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Enterprise Management Notes

Enterprise Management (Dún Laoghaire Institute of Art Design and Technology)

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Enterprise Management

Introduction to Management

Who are managers? Where do they work

- Organisation: A deliberate arrangement of people brought together to accomplish a


specific purpose

Common Characteristics of Organisations


- Distinct purpose

- People working together

- A deliberate systematic structure

Three Characteristics of Organisations

How are managers different from non-managerial employees?

• Non-managerial employees are people who work directly in a job / task and have no
responsibility for overseeing the work of others, e.g. associates, team members

• Managers are individuals in organisations who direct the activities of others.

Management Levels

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What Titles do Managers Have?

• Top Managers: They are responsible for making decisions about the direction of the
organisation, e.g. President, Chief Executive Officer (CEO), Vice-President

• Middle Managers: They manage the activities of others, e.g. District Manager, Division
Managers.

• First-Line Manager: They are responsible for directing non-managerial employees, e.g.
Supervisor, Team leader.

What is ‘Management’?
Management is the process of getting things done effectively and efficiently, with and
through people.

Management “is the act of getting things done through others and having them do it
willingly” - American Management Association (AMA).

Effectiveness
“Doing the right things”. Doing those tasks that help an organisation reach its goals.

Efficiency
Concerned with the means, efficient use of resources like people, money, and equipment.

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Four Management Functions

• Planning - Defining the organisational purpose and ways to achieve it.


• Organising - Arranging and structuring work to accomplish organisational goals.
• Leading - Directing the work activities of others.
• Controlling - Monitoring, comparing, and correcting work performance.

What do managers do?


In the functions approach proposed by French industrialist Henri Fayol, all managers

perform certain activities or functions.

Division of Work | Authority & Responsibility | Discipline | Unity of Command | Interest |

Unity of Direction | Remuneration | Centralisation | Scalar Chain | Order | Equity |

Stability of Tenure | Initiative | Esprit de Corp

What Roles do Managers Play?


Henry Mintzberg observed that a manager’s job can be described by ten roles performed
by managers in three general categories:

• Interpersonal Roles - Figurehead, Leader, and Liaison


• Informational Roles - Monitor, Disseminator and Spokesperson
• Decisional roles - Entrepreneur, Disturbance Handler, Resource Allocator & Negotiator

What Skills do Managers Need?


Robert Katz and others describe four critical skills in managing:

• Conceptual Skills - Used to analyse complex situations.


• Interpersonal Skills - Used to communicate, motivate, mentor and delegate.
• Technical Skills - Based on specialised knowledge required for work.
• Political Skills - Used to build a power base and establish connections.

Is the manager’s job universal?


The previous discussion describe management as a generic activity.
In reality, a manager’s job varies with along several dimensions:

• Level in the Organisation - Top level managers do more planning than supervisors
• Profit vs. Nonprofit - Management performance is measured on different objectives
• Size of the Organisation - Small businesses require an emphasis in the management role of
spokesperson
• National Borders - These concepts work best in English-speaking countries and may need to be
modified in other global environments

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Why are customers important to the managers job?

• Without customers most organisations would cease to exist.

• Today we’re discovering that employee attitudes and behaviours play a big part in
customer satisfaction.

• Managers must create a customer responsive where employees are friendly,


knowledgeable, responsive to customer needs.

Why is innovation important to the managers job?

• “Nothing is more risky than not innovating”.

• Innovation isn’t just important for high technology companies but essential in all types
of organisations.

Brief History behind Management

Early Management

Management has  been practiced  a long time.

Organised endeavours directed by people responsible for planning, organising, leading and
controlling have existed for thousands of years.

Scientific Management
Frederick W. Taylor described scientific management as a method of scientifically finding the “one
best way to do a job”

Behavioural Approaches General Administrative Theory

Early management writers included:

This focused on what constituted as good


- Robert Owen, Deplorable working conditions
management.

- Hugo Munsterberg, pioneer in the field of industrial Max Weber described the bureaucracy as an
psychology
ideal rational form of organisation

- Mary Parker Follett, recognised that organisations Henri Fayol identified five management
could be viewed from both individual and group functions & 14 management principles.
behaviour

The Hawthorne Studies

Conducted at the Western Electric Company Works.

The studies:

• Provided new insights into individual and group behaviour in the behaviour of people at work.
• Concluded that group pressures can significantly impact individual productivity.

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Quantitative Approaches

• Used quantitative techniques to improve decision making.


• Evolved from mathematical and statistical solutions developed for military problems
during World War II.
• W. Edwards Deming and Joseph M. Duran ‘s ideas became the basis for total quality
management (TQM).

Contemporary Approaches
• Focused on managers’ concerns inside the organisation.
• Chester Barnard wrote in his 1938 book The Functions of the Executive that an
organisation functioned as a cooperative system.
• Fred Feildler first popularised the contingency approach (or situational approach)
which says that organisations, employees, and situations are different and require
different ways of managing.

Management Today

Post Crisis Management What is the new normal?


Rise in unemployment
Management role?

Rise in job uncertainty


Government role?

Narrower profit margins


Employee role?
Short-Termism

The Role of Technology


What impact has technology had on the management function?
What is easier / harder?
Can we forecast future challenges?

