject,
but cover a whole variety of topics important to the office employee. Because there
are many different types of office manuals and the content varies greatly from
organisation to organisation, we will not go into much detail. The following are
some examples (this classification is only an example and may not necessarily be
used).
Manuals on organisation policy and procedures
Top management uses this type of manual to communicate with employees. It
is a written record of policies and practices of an organisation. Normally, it is
readily available to the managers and employees in that specific area of work. It is
updated and amended whenever necessary. A manual on organisation policy can
be used for the orientation of new employees, to inform employees on how the
organisation is organised and who is responsible for what tasks, and to provide
information to the public. It contains information covering topics such as the
overview of the organisation, the management committee, insurance, planning,
assets, funding agreements, use of equipment, and safety and health.
Manuals on staff policy
These manuals usually contain a definition of the organisation’s staff policy,
including conditions of service, and the general rules and regulations with which
employees must comply. The staff policy manual is the best-known manual in any
organisation. It is used to inform employees about their rights and obligations,
such as working hours, salary scales, promotion, leave, overtime, and arrangements
with regards to injuries sustained during working hours.
Manuals on staff policy make it easier to understand and interpret a policy
because it is in writing. They prevent employees from being unfairly treated and
save time because the supervisor or manager does not have to explain the policy
time and again.
Administrative practice manuals
Administrative practice manuals deal with the administrative processes of an
organisation. An administrative manual may have a functional element as well as
a procedural element. Functional guidelines set out exactly what must be done. An
example is a list of the duties the manager expects the office professional to fulfil.
Below is an example of such a list:
•
•
All correspondence must be answered within 24 hours.
All correspondence must be accurate and neat.
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•
•
•
The manager’s diary must be kept up to date to ensure effective time
management.
Visits and meetings must be diarised together with the necessary information.
The office professional must assist with the general management of the office.
Administrative manuals may also contain guidelines on procedures. These
guidelines should be clear and be drawn up unambiguously so that no confusion
can arise that will lead to incorrect procedures being followed. For example, you
may decide to use a uniform indexing system, which means that all documents
dealing with a specific subject must have the same reference codes.
Desk manuals
Desk manuals could be a valuable resource for employees in an organisation. They
are especially useful where employees perform similar tasks or if some tasks are
performed in a specific way. They can, for example, deal with the following aspects:
•
•
•
•
•
•
•
•
instructions on how to use the manual;
the drafting of specific documents;
how to deal with mail;
the organising of symposiums and conferences;
important dates, such as birthdays and anniversaries;
the names and addresses of people who the manager often contacts;
the names and home telephone numbers of employees in the same department
so that they can easily be contacted if needed; and
a summary of procedures for the performing of certain tasks, such as computer
functions (these procedures are also set out in more detail in other manuals).
The nature of this information makes it essential for a manual to be revised
regularly. It is therefore a good idea to put the manual in a loose-leaf file, because
the pages can then easily be removed and replaced.
13.5.5
Preparation for drawing up an office manual
Some organisations encourage their employees to contribute actively to the
drafting of manuals. In other organisations this function is regarded as exclusive
to the office manager. However, if the compiler does not use the inputs of the
other employees, the latter may not be motivated to consult them. It is important
that manuals are drafted to be user-friendly and encourage employees to make
further suggestions for improving procedures.
Irrespective of what type of manual you wish to produce, the preparation
process for drafting it is basically the same. Remember that such a manual must be
easy for employees to understand and use or it will simply be a waste of financial
and human resources (HR).
You do not want to overload the employees with too much information. So
draw up a core manual, and build on that according to the need. Each user can
also be given copies of only those sections that apply to them.
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The preparation of any manual involves the following steps:
1.
2.
3.
4.
Identify potential users.
Gather relevant information.
Obtain other inputs – all potential users must have the opportunity to make
inputs regarding the subject’s procedures.
Distribute the draft manual.
When all possible information has been gathered, a provisional manual should
be circulated for employees and management to make further proposals or
recommendations before the final manual is published.
The drafting of a manual is a continuous process because there is always
new information that must be added, technology that must change or outdated
information that must be removed.
The faster the office environment changes, the greater the need for manuals.
Rapidly changing working conditions therefore explain why more manuals
are appearing in the working environment. The preparation of manuals is
an administrative section that is often the responsibility of the administrative
manager. There is no such thing as a final manual. Technology and methods are
always changing and improving, and so adjustments always need to be made.
Conclusion
The contributions that the administrative manager can make in an organisation
to improve productivity are numerous. New technology impacts productivity
significantly and it is a matter of investigating the different options on the market
regarding computer systems and other equipment.
Improving productivity does not always need to cost a lot of money. There are
many opportunities for increasing productivity that are very economical and do
not require large cash layouts. It is really a matter of time and effort. It is about
fostering a culture of saving and working cleverly without a decrease in quality,
and about involving all the employees and getting their input. We cannot ignore
this issue any more.
A serious problem that can arise as a result of low productivity is continuous price
increases. In order to pay salary or wage increases (costs or inputs) to employees, an
organisation must obviously have a greater income. If this income is not obtained
from an increase in productivity, the organisation will have to increase the price
of its products to pay its employees higher salaries and wages. This then establishes
a vicious circle: a demand for wage increases leads to price increases to provide for
these wage increases and ensure the continuation of the organisation.
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Self-assessment
1.
Define productivity and discuss the key elements thereof.
2.
Regarding the productivity ratio, there are many different scenarios where
productivity is increased. List five such scenarios and give an example of each.
3.
“Subordinates should not be involved in the productivity improvement
process.” Critically discuss this statement.
4.
Briefly discuss the steps that you could follow to improve the procedures and
methods in your section.
5.
Discuss work measurement under the following headings:
5.1 Administrative office tasks that can successfully be measured
5.2 Work measurement techniques
5.3 Problems with measuring work in the office
6.
Why would the administrative manager want to simplify office work?
7.
You decide to look at simplification of work in your section. You look for tasks
that are repetitive in nature or that demand a great deal of labour, because they
usually have the greatest possibility of improvement. List five such examples.
8.
Explain the uses of office manuals in the administrative office.
9.
“Office manuals are a waste of time, especially spending time writing down all
the procedures.” Critically discuss this statement.
10. Find an example of an administrative or desk manual. Briefly discuss the uses
and advantages of the specific manual.
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Chapter 13 – Productivity, workflow and office procedures
References
Fischette, J. M. 2011. “10 Steps to get more productivity for less staff.” https://
startupnation.com/grow-your-business/run-your-business-better/10-steps-to-getmore-productivity-from-less-staff/ (Accessed: 25 April 2016).
Gilligan, N. 2012. “10 Benefits of Workflow.” https://workflow.wordpress.
com/2012/11/02/10-benefits-of-workflow/ (Accessed: 23 April 2016).
Haden, J. 2012. “5 Ways to send productivity through the roof.” http://www.inc.
com/jeff-haden/5-ways-to-send-productivity-through-the-roof.html (Accessed: 21
April 2016).
Moneyweb. 2012. “SA labour productivity at the lowest level in 46 years.” http://
www.moneyweb.co.za/archive/sa-labour-productivity-at-the-lowest-level-in-46-y/
(Accessed: 20 April 2016)
Sinha, A. 2012. “The main types of office manuals.” http://www.preservearticles.
com/2012022923976/the-main-types-of-office-manuals-are-given-below.html
(Accessed: 25 April 2016).
Stinger, J. 2013. “5 Factors that affect your employee’s productivity.” https://www.
nbrii.com/?s=productivity (Accessed: 23 April 2016).
Anon. 2014. “The Top 8 Methods for Accurately Measuring Employee Productivity.”
https://w w w.universalclass.com/articles/business/the-top-8-methods-foraccurately-measuring-employee-productivity.htm (Accessed: 22 April 2016).
Anon. 2015. “The 2015 IMD World Competitiveness Scoreboard.” http://www.
imd.org/uupload/imd.website/wcc/scoreboard.pdf (Accessed: 20 April 2016).
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C h a p t e r 14
The role of information systems
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
identify and describe the components of the information systems triangle;
briefly explain the islands problem and its implication for administrative
professionals when completing their duties in the office;
discuss the ways in which the security of information systems can be
compromised in the office; and
describe how electronic commerce and electronic business are changing the
way that the traditional office operates.
Introduction
This chapter seeks to explain how administrative professionals can play an integral
part in the interaction and management of the information systems within their
immediate department or office, and ultimately the organisation as a whole. The
role that administrative professionals might play in any given department, or the
organisation, is largely dependent on the organisational structures currently in
existence. The administrative professional is thus recognised as an individual who
might find themselves in any number of roles, which might include the role of
manager, middle manager, project leader, planner, or administrative officer. It is
not surprising that administrative professionals need to possess a variety of skills,
such as: communication skills (present themselves well on paper and in person),
computer literacy skills, information literacy skills (have an understanding of how
to find, interpret and use information for maximum benefit), problem-solving
skills, and project management skills. These skills combined are necessary because
the foremost tasks of administrative professionals might be their involvement in
the analysis, selection, acquisition and installation of information systems within
and between departments.
Technology use in the workplace is changing as we find new ways to
use technology in order to work smarter. This means that those completing
administrative functions, whether in the private or public sector, need to
be conscious of the benefits that technology can offer. To explain the various
information systems concepts better, this chapter will refer to the context of the
banking sector.
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The South African banking industry has developed in leaps and bounds since the
early 1990s, and this is in large part due to the adoption of increasingly sophisticated
levels of technology. The commercialisation of the internet in 1995 eventually led
to many opportunities arising which could offer additional services to banking
customers. The recent penetration of mobile devices (such as smartphones and
tablets) has seen many new ways for bank customers to interact with each other
and their respective banks through a variety of applications (apps). The penetration
of emerging technologies in the banking sector means that many tasks that were
once manual and time-consuming now have the opportunity to be automated. In
some cases, tasks that were already automated have been made more efficient and
effective. Furthermore, banks are able to offer additional services, as they have
realised new opportunities by automating certain processes.
The banking industry traditionally employs a vast number of administrative
personnel, who need to ensure that the daily operations of the bank and related
activities are done efficiently in order to be effective for their customers. However,
as we are well aware, administrative personnel are not only to be found in the
banking industry, but in many different private and public settings worldwide. No
matter what the setting, the administrative function is concerned with providing
the necessary information and services to ensure the effective management of any
given department or organisation. This is achieved by working closely with others
(individuals/departments) to collect, analyse, present and manage the information
on which informed business decisions need to be made. Subsequently, it can be
said that one of the goals of the administrative function involves leading and
directing people to attain the objectives of the organisation through the effective
and efficient use of information systems.
Figure 14.1 identifies the core components that interact with the information
system. The three core components are indicated as parts of a triangle with
information systems found in the centre. These components working together are
referred to as the information systems triangle.
The goal of an information system or computer-based information system is to
collect, process, store, analyse and disseminate information for a specific purpose.
It does this by making use of information technology (IT) to perform a specific
task. The IT that forms part of the information system is made up of the hardware,
software, data and telecommunications that the system needs. However, an
information system also includes the people who make use of the IT to complete
a given process. An information system can then be broadly described as the
integration between an organisation, people and technology working together
towards a specific goal. The integration between these three will be described by
referring to them as the components that interact with an information systems
triangle.
The subsequent sections will deal more closely with the different components
of the information systems triangle within the context of the department or
office, by discussing the interrelatedness of organisations, technology and people.
Thereafter, this chapter briefly considers issues surrounding information security
and electronic commerce as they apply to information systems.
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Chapter 14 – The role of information systems
Organisations
Business processes
Data
Files and databases
Information
systems
triangle
Technology
Hardware
Software
Telecommunications
Figure 14.1
14.1
People
Internal factors
External factors
The components of the information systems triangle
The information systems triangle
The importance of information systems has been steadily on the rise due to an
increasing drive to convert manual information systems to automated information
systems. This involves moving away from paper-based record keeping to finding
innovative ways to record information digitally. For the administrative manager
and their subordinates this means significantly changing how the tasks at work
are processed. There are many areas where digitising information can have a huge
impact. Two examples where this move will have far reaching benefits in South
Africa are in the area of patient and citizen recordkeeping. Automating these
two critical areas in South Africa will allow access to electronic patient records
anywhere and anytime, and the easy identification and management of the details
of citizens.
Already some private hospitals are using electronic medical recordkeeping and
mobile tablets for capturing data. In public hospitals the adoption of electronic
medical recordkeeping has been slow, but the South African government is in the
process of piloting the National Health Insurance, which will require significant
automated recordkeeping to supply efficient and effective affordable health care
in South Africa.
Similarly, the Department of Home Affairs is also in the process of automating
its processes with the aim of improved online citizen registration for smart identity
cards and foreign visa applications. Banks are being piloted as a means to provide
some of the services of the Department of Home Affairs such as the smart identity
cards, in the same way that the South African Post Office is involved in the national
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car registration system. All of these systems need to be consistently connected to a
central hub in order to manage and share (exchange) the information needed. The
increasing internet bandwidth capacity in South Africa makes this information
exchange increasingly easy and affordable.
Prior to 1995, the internet was largely the domain of universities, research
centers and the US military. Organisations were at that time communicating via
private networks such as value-added networks and electronic data interchange,
but these systems were, and in some cases still are, very difficult to maintain and
operate. The internet simplified the communication between business partners,
but its impact was far greater.
The real value of the internet was the realisation of many organisations that
they could create their own version of the internet within their own company,
and thus the intranet was born. In Chapter 7, we learnt that an intranet is simply
the connection of large volumes of data stored across various media throughout
the organisation, so that those employees, customers and suppliers who have
sufficient authorisation can easily access it. However, the simplicity of information
access and retrieval is often compromised by problems that may arise.
One common problem that an information specialist or knowledge worker
could encounter in an organisation is called the islands problem. It occurs when
there are difficulties in making information available to users timeously (that is,
the right information to the right person at the right time), so that they can make
an informed decision. There are two types of islands problems: the islands of
information problem, and the islands of automation problem.
The islands of information problem arises due to the departmentalisation of
organisations. These islands of information occur when two or more departments
may have similar information stored, and duplication occurs, which makes
updating all the records with the same changes difficult. Banks in South Africa
often still have disparate systems, where a Financial Intelligence Centre Act (FICA)
update results in a client having to make changes to several individual accounts,
rather than once for all the accounts that the client holds at that bank. Identifying
and integrating these isolated pockets of information into the business processes
of the organisation, such as a bank, is often a difficult task, because the various
systems have been built over time to serve specific purposes.
The islands of automation problem arises from a lack of integration of
information systems between various hardware platforms, which impedes
the sharing of information. This occurs when one department’s information
systems do not, or cannot, communicate with another’s due to the lack of similar
technologies. In the banking sector, there are many legacy systems that store
critical information, and although dated, will continue to be useful until such
time that they can no longer be maintained. The problem then is getting those
older systems to integrate with the newer ones, so that information can be shared
across an organisation. Compatibility problems are not isolated to older systems
and can also occur where a user brings a device, such as a tablet or smartphone to
the office (termed Bring Your Own Device, or BYOD) to connect to the information
system for work related purposes.
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Organisations need to put strong policies and procedures in place to govern users
in departments in order to ensure that neither of the islands problems occur; or, if
they do, that there are still ways to ensure the effective and efficient integration of
information systems for shared information usage in the future. These policies and
procedures can also assist in managing possible security problems in the future.
It is with effective and efficient information usage in mind that organisations
attempt to manage their information systems in such a way that they strike a
balance between the organisational, the technological and the human needs
associated with the information requirements of various business processes. How
these needs are realised will greatly impact on the manner in which administrative
professionals complete their duties within a given process.
The main components of the information systems triangle – organisations,
technology, and people – will now be covered in more detail.
14.1.1
Organisations
By their very nature, organisations are quite diverse, even within a given industry.
For example, although there are a number of banks in South Africa, they offer
different experiences to the customer interacting with them. It is true that there
will be some functions that are the same, but the way in which the business
processes occur and how the data is managed are very different.
Business processes
A business process can be defined as the predefined activities and operations
that an organisation carries out to complete a specific task. For example, the
depositing of cash by a customer at the given bank would probably be termed
the deposit process. However, the interaction of the customer with the bank is
not only limited to the deposit process, but could include the home loan process,
the student loan process, and the new account process, to name but a few. Each
one of these processes involves organising, analysing, manipulating data, and
producing some form of output.
Improving a business process involves examining where problems might be
occurring and finding ways to eliminate them. We also mentioned in Chapter 2
that business processes are not department-specific, but rather use information
from various departments for decision-making. It is here that our islands of
information becomes a potential problem again, and it is best to consider the role
of data within the organisation.
Data
A simple definition of data is that it is a collection of raw facts in isolation. Coronel
et al (2013: 7) state that the key points relevant to data are as follows:
•
•
•
•
•
Data constitutes the building blocks of information.
Information is produced by processing data.
Information is used to reveal the meaning of data.
Accurate, relevant and timely information is the key to good decision-making.
Good decision-making is the key to organisational survival in the global
environment.
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When using an information system, we are not interested merely in the raw facts
(data), but rather in what that data describes, and the information that arises from
the descriptions. For a bank the resulting information from the collected data may
be about the financial status of its client. The bank can then use that information
to offer new products to the client if their financial status is good or take remedial
action if they are getting too heavily into debt.
For the users of an information system the level of detail that they associate
with any given data is dependent on the context to which it relates. Remember
that unless data is viewed in a context, it has little, if any, meaning. For example,
providing a list of the deposit and withdrawal amounts of bank customers,
without the transaction details, will just appear to the reader as a random list of
figures.
The standard depiction of how data is changed into information can be viewed
in the information processing diagram in Figure 14.2. The figure shows a sequential
flow of input, processing, output, and a returning feedback loop. The input relates
to the data, which enters the information system via some means, and is normally
captured from some form of document, which is referred to as a source document.
For example, the input regarding an application form to open a bank account can
be either manual (entered by a user) or automated (the data can originate from
another information system).
The data from a source document, such as the application form, is processed by
the information system once it is captured into the system. During processing, the
data is organised, analysed and manipulated. It is this action on data that converts
it into some form of output, and ultimately information. The output from the
system can be represented in a number of ways, which could, for example, be a
report, which can include text in tabular format or summarised in some form of
graph. The output could also be displayed on a web page. It is important to note
that due to the interconnectivity between systems and devices that the input and
output may not be printed material, but rather electronic in nature. The output
from one system can then become the input to the same or another system, and
is represented by the feedback loop. The feedback loop also serves the purpose of
telling the administrative professional when there is a problem with their input, so
that they can make the necessary correction. This is usually done in the form of a
message prompt that appears on the screen, or it restricts the user from continuing
with further input until they have indicated that the data they have captured is
being correctly displayed on the screen.
Administrative professionals will see the same trend, that is, input, process
and output, in all the systems with which they interact within the organisation.
The goal is then for administrative professionals to see their data requirements in
terms of entities (things), relationships (interactions), attributes (characteristics)
and rules (procedures). They need to understand how their function fits into the
organisational puzzle, and to do this they need to understand the processes or
activities at work.
Organisational and information system activities put the data to use, capturing
and transforming data into useful information. The view that administrative
professionals take of these activities will depend on their role in the organisation,
which is either as the owner or end user of the information system.
