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Formative Assessment 1 (FA1): Business Management 1 (HBMN130-1)
Naidoo, T.
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9805030389087
tashmikan@gmail.com
Boston Umhlanga
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Question 1
1.1.
1. The first managerial role of managers at MTN is the interpersonal role. This role
focuses on managers being people-centric whilst keeping in line with the
organisations goals and objectives. Managers need three sub-roles to fulfill this
role.
→ Figurehead: As a figurehead, the managers must represent their relevant
department, section, or organisation by performing ceremonial and symbolic
duties. A few examples of some of the tasks that will need to be performed by the
managers are organising luncheons for important clients or customers, attending
social events, and attending community activities (Botha and Vrba, 2021:51).
Figureheads are also responsible for encouraging their teams to achieve the
goals and aims of the organisation. They present a positive and professional
picture; they also hold the authority and respect of their team members (Smirti,
2021).
→ Leader: This sub-role involves the manager overseeing and assisting the
performance of team members, thus allowing the manager to lead his or her
teams effectively and efficiently to achieving the goals and objectives of the
organisation. For example, if the manager's team needs to meet a particular
sales goal within a period, then the manager must thoroughly indicate his or her
expectations to his or her team. During this period, the manager is expected to
support his or her team by navigating the workflow and supplying the necessary
resources required to achieve the goal (Indeed Editorial Team, 2022).
→ Liaison: The role of the liaison is to ensure that the organisation develops solid
relationships both inside and outside its walls. Managers must ensure that they
are politically aware of all organisational problems in order to successfully
network and establish connections within and outside of the organisation (Botha
and Vrba, 2021:51). The results of strong connections and networking open
doors for opportunities such as organisational collaborations and advancements
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(By the Mind Tools Content Team, n.d.). For example, the managers at MTN will
be able to liaise with customers/clients to gather information on their demands,
queries regarding customer service delivery and product delivery, and overall
expectations of the MTN branch thus they will be able to effectively communicate
this to their teams and transform this into positive outputs. (Indeed Editorial
Team, 2022)
2. The second managerial role is the information role. This role allows the
manager to gain information about colleagues, employees, departmental heads,
as well as outside individuals and organisations. The three sub-roles in this role
are the role of monitor, disseminator, and spokesperson.
→ Monitoring is a process whereby information on global, environmental, or industry
trends are monitored or gathered by the managers and analysed (Botha and
Vrba, 2021:51). For example, if a competitor launches an innovative product,
then the manager will evaluate the steps that need to be carried out to meet their
organisational standards whilst remaining competitive (Indeed Editorial Team,
2022).
→ Disseminator: Managers are required to disseminate necessary data or
information to their superiors or team members (Botha and Vrba, 2021:51). For
example, if the manager creates a proposal for an innovative product design after
monitoring the industry trends, he or she will present this design to higher
management for approval, and their team will follow suit if approved (Indeed
Editorial Team, 2022).
→ Spokesperson: The managers represent the organisation or their department by
acting as a spokesperson (Botha and Vrba, 2021:51). Managers also
communicate information to stakeholders, such as the goals and policies of the
organisation, and represent their teams in internal meetings. As an example, the
manager needs to attend the annual shareholders’ meeting. He or she must
speak on behalf of the organisation or his or her team, providing necessary
insights (Indeed Editorial Team, 2022).
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3. The third managerial role is decision-making. Managers must be able to make
strategic decisions in the best interests of the organisation as a whole. We look
at four sub-roles under this managerial role.
→ Entrepreneurs: Managers need to set up projects and capitalise on contemporary
trends that can be found in the monitoring role (Botha and Vrba, 2021:51). They
must encourage change and creativity. They should also produce and put into
action innovative ideas that benefit the organisation. As an example: The sales of
a newly launched product have noticeably slowed down. The manager should
then assess what needs to be done to achieve a successful output. This can be
done by developing current marketing strategies and ways of reaching clients or
customers (Peek, 2023).
→ Problem-solving: Should any issues arise within the department or section that
the manager handles, then the manager will deal with the issue accordingly. For
example, the manager can deal with angry clients or customers, negotiate with
difficult suppliers, or assist in an employee disagreement (Botha and Vrba,
2021:52).