What Managers Must Know


Parochialism
A narrow focus in which managers see things only through their own eyes and from their
own perspective.
All countries have different values, morals, customs, political and economic systems, and
laws, all of which can affect how a business is managed.

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Decision Making

How Do Managers Make Decisions?

Decision Making Process - A set of eight steps that includes identifying a problem,
selecting a solution, and evaluating the effectiveness of the solution.
Problem - A discrepancy between an existing and desired state of affairs

Decision Criteria - Factors that are relevant in a decision

Decision Implementation
Putting a decision into action; includes conveying the decision to the persons who will be
affected by it and getting their commitment to it.

Common Errors in the Decision-Making Process

Heuristics
“Rules of Thumb” to simplify decision making.

May lead to errors and biases.

Overconfidence Bias
Unrealistically positive views of one’s self.

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What is the Rational Model of Decision Making?

Rational Model assumes that:


• Managers’ decision making will be rational, logical, and consistent choice to maximise
value.
• The problem faced would be clear and unambiguous.
• The decision maker would have a clear and specific goal.
• Knowing all possible alternatives and consequences.

What is Bounded Rationality?


Managers are limited in their ability to process information because managers can’t
analyse information on all alternatives, they satisfice.

What Role Does Intuition Play in Managerial Decision Making?


Intuitive Decision Making
• Making decisions on the basis of experience, feelings and accumulated judgement
• Described as ‘unconscious reasoning’.

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Decision Making

How do problems differ?


• Structured Problems - A straightforward, familiar, and easily defined problem
• Unstructured Problems - A problem that is new or unusual for which information is
ambiguous or incomplete.

What are Programmed and Non-programmed Decisions?


• Programmed Decisions - A repetitive decisions that can be handled using a routine
approach.
• Non-programmed Decisions - A unique and non-recurring decision that requires a
custom-made solution.

Programmed Decisions-Making Ads

• Policy - A general guide that establishes parameters for making decisions about
recurring problems.
• Procedure - A series of interrelated sequential steps that can be used to respond to a
well-structured problem (policy implementation).
• Rule - An explicit statement that tells managers what they ought or ought not to do
(limits on procedural actions).

Types of Problems, Types of Decisions, and Organisational Level

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What Decision Making Conditions Do Managers Face?

• Certainty - A situation in which a decision maker can make accurate decisions because
all outcomes are known
• Uncertainty - A situation in which a decision maker has neither certain nor reasonable
probability estimates available
• Risk - A situation in which a decision maker is able to estimate the likelihood of certain
outcomes

Group Decision Making

Advantages Disadvantages
Group decisions provide more complete Group decisions are time consuming
information. May be subject to minority domination
Diversity of experiences and perspectives are Subject to pressure to conform
higher. Responsibility is ambiguous
Groups generate more alternatives. Subject to Groupthink  which undermines
Group decisions increase acceptance of a critical thinking
solution.

What Contemporary Decision-Making Issues


When are Groups Most Effective? Do Managers Face?
Groups are more effective for decisions
• Ringisei - Japanese consensus-forming
requiring:
group decisions.
Accuracy | Speed | Creativity | Acceptance
• Creativity - The ability to produce novel and
Ideal Group Size  useful ideas
• 5-15

How Can You Improve Group Decision Making?

• Brainstorming - An idea-generating process that


encourages alternatives while withholding criticism
• Nominal Group Technique - A decision-making
technique in which group members are physically present
but operate independently
• Electronic Meeting - Participants are linked by computer

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Structure & Culture

What is organising?

It is the function of management that create the organisations structure.


Organisational design is when managers develop or change the organisation’s structure.
Work specialisation - dividing work activities into separate job tasks, also known as
division of labor.

Economies and Diseconomies of Work Specialisation

What is Departmentalisation?

Departmentalisation is how jobs are grouped together.

Functional Departmentalisation is when activities are groups by the functions


performed.

Product Departmentalisation is when activities are grouped by major product areas.

Customer Departmentalisation - grouping activities by customer.

Geographic Departmentalisation - grouping activities on the basis of work or customer


flow.

Cross-functional Teams are teams made up of individuals from various departments and
that cross traditional departmental lines.

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Types of Departmentalisation

What are Authority and Responsibility?

Chain of Command is the line of authority extending from upper organisational levels to
lower levels, which clarifies who reports to whom.

Authority, the rights inherent in a managerial position to give orders and expert the orders
to be obeyed.

Responsibility is an obligation to perform assigned duties.

What are Different Types of Authority Relationship?

Line Authority is authority that entitles a manager to direct the work of an employee.

Staff Authority are positions with some authority that have been created to support,
assist, and advice those holding line authority.

Chain of Command is the line of authority extending from upper organisational levels to
lower levels, which clarifies who reports to whom.

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Chain of Command and Line Authority

Line Versus Staff Authority

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What is Power?

Authority goes with the job, but power refers to an individual’s capacity to influence
decisions.
Authority is part of the larger concept of power.

Authority vs Power

Types of Power

Coercive Power - Based on fear


Reward Power - Based on the ability to distribute something that other value
Legitimate Power - Based on one’s position in the formal hierarchy
Expect Power - Based on one’s expertise, special skill, or knowledge
Referent Power - Based on identification with a person who has desirable resource or
personal traits

What is Span of Control?