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STORAGE
Database server
INPUT
Source document(s)
– input by a person, or
– input from another
machine
OUTPUT
Process
– organise data
– analyse data
– manipulate data
Outputs
– reports
– spreadsheets
– webpages
Feedback loop
Figure 14.2
Information processing diagram
The owners of information systems view activities in terms of high-level functions
provided to the business. Examples include transaction processing, management
reporting, decision support, simulation of expertise, generation of executive
information, and office automation. They view these functions in general terms
of how well they fulfil business goals and objectives. For example, a bank manager
may want to know if deposits over the counter are increasing or decreasing (using
management reporting), and use this information to make decisions on the way
the bank will operate in the future (decision support).
The end users view activities in terms of distinct processes with specific inputs,
outputs, data files, business policies, and procedures that must be executed. For
example, the bank administrator at the personal loan’s desk of a bank would
only be concerned with data required for processing the customer’s personal loan
application. However, it is important to note that the view of data is differentiated
in terms of computer files and/or databases.
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Files and databases
The information processing diagram (Figure 14.2) includes storage (for example
database servers), which is an important aspect of any information system. Storage
in automated systems plays a vital role, as it allows information to be accessed
quickly when it is needed. If the information or data on which a decision is to
be based cannot be found, it can negatively impact the effective and efficient
running of the organisation. Ironically, it is not uncommon for data to be stored
on the local area network (LAN) of an organisation, and then effectively lost when
the owners or users of the data forget where it is located. Knowledge management,
mentioned in Chapter 3, attempts to address this problem and provides a means of
effectively managing how knowledge is organised and stored in the organisation,
so that the retrieval is easier.
Traditionally, data was stored in files, but there has been a significant migration
by organisations towards database storage to try to manage data better. Files
are collections of similar records. For example, manual files – as introduced in
Chapter 3 – might include information about customers, orders and products. The
problems associated with either paper or electronic files are directly linked to the
islands problem mentioned earlier, because it is difficult for departments within
an organisation to share data when utilising a file-oriented system. The typical
problems arising from file-oriented systems are associated with data redundancy,
data integrity and the rigidity of data structure. Shelly et al (2008: 341) describe
them as follows:
•
•
•
Data redundancy refers to data that is common to two or more information
systems and stored in several places, which results in expenses associated with
increased storage space and maintenance.
Data integrity refers to the problems that occur if updates are not applied
to all files, because this will mean that the same data will be represented
differently in files. For example, if an employee at the bank gets married
and changes her surname, and her surname is changed in the payroll file
but not in the administrator authorisation file, the records are no longer
the same.
Rigid data structure refers to the difficulty associated with retrieving information for business decision-making, because of the slow and inefficient
access to information in a file-oriented system.
Databases attempt to counteract the potential problems of a file-oriented system,
because they are collections of interrelated files. For example, a customer database
at a bank might contain transaction records that are linked to their associated
customer and account records.
A database management system (DBMS), for example Microsoft Access,
Microsoft SQL Server, or Oracle, is a software application that is used to create,
maintain and provide controlled access to the organisational data stored in the
database. Table 14.1 provides a list of the advantages and disadvantages of using a
DBMS.
Whether an organisation opts for a file-oriented or a database management
system, it needs to pay greater attention to its vast stores of data. The successful
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management of data has the potential to provide a competitive advantage in
business.
Table 14.1
Advantages and disadvantages of a database management system
Advantages
Disadvantages
They reduce the occurrence of
redundant or duplicated data.
There may be size considerations
associated with the space needed to
install the DBMS.
They reduce the occurrence of
inconsistencies in stored data.
The level of complexity of a DBMS
might require additional staffing or
training.
Data can be accessed and shared from
a central source.
The cost of purchasing and managing
a DBMS has the potential to be very
high.
It is easier to control the data and how
it is used.
A DBMS may require additional
computer resources.
Standards can be enforced on data,
that prescribe how data will be
captured and stored.
There is a higher impact of failure (that
is, data loss), because data is located in
one place.
Security can be applied on the data to
ensure that it is not compromised.
There may be speed performance
problems experienced by end users
when accessing the same data.
A data warehouse offers an opportunity to store data that can be used for
information generation in order to make decisions that are either tactical or
strategic. Coronel et al (2013: 749) state that the data warehouse is a useful means
of ensuring that data is:
•
•
•
•
integrated from a variety of sources (for example databases) in the organisation;
subject-oriented, which means that some form of categorisation is associated
with the data, and that the data becomes easier to access to find answers to
questions;
time-variant, which means that it is associated with a specific point in time,
and that the data warehouse is a good way of representing the flow of data
over time; and
non-volatile, because data should never be deleted from a warehouse, but
should be allowed to grow as more data enters the organisation.
The accumulation and management of data in a data warehouse thus assists
in providing a holistic view of the data in the organisation, which, in turn,
assists in minimising the islands of information problem. However, the data in
the organisation is of little help if it does not have the necessary supporting
technology.
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Technology was identified earlier in this chapter as one of the components of
the information systems triangle, and we will discuss the elements of hardware,
software and telecommunications with respect to technology.
14.1.2
Technology
The computer and its peripherals continue to evolve at an alarming rate.
Organisations are often unable to afford new technology, and attempt to prop
up their legacy (old) systems in the hope that they will be able to maintain some
level of competitiveness. Other organisations may opt to leap frog over versions
of technology to the latest one, so that they are not experiencing continuous
expenditure.
The administrative professional need not be an expert but should have a
basic understanding of the technological elements of hardware, software and
telecommunications, so that they can ensure that the technology is utilised in
the most productive manner in the organisation. The manufacturers of both
hardware and software are increasingly finding ways to make hardware and
software more user-friendly, so that the underlying technology is hidden from
the novice user.
Hardware
The hardware element of technology refers to the physical equipment used for
the input, processing, output and storage work of the information system. The
physical equipment in an information system must make use of some form of
communication language to facilitate interaction. The basic communication
language that computer devices use is machine language, which takes the form
of binary code, that is, a collection of 0s and 1s. For example, the letter A can be
represented as: 01000001. Therefore, the letter A gets translated into a language
that the computer can understand, as soon as the user presses that letter on the
keyboard. All of the computation happens in milliseconds, so as users we do not
see a delay between typing a letter on a keyboard and seeing it on a monitor.
Figure 14.2 showed that an information system has an input, which will be
processed into some form of output. Storage also plays a role during the processing
stage, as it is where the data is located.
The various parts of an information system were mentioned in Chapter 2 and
we will briefly consider examples of hardware that can be related to the parts of
the information processing diagram as follows:
•
•
Input: This can include computer keyboards, touch screens, barcode scanners,
the electronic mouse, and a microphone for voice recognition.
Processing: The central processing unit (CPU) is the main processing
component of a computer system. The circuitry of the CPU can be divided into
the arithmetic logic unit (ALU) and the control unit. The control unit controls
the flow of information, and the ALU performs the arithmetic calculations
on the machine language (1s and 0s). The CPU is the control component of
the computer system. Its circuits interpret software instructions and transmit
directions to the other components of the computer system.
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•
•
Output: This can be generated to monitors, printers, speakers, and sometimes
directly into other systems.
Storage: The storage function of a computer system takes place in the storage
circuits of the computer’s primary storage unit, or memory, supported by
secondary storage devices such as magnetic disk, optical disk, and thumb
(flash) drives. These types of devices store data and software instructions
needed for processing.
The hardware elements explained above could not logically function on their
own, because they are an integral part of the information processing system. The
sophistication of the computer hardware required by the organisation is largely
determined by the amount of processing power that the organisation needs.
Ideally, the organisation needs to ensure that it sets up some form of acquisition
policy to ensure that there is standardisation when purchasing hardware, and
that all hardware meets the needs of the user and existing business practices. An
organisation with a range of different hardware devices would merely perpetuate
the islands of automation problem, because there would be problems associated
with the compatibility, expandability and reliability of the hardware.
This overview of hardware is intended to give administrative professionals an
idea of the contribution that hardware makes to the processing of information
within the organisation. However, another very important element of technology
that needs to be discussed is software.
Software
Computer software
Software can be simply defined as those computer programs that control the
computer’s operations. There are in existence an abundance of different software
packages on the market, which cover a wide range of uses. However, software can
be categorised as either application software (which allows for specific tasks to be
completed by end users) or system software (which manages and supports basic
computer operations of stand-alone machines and networks). Application software
cannot operate without system software already being loaded on a computer.
These two types of software are represented in Figure 14.3.
Figure 14.3
Application software
(For example: Microsoft Office, Google Chrome)
System software
(For example: Operating systems such as Microsoft
Windows, utility programs such as anti-virus software)
Computer software layers
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In Chapter 2, we learnt about the various types of organisational information
systems categories that are in common use today, and that in some instances
provide the ability to make informed decisions. Their limitation is that they are
seldom representative of the organisation’s entire computer system, and often do
not receive the much-needed support from the system owners and the end users
who make use of them. Administrative professionals are increasingly going to
encounter complex organisational computer systems in the future, and they will
either be used as they were intended, or not.
The complexity of linking various hardware and software together should not
be taken lightly, but it is made easier by making use of different network topologies,
as discussed in Chapter 7. In the next section, the various telecommunications
components will be discussed briefly within the context of the islands of
automation problem.
Telecommunications
Communication can simply be defined as the transmission of a signal by means
of a communication channel from a sender to a receiver. The signal contains a
message consisting of data and information. Telecommunications, on the other
hand, refers to the electronic transfer of signals to accomplish some form of
communication, including telephone, radio and television. Data communication is
a subset of telecommunications that includes the electronic collection, processing
and distribution of data – typically between computer hardware devices, with the
aid of software.
The telecommunication channel or medium refers to anything that carries an
electronic signal and interfaces between a sending device and a receiving device.
The telecommunication medium can either be characterised as physical
or wireless transmission media. Physical transmission media refer to those
telecommunication devices that are physically connected to one another with
some type of cable. There are three common types of physical transmission
media found in offices today: twisted-pair cables, coaxial cables and fibre-optic
cables.
Wireless transmission media, on the other hand, are those telecommunication
devices that transmit the signal through the air, from one point to another. They
are utilised when it is impractical or impossible to install any cabling. Examples
include microwave, satellite, radio, cellular, infrared, Bluetooth, Wi-Fi and
WiMAX transmissions. The adoption of wireless is increasing exponentially with
most computers having wireless connectivity as a standard feature nowadays. We
can now find wireless in many public areas, such as restaurants, fast-food outlets,
airports, and in some CBDs. However, most of these are secure and require a
subscription or passcode to allow access to the given wireless device.
Administrative professionals who are involved in the telecommunications
arena of the organisation will need to ensure that data flows smoothly across the
different hardware and software platforms. The communication of data across
different platforms is made possible by means of networks. A network is a collection
of computers and devices connected via communication channels that allow users
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to share data, information, software and hardware with others. Networks are thus
a strong facilitator of communication within an organisation.
A local area network (LAN) is one type of computer network; a wide area
network (WAN) is another. The LAN is limited to a small geographical area,
and consists of a communication channel, networked computers and devices, a
network interface card (NIC) and a network operating system (NOS). A WAN, on
the other hand, covers a large geographical area by making use of a collection
of LANs to create a larger network. The internet is the largest WAN. However, no
matter what the size, the network architecture or topology plays an important
role.
In Chapter 7, we learnt that a network topology refers to the configuration of
communication devices in a network. These are commonly a bus network, a star
network and a ring network. There are also a number of hybrid network varieties,
which incorporate different types of networks into larger networks.
Most organisations these days create intranets out of their hybrid networks.
The intranet draws on internet and web technology to function. It is a convenient
medium, because any relevant information can potentially be accessed via a web
browser. Some intranets extend beyond the boundaries of the organisation to
make information available to customers and business partners via some form of
secure connection – these are then called extranets.
The intranet, if used properly, can result in enhanced efficiency, i.e.
costs savings, time savings and user productivity savings. It may also lead to
enhanced effectiveness, which encourages the exchange of information across
traditional departmental boundaries, increased collaboration and flattening of
the traditional hierarchical structure by creating an interactive organisational
structure. Some of the benefits listed, directly address the islands of information
problem mentioned earlier, and it is proposed that the intranet may be the bridge
required between information and users, which can possibly lessen the islands
of automation problem.
Users in the organisation play an important role, especially when considering
the intranet, because its success is essentially dependent on users. The intranet
will reflect the needs and desires of the users. If the users harness and utilise
the potential of the intranet, it will require increased functionality. However,
as mentioned earlier, resistance to change will ultimately lead to the poor use
of the technology, and the reduction in the capacity for information sharing.
Therefore, the people using the intranet will decide on its structure, level of
internal and external communications, the barriers to access, and the resources
that are required.
Technology, and how data is managed in the organisational information
systems, greatly impact on the work of people interacting with the organisation.
The people element is the final component of the information systems triangle
that needs to be considered, and will be dealt with in the next section.
14.1.3
People
Just as the information systems within an organisation vary, so too do the people
who make use of such technologies. People can be simply categorised into:
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operational employees, knowledge workers, and various organisational levels
of management (Stair et al, 2015). Each of these different types of people place
internal demands on the information systems. However, external factors (those
originating from outside the organisation) also impact on the organisational
information systems.
Internal factors
The administrative professional of the past was confronted with a rigid hierarchical
business structure, where the chain of command determined the level of access
to information, but increasingly the accessibility of information is changing due
to the uptake of network technology. Thus, end users are experiencing greater
empowerment to make decisions, based on attainable and relevant information.
For the most part this is accomplished through the use of the information systems
in an organisation.
The success of the information systems in an organisation depends largely
on the amount of support received from middle and top management. If
the management of the organisation is willing to support projects for the
enhancement of the existing information systems, these systems will thrive.
However, often the power to make changes to existing information systems does
not lie with a given departmental manager, but with the IT department.
In many organisations, the IT department is seen as the gatekeeper of technology,
and it is important to be aware of the impact that this has on the effective and
efficient operation of the people within the organisation. Thus, the information
systems either do not change as required, or change without prior notification. For
example, the user could walk into the office one day and find that the settings on
their workstation have been changed by the IT Department using a remote update.
This raises the issue of suitable training, which needs to be provided to all users
prior to the introduction or at the same time as the change, so that they know
how to use the new or revised system. The importance of user involvement when
changing information systems cannot be stressed enough, because this increases
the rate of successful adoption.
External factors
New technology is being created as you read this chapter, and will continue
long after you have put this book down. This explosion of technology places
great demands on the organisation as it needs to ensure that it keeps up to
date with technological changes. At the same time, though, organisations must
be careful not to change technology so drastically that it affects the business
processes negatively and encourages the islands of automation problem. As these
new technologies emerge, the internal users in the organisation place greater
pressure on the organisation to adopt the new technologies. However, it is the
suppliers, business partners and customers who ultimately make the greatest
demands, because they demand better service and the monitoring of the flow
of products.
Organisations are finding that they need to increasingly compete with their
competitors to keep their existing customers. A good customer relationship
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management (CRM) system can assist. CRM has become more automated as
technology evolves. This has resulted in a growing need to automate the entire
customer experience with the organisation, so that it is possible for all data
regarding the interaction between the two to be recorded. We mentioned in
Chapter 2, that a CRM system can be used in the marketing functional unit to
better collect data about consumers and integrate that into the overall information
system. However, as we noted earlier, the islands problem may be a hindrance to an
integrated information system if changes are not done in a logical and systematic
manner.
The governmental rules and regulations with respect to good governance
requirements for organisations will also affect how people perform their jobs, as
these requirements will need to be integrated into existing or future information
systems. It is not uncommon for large multinationals to have information systems
that differ from one geographical region to the next in order to accommodate the
local cultures and regulations.
The effective integration of all the components of the information systems
triangle is vital for organisational success. It is therefore necessary for organisations
to regularly determine what problems might arise with respect to their information
systems, and to act on them accordingly. Administrative professionals in the
organisation need to be in a position to provide input when resolving a problem,
as a good requirement elicitation process (as identified in Chapter 2) is critical in
the development of information systems solutions.
In the chapter thus far, we have attempted to identify how the different
elements of the information systems triangle, identified in Figure 14.1, relate to
the islands of information and the islands of automation problems. Solving the
islands problem is not easy. There are many factors that can have a bearing on the
way organisations, technology and people are viewed. The security of information
systems is an important functional constraint that cannot be overlooked, and
therefore we will consider the issues of security and its impact on the information
systems within the office.
14.2
Information systems security
Computers are used productively on a daily basis to gain access to valuable
information within the organisation, and yet at the same time can be used to
steal vast amounts of information or money (Stair et al, 2015). Many companies
are not willing to report computer crimes because of the threat of losing potential
customers, suppliers or business partners who think that their data may not be
secure. For example, a bank that reports the loss of huge sums of money resulting
from the illegal access to their information system is likely to see a number of
clients move to other financial institutions, because they will consider that bank’s
ability to keep their money safe unsatisfactory.
The internet adds another level of complexity, because it means that computer
crime is no longer limited to the users entering the office and physically using the
organisation’s information system to commit a crime. Information systems can
now be potentially accessed from anywhere in the world. This raises concerns for
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those organisations that want to take their business online, because they need to
ensure that their internal operations cannot be compromised.
According to Stair et al (2015), the computer can be the tool that is used to
commit the crime or the object of the crime itself. Administrative professionals
and other individuals in the organisation need to guard against the computer
becoming the object of crime. Stair et al (2015) have identified the following
instances:
•
•
•
•
•
•
•
•
Illegal access and use: People such as criminal hackers or crackers gain access
to computers, which they use to commit a crime, or for some other reason.
Data alteration and deletion: Malicious computer programs, such as viruses
and worms, target information systems, and can cause the loss of data or
critical systems.
Spyware: This involves loading software on a computer that will allow the
criminal to intercept and/or take control of the computer without the user
knowing that it is happening.
Information and equipment theft: An individual illegally accesses an
information system with the intention of stealing data and information.
Equipment theft is made easier by the portability of computer devices,
especially laptops.
Safe disposal of personal computers: Old computers that a company wants to
donate or throw away should be wiped clean of any software or information,
which may give a criminal access to a company’s network.
Patent and copyright violations: The illegal duplication of software either
for personal use or distribution for profit is commonly referred to as software
piracy. The illegal use of the internet to download software that someone else
has paid for is also a serious violation.
Computer-related scams: There are numerous get-rich-quick scams sent via
email, in which you are often asked for your banking details (this is known as
phishing) in order to receive a deposit of money.
International computer crime: This involves crime syndicates stealing large
volumes of hardware, and using computers to commit cyber-terrorism, using
computers to disrupt electricity, water and air-traffic control, for example.
Many organisations develop procedures to maintain tight security and to protect
the privacy of their users’ data, and that of the organisation as a whole. However,
the islands problem does not make this task any easier, because organisations need
to be aware of all the possible points of entry into their systems, and where data
is stored. Each point of entry is a potential breach point, that is, a point at which
data can be stolen.
One technique to use in securing organisational data wherever it may be located
is to use encryption. The word encryption comes from a Greek word, meaning to
hide. Encryption is accomplished by making the data unreadable unless you have
the code or key needed to unlock it, so that it makes sense again. It is similar to
creating a password to secure your workstation in the office, and only being able
to access that workstation if you remember the password. Forgetting a password or
losing a key could prove to be a disaster, because it may not be possible to recover
the data initially protected.
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Another very common method is by making use of a firewall to protect the
islands of automation within the organisation. A firewall is a general term for both
hardware and software that are used to restrict access to data and information on
a network. The firewall acts as a protective shield between the outside world and
the organisation’s network. The goal of a firewall, and other security methods, is
to deny access to outsiders and restrict access to employees who use the system.
