Show leadership in the
workplace - 2010
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Introduction
Overview
Key concepts
Assessments
Q/A
ORGANISATION
Definitions
1 A deliberate arrangement of people to
accomplish some specific purpose.
Robbins et al 2 p5
2 Two or more persons engaged in a
systematic effort to produce goods and
services
Bartol et al p13
CHARACTERISTICS OF
ORGANISATIONS
Distinct Deliberate
purpose structure
People
Robbins et al 2 p5
ORGANISATIONAL LEVELS
Top
managers
Middle
managers
First-line managers
Non-managerial employees
Robbins et
al 2 p 7
Question – small group activity
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How have organisations changed over
the past 20 years
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Structure
People
Purpose
THE CHANGING
ORGANISATION
1/2
TRADITIONAL
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Stable
Inflexible
Job-focused
Individual-oriented
Permanent jobs
Command-oriented
Managers always
make decisions
NEW
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Dynamic
Flexible
Skills-focussed
Work defined in terms
of tasks
Team-oriented
Temporary jobs
Involvement-oriented
THE CHANGING
ORGANISATION
2/2
(TRADITIONAL)
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Rule-oriented
Relatively
homogeneous
workforce
Work days defined as
9 to 5
Hierarchical
relationships
Work at organisational
facility during specific
hours
(NEW)
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Employees participate
in decision-making
Customer-oriented
Diverse workforce
Workdays have no
time boundaries
Lateral and networked
relationships
Work anywhere,
anytime
Robbins et al 2
p6
MANAGEMENT
Definition
The process of achieving
organisational goals
through engaging in the
four major functions of
planning, organising,
leading and controlling.
Bartol et al p13
MANAGER
Definition
An organisational
member who integrates
and co-ordinates the
work of others.
Robbins et al 2 p7
MANAGEMENT FUNCTIONS
1/2
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Planning
- Defining goals, establishing strategy, and
developing plans to co-ordinate activities
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Organising
- Determining what tasks are to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom and where
decisions are made.
MANAGEMENT FUNCTIONS
2/2
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Leading
- Includes motivating subordinates, directing
others, selecting the most effective
communication channels, and resolving
conflicts
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Controlling
- Monitoring activities to ensure that they are
being accomplished as planned and
correcting any significant deviations
Robbins et al 2 pp10-11
MANAGEMENT FUNCTIONS AT
DIFFERENT HIERARCHICAL LEVELS
planning
organising
leading
controlling
Bartol et al p28
First line
Middle
Top
Leadership vs management
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Team leadership requires a different role
to that of the line manager
Team leaders are more like coaches than
bosses, they bring out the best in team
members and assist the team to work
effectively
A leadership theory that suits team
leadership is “situational leadership
theory”.
Leadership
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Situational leadership theory, developed by Hersey
and Blanchard, is based on the premise that
leaders need to alter their behaviours depending on
the readiness of followers.
The theory looks at task behaviours where the
leader tells people what to do, how to do it and
when to do it. Relationship behaviour involves the
leader listening, facilitating and supporting
behaviours.
The leader develops an idea of team members
readiness levels which include willingness
(confidence, commitment and motivation), and
ability (job readiness).
Leadership
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1.
2.
3.
4.
4 types of leadership behaviour.
Telling: when the team member is unable or unwilling or too
insecure to take responsibility for a task. For example a
new team member. It involves giving specific directions.
Selling: when team members are unable to take
responsibility but are willing or feel confident. For example
a keen but not fully trained team member. The selling style
aims to give direction while being supportive of the team
member’s enthusiasm.
Participating: Where team members are able to take
responsibility but are unwilling or too insecure to do so.
Emphasis on two way communication and collaboration is
effective.
Delegating: When team members are able and willing to
take responsibility. They need little support or direction and
so can be delegated responsibilities.
MANAGEMENT PROCESS
Definition
The set of ongoing
decisions and actions
in which managers
engage as they plan,
organise, lead and
control.
Robbins et al 2 p 11
MANAGEMENT SKILLS (1)
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Technical Skills
Skills that include knowledge of and
proficiency in a certain specialised field
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Human/Interpersonal Skills
The ability to work well with other
people both individually and in a group
MANAGEMENT SKILLS (2)
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Conceptual Skills
The ability to think and conceptualise about
abstract situations, to see the organisation
as a whole and the relationships among its
various sub-units, and to visualise how the
organisation fits into its environment.
Robbins et al 2 pp15-6
MANAGEMENT SKILLS AT DIFFERENT
HIERARCHICAL LEVELS
Technical
Human
Conceptual
First-line
Middle
Top
Bartol et al p29
MANAGEMENT AREAS OF
RESPONSIBILITY (1)
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Functional Managers
Responsible for a specific, specialised
area of the organisation and who
supervise individuals with expertise in
that area
General Managers
Responsible for a total organisation or
a substantial sub-unit that includes
most of the common specialised areas
within it
MANAGEMENT AREAS OF
RESPONSIBILITY (2)
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Project Managers
Responsible for co-ordinating efforts of
individuals in several different
organisational units all working on one
project.
Bartol et al p33
PHASES IN THE DEVELOPMENT OF
MANAGEMENT THEORY
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Pre-classical
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Classical
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Behavioural
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Quantitative
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Contemporary
Bartol et al p44
PRE-CLASSICAL
A number of “progressive” individuals
of the middle to late 1800s began to
lay the foundations for the broader
enquiries into the nature of
management.
Contributors from this period included
Robert Owen, Charles Babbage and
Henry Towne.
CLASSICAL VIEWPOINT
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A perspective on management
emphasising finding ways to manage
work and organisations more
effectively.
It encompasses the perspectives of :
Scientific Management
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Administrative Management
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Bureaucratic Management
Bartol et al p45
SCIENTIFIC MANAGEMENT
An approach emphasising the
scientific study of work methods to
improve worker efficiency
Representatives of this approach were
Frederick Taylor, Frank & Lillian
Gilbreth and Henry Gantt.
Bartol et al pp47-50
ADMINISTRATIVE
MANAGEMENT
An approach focussing on
principles that can be used by
managers to co-ordinate the
internal activities of organisations
Representatives of this approach
were Henri Fayol and Chester
Barnard
Bartol et al p52
BUREAUCRATIC
MANAGEMENT
An approach emphasising the need for
organisations to operate in a rational
manner rather than relying on the