Span of control is the number of employees a manager can efficiently and effectively
supervise.

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What is Formalisation?

Formalisation
How standardised an organisation’s jobs are the extent to which employee behaviour is
guided by rules and procedures.

Centralisation
The degree to which decision making takes place at upper levels of the organisation.

Decentralisation
The degree to which lower-level managers provide input to actually make decisions.

What Contingency Variables Affect Structural Choice?

Mechanistic Organisation
A bureaucratic organisation; a structure that’s high in specialisation, formalisation and
centralisation.

Organic Organisation
A structure that’s low in specialisation, formalisation and centralisation.

Mechanistic vs Organic

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How Does Technology Affect Structure?

Unit Production
The production of items in units or small batches

Mass Production
Large-batch manufacturing

Process Production
Continuous flow of products being produced

Woodward’s Findings on Technology and Structure

What is the Simple Structure?


Simple structure is an organisational design with low departmentalisation, wide spans of
controls, authority centralised in a single person, and little formalisation.

Traditional Organisation Designs

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Traditional Organisational Designs

What is the Functional Structure?


Functional structure is an organisational design that groups similar or related occupational
specialties together.

What is the Divisional Structure?


Divisional structure is an organisational structure made up of separate business units or
divisions.

Contemporary Organisational Structures

Team Structure - A structure in which the entire organisation is made up of work teams.
Matrix Structure - A structure in which specialists from different functional departments
are assigned to work on projects led by a project management.
Project Structure - A structure in which employees continuously work on projects.
Boundary-less Organisation - An organisation whose design is not defined by, or limited
to, boundaries imposed by a predefined structure.
Virtual Organisation - An organisation that consists of a small core of full-time employees
and outside specialists.
Network Organisation - An organisation that uses its own employees to do some work
activities and networks of outside suppliers to provide other needed product components
or work processes.

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Sample Matrix Structure

Today’s Organisational Challenges

Learning Organisation
An organisation that has developed the capacity to continuously learn, adapt, and change.

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What is Organisational Culture?


Organisational Culture is the shared values, principles, traditions, and ways of doing things
that influence the way organisational members act.

How does Culture Influence Structure?


Strong Cultures are organisational cultures in which the key values are deeply held and
widely shared.

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Outside the Firm

Inside & Outside the Organisation


Managers work inside the company with people, departments, contracts, objective setting,
etc.
But what about outside the firm? Is management simply an internal activity?

PESTLE Analysis

Political
Economic
Social
Technological
Legal
Environmental

Political Factors
Taxes & charges | Government budgets | Type of Government | Political stability |
Political risk | Political parties

Economic Forces

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Socio-Cultural Factors

Cultural Variables - Values | Norms | Beliefs


Attitudes - Work | Time | Materialism | Individualism | Change
Socio-Cultural Variables - Religion | Education | Language

Demographics
Age Structure | Size | Gender Balance | Urbanisation | Emigration & Migration | Birth rates

Environmental Factors
Climate change impact Impact of natural disasters

Carbon footprint concerns Recycling

Climate Waste Management

Advocacy Groups Regulation

Legal Factors
Specific legal environment in which a particular business operates.
• Ages and Discrimination Legislation
• Consumer Protection Laws
• Employment Laws
• Competitor Legislation
• Health & Safety Legislation

Corruption Index | World Bank Rating | Intellectual Property Protection | Taxation


Product Safety & Liability | Anti-trust Regulation

Technological Factors

Technological advances that impact on a particular industry.


Example:
- Internal-based solutions which can help businesses, e.g. online orders
- Mobile technologies developments
- Research and development in specific industries
- Other technological changes/obsolescences
- Number of internet users - growth rate
- Number of mobile phone users - growth rate

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Technological Factors
- Broadband connectivity
- Availability and speed of the internet

Stakeholders
• Who are shareholders?
• Who are stakeholders?
• How important are these people?
• How can we manage them? - Functions of management

“Shareholders are always stakeholders in a corporation, but stakeholders aren’t always


shareholders. A shareholder owns a part of a public company through shares of stock,
while a stakeholder has an interest in the performance of a company for reasons other
than stock performance or appreciation.” - Investopedia, 2020

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Change and Innovation

What is Change and How Do Managers Deal with it?


Organisational Change is any alteration of an organisations people, structure, or
technology.

Categories of Organisational Change

Structure
Authority relationships | Coordinating mechanisms | Job redesign | Spans of control

Technology
Work processes | Work methods | Equipment

People
Attitudes | Expectations | Perceptions | Behaviour

What External Forces Create a Need to Change?

The external forces that create the need for organisational change come from various
sources:
Marketplace | Technology | Government Laws & Regulations | Economy | Labour Markets

Who Initiates Organisational Change?

Change Agents are people who act as change catalysts and assume the responsibility for
managing the change process.

Change Metaphors

“Calm Waters” - Likens organisational change to a large ship making a predictable trip
across a calm sea and experiencing an occasional storm.
“White-Water Rapids” - Likens organisational change to a small raft navigating a raging
river.

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How do organisations implement planned changes?

Organisational Development (OD)


Efforts that assist organisational members with a planned change by focusing on their
attitudes and values.
Popular OD efforts in organisations rely heavily on group interactions and cooperation.