The latter action means, theoretically, that if the system is breached, only data
that the user has access to will be compromised, although once hackers are in the
system, they can generally go anywhere. The security aspect is of vital concern to
organisations, given the fact that computers are becoming an integral part of our
daily lives.
The internet has had a dramatic impact on our lives, and the commercialisation
of the internet in 1995 was a major turning point for business. The next section
will consider the relationship between the systems within an organisation and the
internet.
14.3
Information systems and the internet
Consumers are placing growing pressure on many organisations to take their
businesses online. Already banks and many other service industries offer the
ability to do transactions over the internet. Effectively, what is happening when
one makes use of the internet for transactions is that you are accessing the
information system of an organisation. For example, a bank customer no longer
needs to go to a physical bank, as they can access most of the services via the
internet or their mobile device. The bank’s customer is effectively connected to
the bank’s information system in order to complete their transaction. The various
security measures put in place, such as login details and one-time-pins (OTPs)
provide a way to help protect the transactions that are occurring. These are often
in place for any online transactions being done.
The definitions of electronic commerce (also referred to as e-commerce, or
eCommerce), and electronic business (also referred to as e-business, or eBusiness)
are often considered to be the same. However, it is possible to identify the
uniqueness of each. Although, e-commerce is often considered as falling under
the control of e-business, which is evident from the definitions provided below.
A definition of mobile commerce (m-commerce) is also provided, as the use of
mobile devices is on the increase.
Electronic commerce “describes the process of buying, selling, transferring, or
exchanging products, services, or information via computer networks, including
the Internet” (Rainer & Watson, 2012: 316).
Electronic business is “a broader definition of e-commerce that involves not
just buying and selling, but also servicing customers, collaborating with business
partners, and conducting electronic transactions within an organization” (Rainer
& Watson, 2012: 316).
Mobile commerce involves the use of an application on a mobile device such
as a mobile phone or tablet to transact with an organisation.
Administrative professionals will increasingly find that their duties
include dealing with elements that are part of e-business. These activities are
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not commerce activities, but business activities, because no monetary value
is typically exchanged. Maintaining the organisational customer base in a
globalised world, necessitates having information stored in the organisational
information systems available for consumers and business partners as and when
it is required.
Increasing the accessibility to information systems by establishing some form
of electronic link between business partners is not a new phenomenon. For many
years, organisations have been making use of electronic data interchange (EDI)
to achieve this goal. EDI is the utilisation of network systems to allow the output
from one system to be processed directly, without human intervention, as input
to other systems along agreed standards and procedures between the business
partners. The major drawback with EDI is that it is costly and time-consuming to
implement. These problems tend to bind the business partners to the relationship.
The internet offers the existing and additional capabilities for EDI-based systems
through the use of internet portals where buyers and sellers can interact. One of
the greatest advantages is that suppliers can compete in an open platform for the
buyers’ business. Naturally, the benefit to both parties is that once an agreement
is struck, the basic infrastructure (the internet) is already in place. Therefore, the
parties concerned already have a network that they can use to link the individual
information systems to each other.
E-business is more than just the technology, because it is a specific way of
doing business. Many of the dot-com crashes of 2000 were caused by businesses
that thought that merely adopting internet technology would make their business
successful. The truth of the matter is that implementing full-scale, innovative
applications of e-commerce requires management teams to view the marketplace
beyond the typical physical boundaries. They need to think outside the box.
Those businesses that place e-commerce in the correct context and align it to
the business’s overall strategy will see the e-commerce application succeed. Thus,
organisational information systems and e-commerce initiatives cannot be divorced
from each other, but must be married for success. The centre of this marriage is the
customer, because e-commerce is fundamentally customer-centred.
Finally, the penetration of social media into all aspects of society means that
organisations need to be aware of how they can leverage and integrate social media
into their business processes.
Conclusion
Administrative professionals will increasingly find their role in the information
systems environment challenging. Most information systems are dynamic and, as
such, the level of interaction with respect to organisations, technology and people
will always have the potential for problems to arise.
The islands of information and the islands of automation problems, discussed
in this chapter, will greatly add to the complexity of working in an environment
where advances in technology influence the way in which administrative
professionals carry out their duties on a daily basis. There is no hard and fast rule
of how to solve the islands problem, because no two organisations or the people
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that work in them are the same. However, being aware that problems can occur,
and being accepting of change will reduce some of the negativity.
The importance of securing the information systems from potential threats
will mean that the administrative professionals will have to be vigilant in carrying
out their duties to ensure that potential abuse of the information systems does not
occur, or if it does, that it is quickly identified and resolved.
Finally, electronic commerce and electronic business are making use of recent
advances in technology, which means that administrative professionals need
to have a basic understanding of how these technologies work, and be open to
learning new technologies associated with information systems.
Self-assessment
1.
Identify and briefly describe all the elements of the information systems
triangle as shown in Figure 14.1.
2.
Describe the reasons for storing data in a data warehouse.
3.
Describe the process depicted in Figure 14.2 by making use of an example
from the banking sector.
4.
Explain the difference between the islands of information and islands of
automation problem by applying it to the banking sector.
5.
Describe how computers can become the object of a computer crime.
6.
Do a search on the internet to find a recent example of a bank or organisation
that was hacked, and then describe in your own words how it happened, and
how it could be avoided in the future.
References
Coronel, C., Morris, S., Rob, P. & Crockett, K. 2013. Database principles − fundamentals
of design, implementation, and management. 2nd ed. Hampshire: Cengage Learning
EMEA.
O’Brien, J. A. & Marakas, G. M. 2008. Management information systems. 8th ed.
Boston: McGraw-Hill/Irwin.
Rainer, R. K. & Watson, H. 2012. Management information systems − moving business
forward. New Jersey: John Wiley & Sons.
Shelly, G. B., Cashman, T. J. & Rosenblatt, H. J. 2008. Systems analysis and design.
7th ed. Boston: Course Technology.
Stair, R., Reynolds, G. & Chesney, T. 2015. Principles of business information systems.
2nd ed. Hampshire: Cengage Learning EMEA.
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Part C
Management in the administrative
environment
Organisations are rapidly changing, almost on a daily basis: from the nature of
work itself to the global economy being driven by innovation and technology.
Even the concept of success, both personal and organisational, is evolving. In the
middle of this ever-changing, dynamic environment we find the manager. The
manager is a person who is responsible for the work performance of one or more
other people. Effective managers are essential to any organisation’s overall success,
regardless of whether it is a global giant or a small start-up venture.
The role of management increasingly includes all levels of employees in
the organisation. Although managers act as leaders, employees must now take
responsibility for managing themselves. We can define management as the process
of coordinating and integrating work-related activities in order to complete the
tasks of an organisation effectively and efficiently with and through other people.
For managers to perform their tasks effectively, they need to perform four
important basic management functions: planning, organising, leading, and
controlling. Planning can be described as deciding in advance what to do, how
to do it, when to do it, and who is supposed to do it. Organising involves the
structuring, coordination and directing of the organisation’s resources in order to
achieve the set objectives. Managers oversee all the resources of an organisation,
including people, money, time, equipment and materials, by means of the
process of organising. Leading focuses on directing, guiding and motivating the
human resources in the organisation. Managers need to act as leaders in order to
influence employees and subordinates to perform maximally in order to achieve
set objectives. Controlling is the link between the four basic management tasks. It
is the process of developing performance standards according to set objectives as
developed during the planning process, and measuring the actual performance of
employees and teams in order to establish whether they are performing according
to the set standards.
In Part C, all these basic management tasks will be addressed, with specific
reference to the administrative manager in their environment. Other very
important management issues, such as how to solve problems effectively, how
to manage cultural diversity, business ethics, and the management of risk and
safety, will also be addressed. Diversity means differences, and because there are
so many areas of difference between people in the workplace, organisations must
make a specific effort to manage the diversity. In South Africa, the management of
cultural diversity is specifically important.
Business ethics is the study of how personal moral norms apply to the activities
and goals of commercial organisations. It is not a separate moral standard, but the
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study of how the business context poses its own unique problems to the moral
person who acts as an agent of this system.
The knowledge and experience gained from Part C will equip the aspirant
administrative manager to make a valuable contribution to the management of
the administrative environment and, ultimately, to assist in attaining the goals
and objectives set out by any organisation.
Finally, any working environment presents risks and hazards in different forms
and the administrative section is not excluded in any way from such risks and
hazards.
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C h a p t e r 15
Planning and time management
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
••
explain the purpose of planning;
explain planning at the different management levels;
implement or facilitate the planning process for the administrative function;
set objectives for yourself and your subordinates;
use at least three aids for scheduling your work;
use your diary effectively and efficiently;
assist your subordinates with the planning process at their level;
use your time more effectively; and
minimise the time you waste at work.
Introduction
Like any division in an organisation, the administrative function must also be
managed. Management is a function that comprises all the activities performed
by people in leadership and management positions. There are many different
definitions of management, but in the end it amounts to a process of planning,
organising, leading and controlling people and resources (including information)
to achieve the objectives of the organisation or division effectively and efficiently.
In this chapter, we will look at planning as one of the main functions of
management. Planning is the starting point of the management process. It is the
basic element of management that determines, in advance, what the organisation
wants to achieve and how it can be attained. Objectives are set and a process is
followed to determine how these objectives can be achieved. When planning is
done properly, it creates a solid platform for the other managerial functions.
Just as there are different information needs at the different management levels,
we also find different types of planning done at the different management levels.
The planning done by top management obviously differs a lot from the planning
done at supervisory level. However, it is important that planning is done at all
levels of management in the organisation, including in the administrative section.
If you want to be effective, you need to spend your time productively. This
means that your organisation is getting value for their money and the right
amount of work is being done for the money spent. Using your time in this way
means that you need to plan your work.
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We will also look at time management in this chapter. Time management is
not separate from planning. Once you have done the necessary planning and
you know what to do, you will have to learn how to control your working day
instead of having the tasks and events of the day control you. Mastery of time
management will enable you to use your time effectively, control stress, and accept
responsibility for your decisions.
15.1
What is planning?
As we have said, planning determines in advance what the organisation wants to
achieve in terms of objectives and what should be done to achieve these objectives.
Planning involves working out a scheme, or devising something in advance. You
have to think in advance, make forecasts, evaluate the current situation and
decide what your objectives will be for the future. As a definition, we can say that
planning is the process of formulating objectives as well as the action plans to
achieve these objectives.
Before looking at planning at the different management levels and the planning
process, we will briefly look at the purpose and importance of planning.
Planning gives guidance and focus to all the sections at all the different levels
of an organisation and reduces the impact of changing circumstances. It provides
the opportunity to analyse an alternative course of action and increases the
organisation’s ability to adapt to future eventualities. During the planning phase,
objectives are set. These objectives indicate the direction in which the organisation
should move. Management on the different levels then makes plans to achieve
these objectives. An organisation with focus knows what it does best, knows the
needs of its customers, and knows how to serve them well.
Planning promotes cooperation between departments. If all the employees in
an organisation are informed about the direction in which the organisation is
moving, and know what they are expected to do, activities can be coordinated and
the people in the organisation and in the different sections of the organisation can
work together as a team. Decisions are also related to each other and towards the
objectives of the organisation. Resources can be allocated prudently.
Planning reduces uncertainty and avoids unnecessary pressures. By studying
the future situation, managers will be able to identify possible changes, threats
or problems. They usually attempt to do this by looking at the historical records
of the organisation and other similar organisations. In this way, they get a vision
of the future and can take steps timeously, to ward off crises and to identify
opportunities.
Planning does not prevent mistakes and misunderstandings, but it surely
reduces them. It ensures that the organisation’s resources are used more effectively.
Planning also facilitates control. Without planning, control would not be
possible. During the planning phase, objectives and standards are set. Through
control, the actual work performance is compared with these objectives and
standards. Deviations are identified and corrective action taken.
Planning facilitates better time management. When one is bombarded with
tasks and demands, it is easy to fall prey to time wasters, allowing you to be
dominated by other people or non-essential activities. Planning helps you to
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allocate your time and set priorities. Finally, planning increases the effectiveness
of a manager.
15.2
Planning at different management levels
Different types of planning are done at different levels of management in an
organisation. Organisations are not all the same, but mostly we find top, middle
and lower levels of management in most of the larger organisations. Small
businesses would not have these levels. It is usually the owner/manager taking care
of the entire business or the owner/manager and a number of individuals taking
care of the different functions within the small business.
15.2.1
Top management
Top management represents a relatively small group of managers who manage the
organisation and with whom the final authority and responsibility for executing
the management process rests. This level can consist of the board of directors,
the managing director or chief executive officer (CEO), partners and management
committees. As you have seen in Chapter 1, top management is responsible for
leading and controlling the entire organisation (usually through the top executive)
by formulating strategies, policies and long-term plans and objectives. In large
organisations the key functions and duties cannot be performed by individuals
and therefore a group of managers are formed.
The above is done within the framework of the vision and mission statement
of the organisation, which is formulated by top management. A vision outlines
what the organisation wants to be, using it as a source of inspiration. A mission is
a brief summary of the reasons for the existence of the organisation. The mission
defines the customers, critical processes and informs you about the desired level of
performance. Planning at this level is called strategic planning.
To enable top management to plan properly, they also have to be familiar with
the external environment within which the organisation operates. There are many
external factors, such as competitors, government policies, and the economy, that
will influence the organisation and must be taken into account.
15.2.2
Middle management
Middle management, which includes all the functional managers, such as the
financial, administrative, and marketing managers, has to ensure that the
strategic plans of top management are implemented. These managers are primarily
responsible for implementing policies, plans and strategies determined by top
management, as well as for the allocation of resources. Middle management
formulates tactical plans and objectives and provides functional strategy and
guidelines for first-line managers. They have to do medium-term planning and
set medium-term objectives for their particular departments. Planning in this
instance is usually for one to two years.
At this level, the work becomes more specialised and routine. Each functional
manager requires a greater degree of technical knowledge regarding the function.
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The functional managers are also more involved with the management of human
and other resources. Planning at this level is called tactical planning.
15.2.3
Lower-level management
The lower-level management, including supervisors and foremen, are responsible
for the day-to-day activities in the organisation. They have to do short-term
planning and set short-term objectives to implement the plans and objectives of
middle management. This type of planning, also called operational planning,
includes programming and scheduling of daily activities for periods up to one
year. Although this is the lowest level of management, it is still very important. The
quality and quantity of the work done will depend upon the performances of the
workers in this level and how hard they work to attain their goals. The supervisors
on this level have to maintain standards of the quality of the manufactured
product, assign duties to the workers as per plan, and provide schedules given by
the top and middle-level management. They are also responsible for maintaining
respect and discipline among themselves and increasing the spirit of work among
the workers.
15.3
15.3.1
Types of plans and the planning process
Strategic planning
A strategic plan is an outline of steps designed with the objectives of the entire
organisation as a whole in mind, rather than with the objectives of specific
divisions or departments. Strategic planning begins with an organisation’s
mission. This should be initiated by top management. It is an on-going, long-term
planning process to reach the main objectives of the organisation by formulating
and implementing broad, long-term plans. In doing this, many factors are taken
into account, such as the values, norms and philosophy of the organisation; the
strong and weak points; as well as the internal and external environment of the
organisation. It also includes the allocation of resources to the different functions.
Strategic management consists of the following:
•
•
•
•
•
defining the vision and the mission statement of the organisation;
developing organisational and functional objectives;
developing a strategy;
implementing the strategy; and
evaluating and controlling the objectives.
Strategic plans could include the development of long-term strategies for achieving
growth, improving productivity, increasing return on investments, improving
customer service and increasingly uplifting the community.
Although this is where planning starts in an organisation, we will not focus on
strategic planning, but rather on the planning process of the functional managers
and their subordinates.
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15.3.2
Functional/tactical planning
The administrative manager is usually a functional manager at middle-level
management. Functional or tactical planning done at this level contains features
of both strategic and operational planning. Functional planning is done for the
function as a whole, while it supports the strategic plan of the organisation. The
planning done in each function (such as marketing, operations, human resources
(HR) and administration) leads to the operational plans within each of these
functions. Therefore, operational plans lead to the achievement of tactical plans,
which lead to the attainment of strategic plans.
15.3.3
Operational planning
Operational plans are developed by middle- and lower-level managers and
supervisors. These focus on day-to-day operations (operational plans) in order to
reach tactical objectives.
Plans on the different levels differ in the ways as set out in Table 15.1.
Table 15.1
Difference in plans on different levels of management
Plan
characteristic
Strategic
planning
Tactical/
functional
planning
Operational
planning
Responsibility
Top management
Middle
management
Lower-level
management
Time frame
3–10 years or
long-term
planning
1–3 years or
medium-term
planning
Less than 1 year or
short-term
planning
Detail
Entire
organisation;
Mission, goals,
strategies;
External
environment
Functional
objectives
Day-to-day
activities;
Policies,
procedures;
Programmes,
budgets, projects
Objectives
Broad, general
guidelines
Function-specific
Specific detail
While strategic planning follows a specific process, planning at the middle and
lower levels of management can make use of the steps set out below to plan their
activities.
15.3.4
The steps in the planning process
If you look at different textbooks and organisations, you will find a number of
different steps in the process used for planning. This will differ because of the
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different levels of planning, the time of planning (for example, planning differs
when starting a business and when doing annual planning), and varying opinions
and views of managers.
In our case, we will be using the following steps:
1.
2.
3.
4.
5.
6.
7.
Analyse the past and the present.
Predict the future.
Develop objectives.
Design programmes and alternative programmes.
Schedule activities.
Draw up a budget.
Develop methods and procedures to perform the planned activities.
Step 1: Analyse the past and the present
Before you can set new objectives and determine methods of work, it is a good
idea to look at what has happened in the past and also at the present situation. If
anything in the past was very good and the situation has not changed, then there
probably is no need to make significant changes.
Problems of the past must be avoided. Standards that were too high or too low
must be adjusted. If there were many problems with the storage of information,
for example, then this process or activity must be reconsidered. You will find this
type of information:
•
•
•
•
in the reports from other functional managers;
in the monthly reports from the different sections in the administrative
function;
in the budget of the previous year compared with the actual expenditure; and
from your section heads, supervisors and even from their subordinates.
Step 2: Predict the future
To make meaningful changes, you also have to consider the future. This is not
easy to do, but you will have to try and determine what can be expected in the
future. Think of different factors that can influence the administrative function,
positively and negatively. Speak to the other functional managers to find out
what they will be expecting from you during the next six months or year.
Apply your experience, knowledge and training. Think of alternative methods
and procedures. Use the SWOT analysis (strengths, weaknesses, opportunities,
threats) and Delphi techniques to assist you in gathering information and
creating new ideas.
You should also look at the history of the organisation and trends in the
specific business. Most often, certain trends of the past will repeat themselves in
the future. Certain factors are seasonal and will occur every year at a certain time.
Look at all the different aspects, influences and the outcomes of the previous year.
Take the budget, for example, where you can easily determine your costs for a
certain time in the future, but the income will have to be a calculated guess. Look
at previous years to give you some indication.
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With all this information available, you should be able to make better and more
realistic decisions.
Step 3: Develop objectives
Firstly, the administrative manager has to develop objectives for the function
as a whole, thereafter, objectives for each section and, lastly, objectives for each
employee in the administrative function. Each objective has to be in line with the
overhead objectives and each objective needs to be overviewed to determine the
reason for its selection.