arbitrary whims of owners and
managers
The noted contributor from this area is
Max Weber.
BEHAVIOURAL VIEWPOINT
A perspective on management emphasising the
importance of attempting to understand the various
factors affecting human behaviour in organisations
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Behavioural Management encompasses the areas
of
Early Behaviourists
Hawthorne Studies
Human relations Movement
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Behavioural Science Approach
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Bartol et al p54-61
EARLY BEHAVIOURISTS
As interest grew in management,
individuals from specialisations other
than engineering provided alternatives
to the engineering perspective of
scientific management
Proponents within this phase are Hugo
Munsterberg and Mary Follett
Bartol et al p55
HAWTHORNE STUDIES
A group of studies conducted at the
Hawthorne plant of Western Electric
Co during the late 1920s and early 30s
which ultimately lead to the human
relations view of management
The major researchers in the study
were Elton Mayo and Fritz
Roethlisberger
Bartol et al pp56-9
HUMAN RELATIONS
MOVEMENT
The emphasis was on building more
collaborative and co-operative
relationships. Managers needed social
skills and a better understanding of
how to give workers more job
satisfaction.
The proponents of this area were
Abraham Maslow and Douglas
McGregor
Bartol et al pp59-61
BEHAVIOURAL SCIENCE
APPROACH
An approach emphasising scientific
research as the basis for developing
theories about human behaviour in
organisations that can be used to
develop practical guidelines for
managers.
One outcome from this area was that
individuals perform better with
challenging goals. Proponents - Locke,
Herzberg
Bartol et al pp61-2
QUANTITATIVE
MANAGEMENT
Focused on using mathematics,
statistics and information aids to
support managerial decision making
and organisational performance.
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The three main branches evolved :
Management science
Operations management
Management information systems
Bartol et al p62
MANAGEMENT SCIENCE
An approach aimed at increasing decision
effectiveness through the use of
sophisticated mathematical models and
statistical methods
(Megginson, Mosley & Pietri)
Bartol et al p62
OPERATIONS
MANAGEMENT
The function or field of expertise
primarily responsible for managing
production and organisation’s products
and services
(Sawaya & Giauque)
Bartol et al p62
MANAGEMENT
INFORMATION SYSTEMS
The field of management which
focuses on designing and
implementing computer-based
information systems for use by
management.
Bartol et al p63
CONTEMPORARY
VIEWPOINTS
(These are recent innovations into
management thinking)
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Systems Approach
Contingency Approach
Emerging Theories
Bartol et al p63
SYSTEMS APPROACH
An approach based on the idea that
organisations can be visualised as
systems (A set of interrelated parts
operating as a whole in pursuit of
common goals)
Four major components make up the
organisational system - inputs,
transformational processes, outputs
and, feedback.
Bartol et al p63
CONTINGENCY THEORY
A viewpoint arguing that appropriate
managerial action depends on the
particular parameters of the situation
Bartol et al p66
OTHER THEORIES
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Japanese Management
Focussing on aspects of Japanese management
that may be adopted elsewhere in the world
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Theory Z
Combining Western and Japanese management in
bit still maintaining norms & values of Western
culture
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Total Quality Management
Highlights collective responsibility for product and
service encouraging individuals to work together
Bartol et al p68
ORGANISATIONAL
CULTURE
Def.
A system of shared values,
assumptions, beliefs and norms held
by members of an organisation
Bartol et al ‘95 p101
DIMENSIONS OF
ORGANISATIONAL CULTURE
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Innovation and risk-taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
ASPECTS OF CULTURE
DETERMINING IMPACT ON AN
ORGANISATION
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Direction - degree to which culture
supports reaching organisational goals
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Pervasiveness - degree to which a
culture is widespread among members
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Strength - degree to which members
accept the values etc of the culture
Bartol et al ‘95 p101
HOW EMPLOYEES LEARN
CULTURE
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Stories
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Rituals
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Material symbols
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Language
Robbins et al 2 ‘00 pp97-8
CHANGING ORGANISATIONAL
CULTURE (1/2)
1. Surface actual norms - members list actual
norms they believe influence their attitudes
and actions
2. Articulate new directions - members
discuss current organisational direction and
behaviours necessary for organisational
success
3. Establish new norms - group members
develop a list a of norms that would have a
positive impact on organisational
effectiveness
CHANGING ORGANISATIONAL
CULTURE (2/2)
4. Identify culture gaps - identify areas of
major difference between actual norms and
those which would have a positive impact
5. Close culture gaps - agree on new norms
and develop ways to reinforce them (reward
system)
Bartol et al ‘95 p105
ORGANISATIONAL
ENVIRONMENT
Def.
Environment
Outside institutions or force that potentially
affect an organisation’s performance
Mega-environment
The broad conditions and trends in the
societies within which an organisation
operates (Robbins et al refers to as General
Environment)
Bartol et al ‘95 p82
ORGANISATIONAL
ENVIRONMENT
Def.
Internal
The general conditions existing within an
organisation
External
The major forces outside the organisation
with the potential to significantly impact
on on the operations of an organisation
Bartol et al ‘95 p82
ORGANISATIONAL
ENVIRONMENT
Def.
Environmental Uncertainty
The degree of change and complexity in an
organisation’s environment
Environmental Complexity
The number of components in an
organisation’s environment and the extent of
an organisation’s knowledge about its
environmental components
Robbins at al 00
p103
PLANNING
Def.
A process that involves defining an
organisation’s objectives or goals,
establishing an overall strategy for
achieving those goals, and developing
a comprehensive hierarchy of plans to
integrate and co-ordinate activities.
Robbins et al 00 p247
PURPOSE OF PLANNING
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Provides direction
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Reduces the impact of change
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Minimises waste and redundancy
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Sets standards used in controlling
Robbins et al 00 p247
MAJOR COMPONENTS OF
PLANNING (1/3)
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Mission
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Goals/Objectives
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Plans
Bartol et al 95 p154
MAJOR COMPONENTS OF
PLANNING (2/3)
Mission
The organisation’s purpose or fundamental
reason for existence
Mission Statement
A broad declaration of the basic, unique
purpose and scope of operations
distinguishing the organisation from others
of its type
Bartol et al 95 p154
MAJOR COMPONENTS OF
PLANNING (3/3)
Goals/Objectives
Future targets or end results that an
organisation wishes to achieve
Plans
The means devised for attempting to
reach a goal
Bartol et al 95 p154
TYPES OF PLANS (1/5)
Strategic Plans
Plans that are organisation-wide, establish