Organisational Development Activities

Survey Feedback
A method of assessing employees’ attitudes toward and perceptions of a change.

Process Consultation
Using outside consultants to assess organisational processes such as workflow, informal
intra-unit relationships, and formal communication channels.

Team-Building
Using activities to help work groups set goals, develop positive interpersonal relationships,
and clarify the roles and responsibilities of each team member.

Intergroup Development
Activities that attempt to make several work groups more cohesive.

Why do People Resist Organisational Change?


People may resist change as:
1. Change replaces the known with uncertainty
2. We do things out of habit
3. Fear of losing something already possessed

Techniques for Reducing Resistance to Change

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What is Stress?

Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints or opportunities.

What causes stress?

Stressors - Factors that cause stress


Karoshi - A Japanese term that refers to a sudden death caused by overworking
Role Conflicts - Work expectations that are hard to satisfy
Role Overload - Having more work to accomplish than time permits
Role Ambiguity - When role expectations are not clearly understood

Personal Factors

Type A Personality
People who have a chronic sense of urgency and an excessive competitive drive

Type B Personality
People who are relaxed and easygoing, and accept change easily.

How can Stress be Reduced?

Employee Assistance Programs (EAPs)


Personal offered by organisations to help employees overcome personal and health
related problems.

Wellness Programmes
Programmes offered by organisations to help employees prevent health problems

Symptoms of Stress

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How can Managers Encourage Innovation?

Creativity is the ability to combine ideas in a unique way or to make unusual associations
between ideas

Innovation is the process of taking a creative idea and turning it into a useful product,
service, or method of operation.

Innovation Variables

Structural Variables
Organic Structures | Abundant Resources | High Inter-unit Communication |
Minimal Time Pressure | Work & Non-work Support

Human Resource Variables


High Commitment to Training & Development | High Job Security | Creative People

Culture Variables
Acceptance of Ambiguity | Tolerance of the Impractical | Low External Controls |
Tolerance of Risks | Tolerance of Conflict | Focus on Ends | Open-System Focus |
Positive Feedback

Fostering Innovation
Idea Champions are individuals who actively and enthusiastically support new ideas,
build support for, overcome resistance to, and ensure that innovations are implemented.

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Teams & Groups

What is a Group?
A group is two or more interacting and interdependent individuals who come together to
achieve specific goals.

Example of Formal Work Groups

Command Groups
Groups that are determined by the organisation chart and composed of individuals who
report directly to a given manager.

Task Groups
Group composed of individuals brought together to complete a specific job task; their
existence is often temporary because when the task is completed, the group disbands.

Cross-Functional Teams
Groups that bring together the knowledge and skills of individuals from various work areas
or groups whose members have been trained to do each other’s jobs.

Self-Managed Teams
Groups that are essentially independent and that, in addition to their own tasks, take on
traditional managerial responsibilities, such as hiring, planning and scheduling, and
evaluating performance.

What are the Stages of Group Development?

Forming Stage is the first stage of group development in which people join the group and
then define the groups purpose, structure, and leadership.

Storming Stage is the second stage of group development, which is characterised by


intra-group conflict.

Norming Stage is the third stage of group development, which is characterised by close
relationships and cohesiveness.

Performing Stage is the fourth stage of group development, when the group is fully
functional and works on the group task.

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What are the Stages of Group Development? - Cont.

Adjourning Stage is the final stage of group development for temporary groups, during
which groups prepare to disband.

What are the Major Concepts of Group Behaviour?

Role
Behaviour patterns expected of someone who occupies a given position in a social unit.

Norms
Standards or expectations that are accepted and shared by a group’s members.

What is Status and Why is it Important?


Status is a prestige grading, position, or rank within a group.

Does Group Size Affect Behaviour?

• Large Groups are good for gaining diverse input.


• Small Groups are typically faster at implementation.
• Social Loafing is the tendency for individuals to expand less effort when working
collectively than when working individually.

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Are Cohesive Groups More Effective?

Group Cohesiveness is the degree to which group members are attracted to one another
and share the groups goals.

How are Groups Turned into Effective Teams?


• 80% of Fortune 500 organisations use teams.
• Teams typically outperform individuals when the tasks require multiple skills, judgement,
and experience.
• Work teams are groups whose members work intensive on specific, common goals
using their positive synergy, individual and mutual accountability, and complementary
skills.

Types of Work Teams

Problem-Solving Teams
A team from the same department or functional area that’s involved in efforts to improve
work activities or to solve specific problems.

Self-Management Work Teams


A type of work team that operates without a manager and is responsible for a complete
work process or segment.

Cross-Functional Team
Teams made up of individuals from various departments and that cross traditional
departmental lines.

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Types of Work Teams

Virtual Team
A type of work team that uses technology to link physically dispersed members in order to
achieve a common goal.

Groups vs Teams

What Factors Make a Team Effective?

Adequate Resources
The teams ability reduced without adequate resources

Team Leadership and Structure


All members contribute in the work

Trust
Team members must trust each other.