An objective is a specific result or desired end status an organisation, section
or individual wishes to obtain or achieve. Objectives should be described in
quantitative or qualitative terms. The characteristics of such standards are
explained in Chapter 18 of this book. There are different types of objectives within
an organisation, such as the following:
•
•
•
•
Long-term or strategic objectives: The main objectives of an organisation,
for example to achieve a sales turnover of R10m in a given year.
Medium-term, functional or tactical objectives: The objectives of each
function in the organisation, for example to collect, process, store and
distribute meaningful information to decision-makers and managers to enable
them to execute their tasks.
Short-term or operational objectives: Objectives developed for the subsections
in each function, for example to streamline the process of collecting and
analysing information.
Personal objectives: Objectives which are developed for each employee and
cover the work for which they are responsible, for example to attend to all
customer queries within 24 hours.
These are the different types of objectives, but they are not exclusively to be found
at the levels indicated. Let us explain by using the following example:
The organisation as a whole has a main objective. It will probably have
something to do with making a profit or rendering an effective service.
The administrative section also has main objectives. These objectives have to
support the main objective of the organisation. These objectives could be the following:
•
•
•
•
to collect information from all the identified resources;
to process data and information so that meaningful information is available;
to store information effectively and safely; and
to distribute meaningful information to those who need it.
The way the administrative manager reaches these objectives is determined by
the size of the organisation and the number of staff in the section. In a small
organisation, the administrative manager will develop further objectives and
action plans in order to reach these main objectives.
In larger organisations, where the administrative function consists of
subsections, the objectives of the administrative manager will become the main
objectives of each of the sections. There could, for example, be one section
collecting information, one processing it, one storing it and another distributing
it. A lower-level manager or supervisor will manage each of these sections.
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Let us now look at one of these lower-level managers. Their main objective could
be to process data and information so that meaningful information is available. To
reach this objective, operational planning will have to be done at this level. The
result could be an activity list, an action plan, or personal objectives set out on a
year planner or Gantt chart.
An objective has to meet the following requirements, or it will not be of much
value:
•
•
•
•
•
•
•
•
•
•
It has to be aligned with the main objective of the organisation.
It must point to a specific thing that has to be done or achieved.
It must be attached to a standard.
The standard of the objective must not be too high or too low (the standard
can be given in terms of time, weight, cost, quantity or quality).
It must be flexible and able to be adapted if needs be.
It must be reasonable and accepted by those to whom it applies.
A time limit for the activity must be specified.
It must be measurable.
It must be realistic regarding financial, human and other resources.
Those responsible for achieving the objective must be specified.
The process to follow in developing objectives can be done in many ways and will
be determined by the relevant managers. Top management can set organisational
objectives by themselves and give the functional managers guidelines within
which they have to set their respective objectives.
The functional managers then set the objectives relating to the function. They
can do this by themselves or they can use the input of the subordinates. The latter
is always a better option, seeing that it will be the subordinates doing the work.
If the subordinates are involved, they will be more motivated to perform well. A
combination of these methods can also be used. The subordinates are then requested
to give input with regard to certain matters. Management will use these inputs and
give specific guidelines within which their objectives must be developed.
An objective can also be subdivided into tasks and steps. It makes it easier,
particularly for a newcomer, to see how the objective must be achieved.
If you involve your subordinates in this process, they might experience
a problem in deciding what the important issues are. Sometimes it seems as if
everything should have been done yesterday. You do not know where to start,
what to do first and what need not be done at all. (A detailed process of how to
involve and assist your subordinates with the planning process at their level will
be discussed later.)
Step 4: Design programmes and alternative programmes
Once the objectives are developed, it is good to draw up a programme for a specific
time period, like six months or one year. You can first draw up a programme
for the administrative function and then a more detailed one for each employee.
All the objectives and tasks must be prioritised and placed in the order in which
they must take place. The prioritising process may also reflect the steps necessary
in completing a task or achieving an objective. Programmes will be altered and
redesigned if any problems arise or if circumstances change.
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Step 5: Schedule activities
Now that the objectives and tasks are prioritised, you have to determine
realistic times for the beginning and completion of each objective and task.
This is called scheduling and has to be indicated on the programme. You could
also assign employees to complete them during this stage if you have not done
so yet.
There are various techniques to programme and schedule activities. You can
make use of a year planner, electronic organiser, or Gantt chart, or a combination
of these, depending on the type of activities.
A year planner can be used by the administrative manager for the functional
objectives, by a subsection for its objectives and by employees for their personal
and organisational objectives. Together with the year planner, employees can use
Gantt charts to visually plot the projects or tasks they are responsible for. These
aids can be used by you or by your assistant, depending on your position. You
will have to decide which one or which combination will work for your specific
situation. We will briefly look at some of these aids.
Year planner: There are different types of year planners, but basically it is a
calendar with an open block for each day of the year. The empty blocks can be
used to show tasks, projects, appointments, training, courses and whatever you
plan to be busy with on each day of the year. The type of year planner you use
would depend on your type of job.
Figure 15.1
Example of a year planner
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Electronic organiser: These are small computers with built-in organising
applications such as diaries and calendars. However, they are not really in use
anymore. Smartphones and tablets with more features have replaced these and
are being used for many different purposes. All the technology available today is
very helpful and gives you access to all the information you might need, as well as
access to your diary in case you need to make any appointments.
Diary: You probably know what a diary is and many people have diaries, but
not everyone uses them properly. You have to keep a diary up to date with your
deadlines, appointments, meetings, etc., and refer to it every morning before you
start working. It is no use having an appointment written down in it if you do not
open it on that specific day to see what you have to attend to. Use it as a tool to
schedule your day and stick to the times you have planned.
For the administrative manager, the pages in or on your diary must at least be
divided into hours. This is for appointments, meetings and reminders. Of course
you can also make use of electronic formats.
The following points will help you to use your diary more efficiently:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
At the beginning of the year, enter the important dates, for example staff
meetings, conferences, production deadlines and holidays.
All activities should have a starting time as well as a specific time to end.
Do not allow the entire day to be booked out. Leave some spare time to
accommodate unexpected interruptions. This will reduce messy rescheduling
and cancellations from your side.
Avoid scheduling yourself too tightly.
Be sure to schedule time for rest, lunch and relaxation. Error rates and stress
increase with lack of rest.
Block time to complete important projects. Schedule enough time to build up
momentum.
Always allocate important tasks to the beginning of the day.
Ensure that the diary/planner you are using can be carried with you at all
times.
Notify all parties involved when making arrangements and about any
cancellations.
Confirm tentative arrangements.
Confirm dates, times and venues.
Daily coordination and checking is vital.
When booking appointments, look at the appointment picture for the whole
day and even the whole week.
Allow space between appointments.
Allow travelling time for external appointments.
Plan time with your subordinates.
Do not be afraid to reschedule to fit in things that are more urgent or important.
Do not isolate yourself. If you do not indicate your plans when you go out,
people may take the risk of scheduling you for things without checking.
Gantt chart: A Gantt chart is a scheduling device where the user or manager can
view clearly marked objectives, deadlines, projects, jobs and even holidays at a
glance. The progress of each job can also be shown on the diagram.
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Gantt charts are more appropriate for longer, more complex projects. The Gantt
chart provides a day-by-day list of the jobs that are to be completed, as well as
the estimated completion time. Software packages are also available for use in
developing computerised Gantt charts.
A Gantt chart is a popular type of bar chart that illustrates a project schedule,
including all the jobs that need to be done to complete a project or all the jobs
that need to be done during a time period such as one year. They illustrate the
start and finish dates of the smaller jobs that need to be done in order to complete
the larger jobs. For example, you might have to collect data from an entire week,
daily, to finalise a report by the end of the week. It comprises the work breakdown
structure of the project. Some Gantt charts also show which tasks can be done
concurrently with others and which are dependent on the completion of others.
Gantt charts can be used to show current schedule status, using shadings to show
what percentage has been completed and a vertical “Today” line, as shown in
Figure 15.2.
You can adapt the diagram to be more specific and show more detail, depending
on what you want to use it for. You can even use this type of chart to plan and
schedule your studies for the year. Just use a chart indicating all 12 months of the
year (instead of weeks as in the example) and replace the summary elements with
subjects/modules and the activities with assignments and examinations.
Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13
WBS 1 Summary element 1
57% complete
WBS 1.1 Activity A
75% complete
START-TO-START
WBS 1.2 Activity B
WBS 1.3 Activity C
67% complete
FINISH-TO-START
50% complete
FINISH-TO-FINISH
WBS 1.4 Activity D
0% complete
WBS 2 Summary element 2
WBS 2.1 Activity E
0% complete
0% complete
WBS 2.2 Activity F
0% complete
0% complete
WBS 2.3 Activity G
Today
Figure 15.2
Example of a Gantt chart
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You have to decide which planning aid you are going to use. The year planner will
give you an overall view of what you are going to do for the year and the deadlines
for your objectives. The electronic organiser and diary will be used for the detail
regarding your objectives. They are used according to your need. If your year
planner shows your objectives, then your diary would be used for appointments,
meetings, etc., but more specifically for the times of these events. If you do not
make use of a year planner, your diary would have to be used for your objectives
as well. Whatever you do with your diary, use it properly, otherwise it is of no use.
Look at it every day to make sure you attend to whatever you planned.
The Gantt chart is usually used when a manager needs to manage different jobs
and projects and see the progress of these jobs and projects on a day-to-day basis.
Step 6: Draw up a budget
Now that you know what has to be achieved and done during the following year,
it is possible to draw up a budget. The budget represents the business planning
of the administrative function in terms of money. It is a document showing the
expected income for the specific time period, usually one year, as well as the
expected costs for the same period. (Of course the administrative function is
not an income-generating function, but it will probably receive an amount from
the main budget to cover its costs.) You have to specify how much money you
will need during the year to enable you to obtain your objectives. This includes
the money for everything you will be using, including salaries, files, computers,
paper, travelling, stationery, etc. The budget will be looked at in more detail in
Chapter 18 of this book.
Step 7: Develop methods and procedures to perform the planned activities
Certain tasks and activities must be done in a specific order or according to a
specific procedure. Such methods and procedures must be available to the relevant
employees to enable them to complete their tasks effectively and efficiently. If the
methods and procedures in the organisation are up to date and working well, they
do not need to be redeveloped. However, you will have to ensure that this is the case.
In some cases, organisations use manuals that contain the methods and
procedures they use. These manuals can then also be used to teach new employees
the job and to evaluate the employees by comparing the actual job done with the
standard set in the manual.
The planning process discussed is usually revised annually, but it is not set in
stone. The changing environment we live and do business in, requires organisations
to continually scan the environment and adapt their plans accordingly. Once
a plan is in place, employees and managers can continue with their tasks. The
plan is also a guideline for managers to use when controlling the tasks of their
subordinates.
15.4
Planning and your subordinates/office workers
Some of your subordinates may have been with the organisation for some time
and could assist with the planning process. If you decide to involve them, you
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can ask for their input throughout the entire process. You could also assist them
further by teaching them the following process to manage their own day-to-day
tasks and activities:
1.
Write down routine and non-routine tasks for each day. These are the tasks that
an employee will have to do to achieve the objectives set by the administrative
manager.
2.
Prioritise the tasks of each day. The administrative manager should assist with
this task, as the subordinates do not always know which tasks are urgent.
3.
Organise non-routine tasks (tasks that you do not do regularly) in a weekly
and monthly order. Deadlines are used by subordinates and their tasks must
be organised within this framework.
4.
Develop work schedules. Use a diary, year planner, Gantt chart, etc. Use the
aid that best suits the situation.
5.
Be flexible with the schedule. You may even leave open spaces on it. The reason
for this is that you never know when something unplanned will arise. Do not
always plan to finish a task on the latest given date. Something unforeseen
might have to be done or might happen and you will not reach your objective
on time.
6.
Deadlines could be critical. Make sure they are scheduled correctly.
Their schedule can then be discussed with you as the administrative manager. You
will have to ensure that it corresponds with the objectives of the administrative
function and if the deadlines are taken into account. You must also make sure that
there is no overlap and repetition within the function. Often, work schedules may
have to be revised and appointments rescheduled.
Additional planning aids for scheduling the work of your subordinates
The planning aids discussed earlier can also be used at any level in the organisation.
The following are just additional ones that are used by individuals.
Bring-forward system/reminder system/tickler file
A tickler file system is an old but innovative way to schedule a physical reminder
on a specific date. This system is used when a document cannot be dealt with
instantly or where additional information needs to be gathered before it can be
filed. You might receive a query, and the answer will only be available after a
committee has met some time in the future.
You can make use of cards, plastic sachets, concertina files or an electronic
filing system. Concertina files are usually used for documents that would need
attention on a specific day. The concertina file is divided into 31 days, referring
to the days of the month. The document is then placed in the day of the month
that it needs attention. Whatever system you use, check it at the beginning of
each day.
For example, you receive the query on 5 January. It cannot be dealt with
satisfactorily until after a committee meeting scheduled for 12 January. The query
needs to be acknowledged and then placed in the pocket for 13 January. On 13
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January, you would check the tickler file for items pertaining to that date and deal
with it.
There are also different apps available that you can use to create a tickler file
system electronically. You can find and download these from the internet or your
relevant app store.
To-do list
A to-do list will assist you in the very short term – usually just for the day, but the
effects thereof can be very helpful in the longer term. It assists you to complete
your tasks for the day in the most productive manner. You have to prepare it first
thing in the morning.
Use the following basic guidelines for making your list:
•
•
•
•
•
•
•
•
•
List all the activities that you are responsible for, for the week. Write everything
down that you can think of without worrying about order or priority. You can
categorise them later.
Use a weekly master list. This will allow you to record projects or tasks as
you think of them. Estimate the time that you will require to complete each
activity and indicate the due date. Table 15.2 is an example of such a list.
Break up the large tasks into smaller pieces.
From the master to-do list, organise a daily to-do list.
Prioritise the list (from most important [A-type tasks] to least important
[D-type tasks]). If there are three A-type tasks to be done, decide which one
you are going to do first. This is a matter of personal choice. Table 15.3 is an
example of a daily to-do list.
Remember to reprioritise the list regularly, as priorities can change. Less
important things may well become more important over a period of time.
Rewrite the list at the end of the day by carrying forward those tasks that were
not completed to the next day’s to-do list.
Keep the list visible during the day, use it and cross out tasks that are completed.
Use a calendar to record monthly and yearly events. These reminders can then
be worked into the master and to-do lists.
There are many alternatives to bring your to-do list into the digital age. These
applications offer features such as mobile updating, push notifications, and
calendar integration. Scan the market for the latest technology to meet your
specific need and preference.
Time-log
How do you decide what the most important issues are when it seems as if
everything should have been done yesterday? Where do you start? What should
you do first and what does not need to be done at all?
One way to solve this problem is to scrutinise your days and collect information
on how you spend your time. For this you can use a daily log sheet. Divide the
day into 15 to 30 minute blocks and record the amount of time you spend on each
task. Also indicate the type of distractions that keep you from your assigned tasks
and how you handle them.
Table 15.4 is an example of a time-log you can use.
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Table 15.2
Weekly master list
Master list for the week: __________________________________
Activity description
Starting
date
Due date
Estimated time
to complete
1.
2.
etc.
Table 15.3
Daily to-do list
To-do list for: __________________________________________ (today’s date)
Tasks
Priority
Resources
needed
Start
Finish
A tasks
1.
2. etc.
B tasks
1.
2. etc.
C tasks
1.
2. etc.
D tasks
1.
2. etc.
Table 15.4
Time
Time-log
Tasks
Deadline
Interruptions
Solutions
8:00
8:30
9:00
9:30
etc.
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Review your answers to the following questions; they may give you valuable
insights into the current use of your time:
•
•
•
•
•
•
What time period/s during the day were the most productive and the least
productive? Why?
During which hours of the day did the most interruptions occur? Who or what
caused the interruptions?
How much time was spent on crises that materialised during the day?
How much of the day was spent on handling your personal concerns or your
manager’s concerns?
Were there any daily routines or tasks that could have been more streamlined,
combined with other tasks or delegated?
Were there times in the day when the pace was slow? Were there specific times
when the stress level was particularly high? Were there specific times when
you needed extra assistance?
Once you have all this information you should be able to determine when you are
productive, what is taking your time, and the reasons for not getting everything
done. This information should help you in planning your days to be as productive
as possible. Although keeping a time-log may at first glance appear to be timeconsuming and boring, it is a small price to pay for being really committed to
proper planning.
15.5
Time management
Although you go through the planning process and put your objectives on paper,
things do not always happen the way you expect them to. Your routine will be
interrupted regularly, you will have to learn new equipment and you will have to
deal with people when they need you.
Time management is not something apart from planning, it is a further step to
enable you to use your time effectively, control stress, and accept responsibility for
your decisions. Once you have done the necessary planning you will have to learn
how to control your working day instead of having the events of the day control
you.
Managing our time really means managing ourselves. Time is a given factor and
is constantly available. Time management is just about using our time efficiently.
Your time at work can be spent in two ways: reaction time and discretionary time.
Reaction time is the time that you spend reacting to requests. You have limited
control over this time, which is dependent on whether the request is work-related
and important. Discretionary time is that time that falls under your control: that
which you planned for.
Managers who plan their time by dividing their time into units usually have more
time for planning and therefore achieve more. If nothing is planned, everything
becomes a crisis. When you have developed objectives and you have prioritised
them (determined which ones are important and which ones are urgent), and
scheduled them, then at least you know what to do and when. This gives you more
discretionary time and you will probably devote less time to crisis management.
Managing your time just means that you are actively doing something to
control the amount of time you spend on doing whatever you are busy with. It is
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another important tool to assist you to be more productive and profitable. Time is
an input in the productivity ratio and has a direct influence on your productivity.
Saving time saves money. There are many tools, methods and techniques that can
be used to assist with time management. A quick search on the internet will yield
many useful resources.
In a working environment there are many tasks to be completed. Some have
to be done immediately while others can be done later in the day or even the
next day. Some tasks take very long to complete and others are done immediately
but are actually not so important. The question that arises then is which task to
do first? Tasks have to be prioritised according to their importance and should
be completed in that order to avoid wasting time. You might even come across
tasks that you are planning to do that are not necessary at all. Unimportant
tasks can unnecessarily consume too much of your time. Say no to tasks that
do not make a difference and delegate what you can. Spending some time each
morning making lists and prioritising your activities will save a lot of time in
the long run.
Managers and employees who do not plan and just start their day by doing
whatever seems important become so busy with so many different things
that they are not even sure whether or not they are meeting their objectives.
This is not only unproductive, but it usually adds to already high stress levels.
Improving your quality of life by taking care of your stress levels influences
productivity in the long run. This also gives you more time to spend with your
family or doing what you enjoy. Sufficient relaxation usually results in more
energy to do your work.
15.5.1
The phases of time management
If you think that you have a problem with managing your time, try the following
steps to assist you:
1.
Determining needs: Do you really need to manage your time or do you have
enough time to do what you are supposed to be doing?
2.
Planning: If you have done proper planning, you have to ensure that you
adhere to your plans. You can control your time with a written plan.
3.
Collecting information: Draw up a to-do list and determine what is important,
as discussed earlier.
4.
Analysis of activities: Provided that your data has been collected strictly
and accurately, you should easily be able to determine which events occur
regularly, take up too much time, keep you at the office until late and create
unnecessary tension in your work. By analysing your activities, you should be
able to distinguish between those tasks that take up a lot of time but which
improve your efficiency and results, and time wasters which contribute very
little towards your own success or that of the company.