overall objectives, and position an
organisation in terms of its environment
Operational Plans
Plans that specify details on how overall
objectives are to be achieved
TYPES OF PLANS (2/5)
Contingency Plans
The development of alternative plans for
use when environmental conditions evolve
differently to that anticipated, rendering
original plans unwise or unfeasible.
(Bartol et al 95 p176)
TYPES OF PLANS (3/5)
Long Term Plans
Plans that extend beyond 5 years
Short Term Plans
Plans that cover less than 1 year
TYPES OF PLANS (4/5)
Specific Plans
Plans that are clearly defined and leave no
room for interpretation
Directional Plans
Flexible plans that set out general
guidelines
TYPES OF PLANS (5/5)
Single-Use Plan
A one-time plan that is specifically designed to meet
the needs of a unique situation and is created in
response to non-programmed decisions made by
managers
Standing Plans
Ongoing plans that provide guidance for activities
repeatedly performed in the organisation; they are
created in response to programmed decisions
made by managers
Robbins et al 00
pp250-2
ESTABLISHING
OBJECTIVES (1/3)
Traditional
Objectives are set at the top and then
broken down into sub-goals for each level in
an organisation. The top imposes its
standards on everyone below
Robbins et al 00 p260
ESTABLISHING
OBJECTIVES (2/3)
Means-ends-chain
An integrated network of organisational
objectives, or ends, are linked to lower-level
objectives, which serve as the means for
their accomplishment
Robbins et al 00 p260
ESTABLISHING
OBJECTIVES (3/3)
Management by Objectives (MBO)
A system in which specific performance
objectives are jointly determined by
subordinates and their supervisors,
progress towards objectives is periodically
reviewed, and rewards are allocated on the
basis of this progress
Robbins et al 00 p261
COMMON ELEMENTS OF
MBO
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Goal specificity
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Participation in decision-making
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Explicit time period
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Performance feedback
Robbins et al 00 p262
TYPICAL STEPS IN A MBO
PROGRAMME (1/2)
1. Organisation’s overall objectives and
strategies are formulated
2. Major objectives are allocated among
divisional and departmental units
3. Unit managers collaboratively set specific
objectives for their units with their
supervisors
4. Specific objectives are collaboratively set for
all department members
TYPICAL STEPS IN A MBO
PROGRAMME (2/2)
5. Action plans, defining how objectives are to
be achieved, are specified and agreed upon
by managers and subordinates
6. Action plans are implemented
7. Progress towards objectives is periodically
reviewed, and feedback provided
8. Successful achievement of objectives is
reinforced by performance-based rewards
Robbins et al 00 p263
STRATEGIC MANAGEMENT
PROCESS
Def.
An eight step process that
encompasses strategic planning,
implementation and evaluation
LEVELS OF STRATEGY
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Corporate
Seeks to determine what business a
corporation should be in
Business
Seeks to determine how a corporation
should compete in each business
Functional
Seeks to determine how to support the
business-level strategy
Robbins et al 00 p275-6
STRATEGIC MANAGEMENT
PROCESS STEPS
1. Identify the organisation’s current mission,
objectives and strategies
2. Analyse the external environment
3. Identify the opportunities and threats
4. Analyse the organisation’s resources
5. Identify the strengths and weaknesses
6. Formulate strategies
7. Implement strategies
8. Evaluate results
Robbins et al 00 pp277-84
SWOT ANALYSIS (1/3)
Def.
A method of analysing an organisation’s
competitive situation that involves assessing
organisational:
Strengths
Weaknesses
Opportunities, and
Threats
Bartol et al 95 p196
SWOT ANALYSIS (2/3)
External
 An opportunity is an environmental
condition which can significantly
improve an organisation’s situation
relative to that of competitors
 A threat is an environmental condition
which can significantly undermine an
organisation’s competitive position
SWOT ANALYSIS (3/3)
Internal
 A strength is an internal aspect which
can improve the organisation’s
competitive situation
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A weakness is an internal aspect
where the organisation is potentially
vulnerable to competitors’ strategic
moves
Bartol et al 95 p196
DECISION-MAKING /
PROBLEM-SOLVING (1/2)
Definitions
 Problem
The difference between an actual situation
and a desired situation
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Decision
A choice made from two or more
alternatives
DECISION-MAKING /
PROBLEM-SOLVING (2/2)
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Decision-making process
The process through which problems
are identified and attempts made to
resolve them
TYPES OF PROBLEMS FACED
BY DECISION-MAKERS (1/2)
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Crisis Problem
A serious difficulty requiring immediate action
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Non-crisis Problem
An issue that requires resolution but does not
simultaneously have the importance and
immediacy characteristics of a crisis
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Opportunity Problem
A situation offering strong potential for significant
organisational gain if appropriate actions are
taken
Bartol et al 95 p257
TYPES OF PROBLEMS FACED
BY DECISION-MAKERS (2/2)
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Well-structured Problem
Straightforward, familiar, easily defined
problems
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Ill-structured Problem
New problems in which information is
ambiguous or incomplete
Robbins et al 00 pp214/6
DECISION-MAKING
SITUATIONS
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Programmed (routine) decisions
Decisions made in routine, repetitive, wellstructured situations through the use of predetermined decision rules
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Non-programmed decisions
Situations for which pre-determined decision
rules are impractical because the situations
are novel and/or ill-structured
Bartol et al 95 p259/60
PROGRAMMED DECISIONMAKING PROCESS
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Previous solutions
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Procedures
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Rules
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Policies
Robbins et al 00 p215
DECISION-MAKING STYLES
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Problem Avoider - inactive
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Problem Solver - reactive
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Problem Seeker - proactive
PERSPECTIVES ON HOW
DECISIONS ARE MADE (1/4)
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Rational Model
Suggests that managers engage in
completely rational decision processes,
ultimately make optimal decisions and
possess and understand all information
relevant to their decisions at the time they
make them
Bartol et al 95 pp262-4
PERSPECTIVES ON HOW
DECISIONS ARE MADE (2/4)
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Non-rational models
Suggests that information-gathering and processing
limitations make it difficult for managers to make
optimal decisions
 Bounded rationality
Suggests that the ability of managers to be perfectly
rational in making decisions is limited by such
factors as cognitive capacity and time
constraints
Bartol et al 95 pp262-4
PERSPECTIVES ON HOW
DECISIONS ARE MADE (3/4)
Satisficing model
States that managers seek alternatives only
until they find one that looks satisfactory,
rather than seeking the optimal decision
 Incremental model
Managers make the smallest response
possible that will reduce the problem to at
least a tolerable level