Performance Evaluation and Reward System


Members have to be accountable both individually and jointly

Team Effectiveness Model

Context
Adequate Resources | Leadership & Structure | Climate of Trust |
Performance Evaluation and Reward Systems

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Composition
Abilities of Members | Personality | Role Allocation | Diversity | Size of Teams |
Member Flexibility | Member Preferences

Work Design
Autonomy | Skill Variety | Task Identity | Task Significance

Process
Common Purpose | Specific Goals | Team Efficiency | Conflict Levels | Social Loafing

Processes Related to Effectiveness


Five team process variables have been shown to be related to team effectiveness.
These include:
A Common Purpose | Specific Team Goals | Team Efficiency |
Managed Conflict | Minimal Social Loafing

Work Design & Team Effectiveness


These are important work design characteristics which enhance team member motivation
and increased team effectiveness.
- Autonomy
- Using a variety of skills
- Completing a whole and identifiable task or product

Team Member Roles

When are Teams NOT the Answer?

Teamwork takes more time and often more


resources than does individual work.

Teams require managers to communicate


more, manage conflicts, and run meetings.

The benefits or using teams needs to


exceed the costs.

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Motivation and Reward

What is Motivation?
Motivation is the process by which a persons efforts are energised, directed, and
sustained toward attaining a goal.
Individuals differ in motivational drive and overall motivation varies from each situation.

- How can managers communicate direct and indirect motivations to staff?


- Are there challenged with this?

Three Element of Motivation

Energy - A measure of intensity or drive


Direction - Effort channeled in a direction that benefits the organisation
Persistence - When employees persist in putting forth effort to achieve those goals

What is Maslow’s Hierarchy of Needs Theory?

Maslow was a psychologist who proposed that within every person is a hierarchy of five
needs:

Physiological | Safety | Social | Esteem | Self-Actualisation

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What are McGregor’s Theory X and Theory Y?

Douglas McGregor is best know for proposing two assumptions


about human nature: Theory X & Theory Y.

Theory X is the assumption that employees dislike work, are lazy, avoid responsibility, and
must be coerced to work.
Theory Y is the assumption that employees are creative, enjoy work, seek responsibility,
and can exercise self-direction.

WHAT ABOUT THEORY X AND THEORY Y MANAGERS?

What is Herzberg’s Two-Factor Theory?

Herzberg’s two-factor theory proposes that:


- Intrinsic factors are related to job satisfaction
- Extrinsic factors are associated with job dissatisfaction
Hygiene Factors - Factors that eliminate job dissatisfaction but don’t motivate
Motivators - Factors that increase job satisfaction and motivation

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What is McClelland’s Three-Needs Theory?

Three acquired needs are major motives at work


Need for Achievement - The drive to succeed and excel in relation to a set of standards
Need for Power - The need to make others behave in a way that they would not have
behaved otherwise.
Need for Affiliation - The desire for friendly and close interpersonal relationships

What is Goal-Setting Theory?

Goal-Setting Theory includes specific goals to increase performance and difficult goals,
when accepted, results in higher performance.
Self-efficiency is an individuals belief that they are capable of performing a task.

How Does Job Design Influence Motivation?

Job Design is the way tasks are combined to form complete jobs.
Job Characteristics Model (JCM) is a framework used for analysing and designing jobs
that identify five primary core job dimensions, their inter-relationships, and their impact on
outcomes.
Job Enrichment is the vertical expansion of a job by adding, planning, and evaluating
responsibilities.

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Job Characteristics Model (JCM)

Guidelines for Job Redesign

What is Equity Theory?

Equity Theory is the theory that an employee compares their job’s input-outcomes ratio
with that relevant of others and then corrects any inequity.
Referent is the persons, systems, or selves against which individuals compare themselves
to assess equity.
Distributive Justice is the perceived fairness of the amount and allocation of rewards
among individuals.

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What is Equity Theory?

Procedural Justice is the perceived fairness of the process used to determine the
distribution of rewards.

How Does Expectancy Theory Explain Motivation?

Expectancy Theory is an individual tends to act in a certain way, based on:


- The expectation that the act will be followed by a given outcome
- The attractiveness of that outcome to the individual

Motivating a Diverse Workforce

A Compressed Workweek is a workweek in which employees work longer hours per day
but fewer days per week.

Flexible Work Hours (Flexitime) is a scheduling in which employees are required to work
a certain number of hours per week but are free, within limits, to vary the hours of work.

Job Sharing is when two or more people spilt / share a full-time job.

Telecommuting is a job approach in which employees work at home but are linked by
technology to the workplace.

Designing Appropriate Rewards Programs

Open-book Management is an organisations financial statements are shared with all


employees. Is this wise communication?
Employee Recognition Programs are programs that consist of personal attention and
expression of interest, approval, and appreciation for a job well done.
Pay-for-Performance Programs are variable compensation plans that pay employees on
the basis of some performance measurement.

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Communication

How Does the Communication Process Work?

Communication is a transfer of understanding and meaning from one person to another.


The Communication Process is a seven-part process of transferring and understanding
of meaning.

Parts of the Communication Process

• Sender - The communication source


• Encoding - Converting a message into symbolic form
• Message - A purpose for communicating what’s to be conveyed
• Channel - The medium by which a message travels
• Decoding - Translating a received message
• Receiver - The person to whom the message is directed
• Feedback - Checking to see how successfully a message has been transferred.

Noise

Are Written Communications More Effective Than Verbal Ones?