→ Resource allocator: It is the duty of managers to distribute an organisations
resources and determine where they will be most useful, so that the most
favourable outputs are achieved. For example, the manager is required to set the
organisations budget for the departments or sections managed. In fulfilling this,
he or she will decide on how to distribute funds among the department or section
in accordance with the requirements or objectives of the specific department or
section (Indeed Editorial Team, 2022).
→ Negotiator: The manager deals with internal and external individuals, other
departments or organisations, and trade unions (Botha and Vrba, 2021:52). For
example, if a team member requiress a salary increase, and the request cannot
be met then the manager will negotiate this request and offer a solution that
satisfies both the organisation and the team member (Indeed Editorial Team,
2022).
Question 2
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The market environment is the environment in which an MTN competes with others in
the industry. The environment comprises the following sub-environments; customers,
competition, the labour market and labour unions, intermediaries, suppliers.
→ Customers in the market environment are the reason why MTN exists, which is
why the main goal is to satisfy the customer's needs in order to gain their loyalty.
It is extremely imperative for MTN to have an in-depth understanding of the
characteristics, needs, and expectations of their customers to be able to survive.
Customers use bargaining power, purchasing power, and buyer behaviour in
order to obtain the highest quality, quantity, and most cost-effective product or
service from the organisations in the industry. This in turn creates a competitive
environment for the organistations as there is now a need to retain customers by
offering the most affordable, high-quality, and quantity products and services.
→ Other than customers, MTN's competitors are the most significant daily force it
must contend with. Because other organisations in the same industry offer
basically the same goods and services, there is fierce competition to retain
customers. For MTN to compete successfully against its competitors, a
competitor analysis can be done to aid in understanding, interpreting, and
predicting the actions and responses of its competitors.
→ MTN’s labour market is extremely versatile. Employing people with various skill
levels, age groups, sexes, and geographical regions aids the organisation in
achieving its success. Due to the temporary nature of employment relations,
there is a lot of fluidity and unpredictability in the labour market which is why
MTN focuses on attracting and retaining capable employees. The nature of
MTN’s internal and external environments creates a profound influence on the
employee recruitment process. To ensure success in this aspect, MTN focuses
on building a compelling reputation as an employer and providing stable
economic conditions and employment rates. When the availability of people with
the required skills becomes scarce, MTN will try to compete with other
organisations within the industry for competent labour. In such cases we see the
labour unions playing an integral role in this regard.
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→ Intermediaries are individuals or companies that present MTN's products and
services to customers in different capacities. They are the link that lies between
MTN and the final customers, their role is integral and indirectly and directly
affects the organisation. Intermediaries include wholesale, retailers, agents, and
brokers.
→ MTN needs inputs in order to produce outputs, these inputs are procured from
suppliers and are identified as human resources, capital, technology, and
information. The conversion of inputs to outputs is done through a process that
involves a chain of activities to produce valuable products and services for the
market served. This is known as the value chain and by utilising this, value is
created for all role-players, and a lasting competitive advantage is created for
MTN. The availability of suppliers and alternative supplies are extremely
important for the functioning of the organisation. This factor also leads to the
bargaining power of suppliers.
2.2
Customers:
→ A customer had trouble using their new digital device that was purchased from
the Canal Walk branch. The customer was able to call the agent that helped with
the purchase and received a step-by-step breakdown of how to resolve the
issues experienced.
→ When customers enter the Canal Walk branch, they are immediately met with
smiling and cheerful staff who offer prompt assistance according to the
customer’s needs.
→ A loyal MTN customer had come into the Canal Walk branch to take out a new
mobile contract. However, they had seen a similar contract with Vodacom, a
competitor company of MTN, and hoped that they could take the same deal with
MTN due to their long-term loyalty. Discussions were made with management
and a deal was made to honour and retain the customer's support.
Competitors:
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→ MTN’s largest competitor Vodacom was founded in the same year which means
that the pricing, products, and quality are similar. Due to this similarity, MTN
consistently works on innovative products and services and marketing tactics to
keep the interest of customers high and in their favour.