Bartol et al 95 pp262-4
PERSPECTIVES ON HOW
DECISIONS ARE MADE (4/4)
Rubbish-bin model
States that managers behave in virtually random
pattern in making non-programmed decisions

Bartol et al 95 pp262-4
DECISION-MAKING
PROCESS (1/2)
1.
Identify problem
Discrepancy between an existing and a
desired state of affairs
2.
Identify decision criteria
What is relevant to the decision-making
process
3.
Allocating weights to criteria
What are the important criteria
DECISION-MAKING
PROCESS (2/2)
4.
Developing alternatives
How could the problem be resolved
5.
Analysing alternatives
Measure strength and weaknesses of each by
weighting
6.
7.
8.
Select alternative
Implement alternative
Evaluate decision effectiveness
Robbins et al 00 pp201-8
DECISION-MAKING
CONDITIONS
(Part of analysing alternatives)
 Certainty - can make accurate decisions
because the outcome of every alternative is
known
 Risk - conditions in which the decisionmaker is able to estimate the likelihood of
certain outcomes
 Uncertainty - decision-maker has neither
certainty nor reasonable probability
estimates available
Robbins et al 00 pp218-9
OVERCOMING BARRIERS TO
EFFECTIVE DECISION-MAKING
(1/2)

Accepting the problem challenge
Four basic reaction patterns to a legitimate
problem
 Complacency - do not see the signs of
danger or opportunity, or ignore them
 Defensive avoidance - deny the
importance of a danger or an opportunity
or deny responsibility for taking action
Bartol et al 95 p270-2
OVERCOMING BARRIERS TO
EFFECTIVE DECISION-MAKING
(1/2)


Panic - a reaction where individuals
become so upset that they frantically
seek a way to solve a problem
Decide to decide

Search for sufficient alternatives

Recognise common decision-making
biases
Bartol et al 95 p270-2
COMMON DECISIONMAKING BARRIERS (1/3)

Framing
The tendency to make different decisions
depending on how a problem is presented

Prospect theory
Decision-makers find the prospect of an
actual loss more painful than giving up the
possibility of a gain
Bartol et al 95 pp272-3
COMMON DECISIONMAKING BARRIERS (2/3)

Representativeness
The tendency to be overly influenced by
stereotypes in making judgements about the
likelihood of occurrences

Availability
The tendency to judge the likelihood of an
occurrence on the basis of the extent to
which similar instances or occurrences can
be recalled
Bartol et al 95 pp272-3
COMMON DECISIONMAKING BARRIERS (3/3)

Anchoring and adjustment
The tendency to be influenced by an initial
figure, even when the information is largely
irrelevant

Overconfidence
The tendency to be more certain of
judgements regarding the likelihood of a
future event than ones’ actual predictive
accuracy warrants
Bartol et al 95 pp272-3
GROUP DECISION-MAKING
Advantages




Provides more
complete
information
Generates more
alternatives
Increases
acceptance of
solution
Increases
legitimacy
Disadvantages





Pressures to conform
/groupthink
Disagreements delay
decisions/hard feelings
Ambiguous
responsibility
Minority domination
Time consuming
Robbins & Bartol
ENHANCING GROUP
DECISION-MAKING (1/4)

Devils advocates
Individuals who are assigned the role of
ensuring that negative aspects of attractive
decision alternatives are considered

Dialectical inquiry
A procedure in which a decision situation is
approached from two opposite points of
view
Bartol et al 95 p278
ENHANCING GROUP
DECISION-MAKING (2/4)

Brainstorming
A technique encouraging group members to
generate as many novel ideas as possible
on a given topic without evaluating them at
the time

Nominal group technique (NGT)
A technique integrating both individual work
and group interaction within certain ground
rules
Bartol et al 95 pp283-4
ENHANCING GROUP
DECISION-MAKING (3/4)

Delphi technique
A group decision-making technique in which
members never meet face-to-face and they
are unaware of who the other participants
are

Electronic meeting
A decision-making group that interacts by
way of linked computers
Robbins et al 00 p226
ENHANCING GROUP
DECISION-MAKING (4/4)

Synetics
A technique relying on analogies to help
group members look at problems from new
perspectives
Bartol et al 95 p284
ORGANISING (1/12)
Def.
The process of creating an
organisation’s structure
Robbins et al 00 p351
ORGANISING (2/12)
Organisational Structure
The organisation’s formal framework
by which job tasks are divided,
grouped and co-ordinated
Organisational Design
Developing or changing an
organisation’s structure
Robbins et al 00 p351
ORGANISING (3/12)
Organisation Chart
A line diagram depicting the broad
outlines of an organisation’s structure
Formalisation
The degree to which written policies,
rules, procedures, job descriptions etc
specify what actions are (or are not) to
be taken under given circumstances
Bartol et al 95 p296/305
ORGANISING (4/12)
Work Specialisation (Division of
Labour)
The degree to which tasks in an
organisation are divided into separate
jobs
Robbins et al 00 p352
Job Design
The specification of task activities
associated with a particular job
Bartol et al 95 p298
ORGANISING (5/12)
Authority
The rights inherent in a managerial
position to give orders and to expect
orders to be obeyed
Responsibility
The obligation or expectation to
perform
Robbins et al p357
ORGANISING (6/12)
Delegation
The assignment of part of a manager’s work
to others along with both the necessary
responsibility and authority to achieve
expected results
Accountability
The requirement to provide satisfactory
reasons for significant deviations from duties
or expected results
Bartol et al 95 p314
ORGANISING (7/12)
Chain of Command
The unbroken line of authority
ultimately linking each individual with
the top organisational position through
a managerial position at each
successive layer in between
Bartol et al 95 p298
ORGANISING (8/12)
Unity of Command
The management principle that
subordinates should have only one
supervisor to whom they are directly
responsible
Span of Control
The number of subordinates that a manager
can supervise efficiently and effectively
Robbins et al 00 p357-8
ORGANISING (9/12)
Centralisation
The degree to which decision-making is
concentrated in the upper levels of the
organisation
Decentralisation
The handing down of decision-making to
lower levels in an organisation
Robbins et al 00 p359
ORGANISING (10/12)
Tall Structure
A structure with many hierarchical
levels and narrow spans of control
Flat Structure
A structure with few hierarchical levels
and wide spans of control
Bartol et al 95 p308
ORGANISING (11/12)
Line Position
A position with authority and responsibility
for achieving major organisational goals
Staff position
A position whose primary purpose is to
provide specialised expertise and
assistance to line positions
Bartol et al 95 p315
ORGANISING (12/12)
Line Authority
The authority following the chain of
command established by the formal
hierarchy
Functional Authority
The authority of staff departments over
others in the organisation in matters
related directly to their respective
functions
Bartol et al 95 p316
POWER
Def.
The capacity to affect the behaviour of
others.
Bartol et al 95 p448
SOURCES OF POWER (1/3)

Legitimate Power
Power stemming from a position’s
placement in the managerial hierarchy
and the authority vested in it.