5.
Action steps: During this phase, it is necessary to find new or improved ways
of managing the available time each day. If you have done proper planning,
stick to what you have planned and eliminate time wasters. If not, obviously
you will have to plan first.
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15.5.2
Time wasters
A time waster is an activity or task that eats up your time, preventing you from
starting a task immediately or completing it in time.
Time wasters can be divided into two groups:
•
internal time wasters, like procrastination, the inability to delegate, lack of
objectives and poor planning; and
external time wasters, like the telephone, meetings, other people and
paperwork.
•
Table 15.5
Examples of time wasters: possible causes and solutions
Time wasters
Possible causes
Possible solutions
Telephone
•• Calls are usually long and
•• Distinguish between
Ineffective
meetings
•• The purpose of meetings
•• Only hold meetings when
unplanned
•• Lack of priorities
•• You do not want to appear
abrupt and therefore
continue chatting
•• A lack of self-discipline and
priorities
is unclear
•• Decisions are not taken
and there is no follow-up
•• Too many meetings are
held and the minutes are
poor
conversations and transfer
of information
•• Ask for messages to be
taken
•• Use an answering machine
where messages can be left
•• Be business-like and keep
to the point
•• Plan what you want to say
they are necessary
•• Standardise the format of
the minutes
•• Send agendas out early to
those who must attend
•• The agenda must list which
items require decisions
•• Minutes must specify who
must do what and by when
Poor
delegation
•• Fear that others cannot do
the job
•• Fear that others can do
the job better than you
•• Delegation of
responsibility but not
authority
•• There is a shortage of staff
•• Train others to do the job
to your satisfaction
•• Delegate full authority and
responsibility
•• Acknowledge those who
perform the work
•• Balance the workload and
rearrange priorities
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Time wasters
Possible causes
Possible solutions
Undefined
areas of
responsibility
•• Unclear job description
•• Draw up a job description
Lack of
priorities
•• Lack of clarity on key
•• Do extensive planning to
Poor
communication
and lack of goals
•• Responsibility without
authority
responsibilities and
important tasks
•• Unclear objectives
•• Lack of direction and a
good time control system
•• Ineffective daily planning
and scheduling
•• Language problems
•• Lack of clarity about
information needs
between you and other
staff
•• Difference in values
between parties
or ask your employer for
one
•• Reconsider the objective
and the reason for your job
•• Set yourself measurable
objectives and arrange
them in sequence
•• Discuss your job
responsibilities and the
extent of your authority
with your immediate
superior
save time
•• Obtain clarity on your key
responsibilities
•• Distinguish between urgent
and important tasks
•• Get a good time-control
system (for example a
diary)
•• Set yourself clear,
measurable objectives
aimed at results and work
according to these
•• Plan every day and
schedule time for every
activity
•• Try to address people
in the language of their
choice
•• Do not hesitate to ask
someone if something is
not clear to you
•• Do not discriminate against
someone’s background,
education, religion, race,
language or gender
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Time wasters
Possible causes
Possible solutions
Uncertainty
and
postponement
•• Lack of necessary
•• Improve your acquaintance
Informal
conversation
•• You arrive at work
Disorganisation
confidence to take
decisions
•• Fear of taking incorrect
decisions
•• Lack of power to make
decisions
•• Focus on too many facts
and details
on time, but do not
immediately start work
because you first chat to
colleagues about private
matters
•• While you are busy with
work, other colleagues
come and chat to you –
you do not point out that
you are busy and that you
would prefer to chat later
•• Poor filing system
•• Placing all paperwork on
your desk without sorting
it
•• Not planning your day
according to when you
will do what, but simply
starting to work
with the facts
•• Involve others in your
decision-making and act
assertively
•• Insist on more authority for
decision-making
•• Weigh up the advantages
and disadvantages of
decisions
•• Work according to due
dates and complete tasks
•• Use tea and lunch times to
chat to colleagues
•• Schedule time for
socialising that suits both
you and your colleagues
•• Organise all incoming and
outgoing mail
•• File all relevant documents
in your filing cabinet
•• Destroy papers of no value
on your desk
•• Plan which parts of your
day you will devote to
routine tasks and which to
tasks that will lead to the
achievement of your aims
and objectives
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Time wasters
Possible causes
Possible solutions
Crisis
management
•• Lack of planning and
•• Allow more time, accept
Socialising with
co-workers
•• Boredom and laziness
•• Need for social contact
•• Allocate times during the
Surfing the
internet and
social media
•• Boredom
•• Getting information for
•• Limit internet availability
setting objectives
•• Time estimates are
unrealistic
•• Trying to do too many
things simultaneously
•• Impatience
•• Not aiming at solving
problems
the kids at school
•• Personal business
that interruptions will occur
and plan for them
•• Draw up a priority list and
work accordingly
•• Allow time for
problem-solving
•• Distinguish between
important and urgent tasks
day such as tea-time and
lunch
and access
•• Put your cell phone in a
bag or in your drawer
•• Switch it off during
working hours
•• Limit yourself to your lunch
time
•• Set your status as busy
Disorganised
workspace
•• The work comes in too
•• Take time to get organised
Smoking and
coffee breaks
•• This is your way of coping
•• Limit your breaks
fast
•• You like the messy look
•• You feel comfortable
doing things this way
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15.5.3
Effective time management techniques
The following is a list of little things that you could try in your daily lives to save
time. You could also give it to your office assistants.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Draw up a fixed daily routine for yourself. Schedule specific times for routine
matters, such as dealing with your emails.
Schedule time for yourself when you do not wish to be interrupted.
Do the task that requires maximum concentration when you are functioning
at your best.
Try not to postpone unpleasant tasks.
Start with the most difficult tasks.
Postpone tasks that are not so important.
Draw up due dates for all your tasks. Use only the time you have scheduled.
Analyse your interruptions, determine the causes of these interruptions and
try gradually to reduce them.
Plan your telephone conversations.
When you are busy with a task, try to finish it.
Provide for a rest when you cannot work effectively.
Respect the time of others.
Learn to say no.
Learn not to take work home.
Do everything to the best of your ability.
Think first, then act.
Combine similar tasks.
Organise your work area.
Make sure you have complete directions before you begin a task.
Do not maintain a tight, strict schedule; rather leave gaps for emergencies,
interruptions and special projects.
Keep office supplies close at hand.
Create only one to-do list per day.
Use the phone instead of writing out replies.
Cancel subscriptions which you do not have the time to read.
When leaving a voice mail message, always leave your phone number. Do not
assume the person has it with them or that it is easily accessible.
Do not file envelopes.
Learn the shortcuts of your computer software.
If you are right-handed, place the phone on the left side.
Place motivational or inspirational quotes around your workspace or on your
computer’s screen to help you overcome your most difficult issues and remain
upbeat.
Be positive and be disciplined.
Handle each piece of paper or message only once. Sort paper or messages into
action folders such as urgent, to read, to sign and to check later.
Prepare form letters, form paragraphs, frequently used phrases and formats for
computer storage.
Prepare checklists that outline the steps required for procedures you do
frequently.
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34. Prepare a list of facts for future reference, for example contact telephone
numbers.
35. Organise a tickler file to avoid missing deadlines.
36. Plan outgoing calls carefully. Have the information needed ready for each call.
If you do not manage your time effectively, negative effects might arise. Examples
of such negative effects are falling behind with your work, losing focus of what
you should be doing, becoming overwhelmed, and losing potential income.
Conclusion
It is impossible to manage any function or department in an organisation if you do
not plan properly. Planning provides the foundation upon which the rest of your
management functions are carried out.
Planning gives the organisation and all the employees a sense of direction and
makes it possible for the functional managers to coordinate their functions. It
ensures that everyone in the organisation works together to reach the same overall
objectives.
Planning provides objectives and standards that are used in the control
process. What will you compare the performance of your organisation or even
your subordinates with if you have no idea where you should be heading?
Lastly, planning is of no value if that is all you do. Plans must be implemented
and it is the responsibility of the administrative manager to ensure that the set
objectives are achieved.
Self-assessment
1.
Explain the purpose of planning.
2.
Tabulate the different types of planning done at the different management
levels of an organisation.
3.
Discuss the steps in the planning process. Make use of examples in each step.
4.
List four different planning aids that can be used for scheduling your work.
Describe two specific tasks or types of tasks that each aid will mainly be used
for.
5.
How could you help your subordinates to use their time more effectively?
6.
List 10 time wasters and give two solutions to each one of them.
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References
De Beer, A. 2015. Focus on management principles − a generic approach. 3rd ed. Cape
Town: Juta.
Hartzell, S. 2016. “Types of planning: Strategic, tactical, operational & contingency
planning.” http://study.com/academy/lesson/types-of-planning-strategic-tacticaloperational-contingency-planning.html (Accessed: 12 May 2016).
Hockenson, L. 2016. “6 Fantastic to-do apps for getting organized.” http://mashable.
com/2012/08/29/to-do-list-apps-mobile/ (Accessed: 12 May 2016).
Lee, D. 2016. “How to Create a Tickler File with Evernote.” http://www.
sohotechtraining.com/creating-a-tickler-file-with-evernote/ (Accessed: 23 May
2016).
Management-Hub. 2016. “Why there is a need for different levels in management.”
http://www.management-hub.com/business-enterprise-management.html
(Accessed: 11 May 2016).
McQuerrey, L. 2016. “The basic steps in the management planning process.” http://
smallbusiness.chron.com/basic-steps-management-planning-process-17646.html
(Accessed: 12 May 2016).
Nieuwenhuizen, C. 2015. Business management for entrepreneurs. 3rd ed. Cape Town:
Juta.
Stanford, T. 2010. “Internet marketers – negative effects of not managing time.”
http://ezinearticles.com/?Internet-Marketers---Negative-Effects-of-Not-ManagingTime&id=4646792 (Accessed: 12 May 2016).
Study.com. 2016. “The Gantt Chart.” http://study.com/academy/lesson/ganttcharts-bar-graphs-henry-gantts-contributions-to-management.html (Accessed: 22
May 2016).
Anon. 2014. “The importance of planning.” http://dilipchandra12.hubpages.com/
hub/The-Importance-of-Planning (Accessed: 14 May 2016).
Anon. 2016. “10 Worst time wasters at work.” http://insidetech.monster.com/
benefits/articles/5667-10-worst-time-wasters-at-work?page=11 (Accessed: 13 May
2016).
Anon. 2016. “Levels of management.” http://www.managementstudyguide.com/
management_levels.htm (Accessed: 10 May 2016).
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C h a p t e r 16
Organising in the administrative
function
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
••
••
••
••
••
define the concept of organising;
apply the principles of organising in the administrative department;
discuss the forms and levels of authority;
explain the relationship between authority, responsibility and accountability;
distinguish between the different forms of departmentalisation;
discuss the various methods of coordination;
explain the differences between centralisation and decentralisation;
list and explain the steps in the organising process;
distinguish between formal and informal organisational structures;
explain the various traditional organisational structures;
explain the matrix, team-based, network and boundaryless organisational
structures; and
discuss the trends in organisational design.
Introduction
In the previous chapters we looked at two of the four general management
functions, namely planning and controlling. In this chapter, we will be
addressing organising as a third management function of the administrative
manager.
The administrative manager will not be able to perform all the administrative
tasks of an organisation alone. They will have a variety of people and groups
of people working together to achieve the objectives of the organisation and,
in particular, the administrative function. People working together within a
sensible organisational structure have a greater sense of purpose and accomplish
more than people whose efforts are allowed to run off in any direction they
choose. We can therefore say that organising refers to the process of delegating
and coordinating tasks and resources to achieve objectives. The administrative
manager will have to organise the administrative department’s resources
(human, physical, financial and information) to achieve the functional
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In this chapter, after defining organising, we will explain the principles of
organising and the organising process. If an organisation applies the principles
of organising, the result will be an effective organisation. A core factor for
organisations to consider is whether to centralise or decentralise their activities.
These options will be discussed, followed by the various options for organising
the structures. We will look at traditional organising structures and also more
contemporary structures.
16.1
Organising defined
Organising can be defined as the management task that concerns the
arrangement of the activities and resources of the organisation by assigning
duties, responsibilities and authority to people and departments, as well as
determining the relationship between them, to promote cooperation and to
make the systematic performance of the work and the achievement of objectives
possible in the most effective way.
In other words, organising means to decide beforehand how, by whom, with
what aids, and within what practical period of time the work must be performed
so that it can take place in the most effective manner.
The purpose of organising is therefore to:
•
•
•
•
•
•
•
divide work into specific jobs and departments;
assign tasks and responsibilities associated with individual jobs;
coordinate diverse organisational tasks;
cluster jobs into units;
establish relationships among individuals, groups and departments;
establish formal lines of authority; and
allocate and deploy organisational resources.
The usual way of depicting organising in an organisation is with an organisational
chart. An organisational chart is a structural framework that gives an overview
of the activities of the organisation, the functional areas, main and subordinate
divisions, the formal lines of authority, responsibility and communication, and the
different levels of management. Figure 16.1 shows an example of an organisational
structure illustrated on an organisational chart.
Although this chapter tends to focus on organising in a general sense, the
administrative manager must apply all these aspects in the administrative
department of the organisation.
16.2
Principles of organising
Certain principles are applied to design the organisational structure. Experience
has shown that if these principles are applied, no matter the size of the organisation,
the result will be an effective organisation. Let us look at the most important
principles in this regard.
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Don Freeman
General Manager
(Research and Development
Human Resources)
Carl Grey
Production
Manager
Philip White
Warehouse
and Dispatch
Manager
Cindy
Anderson
Purchasing
Manager
Alice Modibe
Finance/Admin
Manager
Tim Wolf
Sales/Marketing
External Relations
Marketing
Samantha
Peters
Reception
2 × Production
supervisors
6 × Factory labourers
Figure 16.1
Example of an organisational structure
16.2.1Chain of command (also referred to as line of authority or the
scalar principle)
The chain of command is the continuous line of authority that extends from
upper organisational levels to the lowest levels and clarifies who reports to whom.
It will clarify to whom a subordinate will go when experiencing a problem and
to whom the subordinate is responsible. In our example in Figure 16.1, the chain
of command follows from the general manager to the finance and administrative
manager through to the receptionist.
Chain of command must be discussed together with three other concepts:
authority, responsibility, and unity of command.
16.2.2
Authority
Authority refers to the rights inherent in a managerial position to tell people what
to do and to expect them to do it. As a manager, the administrative manager will be
given responsibility for achieving the departmental objectives and the authority
to get the job done. Authority is delegated. The chief executive officer (CEO)
is responsible for the results of the entire organisation and delegates authority
down the chain of command to the lower-level managers, who are responsible for
meeting operational objectives.
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Authority should not be confused with power. Unlike authority, power is not
coupled to a particular position, but is related to certain influences such as rewards,
coercion, and subject knowledge.
A manager’s authority stems from the more senior position that they hold in
the organisation, and from the greater responsibility and more complex tasks that
accompany such a position.
Various levels of authority exist, according to Lussier (2015). They include the
following:
•
•
•
•
Inform authority: You inform your manager of possible alternative actions.
The manager has the authority to make the decision.
Recommend authority: You list alternative decisions/actions, analyse
them and recommend one action. However, you may not implement the
recommendation without the manager’s approval. The manager may require
an alternative if they do not agree with the recommendation. Committees are
often given recommend authority.
Report authority: You may freely select a course of action and carry it out.
However, afterwards you must report the action taken to the manager. Nurses,
for example, have the authority to alter medical records when the situation
calls for it. The doctor who wrote the original entry should be informed of the
alteration.
Full authority: You may freely make decisions and act without the manager’s
knowledge. However, even with full authority, many people consult their
manager for advice.
There are also various types of authority in an organisation. Let us explain them:
•
•
•
•
Line authority: This is the responsibility to make decisions and issue orders
down the chain of command. Line managers are primarily responsible for
achieving the organisation’s objectives, and staff provide them with a service
to help them. For example, the head of the telecommunication systems will
only receive orders from their direct line manager: the administrative manager.
Staff authority: This is the responsibility to advise and assist other subordinates.
All the primary activities in an organisation are usually line departments, but
some organisations also include supportive activities, which are known as
staff departments. For example, the administrative manager might appoint a
secretary to assist them. The secretary will have staff authority in advising the
administrative manager on some issues, but they will not have line authority
over all the other subordinates in the administrative department.
Functional authority: The staff’s primary role is to advise and assist, but
situations occur in which they can give orders to line subordinates. Functional
authority is the right of staff subordinates to issue orders to line subordinates in
established areas of responsibility. For example, the financial manager’s input
on financial affairs in the administrative department will be enforceable. A
good example of functional authority is when an administrative manager
draws up a policy document on the use of electronic equipment in the
organisation, with which everyone in the organisation will have to comply.
Centralisation or decentralisation of authority: The major difference
between centralised and decentralised authority is who makes the important
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decisions. With centralised authority top management makes important
decisions and with decentralised authority, middle- to low-level managers
make important decisions.
Together with centralised and decentralised authority we also need to look at
micromanagement. This is a negative term associated with a manager that adopts
a style whereby they closely observe or control the work of their employees. Instead
of giving general instructions on tasks and then devoting time to supervising
larger concerns, the micromanager monitors and assesses every step of a business
process and does not delegate decisions. A micromanager wants constant, detailed
performance feedback and tends to be excessively focused on procedural trivia
rather than on overall performance, quality and results. This style leads to the
delay of decisions, restricts the flow of information between employees and
clouds the overall goals and objectives to be achieved. The micromanager is more
common with centralised authority (Lussier, 2015).
16.2.3
Responsibility
When authority is granted, responsibility is created. Responsibility is the
obligation of a subordinate to achieve objectives by performing assigned tasks.
Accepting a task creates an obligation of performance and responsibility. When
a manager shares responsibility with subordinates, however, it does not mean
that the manager is abandoning responsibility. The manager must still have the
responsibility to:
•
•
•
•
•
•
•
•
•
know what is going on and how it affects the work environment or objectives;
keep abreast of important decisions;
track the progress of projects (or lack of it);
ensure that derailed projects get back on track;
set the direction of subordinates;
make the decisions subordinates cannot make;
ensure that subordinates are on course;
offer a guiding hand by opening doors to clear the way; and
measure performance.
16.2.4
Unity of command
Unity of command states that a subordinate should report to only one manager.
Without unity of command, conflicting demands and priorities from multiple
managers can create problems.
16.2.5
Accountability
Accountability is the evaluation of how well subordinates meet their responsibilities.
All members of the organisation should be evaluated periodically and held
accountable for achieving their objectives. The administrative manager will be
accountable for everything that happens in the administrative department. They
can delegate responsibility and authority to perform tasks, but they can never
delegate accountability.
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16.2.6
Span of management (or span of control)
This is the number of subordinates over which a manager can exercise effective,
direct control. However, there are restrictions on the span of an individual manager
based on their individual ability to lead and maintain authority. Similarly, the
relevant activities and skills required of the subordinate concerned are as decisive.
Span of management, together with the degree of decentralisation of authority,
is therefore decisive in many ways with regard to establishing an effective
organisational structure.
According to Gitman and McDaniel (2005: 251), the optimal span of
management is determined by the following factors:
•
•
•
•
•
Nature of the task: The more complex the task, the narrower the span of
management.
Location of the workers: The more locations, the narrower the span of
management.
Ability of the manager to delegate responsibility: The greater the ability to
delegate, the wider the span of management.
Amount of interaction and feedback between the workers and the
manager: The more feedback and interaction required, the narrower the span
of management.