→ MTN focuses on achieving economies of scale as this creates a great barrier for
new telecom organisations in the market.
→ MTN focuses on uniqueness through quality, price, designs, brand image, and
customer service. This type of differentiation gives them an advantage over other
telecom organisations in the market by locking in customer loyalty to their
products and services.
Labour market:
→ MTN recruits highly competent and skilled individuals so that the organisation
fully benefits from the position. For example, MTN hired a lower-level manager,
who was well-equipped with years of experience. The manager led their team to
remarkable success due to this aspect.
→ MTN retains employees by providing competitive compensation packages and
benefits.
→ MTN focuses on maintaining a strong employer reputation. This is achieved
through a transparent organisational mission and a collection of core values,
which in turn attract the right labour market.
Intermediaries:
→ MTN products and services are brought to their customers through retailers that
can be found in various locations across the continent, specifically shopping
malls.
→ MTN offers an intermediary Device Insurance Policy that is a single point of
contact for any device insurance needs required by their customers.
→ MTN offers local businesses the opportunity to offer and distribute their services
and products, for example, sim card packs, and airtime.
Suppliers:
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→ In order to recruit human resources, MTN has a ‘career page’ on their website
that includes a list of jobs available at various branches. Each listed position will
include requirements, such as skill, qualification, experience, and overall duties.
The most competent applicant will be chosen.
→ MTN largest electronics supplier is Dell Technologies, they obtain electronic
devices, software and hardware, as well as IT services from the company.
→ MTN had partnered with the World Banks International Finance Corporation
(IFC) to expand its mobile money business. The IFC contributed $1 million, which
was matched by MTN. During the COVID-19 pandemic, MTN's mobile money
(MoMo) company saw an increase in transaction values and user numbers as
mobility restrictions and the avoidance of physical cash drove people to mobile
money platforms. The partnership will target the unbanked and underbanked
populations by creating a powerful network of Momo agents who will perform
cash transfers on customers' behalf (Dludla, 2021).
Question 3
3.1.1. Generational Alpha
3.1.2. Generation X
3.1.3. Generation Z
3.1.4. The Silent Generation
3.1.5. Generation Y
3.1.
→ Avoidance: A conflict is avoided or suppressed by one or both parties.
→ Accommodation: One party is prepared to consider the needs of the other in
order to resolve the conflict, find a solution, or keep things as they are.
→ Compromise: Agree on a compromise and both parties give up something.
→ Competition: One or both parties are only concerned with their own interests,
which leads to dysfunctional conflict and a win-lose outcome.
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→ Collaboration: Both parties discuss their differences and reach a win-win solution
where everyone gains.
3.2
→ Personal differences: Conflict arises from personal differences between
individuals stemming from demographic factors such as background, race,
culture, age, levels of education, worldviews, and value systems.
→ Communication breakdown: Poor communication and misinformation create
negative perceptions resulting in interpersonal conflict.
→ Role incompatibility: Different interdependent roles and functions of authority
figures could lead to interpersonal conflict if they are incompatible with one
another.
→ Environmental stressors: High levels of stress brought upon by the external and
internal environment can cause interpersonal conflict.
→ Competing for the same position: When individuals compete for the same scarce
position. Depending on the available opportunities within the organisaiton, this
could lead to intense competition and conflict surround the available position.
3.3 Psychological symptoms:
→ Loss of objectivity and fearful anticipation
→ Constant feelings of uncertainty or insecurity
→ Racing thoughts and constant worrying
Physical symptoms:
→ Nausea
→ Palpitations (heart)
Question 4
The concept of culture can be described as a fundamental aspect of life. A basic
meaning would be ‘being cultured,’ in other words, being human. It is the way people
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behave considering all influencing variables and the ability to use these variables to
positively influence others.
Culture can be found everywhere at any given time. We see numerous studies, dating
back to the 1930s, that concentrate on the unique culture of organisations. Due to the
complexity of the term ‘culture’ there has been an array of definitions from diverse fields
on what organisational culture is. Edgar H Schein, a management scientist created a
definition for the concept of which is most prominent (Botha and Vrba, 2021:152-153).