Coercive Power
Power depending on the ability to punish
others when they do not engage in
desired behaviours
SOURCES OF POWER (2/3)

Expert Power
Influence based on the possession of expertise,
special skill or knowledge that others value

Information Power
Power resulting from access to and control over
the distribution of important information ( e.g.
about organisational operations and future
plans)
SOURCES OF POWER (3/3)

Referent Power
Power resulting from being admired,
personally identified with, or liked by
others
Bartol et al 95 p448-9
FACTORS ASSOCIATED
WITH POWER

Credibility
The degree to which followers perceive
someone as honest, competent and able
to inspire

Trust
The belief in the integrity, character and
ability of a leader
Robbins et al 00 p620
PURPOSES OF
ORGANISING (1/2)

Divides work to be done into specific
jobs and departments

Assigns tasks and responsibilities
associated with individual jobs

Co-ordinates diverse organisational
tasks

Clusters jobs into units
PURPOSES OF
ORGANISING (2/2)

Establishes relationships among individuals,
groups and departments

Establishes formal lines of authority

Allocates and deploys organisational
resources
Robbins et al 00 p351
FACTORS INFLUENCING
SPAN OF CONTROL








Low interaction requirements of the job
High competence levels
Work similarity
Low problem frequency and seriousness
Physical proximity
Few non-supervisory duties of manager
Considerable available assistance
High motivational possibilities of work
Bartol et al 95 p307-8
DEPARTMENTALISATION (1/2)
Def.
The basis upon which jobs are
grouped in order to accomplish
organisational goals
Functional
Grouping jobs by functions performed
Product
Grouping jobs by product line
DEPARTMENTALISATION (2/2)
Geographic
Grouping jobs on the basis of territory or
geography
Process
Grouping of jobs on the basis of product or
customer flow
Customer
Grouping of jobs on the basis of common
customers
Robbins et al 00 p353-6
ORGANISATIONAL
STRUCTURES (1/2)
Mechanistic
An organisational structure
characterised by high specialisation,
extensive departmentalisation, narrow
spans of control, high formalisation, a
limited information network and little
participation in decision-making by
low-level employees
Robbins et al 00 p361
ORGANISATIONAL
STRUCTURES (2/2)
Organic Organisation
An organisational structure that is
highly adaptive and flexible with little
work specialisation, minimal
formalisation and little direct
supervision of employees
Robbins et al 00 p362
MECHANISTIC VS ORGANIC
Mechanistic

High specialisation

Rigid departmentalisation

Clear chain of command

Narrow spans of control

Centralisation

High formalisation
Organic

Cross-functional teams

Cross hierarchical teams

Free flow of information

Wide spans of control

Decentralisation

Low formalisation
Robbins et al 00 p361
STRATEGY & STRUCTURE
Innovators require the flexibility and free
flow of information of an organic structure
Cost minimisers seek the efficiency, stability
and tight controls of a mechanistic structure
Imitators use a combination of both
Robbins et al 00 p364
TECHNOLOGY &
STRUCTURE
Organisational structures tend to adapt
to their technology
Generally, the more routine the
technology, the more standard the
structure can be. Organisations with
routine technologies tend to be
mechanistic, whilst organisations with
non-routine technologies tend to be
organic
Robbins et al 00 p365
ENVIRONMENTAL
UNCERTAINTY & STRUCTURE
Scarce resources and a dynamic and
complex environment often require the
flexibility of an organic structure.
Stable, simple environments with abundant
resources tend to utilise mechanistic
designs
Robbins et al 00 p367
CULTURAL VALUES &
ORGANISATIONAL STRUCTURES
Organisations mirror to a large degree
the cultural values of their host country
Robbins et al 00 p367
APPLICATION OF
ORGANISATIONAL DESIGN
(1/6)

Simple Structure
An organisational design with low
departmentalisation, wide spans of
control, authority centralised in a single
person and little formalisation
Robbins et al 00 p368
APPLICATION OF
ORGANISATIONAL DESIGN
(2/6)

Bureaucracy
An organisational arrangement based on
logic, order and legitimate use of power
Functional structure - a design that groups
similar or related occupational specialities
Divisional structure - a design made up of
semi-autonomous units or divisions
Robbins et al 00 p370-1
APPLICATION OF
ORGANISATIONAL DESIGN
(3/6)

Team-based Structures
An organisational structure made up of
work groups or teams that perform the
organisation’s work
Robbins et al 00 p370
APPLICATION OF
ORGANISATIONAL DESIGN
(4/6)

Project and Matrix Structures
A matrix structure assigns specialists
from different functional areas to work
on one or more projects being lead by
project managers
A project structure is one in which
employees are permanently assigned
to projects
Robbins et al 00 p371-2
APPLICATION OF
ORGANISATIONAL DESIGN
(5/6)

Autonomous Internal Units
A structure composed of autonomous
decentralised business units, each
with its own products, clients,
competitors and profit goals
Robbins et al 00 p373
APPLICATION OF
ORGANISATIONAL DESIGN
(6/6)

Boundaryless Organisation
An organisation whose design is not
defined by, or limited to, the horizontal,
vertical or external boundaries
imposed by a predetermined structure.
Robbins et al 00 p374
ORGANISING
“We trained hard … but every time we were
beginning to form up into teams we would
be re-organised. I was to learn later in life
that we tend to meet many new situations by
re-organising … and a wonderful method it
can be for creating the illusion of progress
while producing inefficiency and
demoralisation.”
Petronius (AD 66)
BEHAVIOUR
Def
The actions of people
ORGANISATIONAL BEHAVIOUR
The study of the actions of people at
work
(It is concerned with individual and
group behaviours)
Robbins et al 00 p485
INDIVIDUAL BEHAVIOUR (1/4)
Areas of study included with individual
behaviour
 attitudes
 personality
 perception
 learning and
 motivation
Robbins et al 00 p485
INDIVIDUAL BEHAVIOUR (2/4)
Attitudes
Evaluative statements concerning
objects, people or events
Personality
A combination of psychological traits
that describes a person
Robbins et al 00 Glossary
INDIVIDUAL BEHAVIOUR (3/4)
Perception
The process of organising and interpreting
sensory perceptions in order to give
meaning to the environment
Learning
Any relatively permanent change in
behaviour that occurs as a result of
experience
Robbins et al 00 Glossary
INDIVIDUAL BEHAVIOUR (4/4)
Motivation

The force that energises behaviour, gives
direction to it, and underlies the tendency to
persist
Bartol et al 95 p415

The willingness to exert high levels of effort
to reach (organisational) goals, conditioned
by the effort’s ability to satisfy some
individual need
Robbins et al 00 p870
COMPONENTS OF
ATTITUDE



Cognitive
Beliefs, opinions, knowledge,
information
Affective
Emotional or “feeling”
Behavioural
Intention to behave in a certain way
toward someone or something
JOB-RELATED ATTITUDES
(1/2)

Job satisfaction
A person’s general attitude to their job

Job involvement
Degree to which a person identifies with
their job, actively participates and the
relationship of their performance to their
self-worth
Robbins lecturer notes
p212/3
JOB-RELATED ATTITUDES
(2/2)