Level of skill and motivation of the workers: The higher the skill level and
motivation, the wider the span of management.
The advantages and disadvantages of narrow and wide spans of management will
now be discussed (Gitman & McDaniel, 2005: 252).
The advantages of narrow span of management are: high degree of control;
fewer subordinates may mean that the manager is more familiar with each
individual; and closer supervision can provide immediate feedback. Disadvantages
of narrow span of management are: more levels of management, therefore it is
more expensive; slower decision-making due to vertical layers; isolation of top
management; and discouraging of employee autonomy.
Wide span of management has the following advantages: fewer levels of
management means increased efficiency and reduced costs; and increased
subordinate autonomy leads to quicker decision-making, greater organisational
flexibility, and higher levels of job satisfaction due to employee empowerment.
The disadvantages are: less control; possible lack of familiarity due to large number
of subordinates; managers are spread so thin that they cannot provide necessary
leadership or support; and lack of coordination or synchronisation.
16.2.7
Delegation
Delegation is the process of assigning responsibility and authority for
accomplishing objectives. It is important to note that if a task is allocated to a
subordinate without the necessary authority and/or responsibility, no delegation
has taken place. The manager who delegates tasks remains accountable for the
delegated task. This means that managers cannot completely be divorced from
their tasks.
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Managers delegate tasks to their subordinates so that they will have more time
to concentrate on managing their subordinates. The less important tasks are
therefore delegated, which gives the manager time to attend to the more important
management tasks. Through the delegation process, subordinates are given an
opportunity to develop themselves and gain more experience. Delegating allows
managers to make optimum use of their subordinates’ skills and to supplement
their own abilities.
Most of the time, managers are hesitant to entrust their tasks to someone
else. They are afraid that they will lose some of their authority and esteem in the
process. Managers must appreciate that by delegating tasks, they are involving
the subordinates in their activities, and are consequently adopting a participative
management approach (Lussier, 2015).
16.2.8
Departmentalisation
One of the first steps to be followed when an organisational structure is formed
in an organisation is departmentalisation. Departmentalisation comprises the
logical grouping of the activities in an organisation that belong together. All
resources required for a certain activity are grouped together in one department.
The different departments created by departmentalisation therefore represent
the organisational structure of the organisation as it often appears on an
organisational chart.
These groups are formed vertically and horizontally in a hierarchical structure
with the people at the top controlling the people at the bottom.
The number of hierarchical levels will depend on the size of the organisation,
the type of organisation, and the nature of its activities.
Departmentalisation is usually based on the:
•
•
•
•
function;
product or service;
location; and
customer.
Departmentalisation according to function
Functional departmentalisation is very common. The activities that belong to
a particular organisational function are grouped together. For example, a set of
activities may be advertising, market research and sales. These are grouped together
under the marketing function, while all aspects of word processing, information
processing, and office layout are grouped together under the administrative
function.
Departmentalisation according to product or service
In this case, departments are formed according to the product or service provided
by an organisation. All the activities concerned with a product or service are
grouped in production departments. In other words, all the specialists associated
with a product or service are grouped together in that particular department.
Organisations that have more than one product line or service often use this plan,
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such as banks and hospitals. The reason why this type of organisation form is used
is that the administrative, marketing, financing and personnel needs associated
with this may differ.
Departmentalisation according to function
General Manager
Financial
Manager
Administrative
Manager
Human
Resources
Manager
Production
Manager
Departmentalisation according to product/service
Store Manager
Men’s wear
Women’s wear
Children’s wear
Cosmetics
Departmentalisation according to location
Managing Director
General Manager
North West
region
Western Cape
region
Cape Town
branch
Mpumalanga
region
Somerset West
branch
Gauteng
region
Hermanus
branch
Departmentalisation according to customer
Bank Manager
Credit
Manager
Personal banker
Figure 16.2
Administrative
Head
Enquiries clerk
Illustration of the various forms of departmentalisation
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Departmentalisation according to location
This is a logical structure for an organisation that manufactures and markets its
product in different geographical areas, for example SAB Miller, which operates
breweries throughout the country and markets its products countrywide. This
structure enables the area management to make its own decisions and make
adaptations according to the local business environment.
Departmentalisation according to customer
This usually takes place when an organisation focuses on a specific market segment
or group of consumers or, in the case of industrial products, where the organisation
provides its product to only one or a small group of customers. Woolworths is an
example of departmentalisation according to client, where a distinction is made
between men’s clothing, women’s clothing, children’s clothing, household goods,
and food.
16.2.9
Specialisation
Specialisation refers to the division of tasks into smaller, more meaningful units in
order to achieve the objective of the organisation. In specialisation, activities are
divided among the subordinates according to the nature of the activity and the
parts of the task in such a way that a particular subordinate can perform more or
less similar tasks and utilise and develop their skills as much as possible.
16.2.10 Coordination
Coordination is the process of achieving unity of action among interdependent
activities. Coordination is needed when two or more interdependent individuals,
groups or departments must work together to achieve a common goal. In
organisations, organising usually creates specialised and differentiated jobs, such
as managers for production and for sales. Somewhere along the line the work of
these people must be coordinated.
Departmentalisation always gives rise to the need for coordination, but
some types of departmentalisation create the need for more coordination than
others. Functional departmentalisation tends to create departments that are
highly interdependent and that rely heavily on someone to make sure the work is
coordinated.
On the other hand, coordination tends to be simpler with divisional types of
departments. Each division, such as those for metals and chemicals, and aerospace,
has its own research, production and sales units. In such an organisation, each
division can be managed more or less as an autonomous business. The job of
achieving coordination between the more-or-less separate divisions would be
relatively simple, because it is not essential for the divisions to work in unity on
most day-to-day matters.
Methods for achieving coordination
According to Dessler (2002), there are various methods that managers can use to
achieve coordination.
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Use mutual adjustment: Mutual adjustment means achieving coordination by
relying on face-to-face interpersonal interaction. It is used in both the simplest
and most complex situations. In a simple situation (such as two people moving a
heavy log) coordination could be achieved by having one person count “one, two,
three, lift”, at which time both people lift the log together.
Mutual adjustment is also used in more complex situations. A platoon of
marines planning an attack, for instance, may follow formal procedures and stick
to the chain of command. But when the marines hit the beach, most coordination
will likely take place through an ongoing process of mutual adjustment, with the
marines continually interacting with and responding to one another as they meet
with unanticipated problems.
Rules or procedures: If the work can be planned in advance, you can specify
ahead of time what actions your subordinates should take. Rules and procedures
are useful for coordinating routine, recurring activities. They specify what course
of action each subordinate should take if a particular situation should arise. For
example, the administrative manager could have a rule that office workers in the
administrative department must clear their desks each afternoon. This ensures
that everything is put into place and ready for the next day’s work.
Direct supervision: Direct supervision achieves coordination by having one person
coordinate the work of others, issuing instructions and monitoring results. When
problems arise that are not covered by rules or procedures, subordinates are trained to
bring the problem to the manager. In addition to using rules and mutual adjustment,
all managers use the chain of command in this way to achieve coordination.
Divisionalisation: Functional departmentalisation creates additional demands
for managerial coordination, since the work of the functional departments is
both specialised and interdependent. Divisional types of departments tend to
reduce such interdependence, and take the coordinative burden off the CEO. For
example, in a divisional organisation, the CEO does not have to work as hard
at coordinating the efforts of the various product divisions, because they are
relatively independent of each other.
Staff assistants: Some managers hire staff assistants to ease the job of
coordinating subordinates. When subordinates bring a problem to the manager,
the assistant can compile information about the problem, research it and offer
advice on available alternatives. This effectively boosts the manager’s ability to
handle problems and coordinate the work of their subordinates.
Liaisons: When the volume of contacts between two departments grows, some
organisations use special liaison staff to facilitate coordination. For example, the
sales department manager might appoint a salesperson to be their liaison with the
production department. This person is based in the sales department but travels
frequently to the factory to learn as much as possible about the plant’s production
schedule. When an order comes in to the sales department, the sales manager can
then quickly determine what the production schedules are and know whether a
new order can be accepted.
Teams and committees: Many organisations achieve coordination by appointing
interdepartmental committees, task forces or teams. These are usually composed
of representatives of the interdependent departments. They meet periodically to
discuss common problems and ensure interdepartmental coordination.
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Independent integrators: An independent integrator is an individual or a group
that coordinates the activities of several interdependent departments. Integrators
differ from liaisons in that integrators are independent of the departments they
coordinate. They report to the manager who oversees those departments.
Using independent integrators has proved useful in high-tech organisations
where several interdependent departments must be coordinated under rapidly
changing conditions. In the plastics industry, for instance, developing new
products requires close coordination between the research, engineering, sales, and
production departments in a situation where competitors are always introducing
new and innovative products. Some organisations have established new product
development departments whose role it is to coordinate (or integrate) the research,
marketing analysis, sales, and production activities needed for developing and
introducing a new product.
Standardisation of targets and skills: Organisations also achieve coordination
by standardising their employees’ efforts. Firstly, you can standardise the goals, or
targets, subordinates have to reach. For example, as long as the sales, finance, and
production managers reach their assigned goals, the CEO can be reasonably sure
that their work will be coordinated because adequate financing and production
will be provided to meet the sales target.
Standardising skills also facilitates coordination, which is one reason why
organisations spend a lot of money on training their employees. Whether a work
team is installing door panels or solving a problem, training ensures that each
member of the team knows how their efforts fit with the others and how to
proceed. Standardised skills reduce the need for outside coordination.
These coordination methods differ in several ways. For instance, relying on
rules or procedures is more impersonal than relying on liaison staff. Another
difference is that some methods are more useful when the situation is predictable
than when it is not. In other words, in deciding how coordination will be achieved,
managers have to ask (among other things) to what extent they can predict the
sort of situation employees are going to face.
16.3
Centralisation versus decentralisation
Centralisation means that all administrative activities are performed in one place,
for example a centralised record management programme. One individual in the
organisation is responsible for the programme, and the records of the different
functional areas are stored in one central place.
Decentralisation means that the administrative activities take place in different
areas. For example, suppose that record management is decentralised – then the
managers of each functional area will be totally responsible for the maintenance
of their own records.
Centralisation and decentralisation can be interpreted in three different ways:
•
Geographical centralisation or decentralisation refers to an organisation that
concentrates its business on one premise or distributes its business over more
than one place. Geographical centralisation occurs in organisations that
operate their business on one premise, while geographical decentralisation
occurs when the organisation operates its business on two or more premises.
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•
•
Functional centralisation and decentralisation implies that the similar activities
or functions of an organisation take place in one division or are distributed.
For example, functional centralisation is when an organisation has a separate
administrative division that deals with all the matters of the administrative
function. When each division deals with its own administrative matters, this
is known as functional decentralisation.
The third meaning of centralisation and decentralisation is particularly
important for managers. This concerns retaining or delegating decisionmaking authority. It refers to the level at which decision-making takes place.
Centralisation of authority occurs when a few top people in the organisation
have the authority to make all important decisions. Decentralisation of authority
takes place when managers at lower levels receive a relatively large amount of
authority to be able to make decisions. The factor that determines whether an
organisation must be centralised or decentralised regarding authority is the
extent to which decision-making is retained by top management or delegated
to the lower levels.
There are various administrative tasks such as typing, duplicating, correspondence
and so forth that can easily be centralised or decentralised. The degree of
centralisation or decentralisation will depend on what applies in each organisation:
•
•
•
the heterogeneity/homogeneity of the need for information (as required by
the different functions);
the physical and geographical situation of the organisation and its different
divisions; and
the desirability of labour specialisation and the division of labour.
Various degrees of centralisation are found within the administrative manager’s
office. The most extreme form is to place all office or administrative tasks under
the administrative manager and make the unit supervisors responsible for the
daily supervision of the workers, who also complete other tasks.
Another alternative, which is used a great deal, is to centralise certain office or
administrative tasks, while other activities are decentralised and placed under the
individual divisions. The administrative manager is responsible for the centralised
administrative matters while the functional manager accepts responsibility for the
decentralised administrative activities for their specific area.
Several factors can affect management’s decision to centralise or decentralise.
Hellriegel et al (2012: 309) consider the following factors in this regard:
•
•
•
Cost attached to the decision: Cost is the most important factor in determining
the extent of centralisation. As a general rule, the more costly it is to the
organisation, the more likely it is that top management will make the decision.
Uniformity of policy: Managers who value consistency favour centralisation
of authority. These managers may want to assure customers that everyone
is treated equally in terms of quality, price, credit, delivery, and service.
Uniform policies have definite advantages for cost accounting, production,
and financial departments.
Organisational culture: In organisations where the management style
is autocratic, decision-making will be centralised. In organisations where
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•
•
•
the management style is participatory, responsibility and authority will be
decentralised.
Availability of managers: Many organisations work hard to ensure an adequate
supply of competent managers and employees, which is an absolute necessity
for decentralisation. Such organisations believe that practical experience is the
best training for developing managerial potential. They are willing to permit
employees to make mistakes involving low costs.
Control mechanisms: The establishment of an effective control process
is a prerequisite for effective delegation. Even the most avid proponents of
decentralisation insist on controls and procedures to determine whether
actual events are meeting expectations.
Environmental influences: External factors (for example trade unions, state
regulatory agencies, and tax policies) affect the degree of centralisation in an
organisation. Laws and government regulations regarding hours, wages and
B-BBEE make decentralising the hiring authority difficult in an organisation.
When unions bargain on behalf of the employees of an entire organisation,
top management cannot risk decentralising labour negotiations. But when
small, local or regional unions represent employees in various departments,
top management may delegate the authority to negotiate the terms of labour
contracts to departmental managers.
16.3.1
Advantages and disadvantages of centralisation
The main advantages and disadvantages of centralisation of administrative
activities are set out in Table 16.1.
Table 16.1 Main advantages and disadvantages of centralisation of administrative
activities
Advantages of centralisation
Disadvantages of centralisation
•• Work methods and procedures are
•• The cooperation of administrative
more easily performed.
•• Duplication and overlapping of
services and equipment can be
eliminated.
•• Fewer copies of documents are
required, which promotes savings.
•• Greater simplification and
standardisation of work processes can
be implemented.
•• During peak times, when work piles
up, it can be dealt with more easily
because all workers can be assigned
to the task.
•• Work of the same nature is done
continually and staff can specialise.
•• Better division of work can be applied.
activities can eventually become
cumbersome.
•• Widely spread production and
marketing units are difficult to
centralise.
•• The technical nature of the work
is not conducive to centralisation.
•• A too-large group of employees
tends to lead to a more
impersonal work environment.
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16.3.2
Advantages and disadvantages of decentralisation
The main advantages and disadvantages of decentralisation of administrative
activities are set out in Table 16.2.
Table 16.2
ain advantages and disadvantages of decentralisation of administraM
tive activities
Advantages of decentralisation
Disadvantages of decentralisation
•• The administrative work division
•• Work processes are not always
remains relatively small and prevents
clumsiness.
•• Personal contact between workers is
promoted.
•• Owing to the absence of specialised
labour, workers are exposed to higher
demands and challenges earlier.
•• Because the worker is situated where
the production or marketing takes
place, the work is done more carefully,
faster and with greater personal
interest.
16.4
the best.
•• Decentralised offices do not
always have the specialised
workers and equipment to
implement savings.
•• Owing to a variety of work of
smaller scope, the work is done
more slowly.
The organising process
Organising can be summarised as the work a manager does in order to define the
subordinates’ work as effectively as possible. The organising task is the process
of breaking down the overall task into individual assignments. Therefore, the
organising process consists of the following steps:
1.
2.
3.
4.
5.
Determine the goals and objectives that the organisation wishes to achieve.
This normally follows from the organisation’s vision, mission and strategy.
Identify the activities necessary to achieve the objectives.
Divide the activities into meaningful units. This means grouping the
organisation’s activities in order to achieve the objectives. This is normally
done by dividing the organisation into departments, for example the financial,
marketing, administrative, production, purchasing, and human resources (HR)
departments. The forming of groups is also known as departmentalisation.
Delegate tasks, authority and responsibility and determine relationships
between individuals. It is important to balance the authority and
corresponding responsibility. Authority must be assigned to subordinates to
suit the responsibilities they bear.
Design an organisational structure and give feedback. The organisational
structure is the result of the organising process, and shows what work each
subordinate does and what is expected of them.
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16.5
Organisational structures
The structure of any organisation is the basic framework in which decisions are
made. In fact, it can be said that the structure influences the quality and types of
decisions made by the subordinates. These structures can be formal and informal.
Before the different organisational structures that occur in an organisation can be
studied, a distinction must be made between formal and informal organisation.
16.5.1
Formal organisation
Formal organisation refers to formal relations that are officially established by
the management of the organisation on the structural framework (organisational
chart). In this way, the formal relations between the managers and subordinates,
between people in the same departments, and between divisions are prescribed.
The formal organisational structure is therefore deliberately planned and enforced
on subordinates. During the development of the structure, responsibility and
authority relations are created.
Schermerhorn and Bachrach (2014) state that by reading an organisational
chart, one can learn the basics of an organisation’s formal structure. These basics
include:
•
•
•
•
division of work: positions and titles show work responsibilities;
supervisory relationships: lines show who reports to whom;
communication channels: lines show formal communication flow; and
major subunits: positions reporting to a common manager are shown.
For the management of an organisation, formal organisation has the following
advantages:
•
•
•
•
•
The managers of the organisation increase their influence over subordinates.
More can be done in a group context than can be done by one person.
The activities can be divided into smaller, manageable units.
The confusion of who must do what is eliminated.
Everyone knows who their direct senior is.
16.5.2
Informal organisation
The relationships within an organisation cannot be restricted to those enforced
by management. Informal organisation refers to the spontaneous formation of
groups by the subordinates of the organisation. It is characterised by informal
action and consists of what a person does, feels, and believes.
Why do these groups develop? The reason lies particularly in the social needs
of people. People with the same interests, political viewpoints, hobbies, and so
forth, will form groups, for example a number of subordinates from the same
departments who form a coffee or lunch group, or employees from different
divisions who belong to the same lift club.
Within the informal group a leader usually comes to the fore, and a person
can also be the leader of more than one group. These informal groups make work
enjoyable and something to look forward to.
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However, managers must be aware of the existence of informal groups as well
as the leaders within these groups, which can be used to the advantage of the
organisation. Through communication with leaders and interaction between the
formal and informal organisation, a deliberate and effective effort can be made to
work towards the achievement of the objectives of the organisation.
The advantages of informal organisational structures are as follows:
•
•
•
•
It improves communication: It plays an important role in the distribution
of information, for example the so-called grapevine where unofficial rumours
are spread. Through the grapevine the subordinates are better able to find out
more about their work and what is happening in the organisation.
It satisfies certain needs: A person feels part of the group and this creates a
feeling of safety and unity for this person.
It helps effective formal management: Formal decisions and actions are
more easily performed if the informal group gives its approval.
It relieves the workload of the formal manager: If the managers know that
they must support the informal organisation, they will have more confidence
in their subordinates.
Informal organisational structures have potential disadvantages. Because they
exist outside the formal authority system, informal structures can be susceptible
to rumour, carry inaccurate information, breed resistance to change, and even
divert work efforts from important objectives. Another problem sometimes linked
to informal structures is the perception by some members that they are “outsiders”
and not part of the informal groupings. As a result, they may become less engaged
in their work and more dissatisfied (Schermerhorn & Bachrach, 2014).