Written Communications
Memos | Letters | E-Mails | Organisational Periodicals | Bulletin Boards
- Tangible, Verifiable and more permanent

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Oral Communications
They allow receivers to respond and presents feedback evidence that the message has
been received and understood.

Is the Grapevine an Effective Way to Communicate


Grapevine is an unofficial channel of communication.

How Do Non-Verbal Cues Affect Communication?

Body Language is a nonverbal communication cues such as facial expressions, gestures,


and other body movements.
Verbal Intonation is an emphasis given to words or phrases that conveys meaning.

What are Barriers to Effective Communication?


Filtering is deliberately manipulating information to make it appear more favourable to the
receiver.
Selective Perception is selectively or hearing a communication based on your own
needs, motivations, experiences, or other personal characteristics.
Information Overload - What results when information exceeds processing capacity.
Jargon is a technical language.

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Overcoming Communication Barriers

Use Feedback - Many problems are attributable misunderstanding


Use Simplified Language - Communicate in clear, easily understood terms.
Listen Actively - Listening is an active search for meaning whereas hearing is passive.

Active Listening is listening for full meaning without making premature judgements or
interpretations.

What are Networked Communication Capabilities?

• EMAIL is the instantaneous transmission of messages on computers that are linked


together.
• INSTANT MESSAGING (IM) is an interactive, real-time communication channel that
takes place among computer users.
• VOICE MAIL SYSTEM digitalises a spoken message, transmits it over the network, and
stores the message on a disk.
• FAX MACHINES transmit documents containing both text and graphics over ordinary
telephone lines.
• ELECTRONIC DATA INTERCHANGE (EDI) is a way for organisations to exchange
business transaction documents such as invoices or purchase orders, using direct,
computer-to-computer networks.
• TELECONFERENCING allows a group of people to confer simultaneously using
telephone or email group communications software.
• VIDEOCONFERENCING is a simultaneous conference where meeting participants can
see each other over video screens.

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What are Networked Communication Capabilities?

• INTERNET-BASED VOICE COMMUNICATION are popular websites such as Skype,


Discord and Zoom, among others, let users chat with each other.
• INTRANET is a network that uses Internet Technology but is accessible only to
organisational employees.
• EXTRANET is an organisational communication network that uses internet technology
and allows authorised users inside the organisation to communicate with certain
outsiders such as customers and vendors.

What is Knowledge Management?


Knowledge Management is cultivating a learning culture in which organisational
members systematically gather knowledge and share it with others.

What Interpersonal Skills Do Mangers Need?

Active listening requires:


- Intensity
- Empathy
- Acceptance
- Willingness to take responsibility for completeness
Empathy requires you to put yourself into the speakers’ shoes.
Positive Feedback is more readily and accurately perceived than negative feedback.
Negative Feedback is most likely to be accepted when it come from a credible source or if
it’s objective.

What are Empowerment Skills?

Delegation means assigning authority to another


person to carry out specific activities.
In shared participative decision making, authority is
shared. With delegation, employees make decisions
on their own.

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Contingency Factors in Delegation

What is Conflict Management?

• Conflict are perceived differences resulting in an interference or opposition.


• Traditional View of Conflict is the view that all conflict is bad and must be avoided.
• Human Relations View of Conflict is the view that conflict is natural and inevitable,
and has the potential to be a positive force.
• Interactionist View is the view that some conflicts are necessary for an organisation to
perform effectively.
• Functional Conflicts are conflicts that are constructive and supports the goals of an
organisation.
• Dysfunctional Conflicts are conflicts that are destructive and prevents an organisation
from achieving its goals.
• Task Conflict are conflicts that relate to the content and goals of work.
• Relationship Conflict are conflicts that focus on interpersonal relationships
• Process Conflict are conflicts that refer to how the work gets done.

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Conflict and Organisational Performance

Conflict Management: What Works Best and When

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What are Negotiation Skills?

Negotiation is a process in which two or more parties who have different preferences
must make a joint decision and come to an agreement.

Distributive Bargaining is negotiation under zero-sum conditions, in which any gain by


one party involves a loser to the other party.

Integrative Bargaining is negotiation in which there is at least one settlement that


involves no loss to either party.

Determining the Bargaining Zone

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Management: Concepts and Evolution

Introduction

Management is:
“A career involving that task of guiding and controlling organisations.”
“The process that managers go through to achieve organisational goals.”
“Individuals who guide and control organisational activities.”
“A bout of knowledge which provides information about how to manage.”

Management is viewed as a process or series of continuing and related activities.


It is viewed as involving the achievement of organisational goals.
It reaches such organisational goals by working with and through people.

Managers can be viewed as individuals within organisations whose principal aim is to


achieve organised goals by holding positions of authority and making decisions about the
allocation of resources.
While the techniques and emphasis may vary depending upon the organisation, the
general principles of management can be used in all organisations.
Management tries to encourage individual activity that will lead to the achievement of
organisational objectives, and tried to discourage individual activity that hinders
organisational goal attainment.