Organisational Commitment
An employee’s orientation towards the
organisation in terms of their loyalty to,
identification with, and involvement in
the organisation.
Robbins lecturer notes p212/3
COGNITIVE DISSONANCE
Any incompatibility between two or
more attitudes or between behaviour
and attitudes.
The desire to reduce dissonance is
determined by the importance of the factors
creating the dissonance, the degree of
influence the individual believes they have
over those factors, and the rewards that
may be involved
Robbins et al 00 p488
GROUP
Two or more interacting and
interdependent individuals who come
together to achieve certain objectives
Robbins et al 00 p517
FORMAL GROUPS (1/2)
An official group created by an
organisation for a specific purpose.
There are two major types of formal
groups
Command or Functional Group
A formal group consisting of a manager and
all the subordinates who report to that
manager
Bartol et al 95 p517
FORMAL GROUPS (2/2)
Task Group
A formal group created for a specific
purpose supplementing or replacing work
normally done by command groups
(A permanent task group may be called a
standing committee or a team, whereas
temporary task groups may be called ad hoc
committees, task force, project teams)
Bartol et al 95 p518
INFORMAL GROUPS (1/2)
A group established by employees,
rather than by the organisation, to
serve the interests or social needs
of group members.
- May or may not further the
organisation’s goals
- Can be very powerful
- Two types - interest or friendship
Bartol et al 95 p518-9
INFORMAL GROUPS (2/2)
Interest Group
- Created to facilitate employee pursuits of
common concern e.g. sport, change policy
Friendship Group
- Evolving primarily to meet employee social
needs e.g. lunch groups, values, fishing
Bartol et al 95 p520
REASONS FOR JOINING
GROUPS

Security

Status

Self-esteem

Affiliation

Power

Goal achievement
Robbins et al 00 pp517-9
STAGES OF GROUP
DEVELOPMENT (1/3)
Forming

First stage in development

People join and define group purpose,
structure and leadership

Characterised by uncertainty
STAGES OF GROUP
DEVELOPMENT (2/3)
Storming
Characterised by intragroup conflict
Norming
Characterised by close relationships and
cohesiveness
STAGES OF GROUP
DEVELOPMENT (3/3)
Performing
Group is fully functional

Adjourning
Group prepares to disband due to having
completed set tasks or failed. Responses of
group members may vary
Robbins et al 00 p519/20
WORK TEAMS (1/3)
Def.
Formal groups made up of
interdependent individuals, responsible
for the attainment of a goal
(All work teams are groups, but only
formal groups can be work teams)
Robbins et al 00 p528
WORK TEAMS (2/3)

Functional Team
A work team composed of a manager and
their subordinates from a particular
functional area

Self-directed/ Self-managed Team
Operates without a manager and is
responsible for a complete process or
segment that delivers a product or service to
an external or internal customer
WORK TEAMS (3/3)

Cross-functional Team
Individuals, who are experts in various
specialities (or functions) work together on
organisational tasks
Robbins et al 00 p530
MOTIVATION
The force that energises behaviour, gives
direction to it, and underlies the tendency to
persist
Bartol et al 95 p415
The willingness to exert high levels of effort
to reach (organisational) goals, conditioned
by the effort’s ability to satisfy some
individual need
Robbins et al 00 p870
EARLY THEORIES OF
MOTIVATION (1/3)

Maslow’s Hierarchy of Needs





Psychological needs
Safety needs
Social needs
Esteem needs
Self-actualisation needs
Robbins et al 00 p550
EARLY THEORIES OF
MOTIVATION (2/3)

McGregor’s Theory X & Theory Y


Theory X assumes people have very little
ambition, dislike work and avoid responsibility.
Need to be closely directed to work effectively
Theory Y assumes people exercise selfdirection, accept responsibility, work is as
natural as rest & play. Need to be loosely
supervised
Robbins et al 00 p552
EARLY THEORIES OF
MOTIVATION (3/3)

Herzberg’s Motivation-Hygiene Theory



Motivators - Intrinsic factors are related to
job satisfaction and motivation
Hygiene - Extrinsic factors are associated
with job dissatisfaction
Removing dissatisfying factors does not
necessarily make job satisfying
Robbins et al 00 p553-4
CONTEMPORARY
THEORIES OF MOTIVATION
(1/5)

McLelland’s Three-Needs Theory



Need for achievement - drive to excel, succeed
Need for power - to have others behave in a way
they would not have otherwise
Need for affiliation - desire for friendly and close
interpersonal relationships
Robbins et al 00 p555
CONTEMPORARY
THEORIES OF MOTIVATION
(2/5)

Content Theories vs Process Theories
Need to focus on identifying what needs are
important to each individual and allocates rewards
accordingly. Managers need to : understand how individuals differ and their
needs from work
 know what can be offered to individuals
 know how to create work environments to satisfy
employee needs
Robbins et al 00 p558
CONTEMPORARY
THEORIES OF MOTIVATION
(3/5)

Goal-setting Theory


Specific goals increase performance and that
difficult goals, when accepted, result in higher
performance than easy goals
Reinforcement Theory

Reinforcers, when immediately following a
response, increase the probability that the
behaviour will be repeated
Robbins et al 00 pp558-60
CONTEMPORARY
THEORIES OF MOTIVATION
(4/5)

Designing Motivating Jobs

Managers should design jobs deliberately
and thoughtfully to reflect the demands of
the changing environment, as well as the
organisation’s technology, skills and
abilities, and the preferences of its
employees
Robbins et al 00 p561
CONTEMPORARY
THEORIES OF MOTIVATION
(5/5)

Equity Theory


Employees compare their job inputs and
outcomes (pay) relative to others and that
inequities influence the degree of effort
that employees exert
Expectancy Theory

Individuals tend to act in a certain way
based on the expectation that the act will
be followed by a given outcome
Robbins et al 00 pp565-7
CURRENT ISSUES IN
MOTIVATION