"Schein defines culture as everything an organization has learned throughout its history"
(Minute Tools Content Team, 2022). Schein’s definition of organisational culture is the
pattern of basic assumption, which is the core of the culture in any organisation. He
further states that these assumptions were developed as a coping mechanism to its
problems of external adaption and internal integration and due to the consistent success
of these assumptions, they are imparted to future generations as the right way to
perceive, think about, and feel about those problems (Schein, 1990).
Due to South Africa's diversity, organisational culture was seen as a challenge.
However, over time organisational cultures evolved, and many organisations share
somewhat similar norms and values. Here are a few examples of the way things are
done:
Just Landed (2014) explains:
•
The use of humour in moderation is accepted when conducting business, it is
mostly used as an ice breaker.
•
South Africans greet with a firm handshake paired with eye contact.
•
When it comes to female's its best to wait for them to lend their hand out as
majority of the time, they offer greetings by a simple node and smile.
South Africa (n.d) explains:
•
It is uncommon to schedule meetings between mid-December and mid-January,
as this is prime holiday time in South Africa, and they place extreme emphasis on
year-end holidays and their activities.
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•
South Africans prefer to physically engage with others, rather than having
meetings via technology.
In conclusion, having culture within an organisation is imperative for the long-lasting
success and survival of any organisation.
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Reference List
▫ Botha, T. and Vrba, M. (2021) Contemporary Management Principles. 2nd edn.
Capetown: Juta and Company.
▫ By the Mind Tools Content Team (n.d.). Mintzberg’s Management Roles
Identifying the Roles Managers Play. MindTools [website]. Retrieved from
https://www.mindtools.com/ajfb1ev/mintzbergs-management-roles [Accessed 24
Mar. 2023].
▫ By the Mind Tools Content Team (n.d.). Professional Networking Building
Relationships for Mutual Benefit. MindTools [website]. Retrieved from
https://www.mindtools.com/aany5dn/professional-networking [Accessed 24 Mar.
2023].
▫ Dludla, N. (2021). MTN South Africa teams up with World Bank’s IFC on mobile
money. Nasdaq [website]. Retrieved from https://www.nasdaq.com/articles/mtnsouth-africa-teams-up-with-world-banks-ifc-on-mobile-money-2021-05-19
[Accessed 1 Apr. 2023].
▫ Indeed Editorial Team (2021). 10 Managerial Roles According to Mintzberg.
Indeed Career Guide [website]. Retrieved from: https://www.indeed.com/careeradvice/finding-a-job/managerial-role [Accessed 24 Mar. 2023].
▫ Just Landed. (2014). Business culture in South Africa [website]. Retrieved from:
https://www.justlanded.com/english/South-Africa/South-AfricaGuide/Business/Business-culture-in-South-Africa [Accessed 5 Apr. 2023].
▫ Minute Tools Content Team (2022). Edgar Schein’s Organizational Culture
Model. Expert Program Management [website]. Retrieved from:
https://expertprogrammanagement.com/2022/09/edgar-schein-culture-model/
[Accessed 5 Apr. 2023].
▫ Peek, S. (2023). The Management Theory of Henry Mintzberg Basics.
Business.com [website]. Retrieved from:
https://www.business.com/articles/management-theory-of-henry-mintzbergbasics/ [Accessed 26 Mar. 2023].
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▫ Schein, E.H. (1990). Organizational culture. American Psychologist, 45(2):109–
119. doi:https://doi.org/10.1037//0003-066x.45.2.109.
▫ Smirti (2021). Managerial Roles - 3 Types of Managerial Roles | Principlesof
Management. Management Notes [website]. Retrieved from
https://www.managementnote.com/managerial-roles/ [Accessed 24 Mar. 2023].
▫ South Africa. (n.d.). Business Etiquette In South Africa [website]. Retreived from:
https://www.southafrica.net/gl/en/travel/article/business-etiquette-in-south-africa
[Accessed 5 Apr. 2023].
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