The Management Process

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Planning | Organising | Staffing | Leading | Controlling

Levels of Management

Roles of Management
Top
Interpersonal; A figurehead, Leader, Liaison
Middle Informational; Monitor, Disseminator,
Spokesperson

Front-Line Decisional; Entrepreneur, Disturbance


handler, Negotiators, Resource Allocator

Management Skills
1. Technical
2. Interpersonal
3. Conceptual

Management Skills at Different Skills

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Effective Managers

To be an effective manager, they should be


an active leader. As we have read, leading
is one of the key functions of management.

“Managers do things right whereas leaders


do the right things.”

In order to provide the opportunity for high performance, both managers and employees
must understand their jobs and what they do, as opposed to what they should do.
Effective managers are constantly searching for ways to help employees to do their jobs
well and to focus on their activities and efforts on production matters.
To provide incentives for employees to achieve high performance, a manager needs to
identify the factors that motivate employees and build those factors into the work
environment.

Early Management Thought

Although management has been around since the days of the Pharaohs, it was the
Industrial Revolution that heightened its awareness, interest and practice.

The debate that ensued was know as the Classical School of Management.

1. Sumerian's
2. Egyptians - Planning
3. Greeks - The needs for different management functions
4. Roman Empire - Delegation and the Scalar Principle of Authority were used, coupled
with communication
5. Venetians - Legal foundations of the Enterprise

Unity of Command | Leadership | Line Authority | Staff Authority

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Industrial Revolution

Up until the 1700’s management was seen in organisations such as the military, political
parties and the Church and not in industry.

• Watt’s steam engine (1765)


• Arkwright’s water frame ( 1769)
• Cartwright’s power loom (1785)

Productivity began to increase and economies of scale were to be found.


Consequently prices fell and consumption began to increase.
The emergence of the ‘bourgeoisie’.

The Classical Approach - Scientific Management


“The One Best Way Approach”
Frederick Taylor through Shop Management (1903) and Principles of Scientific
Management (1911) pioneered this method.
Ultimately, he believed that the principle objective of management should be to secure the
maximum prosperity for the employer coupled with the maximum prosperity of each
employee and advocated that scientific methods should be used to analyse the one best
way to achieve this objective.

Four Main Principles


1. The Development of a true Science of Work
2. The Scientific Selection and Development of Workers
3. The Co-Operation of Workers and Management in studying the Science of Work
4. The division of works between management and the workforce

Benefits
• Improved Productivity
• Improved Efficiency
• Links between effort and reward
• Installed a sense of cooperation between workers and management

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Administrative Management

Technical | Commercial | Financial | Security | Accounting | Managerial

14 Management Principles

1. Division of Labour | 2. Authority | 3. Discipline | 4. Unity of Command |


5. Unity of Direction | 6. Subordination of Individual Interest to General | 7. Remuneration |
8. Scalar Chain | 9. Order | 10. Equity | 11. Stability of Tenure | 12. Initiative |
13. Esprit de Corps | 14. Centralisation

Bureaucracy
Division of Labour | Hierarchy | Selection |
Career Orientation | Formalisation | Impersonality

Human Relations

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Summary

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Culture

What is Culture?

“Culture is the total complex pattern of customary human behaviour, social norms
and material trait embodied in thoughts, speech, action, and artefacts and
dependent upon the human capacity for learning and transforming knowledge, and
systems of abstract thought.” - Thompson, 2001

Culture includes also things like beliefs, morals, laws, customs, opinions, religions,
superstitions, and art.

Despite its complexity, the concept “culture” has been well defined.

For instance, the 1982 World Conference on cultural policies defined culture as the
“whole complex of distinctive spiritual, material, intellectual and emotional features
that characterise a society or social group. It includes not only the arts and letters,
but also modes of life, the fundamental rights of human being, value system,
traditions and beliefs.” - Doda and Ranan 2007

"Culture is more often a source of conflict than of synergy. Cultural differences are a
nuisance at best and often a disaster."
- Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

The Visible Daily Behaviour

Body Language | Clothing | Lifestyle | Eating and Drinking Habits

Values & Social Morals


Family Values | Sex Roles | Friendship Patterns

Basic Cultural Assumptions


National Identity | Ethnic Culture | Religion

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The Different Layers of Culture

National Culture
Business Culture
Company Culture
Individual Culture

High & Low Context Cultures (Hall, 1960)

Low-Context Cultures rely on spoken & written language for meaning.


High-Context Cultures use more elements surrounding the message, i.e. the context.

High Japanese
Arabs
Latin America
Context

English
U.S.
Scandinavians
Germans
Low Swiss
Explicit Message Implicit

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General Comparative Characteristics of Cultures

Hofstede’s Original Work on National Difference

Masculinity (MAS)
Versus its opposite, femininity, refers to the distribution of roles between the genders which
is another fundamental issue for any society to which a range of solutions are found.
The IBM studies revealed that (a) women's values differ less among societies than men’s
values; (b) men's values from one country to another contain a dimension from very
assertive and competitive and maximally different from women's values on the one side, to
modest and caring and similar to women’s values on the other.
The assertive pole has been called 'masculine' and the modest, caring pole ‘feminine'.
The women in feminine countries have the same modest, caring values as the men; in the
masculine countries they are somewhat assertive and competitive, but not as much as the
men, so that these countries show a gap between men's values and women's values.