Diversity in workforce

Hours of work, span of hours, work
arrangements, telecommuting, culture

Pay-for-performance

Open-book Management

Employee Share Purchase Plans
Robbins et al 00 pp573-7
LEADERSHIP
“Everyone in your command can do
something better than you can. The
skill of a leader is not to be threatened
by that but to use and apply those
skills.”
Major-General Peter Cosgrove, Commander Interfet, SMH 26-2-00 p41
LEADERSHIP
LEADERSHIP
The process of influencing others toward
organisational goal achievement
Bartol et al 95 p448
LEADER
A person who is able to influence others and
who possess managerial authority
Robbins et al 00 p593
EARLY THEORIES OF
LEADERSHIP (1/3)
Trait Theories
Theories isolating characteristics that
differentiate leaders from non-leaders
e.g. Drive, desire to lead, honesty and
integrity, self-confidence, intelligence, jobrelevant knowledge.
Robbins et al 00 p593-4
EARLY THEORIES OF
LEADERSHIP (2/3)
Behavioural Theories
Theories identifying behaviours that
differentiate effective from ineffective
leaders
Studies - University of Iowa - assessed styles classified as
autocratic, democratic & laissez-faire
EARLY THEORIES OF
LEADERSHIP (3/3)
(Behavioural Theories ctd)
- Ohio State University - looked at aspects
of initiating structure and consideration
- University of Michigan - employeeorientation vs production-orientation
- Managerial Grid (Blake & Mouton) developed a 2 dimensional matrix based on
concerns for people and production
Robbins et al 00 p596-9
CONTEMPORARY
THEORIES OF LEADERSHIP
(1/4)
The failure to obtain consistent results
from trait and behavioural studies lead
to a focus upon situational factors
Robbins et al 00 p600
CONTEMPORARY
THEORIES OF LEADERSHIP
(2/4)
Models
Fiedler Model - effective groups depend on
a proper match between a leader’s style of
interacting with subordinates and the degree
to which the situation gives control and
influence to the leader - developed LPC
questionnaire to assess a person’s basic
leadership style - relationship or task
oriented
Robbins et al 00 p600-3
CONTEMPORARY
THEORIES OF LEADERSHIP
(3/4)
Hersey-Blanchard Situational Theory the right leadership style is dependent upon
on the level of the followers maturity - it is
they who accept or reject the leader
Path-Goal Theory - a leader’s behaviour is
acceptable to subordinates insofar as they
view it as a source of either immediate or
future satisfaction - leader may display a
number of styles dependent upon situation
Robbins et al 00 p603-7
CONTEMPORARY
THEORIES OF LEADERSHIP
(4/4)
Leader-Participation Model - provides a
set of rules to determine the form and
amount of participative decision-making in
different situations - model set up as a
decision tree incorporating 7 contingencies
and 5 alternate leadership models.
Robbins et al 00 p608-9
EMERGING THEORIES OF
LEADERSHIP (1/2)
Attribution Theory
Leadership is attributed as a cause and
effect relationship to an occurrence success or failure of an exercise attributed
to the leader irrelevant of their contribution
to the outcome
Charismatic Leadership Theory
Followers make attributions of heroic or
extraordinary leadership abilities based
upon certain behaviours that are observed
Robbins et al 00 p610-3
EMERGING THEORIES OF
LEADERSHIP (2/2)
Visionary Leadership
The ability to create and articulate a
realistic, credible, attractive vision of the
future for an organisation that grows out of
and improves upon the present
Team Leadership
Required to manage the teams external
boundary and facilitate the team process
CHANGE
Def.
“An alteration to the status quo”
Bartol et al 95 p729
CHANGE AGENT
People who act as catalysts and
manage the change process
Robbins et al 00 p438
FORCES FOR CHANGE (1/2)
EXTERNAL
 Marketplace
 Government Laws & Regulations
 Technology
 Labour Markets
 Economic Changes
FORCES FOR CHANGE (2/2)
INTERNAL FORCES

Organisational Strategy

Organisation’s Workforce

Equipment

Employee Attitudes
Robbins et al 00 p437/8
TYPES OF CHANGE
REACTIVE CHANGE
Change occurring when one takes action in
response to perceived difficulties, threats or
opportunities
PLANNED CHANGE
Change involving actions based on a
carefully thought-out process for change
anticipating future difficulties, threats and
opportunities
Bartol et al 95 p236
CHANGE CYCLE
Bartol et al 95 p591
VIEWS OF THE CHANGE
PROCESS


Calm Waters Metaphor
Change comes in the form of
occasional occurrences, a brief
distraction to the normal processes
White-Water Rapids Metaphor
Change is a natural state, and
managing change is a continual
process
Robbins et al 00 p440
REASONS FOR
RESISTANCE TO CHANGE

Self-interest

Misunderstanding and lack of trust

Different assessments of change

Low tolerance for change
Bartol et al 95 p593-4
LEWIN’S CHANGE
PROCESS MODEL

Unfreezing



Increase the driving forces
Decrease the restraining forces
Combine both

Change

Refreeze
Robbins et al 00 p440
TECHNIQUES FOR
MANAGING CHANGE (1/3)
CHANGING STRUCTURE
 Work specialisation
 Departmentalisation
 Chain of command
 Span of control
 Centralisation
 Formalisation
 Job design
TECHNIQUES FOR
MANAGING CHANGE (2/3)
CHANGING TECHNOLOGY



Work processes
Work methods
Equipment
TECHNIQUES FOR
MANAGING CHANGE (3/3)
CHANGING PEOPLE

Attitudes

Expectations

Perceptions

Behaviour
Robbins et al 00 p448
CONTEMPORARY ISSUES
IN MANAGING CHANGE







Changing organisational cultures
Implementing TQM/Team approaches
Re-engineering
Managing reduced workforces
Becoming a learning organisation
Managing employee stress
Stimulating innovation
Robbins et al 00 p451-68
CONFLICT
Def.
Perceived incompatible differences
that result in interference or opposition
Robbins et al 00 p657
VIEWS OF CONFLICT
Traditional
- Bad and must be avoided
Human Relations
- Natural and inevitable outcome of
any organisation
Interactionist
- Necessary for an organisation to
perform effectively
Robbins et al 00 p657
ORGANISATIONAL
PERSPECTIVES &
CONFLICT
Conflict will be strongest with:
 very “mature” employees



highly structured organisations
formalised rules and procedures
fragmented and mechanised jobs
Bartol et al 95 p598
FUNCTIONAL vs
DYSFUNCTIONAL CONFLICT
Functional
Conflicts that support an organisation’s
goals
Dysfunctional
Conflict that prevents an organisation
from achieving its goals
Robbins et al 00 p658
CAUSES OF CONFLICT (1/2)
Communication Factors
Message is not received as intended
Structural Factors
 size
 participation
 line/staff distinctions
 reward systems
 resource interdependence
CAUSES OF CONFLICT (2/2)







power
personal behaviour factors
differences in goals
limited resources
reward structures
differences in perceptions
increased demand for specialists
602
Personal Differences
Bartol et al 95 pp599-
BENEFITS OF CONFLICT
(When level of conflict is optimal)

Productive task focus

Cohesion and satisfaction

Power and feedback

Goal attainment
Bartol et al 95 p603/4
LOSSES OF CONFLICT
(When level of conflict is high)

Distorted judgement

Loser effects

Poor co-ordination

Energy diversion
Bartol et al 95 p604
EFFECTIVE CONFLICT
RESOLUTION SKILLS

Determine underlying conflict handling style

What conflicts require attention?