In the structuring of the formal organisation, the influence of the informal
organisation plays a very important role.
16.5.3
Traditional organisational structures
When planning the organisational structure of an organisation, it is important to
consider the type of organisational structure carefully. To illustrate the basics of an
organisational structure, we can look at the line organisational structure as well as
the line and staff organisational structure.
Line organisational structure
The line organisational structure is one of the oldest and simplest organisational
structures. Retail organisations mainly function according to this structure. In
the line organisational structure, the lines of authority run vertically from top
to bottom, so that each subordinate receives their instructions from only one
immediate superior. The people in charge have line authority and are known as
line functionaries.
The most important characteristics of the line organisational structure are as
follows:
•
•
•
Unity of command: Subordinates receive their instructions from one
immediate superior only.
Unity of leadership: Only one manager is in charge of a department.
Lines of authority are strictly vertical: Authority flows from top to bottom.
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General Manager
Administrative Manager
Departmental
head
Figure 16.3
Marketing Manager
Departmental
head
Departmental
head
Departmental
head
Example of a line organisational structure
Line and staff organisational structure
Experts are included in this organisational structure. The most important
characteristic of this is that the managers in the line organisational structure,
who have the authority to give instructions, are assisted by people in staff
positions, who have the right to advise. This helps to relieve the demanding
task of line functionaries. Figure 16.4 illustrates this type of structure. Note how
the administrative manager advises the sales manager, who has line authority.
Staff functionaries have only staff capacity and can give no instructions to line
functionaries or their subordinates.
General Manager
Legal Adviser
Administrative
Manager
A
B
Human Resources
Manager
C
D
Marketing
Manager
E
F
G
: Line authority
: Staff authority
A–G : Departmental heads
Figure 16.4
Example of a line and staff organisational structure
Functional organisational structures
The functional organisational structure is based on the functions performed in
the organisation. In this way, main departments develop for the HR, purchasing,
production, administrative, marketing, financial, and public relations functions.
Each functional manager has line authority to give enforceable instructions to
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subordinates in the particular functional area. In addition, each functional
manager has authority to give instructions regarding its function to all the other
functional managers. This authority is essential for the performance of the duties
and responsibility of each function regarding other functions, and is known as
functional authority.
In this way, for example, the administrative manager has functional authority
to give enforceable instructions regarding the administrative function to all other
functions. For example, the policy and procedure of using the computer network
serve as a guideline for the use of a computer package by all the other functions.
The major advantages of a functional structure are, according to Schermerhorn
and Bachrach (2014): economies of scale with efficient use of resources; task
assignments consistent with expertise and training; high-quality technical
problem-solving; in-depth training and skill development within functions; and
clear career paths within functions.
Major disadvantages of a functional structure include difficulties in
pinpointing responsibilities for factors such as cost containment, product or
service quality, and innovation. A significant concern is the functional silos
problem: a lack of communication, coordination, and problem-solving across
functions. It occurs because the functions become formalised, not only on the
organisation chart, but also in the mind-sets of people. When this happens,
the sense of common purpose gets lost to self-centred and narrow viewpoints
(Schermerhorn & Bachrach, 2014).
General Manager
Financial
Manager
A
B
Administrative
Manager
C
D
Marketing
Manager
E
F
G
: Line authority
A–G : Departmental heads
Figure 16.5
Example of a functional organisational structure
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Divisional organisational structures
A divisional organisational structure groups together people who work on the
same product or process, serve similar customers, or are located in the same area or
geographical region. Complex organisations with diverse operations that extend
across many products, territories, customers, and work processes will normally
have a divisional organisational structure.
We normally get four types of divisional organisational structures: product,
process, customer, and geographical structures.
Product structures group together jobs and activities focused on a single product
or service. There is a clear link between costs, profits, problems, and successes in
a market area and there is a central point of accountability. This assists managers
to be responsive to changing market demands and customer tastes. See Figure 16.6
for an example.
General Manager
Electronics
Figure 16.6
Biotechnology
Product structure
Process structures group jobs and activities that are part of the same process. See
Figure 16.7 for an example.
Administrative Manager
Data capturing
Figure 16.7
Data storage
Process structure
Customer structures group together jobs and activities that are serving the same
customers or clients. The goal is to best serve the special needs of the different
customer groups. Customer structures are also useful in the services; for example,
banks use them to give separate attention to consumer and commercial customers
for loans. See Figure 16.8 for an example.
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Geographical structures group together jobs and activities being performed in
the same location. These structures are typically used when there is a need for
differentiating products and services in various locations, such as in different
parts of a country. International operations, where attention needs to be focused
on the unique cultures and requirements of a particular region, normally use
geographical structures. See Figure 16.9 for an example.
General Manager
Women’s clothes
Figure 16.8
Men’s clothes
Customer structure
President
Europe division
Figure 16.9
Africa division
Geographical structure
Schermerhorn and Bachrach (2014) have noted various advantages and
disadvantages of divisional structures. Advantages include more flexibility in
responding to environmental changes, improved coordination across functional
departments, clear points of responsibility for product and service delivery,
expertise focused on specific customers, products and regions, and greater ease in
changing size by adding or deleting divisions.
Potential disadvantages of a divisional organisational structure are that they
can reduce economies of scale and increase costs through the duplication of
resources and efforts across divisions. They can also create unhealthy rivalries
as divisions compete for resources and top management’s attention and as they
emphasise division needs over the goals of the organisation as a whole.
16.5.4
Matrix organisational structure
The matrix organisational structure is used particularly when an organisation is
busy with a number of projects or orders at the same time. For example, a large
construction company must build different roads and buildings simultaneously.
For each project, expert staff from the different functional areas are needed to
work under the project managers while other staff continue with their normal
functional activities. The matrix organisational structure combines the functional
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and divisional structures. This is accomplished by using permanent teams that cut
across functions to support specific products, projects, or programmes.
General Manager
Production
Manager
Financial
Manager
Administrative
Manager
Project
Manager A
Production
departments
Financial
departments
Administrative
departments
Project
Manager B
Production
departments
Financial
departments
Administrative
departments
Figure 16.10
Example of a matrix organisational structure
The matrix organisational structure corresponds to the project organisational
structure. However, the matrix organisational structure is more permanent and
tries to merge the functional and project organisational structures for maximum
effectiveness. The functional heads, like the administrative manager, have line,
staff and functional authority, while the project managers have only line authority.
The project manager is responsible for the end result. The functional manager
must ensure that all the activities are performed.
The main benefits of matrix structures rest with the teams whose
members work closely together to share expertise and information in a timely
manner. Potential advantages of matrix organisational structures are: better
communication and cooperation across functions; improved decision-making
and problem-solving taking place at the team level where the best information
is available; increased flexibility in adding, removing or changing operations
to meet changing demands; better customer service because there is always
a programme, product, or project manager informed and available to answer
questions; better performance accountability through the programme, product,
or project managers; and improved strategic management because top managers
are freed from lower-level problem-solving to focus time on more strategic issues.
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According to Schermerhorn and Bachrach (2014), the potential disadvantage of
matrix organisational structures is that the two-boss system might emerge when
there is a power struggle if functional managers and team leaders compete with
one another to exercise authority. The two-boss system can be frustrating as it
creates task confusion and conflicting work priorities. Daft and Marcic (2012)
also add that many meetings and discussions without real action can typically
occur.
16.5.5
Team-based structures
In a team-based structure, the entire organisation is made up of work groups or
teams that perform the organisation’s work. In a team-based structure, employee
empowerment is crucial because there is no line of managerial authority from
top to bottom. Rather, employee teams are free to design work in the way they
think is best. However, the teams are also held responsible for all work activity and
performance results in their respective areas.
In large organisations, the team structure complements what is typically
a functional or divisional structure. This allows the organisation to have the
efficiency of a bureaucracy while providing the flexibility that teams provide.
Figure 16.11 illustrates a team structure. In this figure, the team structure
involves teams of various types working together as needed to solve problems
and explore opportunities, either on a full-time or part-time basis. These are
often cross-functional teams composed of members from different areas of work
responsibility. The intention is to break down the functional chimneys or barriers
outside the organisation and create more effective, lateral relations for ongoing
problem-solving and work performance.
CEO
Admin
Manager
Marketing
Manager
Financial
Manager
New process
development team
Figure 16.11
Production
Manager
Human
Resources
Manager
Sales
Manager
New product
development team
Example of a team structure
Source: Adapted from Schermerhorn (2002: 265)
Team structures have an advantage in that team assignments break down barriers
when people from different parts of an organisation get to know one another. This
can also boost morale. People who work in teams often experience a greater sense
of involvement and identification, and this increases their enthusiasm for the job.
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Normally, teams improve the speed and quality of decisions in many situations
because they focus on shared knowledge and expertise in specific problems.
Schermerhorn and Bachrach (2014) state that team structures have the potential
disadvantages of conflicting loyalties for persons with both team and functional
assignments. Disadvantages also include issues of time management and group
processes. Teams spend a lot of time in meetings and not all meetings are very
productive. Thus, how well team members spend their time together often depends
on the quality of interpersonal relations, group dynamics, and team management.
16.5.6
Network structures
A network structure consists of a central business core that works with networks
of outside suppliers and service contractors. Such network organisations use
the latest computer and information technologies to support a shifting mix of
strategic alliances and business contracts that sustain operations without the costs
of having to own all components.
Figure 16.12 illustrates a network structure.
Technical and
Maintenance
team
Finances
HEAD
OFFICE
Marketing
Figure 16.12
Logistics
Research and
Development
Example of a network structure
Source: Adapted from Schermerhorn (2002: 267)
The potential advantages of network structures are mainly obtained from the
creative use of technology. Network structures are very lean and streamlined. They
help organisations stay cost competitive through reduced overheads and increased
operating efficiency. Network concepts allow organisations to employ outsourcing
strategies internally and contract out specialised business functions rather
than maintain full-time staff to do them. International business opportunities
are created as the benefits of global commerce are unlocked by the use of the
internet at a minimum cost. Network structures hold the potential disadvantage of
coordinating the complex system of business relationships. The entire system will
suffer if one part of the network breaks down or fails to deliver.
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As information technology (IT) continues to develop and as the concept of network
structures becomes better understood, there is no doubt that they will grow in
number and range of applications in the future.
Smith (2011: 135) states that the potential advantages of a network structure
are as follows: they enable organisations to manufacture and market globally;
a network structure can often achieve large results from insufficient resources;
they give flexibility to redefine an organisation rapidly in search for markets;
and they enable efficiency, as a network organisational structure will have little
administration and low overheads and there may be no need for a traditional
hierarchy.
Potential disadvantages according to Smith (2011: 135) are: the loss of control
because many decisions will be made by subcontractors and further actions
will be fragmented among subcontractors; long-term suppliers may be unstable
because subcontractors are able to switch to another organisation who can offer
better terms; loss of control means an increase in uncertainty and it may become
difficult to plan and organise; and employee loyalty may decrease because there is
little identification with the central core.
16.5.7
Boundaryless organisations
A boundaryless organisation eliminates internal boundaries among subsystems and
external boundaries with the external environment. A boundaryless organisation
is an organisation whose design is not defined by, or limited to, the horizontal,
vertical or external boundaries imposed by a predefined structure. The term was
coined by Jack Welch, former chairman of General Electric (GE), who wanted to
eliminate vertical and horizontal boundaries within GE and break down external
barriers between the organisation and its customers and suppliers (Dessler, 2002).
This idea may sound odd, yet many of today’s most successful organisations are
finding that they can most effectively operate in today’s environment by remaining
flexible and unstructured rather than having a rigid, predefined structure. The
boundaryless organisation seeks to eliminate the chain of command, to have
appropriate spans of control and to replace departments with empowered teams.
What are boundaries? Think of the horizontal boundaries imposed by work
specialisation and departmentalisation, the vertical boundaries that separate
subordinates into organisational levels and hierarchies, and the external
boundaries that separate the organisation from its customers, suppliers and other
stakeholders. By removing vertical boundaries through structural approaches such
as cross-hierarchical teams and participative decision-making, the hierarchy is
flattened. Managers can remove horizontal boundaries by using cross-functional
teams and organising work activities around work processes instead of around
functional departments. And external boundaries can be minimised or eliminated
by using strategic alliances with suppliers, or value-chain management and
customer-organisation linkages.
The boundaryless organisation emerges in a special form that is sometimes
called a virtual organisation. A virtual organisation is a temporary network of
independent organisations – suppliers, customers, perhaps even rivals – linked by
IT to share skills, costs, and access to one another’s markets. Virtual organisations
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are usually not organisations in the traditional sense, but rather networks of
organisations, each of which brings its special expertise to the virtual organisation.
Organisationally, virtual organisations have two main features. Firstly, the
central feature of virtual organisations is their dependence on a federation of
alliances and partnerships with other organisations. A virtual organisation operates
as a federated collection of organisations tied together through contractual and
other means, such as partial ownership arrangements.
The virtual organisation’s second feature stems from this first characteristic.
Corporate self-interest (rather than authority) generally plays a major role in
maintaining organisational integrity. In traditional organisations, authority is
dispersed down the chain of command, and the subordinates who actually do the
work are generally expected to follow legitimate orders. In virtual organisations,
on the other hand, it is not an organisation’s subordinates who are doing the work,
but the principals and employees of its virtual partners, so that giving orders and
relying solely on a chain of command is usually not a constructive way to get
things done. Instead, assignments are made, partners are chosen for competence
and reliability and arrangements are made to provide for equitable incentives.
16.6
Organisational designs
Organisational design is a process of creating structures that enables the organisation
to accomplish its vision, mission and objectives. Every organisation’s design will
look different as each one faces its own set of unique problems and opportunities.
The best design at any moment is the one that achieves a good match between
structure and situational contingencies like tasks, technology, environment, and
people. The choices among organisational design alternatives are broadly framed
in the distinction between mechanistic and bureaucratic designs at one extreme
and organic, adaptive designs at the other end.
A bureaucratic design is rational, systematic and precise, where rules,
regulations and techniques of control are specifically defined. It is a classic vertical
structure and its distinguishing features include a clear-cut division of labour,
strict hierarchy of authority, formal rules and procedures and promotion based on
competency.
Organisations with a mechanistic design are highly bureaucratic. A
mechanistic design is centralised, with many rules and procedures, a clearcut division of labour, narrow spans of control and formal coordination. It
can be said that they are tight structures of the traditional pyramid form
(Schermerhorn & Bachrach, 2014). Organisations that do routine tasks in stable
environments, for example a fast-food restaurant, are more inclined to use a
mechanistic design.
When organisations operate in a dynamic and often uncertain environment,
their effectiveness depends on their ability to change with times. For these
circumstances an organic design is most appropriate. An organic design has a
horizontal structure that is decentralised, with fewer rules and procedures, open
divisions of labour, wide spans of control and more personal coordination.
Organic design creates adaptive organisations that work well in environments
that demand flexibility in dealing with changing conditions. Schermerhorn and
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Bachrach (2014) indicate that an organic organisation operates with minimal
bureaucratic features and encourages worker empowerment and teamwork. A
lot of work gets done through informal structures and networking. Adaptive
organisations are normally built on a foundation of trust where people will do the
right things on their own initiative. This means letting workers actively participate
in production scheduling and setting up control systems, letting workers use their
ideas for problem-solving, and giving workers the freedom to do what they can do
best: get the job done.
Trends in organisational designs
More organisations are changing to horizontal and organic organisational
designs because of an environment that is complex, uncertain, and subject to
change. As the organisations start changing, a few trends in organisational
design are evident. They are explored below.
Fewer levels of management (flat structures)
As organisations grow, they tend to get taller as more levels of management are
added to the chain of command. One of the influences on management levels
is span of control. Tall structures have narrow spans of control and many levels
of management. Organisations with tall structures have a lot of managers and
tend to be more costly, less effective, less flexible and less customer-sensitive.
Flat structures have wider spans of control and fewer levels of management.
This reduces overhead costs. The wider spans of control also allow workers more
empowerment and independence.
The trend is that organisations are cutting unnecessary levels of management
and shifting to wider spans of control. Managers are taking responsibility for larger
numbers of subordinates who operate with less direct supervision.
Figure 16.13
Tall versus flat structures
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More delegation and empowerment
In Section 16.2.7 we dealt with delegation. Delegation refers to the process of
distributing and entrusting work to other persons. When done well, delegation
leads to empowerment. Empowerment allows others to make decisions and
exercise discretion in their work. Empowerment results when delegation moves
decisions to people who are most capable of doing the work. It builds performance
potential by allowing people freedom to use their talents, contribute ideas, and do
their jobs in the best possible way. Empowerment creates a sense of ownership and
therefore increases commitment to decisions and work goals.
The trend nowadays is for managers to delegate more. Managers are finding
ways to empower people at all levels to make more decisions that affect themselves
and their work.
Decentralisation with centralisation
In Section 16.3 we referred to decentralisation and centralisation. There we indicated
that an organisation is either decentralised or centralised. But the management
issue here doesn’t have to be formed as an either/or choice. The organisations
of today can use IT to operate with greater decentralisation without giving up
centralised control. With computer networks and advanced information systems,
managers at higher levels can stay informed more easily about a wide range of
day-to-day performance matters. Managers can allow more decentralisation in
decision-making because they have information on results readily available. If
something goes wrong, the information systems should sound an alarm and allow
corrective action to be taken quickly.
The trend then is for delegation, empowerment and horizontal structures to
contribute to more decentralisation in organisations. At the same time, advances
in IT are allowing for adequate centralised control (Schermerhorn & Bachrach,
2014).
Reduced use of staff
When it comes to coordination and control in an organisation, the issue of
line-staff relationships is important. Staff positions (as we saw in Section 16.5.3)
provide expert advice and guidance to line personnel. Staff positions basically
perform a technical service or provide special problem-solving expertise for other
parts of the organisation. Problems in line-staff distinctions can and do arise, and
organisations sometimes find that staff size grows to the point where it costs more
than it is worth. This is why staff cutbacks are common in downsizing and other
turnaround efforts. There is no best solution to the problem of how to divide work
between line- and staff responsibilities. What is best for any organisation will be a
cost-effective staff component that satisfies, but doesn’t overreact to, the needs for
specialised technical assistance to line operations.
The trend is for organisations to reduce the size of staff and assets. They are
lowering costs and increasing efficiency by employing fewer staff members and
using smaller staff units. Under ideal circumstances, downsizing will also lead
to better profits and higher stock prices. Downsizing can be expensive as the
costs associated with downsizing can be very high. Costs to be considered are
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severance pay, supplements to early retirement plans, disability claims and lowered
productivity resulting from possible decline in staff morale. Downsizing can help
an organisation in the long term if it forms part of the business strategy to improve
the organisation and not just to save money.
Outsourcing
Outsourcing happens when other organisations are hired to perform part of the
work. By outsourcing an organisation can reduce its need for employees and
physical assets and their associated costs. With outsourcing an organisation
is likely to profit when it focuses its efforts on activities it performs best, while
noncore activities such as HR, payroll processing and information systems are
performed by outside experts (Griffin, 2012).
Re-engineering
Re-engineering is sometimes necessary in organisational design. It is the
fundamental rethinking and radical design of business processes to achieve
dramatic improvements in critical, contemporary measures of performance,
such as cost, quality, service, and speed (Lussier, 2015). Radical does not refer to
incremental changes but rather big improvements. All the old methods are thrown
out and replaced by better methods of getting the work done. Re-engineering
searches for the most efficient way to perform a large task. An entire organisation,
department of job can be re-engineered.