Evaluate conflict players

Assess the source of conflict

Know your options
Robbins et al p658-60
CONFLICT MANAGEMENT
STYLES (1/2)

Accommodating


Avoiding


resolving conflict by placing the other parties
desires to prevail
ignoring, suppression of or withdrawal from
conflict hoping that it will go away or become
less disruptive
Forcing

satisfying ones own needs disregarding others
CONFLICT MANAGEMENT
STYLES (2/2)

Compromising


each party gives up some desired
outcomes to get other desired outcomes
Collaborating

devising solutions that allow both parties
to achieve their desired outcomes
PROCEDURES FOR
STIMULATING CONFLICT

Change organisation culture

Use communication

Bring in outsiders

Restructure the organisation

Appoint a devil’s advocate
Robbins et al 00 p662-3
CONTROL
Def.
The process of monitoring activities to
ensure they are being accomplished
as planned, and of correcting any
significant deviations.
Robbins et al 00 p683
ROLE OF CONTROLS
Assist managers with 5 particular challenges:
coping with uncertainty

detecting irregularities

identifying opportunities

handling complex situations

decentralising authority
Bartol et al 95 p555
LEVELS OF CONTROL (1/3)

Strategic
- involves monitoring critical
environmental factors that could affect
strategic plan viability, assessing the
effects on organisational strategic
actions, and ensuring that strategic
plans are implemented as intended
LEVELS OF CONTROL (2/3)

Tactical
- focuses on assessing tactical plan
implementation at department levels,
monitoring associated periodic results,
and taking corrective action as necessary
LEVELS OF CONTROL (3/3)

Operational
- involves overseeing operating plan
implementation, monitoring day-to-day
results, and taking corrective action
when required
Bartol et al 95 p557-9
TYPES OF CONTROL

Feedforward Control
- aims to prevent anticipated problems regulation of inputs

Concurrent Control
- occurs whilst an activity is in progress to
ensure conformity

Feedback Control
- imposed after an action has been
completed
POTENTIAL DYSFUNCTIONAL
ASPECTS OF CONTROL SYSTEMS
(1/2)


Behavioural displacement
- individuals engage in behaviours
encouraged by controls and related
reward systems even though the
behaviours are inconsistent with
organisational goals
Game playing
- manipulate resource usage to
indicate improved performance
POTENTIAL DYSFUNCTIONAL
ASPECTS OF CONTROL SYSTEMS
(1/2)

Operating delays
- excessive controls can cripple, not
facilitate achieving organisational
goals

Negative attitudes
- where controls may be perceived to
hinder and not enhance goal
attainment
Bartol et al 95 p575/6
OVERCONTROL vs
UNDERCONTROL

Overcontrol
- limiting individual job autonomy to such a
point that it seriously inhibits effective job
performance.

Undercontrol
- granting autonomy to such a point that an
organisation loses its ability to direct an
individuals toward achieving organisational
goals
Bartol et al 95 p576
CHARACTERISTICS OF AN
EFFECTIVE CONTROL SYSTEM
(1/2)






Accuracy
Timeliness
Economy
Flexibility
Understandability
Reasonable criteria
CHARACTERISTICS OF AN
EFFECTIVE CONTROL SYSTEM
(2/2)




Strategic placement
Emphasis on the exception
Multiple criteria
Corrective action
Robbins et al 00 p695/6
ETHICAL ISSUES IN
CONTROL

Employee workplace privacy

Computer monitoring

Off-the-job behaviour
Robbins et al 00 p698-702
HUMAN RESOURCE
MANAGEMENT
Def.
The management of various activities
designed to enhance the effectiveness of an
organisation’s workforce in achieving
organisational goals
Bartol et al 95 p371
CURRENT ISSUES IN
MANAGING HR

Managing a diverse and multi-cultural
workforce

Harassment/EEO issues

Family concerns

Changing expectations from work

Changing work arrangements
OPERATIONS
MANAGEMENT
Def.
The design, operation and control of
the transformation process that
converts resources into finished goods
and services
Robbins et al 00 p711
PRODUCTIVITY
Def.
The overall output of goods and
services produced, divided by the
inputs needed to generate that output.
(Output per unit of input)
Robbins et al 00 p711
MANUFACTURING
ORGANISATIONS
Def.
Organisations that produce physical
goods such as steel, motor vehicles,
textiles and machinery.
Robbins et al 00 p714
SERVICE ORGANISATIONS
Def.
Organisations that produce outputs
such as educational, medical, and
transportation services which are
intangible, cannot be stored in
inventory, and incorporate the
customer or client in the actual
production process
Robbins et al 00 p714
CUSTOMER-DRIVEN
OPERATIONS SYSTEM
(Increasing customer retention rates by 5%
increases the value of the average customer by 25100%)




Who is your customer?
Maintain close & frequent contact
How to provide a product that competitors
can’t imitate
Determine customers current & future needs
Robbins et al 00 pp716-7
RE-ENGINEERING
Involves starting from scratch and rethinking
and rearranging the way an organisation
operates.
“If this were a new department/company,
how would it be best done this time.”
Robbins et al 00 p717
STRATEGIC OPERATIONS
MANAGEMENT


An organisation’s overall strategy should
reflect its manufacturing capabilities and
limitations and include operations objectives
and strategies
Every organisation’s operations strategy
needs to be unique reflecting the inherent
trade-offs in any production process e.g.


Cost reduction and quality enhancement often
work against one another
Short delivery vs limited inventory levels
Robbins et al 00 p719
PLANNING OPERATIONS (1/4)

STRATEGIC


Capacity Planning
 Assessing an operating system’s ability to
produce a desired number of outputs for each
type of product during a given time period
Facilities Location Planning
 The design and location of the operations
facility, ie labour/skills, customer, raw
materials
PLANNING OPERATIONS (2/4)
(Strategic ctd)


Process Planning
 Determining how the product will be
produced
Facilities Layout Planning
 Assessing and selecting options for
equipment and work-stations. ie
process vs product layout
PLANNING OPERATIONS (3/4)

TACTICAL


Aggregate Planning
 Planning overall production activities
and their associated operating
resources
Master Scheduling
 A schedule that specifies quantity and
type of items to be produced; how,
when, and where they should be
produced; labour force levels; and
inventory
PLANNING OPERATIONS (4/4)
(Tactical ctd)

Material Requirements Planning
 A system that dissects products into the
materials and parts necessary for purchasing,
inventorying and priority-planning purposes
Robbins et al 00 pp720-6
CONTROLLING
OPERATIONS (1/2)

Cost Control


Use of cost centres; analysing direct &
indirect costs & ratios
Purchasing Control


Supplier quality and relationships
Inventory replenishment systems - point,
time
CONTROLLING
OPERATIONS (2/2)

Maintenance Control




Preventative
Remedial
Conditional
Quality Control

Acceptance sampling, process control,
attribute sampling or variable sampling
Robbins et al 00 pp727-32
ISSUES IN OPERATIONS
MANAGEMENT

Technology and Product Development

Implementation of Quality Systems

Reduction of Inventory Levels

Outsourcing & Supplier Relationships

Flexibility of Processes

Lead-time Reductions
Robbins et al 00 p732-9