Conclusion
Organising creates the structures within which the organisation can function
and determines the relationship between, and the lines of authority and positions
of, tasks or positions in an organisation. The organisational structure provides a
coordinated effort to achieve the objectives of the organisation.
The administrative manager should be familiar with the objectives and tasks
of the organisation, so that they can identify and group the activities in the
administrative department and achieve the objectives. It is important that the
administrative manager should apply all the principles of organising within the
administrative department and develop a structure that will fit in with the larger
organisational structure.
The administrative manager should not view organising in isolation from the
other three management functions. It is difficult to separate organising from the
other management functions because organising provides the structure within
which the administrative manager must plan, control and lead.
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Self-assessment
1.
Explain the meaning of organising and indicate seven reasons why it is
necessary to organise.
2.
Explain the difference between chain of command, unity of command and
span of management.
3.
When a manager shares responsibility with subordinates it does not mean
that they are abandoning their responsibility. The manager still has some
responsibility. Indicate eight aspects of responsibility that a manager still has
to adhere to.
4.
Explain the meaning of departmentalisation and list the four forms of
departmentalisation.
5.
Various methods for achieving coordination exist. Indicate when each of the
following methods of coordination would be most appropriate:
5.1 Teams and committees
5.2 Independent integrators
5.3 Staff assistants
5.4 Rules or procedures
5.5 Liaison staff
5.6 Standardisation of targets and skills
6.
Explain why it is important for the administrative manager to know about the
informal organisational structure.
7.
Differentiate between the various organisational structures by means of their
function, advantages and disadvantages.
8.
Explain the trends in organisational design.
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References
Daft, R. L. & Marcic, D. 2012. Management: The new workplace. 8th ed. China:
South-Western, Cengage.
De Beer, A. A., Rossouw, D., Moolman, B. A., Le Roux, E. E. & Labuschagne, M.
2000. Focus on supervision in general management. Cape Town: Juta.
Dessler, G. 2002. Management. New Jersey: Prentice-Hall.
DuBrin, A. 2010. Essentials of Management. 9th ed. Mason: South-Western Cengage.
Gitman, L. J. & McDaniel, D. 2005. The future of business. 5th ed. Mason: Thomson
South-Western.
Griffin, R. W. 2012. Management: Principles and practices. 11th ed. China: SouthWestern, Cengage.
Hellriegel, D., Slocum, J., Jackson, S. E., Louw, L., Staude, G., Amos, T., Klopper,
H. B., Louw, M., Oosthuizen, T., Perks, S. & Zindiye, S. 2012. Management. 4th SA
ed. Cape Town: Oxford.
Jones, G. R. & George, J. M. 2014. Essentials of contemporary management. 6th ed.
New York: McGraw-Hill.
Keuning, D., Bossink, B. & Themkes, B. 2010. Management: An evidence-based
approach. 3rd ed. Hoofddorp: Noordhoff.
Lussier, R. N. 2015. Management fundamentals: Concepts, applications, skill
development. 6th ed. Singapore: SAGE.
Schermerhorn, J. 2002. Management. New York: John Wiley.
Schermerhorn, J.R., Jr. & Bachrach, D. G. 2014. Introduction to management. 13th
ed. New York: John Wiley.
Smith, M. 2011. Fundamentals of management. 2nd ed. New York: McGraw-Hill.
Williams, C. 2016. Effective management. 7th ed. Canada: South-Western, Cengage.
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C h a p t e r 17
Leading in the administrative function
Learning outcomes
After you have studied this chapter, you should be able to:
••
••
••
••
••
••
••
compare the two perspectives of leadership;
discuss the five key behaviours of effective leaders;
discuss the different approaches to leadership;
choose the appropriate leadership style to lead employees;
motivate the choice of leadership style;
discuss the motivational theories; and
motivate people in the working environment.
Introduction
The principles of planning and organising as discussed in this book depend largely
on the leadership qualities and abilities of the administrative manager. A leader
is a person who influences people to achieve goals and objectives, and the more
followers there are, the bigger the influence (Bateman & Snell, 2015: 406).
Leading, as one of the management tasks, is an important key to organisational
performance and, moreover, is key to the development and growth of our country.
In today’s changing work environment, a person will have to excel to cope with
the demands and expectations of the modern organisation. The new workplace,
in terms of cultural differences and technological advancement, is a real challenge
to all managers in South Africa. In addition, ethics also plays a very crucial role in
leadership and management today.
Leadership always tries to balance the two perspectives of organisational needs
and what people want. James Kouzens and Barry Posner (in Bateman & Snell,
2015: 406–407) combined the two perspectives into the following set of five key
behaviours of effective leaders:
•
•
•
Challenge the process: Effective leaders challenge conventional beliefs and
practices, and also create constructive change.
Inspire a shared vision: Effective leaders appeal to people’s value systems, but
also motivate them to take ownership of an organisation’s vision and mission.
Enable others to act: Effective leaders provide access to information and give
people the power to perform to their fullest potential.
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•
•
Model the way: Effective leaders are not only doing what is expected, they are
also living their beliefs.
Encourage the heart: Effective leaders appreciate, reward, and motivate
positively with a variety of approaches.
Leadership and motivation always go hand in hand. Motivation is defined as
“psychological forces that determine the direction of a person’s behaviour in
an organisation, and a person’s level of effort and persistence” (Jones & George,
2014). This would also mean the way a person tackles challenges in a workplace,
as well as applying their emotional intelligence (EQ) in facing barriers (Jones &
George, 2014: 406). Motivation is central to management and leadership because
it explains why people behave the way they do in an organisation. Motivation is
discussed at a later stage in more detail.
Leading can be seen as a means to an end. Leading refers to all attempts of
management to get employees to achieve the organisation’s goals and objectives and
follow their strategies willingly. Leading is thus important for the administrative
manager and for all managers in an organisation.
Leading as a management task includes leadership, motivation, communication
and disciplining. In this chapter, only leadership and motivation as additional
management tasks will be discussed. Communication has already been addressed
and discipline is not looked at in this book.
17.1
Leadership
Leadership is a process whereby influence is exerted over people by inspiring,
motivating and guiding them to assist in achieving the goals of an organisation.
According to DuBrin (2012: 353), the following distinctions could be made
between a manager and a leader:
•
•
•
Management is viewed as being more structured than leadership and relies
on tasks and skills such as planning, budgeting and controlling. A manager
manages resources and ensures the smooth running of the different functional
areas within an organisation.
Leadership involves having a vision for an organisation and it requires the
leader to encourage cooperation and teamwork among people and to keep
them motivated.
Managers focus on continuous improvement of the status quo, whereas
leadership is a force of change that compels a group to innovate and depart from
routine. Management requires having the know-how to manage resources.
Griffin (2011: 390) states that power and leadership also go hand in hand and it
usually presents itself in the following five ways:
•
•
Legitimate power is granted through the organisational hierarchy, the power
defined by the organisation according to people occupying a particular
position. By simply being appointed to a certain position you automatically
gain legitimate power.
Reward power gives or withdraws rewards such as bonuses, salary increases,
promotions, praise, recognition, and interesting job assignments. Rewards
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•
•
•
are used by management to motivate and encourage certain behaviour in an
organisation.
Coercive power forces adherence by means of psychological, emotional, or
physical threat. This type of power is imposed by force.
Referent power is power a person has based on identification, imitation, loyalty
or charisma. This type of power is what effective leaders use to influence and
inspire others.
Expert power is the power people have due to their expertise or the
information they possess. Some managers simply withhold information to try
to elicit expert power. This type of power becomes effective when a manager
with information shares it for the greater good of the organisation. Sharing
of information to enhance competitive advantage is referred to as knowledge
management.
The approach followed in this chapter is that an effective administrative manager
should also be an effective leader. Over time, various leadership theories have
been developed, which will be discussed briefly and which any manager should
be aware of.
17.1.1
The character traits approach
The character traits approach to leadership focuses on identifying personal
character traits that facilitate effective leadership. Researchers believed that the
personal traits of effective leaders were different from those of ineffective leaders.
Decades of research, beginning in the 1930s, indicate that certain personal
character traits are directly associated with effective leadership. These character
traits are the following:
•
•
•
•
•
•
•
•
intelligence;
knowledge and expertise;
ability to influence people;
self-confidence;
high energy;
tolerance for stress;
integrity and honesty; and
maturity.
However, these character traits alone are not enough to ensure effective leadership.
Some effective leaders do not possess all the character traits and some less effective
leaders possess them all. The lack of consistency between character traits and
effectiveness meant that researchers moved away from using character traits as
the only yardstick for measuring leadership, and have started to look for new
explanations (Jones & George, 2014: 442).
The report of the Council for Excellence in Management and Leadership (2002)
identifies 83 factors which are a combination of traits and tasks that contribute
towards leadership excellence. Commonly cited traits and skills include (Needle,
2010: 243):
•
•
vision;
intelligence;
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•
•
•
•
•
•
•
•
•
•
•
•
•
initiative;
decisiveness;
creativity;
enthusiasm;
courage;
dependability;
sensitivity to people’s needs;
self-confidence;
inspirational;
being well organised;
tough-mindedness;
leading by example; and
emotional stability.
17.1.2
The behavioural approach to leadership
Studies were undertaken by Ohio State University in the early 1940s to examine
the following two leadership orientations of managers more closely:
•
•
the task-oriented leadership style; and
the employee-oriented leadership style.
The task-oriented manager emphasises the execution of tasks, while the employeeoriented manager emphasises relationships, mutual respect, and confidence. A
task-oriented manager directs the employee’s actions towards the achievement of
goals, and the employee-oriented manager is mindful to employees and respects
their ideas and feelings (Daft & Marcic, 2011: 388).
It was found that the employee-oriented manager has a lower staff turnover and
that the employees are generally much more satisfied than those employees who
work under a task-oriented manager. These employees are often very unhappy, are
often absent and in many cases experience job dissatisfaction. The ideal would be
for a manager to use both a task-oriented and an employee-oriented leadership
style. Leadership style alone will not necessarily determine success, because this is
also affected by the situation in which a leadership style is applied. According to
these studies, four leadership styles were identified (see Figure 17.1).
The Michigan group also identified two types of leadership behaviours: the
job-centred manager or leader, and the employee-centred manager or leader.
The job-centred manager is less concerned with goal achievement and human
needs. This type of manager is more in favour of keeping to meeting schedules, to
keep costs low and to achieve production efficiency.
The employee-centred manager establishes high performance goals and displays
supportive behaviour towards subordinates (Daft & Marcic; 2011: 389).
The researchers at Michigan concluded that the employee-centred manager is
more successful than the job-centred manager, because the former is committed to
employee satisfaction, productivity and reaching the objectives.
This is well-known within the field of management. Various assumptions on the
behaviour of management in Blake and Mouton’s theory can be attributed mainly
to two approaches: a job-centred approach or an employee-centred approach. This
view is very similar to the Ohio and Michigan studies.
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Employee orientation
High
High employee
+ low task
orientation
High employee
+ high task
orientation
Low task
+ high employee
orientation
High task
+ low employee
orientation
Low
Figure 17.1
Task orientation
High
Leadership styles
High
Concern for employees
1.9
9.9
5.5
1.1
Low
Figure 17.2
9.1
Concern for production
High
The managerial grid of Blake and Mouton
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The concern about production and concern about employees can be represented
on one set of axes. The job-centred approach is represented on the horizontal axis
(from left to right) and the employee-centred approach on the vertical axis (from
top to bottom). Each of the axes is divided into a nine-point scale.
The five basic leadership styles are then indicated, and other combinations
can be found in between. One (1) represents a very low concern for employees or
production and nine (9) a very high concern for employees or production. The
managerial grid is illustrated in Figure 17.2.
The combination 1.9, also referred to as country club management, pays
attention to the needs of people for satisfying relationships, thus leading to a
comfortable, friendly organisational atmosphere and work tempo. The 1.9 manager
(one-nine manager) focuses on the happiness and satisfaction of the employee.
People are much more important than production, and any pressure that may
develop as a result of production is avoided.
The 1.1 manager, also referred to as the impoverished manager, uses minimum
effort to get the required work done and follows the extreme form of a laissez-faire
leadership style. This manager is content to get enough results with the minimum
of effort to retain their job.
The 9.1 manager, also known as the authority-compliance manager or “slave
driver”, is an autocratic manager. This type of management arranges efficiency
in operations to such an extent that the human factor interferes only minimally.
The 5.5 manager, or middle-of-the-road manager, emphasises the importance
of production, but realises that people cannot be ignored. “One hand washes the
other” is the approach in this case.
Lastly, a 9.9 combination will represent a team management style where work
is accomplished by committed people with a common stake in the organisational
purpose. This leads to a relationship of trust and respect. This leadership style is
ideal and in most situations will result in improved job performance, a drop in
absenteeism, and increased job satisfaction among employees.
These combinations are the extremes and few people are exactly like these
examples. Most people fall somewhere in between these extremes (Daft & Marcic,
2011: 389).
In contrast with the Ohio and Michigan studies, which state that the employeeor people-centred approach is the best, Blake and Mouton’s managerial grid
indicates that the manager with a high concern for both production and people
follows the most effective leadership style (Rossouw, 2007: 131−132).
17.1.3
The contingency approach
How can two people with widely different styles both be effective leaders?
Researchers of the contingency approach have concluded that effective leadership
depends on more than just the behaviour and character traits of the manager. This
approach builds on the leader-follower relationship of behavioural approaches to
explore how the organisational situation influences a leader’s effectiveness.
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According to research, each situation contains certain factors that affect the
leadership style of the manager. Some of these factors are the following (Stoner
et al, 1995: 480):
•
•
•
•
expectations and behaviour of managers;
employee character traits, expectations and behavioural patterns;
task requirements; and
organisational culture and policies.
There are a number of contingency theories, which we will look at briefly below.
The autocratic-democratic continuum model of Tannenbaum and Schmidt
The seven basic leadership styles of Tannenbaum and Schmidt vary from an
authoritarian leadership style to an employee-centred leadership style. This theory
is based on the following three influences, which determine whether the manager
is an autocratic or democratic leader.
The managers themselves: The conduct of managers is influenced at any given
moment by the following:
•
•
•
•
their value system – determined by aspects such as belief, traditions and
education;
their trust in their employees;
their own approach to leadership, for example task-oriented or employeeoriented; and
their feeling of confidence in an uncertain situation.
The employees: The following factors determine how much freedom and space
the manager will allow the employees:
•
•
•
•
•
•
•
the employee’s need for independence;
the employee’s willingness to take responsibility for decision-making;
the extent to which the employee can function with few or no instructions;
the employee’s interest in the problem;
the extent to which the employee identifies with the objectives and understands
them;
the knowledge the employee has to solve the problem; and
the employee’s need for participation in the decision-making process.
The environment: Factors in the environment also play a role in the organisation:
•
The type of organisation: Each organisation has its own culture, which reflects
the personality of the organisation. It is important to note that managers
and employees help form the culture of the organisation through individual
contributions such as their values, traditions and beliefs. The culture within
the organisation will largely determine how management and the employees
act, and this will directly influence the leadership style. Culture is defined
as a set of important assumptions about an organisation and the goals and
practices which are shared by its members. In addition, values and the size
of the organisation also affect the culture and the leadership style within the
organisation (Bateman & Snell, 2015: 67).
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•
Group effectiveness: The ability and willingness of people to work together in
a group and their mutual trust will have a definite influence on the leadership
style of the manager.
The problem itself: The scope and nature of the problem may determine
how much authority and responsibility can be given to the employees. In
other words, the problem itself could dictate to what extent the manager
could delegate tasks and authorise the employees to work independently. The
leadership style is determined by each situation.
Time: The less time a manager has, the smaller the possibility that the
employees will be involved in a decision. In times of war, the troops must
follow orders. In these circumstances there is no time to obtain all the
opinions of everybody, because by the time this is done, the enemy will have
disappeared or killed the troops. The same may happen in the workplace
where an administrative manager is required to act immediately (to take a
decision) to save the situation or to act on an opportunity.
•
•
It is important that managers know themselves, know their employees and are able
to size up the environment so that they can come up with a suitable leadership
style (Rossouw, 2007: 135).
Figure 17.3 illustrates Tannenbaum and Schmidt’s leadership continuum and
shows the different leadership styles.
AutocraticDemocratic
Makes
decision &
announces it
Figure 17.3
Sells
decision
Gives
ideas
& invites
questions
Presents
tentative
decision
subject to
change
Presents
problem,
gets
suggestions
& makes
decision
Defines
limits,
asks group
to take
decision
Permits
employees
to function
within
defined limits
The leadership continuum of Tannenbaum and Schmidt
The Fiedler model
This model is based on the relationship between the favourableness of the situation
and the manager’s style. Fiedler defined the following three situational dimensions
that help to determine which leadership style will be effective:
•
•
The manager-employee relationship: If there is a good relationship between
the manager and the employees, the manager will tend to be more tolerant
and open with the employees.
Task structure: Clearly structured tasks prevent any uncertainty in
the employee. This must be accompanied by delegating authority and
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•
responsibility. This situation usually leads to the manager giving the employee
more freedom.
The power of the manager’s position: The power of the manager’s position
has a definite influence on the employees. The higher the position (the more
the power), the more easily the employees are influenced.
If all three of these dimensions are high, the situation is favourable for the
manager. In such a case, the employees generally accept the manager. Tasks are
well structured and explained, and authority and responsibility are given to the
manager.
Fiedler reasoned that the favourableness of the situation, together with the
leadership style, will determine the effectiveness of the manager within the
organisation.
Fiedler also found that if the situation is either very favourable or very
unfavourable, the task-centred approach to management works the best. In
contrast, an employee-centred approach will be better in situations that are fairly
favourable or fairly unfavourable for the manager (Rossouw, 2007: 136−137).
The life-cycle theory of leadership or situational leadership model
The life-cycle theory of leadership by Hersey and Blanchard was first published in
the late 1960s (Hersey et al, 2013: 114). At that stage the sole consideration of the
theory was the concept of maturity. In this theory maturity was defined as the
team members’ ability to be independent, their willingness to accept responsibility,
their drive to achieve, and their ability and experience to fulfil the task. Therefore,
the focus of the theory was mainly on development.
When, for example, a manager is working with highly educated, trained
and developed staff members who are matured, the most effective leadership
style may be a low-task/low-relationship one. However, during the early stages
when the team members are still fairly new to the workplace, the manager has
to apply a more structured approach. The reason is that the limitations and
requirements of the work have to be established by the manager. After a while,
when the team members are acquainted with the limitations and requirements,
the manager could move quickly through the to the mature style which reflects
a low-task/low-relationship behaviour.
Following this, the Centre for Leadership Studies in the UK realised that an
improvement on the original theory was needed and a focus on the development
of leadership skills was necessary to keep track of the fast-changing global
environment. Therefore, the theory moved away from maturity as a means
of diagnosis. The purpose of renewal was to simplify the method of diagnosis
and also to make the method of diagnosis easier to quantify. The Centre made
the discovery that the best and the easiest way to determine an individual’s or
a group’s performance needs could be reflected by the concept of readiness.
Readiness in this context is defined as the ability and willingness displayed by
an individual or a group when a certain task is performed.
Ability in this definition refers to the experience, knowledge and skills displayed
by an individual or a group. One needs to be cautious not to determine the readiness
of the individual or group from the manager’s perspective of what the ability should
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be, but to diagnose the readiness on the actual ability displayed by the readiness of
the in