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Hofstede’s Original Work on National Difference

Individualism (IDV)

On the one side versus its opposite, collectivism, that is the degree to which individuals
are inter-grated into groups. On the individualist side we find societies in which the ties
between individuals are loose: everyone is expected to look after him/herself and his/her
immediate family.

On the collectivist side, we find societies in which people from birth onwards are integrated
into strong, cohesive in-groups, often extended families (with uncles, aunts and
grandparents) which continue protecting them in exchange for unquestioning loyalty.

The word 'collectivism' in this sense has no political meaning: it refers to the group, not to
the state. Again, the issue addressed by this dimension is an extremely fundamental one,
regarding all societies in the world.

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Hofstede’s Original Work on National Difference

Power Distance Index (PDI)

Is the extent to which the less powerful members of organizations and institutions (like the
family) accept and expect that power is distributed unequally.
This represents inequality (more versus less), but defined from below, not from above.
It suggests that a society's level of inequality is endorsed by the followers as much as by
the leaders.
Power and inequality, of course, are extremely fundamental facts of any society and
anybody with some international experience will be aware that ‘all societies are
unequal, but some are more unequal than others’.

Uncertainty Avoidance Index (UAI)

Deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man’s
search for Truth. It indicates to what extent a culture programs its members to feel either
uncomfortable or comfortable in unstructured situations.

Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty
avoiding cultures try to minimise the possibility of such situations by strict laws and rules,
safety and security measures, and on the philosophical and religious level by a belief in
absolute Truth; 'there can only be one Truth and we have it’.

People in uncertainty avoiding countries are also more emotional, and motivated by inner
nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of
opinions different from what they are used to; they try to have as few rules as possible,
and on the philosophical and religious level they are relativist and allow many currents to
flow side by side. People within these cultures are more phlegmatic and contemplative,
and not expected by their environment to express emotions.

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Long-Term Orientation (LTO) vs Short-Term Orientation (STO)

This fifth dimension was found in a study among students in 23 countries around the
world, using a questionnaire designed by Chinese scholars It can be said to deal with
Virtue regardless of Truth.

Values associated with Long Term Orientation are thrift and perseverance; values
associated with Short Term Orientation are respect for tradition, fulfilling social obligations,
and protecting one's 'face'.

Both the positively and the negatively rated values of this dimension are found in the
teachings of Confucius, the most influential Chinese philosopher who lived around 500
B.C.; however, the dimension also applies to countries without a Confucian heritage.

The Pros

Trompenaars and Hampden-Turner provided a tool to explain how national culture differs
and how culture can be measured. Their research showed that cultural differences matter
and that reconciling cultural differences can lead to competitive advantage to companies in
consolidating / globalising industries.

Trompenaars and Hampden-Turner’s model gives employees who deal with cross-cultural
relations a tool/context to better understand value sets and behaviours.

Trompenaars’ research shows that the way business is conducted in one part of the world
is different from the way it is done in another. Culture is an important aspect in doing
international business. For example, Office Depot has learned that Japanese customers
do not like to buy their supplies in large, well-stocked stores that offer discount prices.
Japanese prefer stores where service is personal and are willing to pay higher prices for
this.

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The Cons

The model fails to recognise the influence of personal characteristics on behaviour.

The model distinguishes the differences between cultures, but does not provide
recommendations on how to work with specific cultures.
Additional dilemmas may be added to the seven original dimensions of culture. No
assurance can be given that this list is complete.

Trompenaars and others such as Hofstede emphasised that companies should


acknowledge the differences between the cultures in which they operate. However, other
authors including Ohmae (Borderless World) and Levitt (Globalisation of Markets) argue
that national borders are diminishing and that the world should be seen as a whole and not
made up of different countries with different cultures.

Seven Dimensions of Culture - Trompenaars and Hampden-Turner (1998)

In 1998, management consultants Trompenaars and Hampden-Turner published their


“Seven Dimensions of Culture” model to help explain national cultural differences in
organisations and to show how managing these differences in a heterogeneous business
environment is a major challenge for international managers.

Trompenaars and Hampden-Turner gathered data over ten years using a method that
relied on giving respondents dilemmas or contrasting tendencies. Each dilemma consisted
of two alternatives that were interpreted as indicators for basic attitudes and values. The
questionnaire was sent to over 15,000 managers in 28 countries. At least 500 usable
responses per country were received, enabling the two authors to make substantiated
distinctions between national cultures.

The two consultants distinguished seven connected processes formulated as dilemmas. A


culture distinguishes itself from others by ‘preferring’ one side of a dilemma’s continuum.

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Seven Dimensions of Culture - Trompenaars and Hampden-Turner (1998)

The seven, universal dimensions of cultures are:

• Inner vs Outer Directed


• Universalism vs Particularism
• Individualism vs Communitarism
• Specific vs Diffuse
• Affective vs Neutral
• Achievement vs Ascription
• Sequential vs Synchronic Time

UNIVERSALISM versus PLURALISM INDIVIDUALISM versus COMMUNITARISNISM

“What is more important – “Do we function as a group or as


rules or relationships?” individuals?”

The degree of importance a The degree to which people see


culture assigns to either the law themselves function more as a
or to personal relationships. In a community or more as individuals. In
universalistic culture, people a principally individualistic culture,
people place the individual before
share the belief that general
rules, codes, values and the community. This means that
standards take precedence over individual happiness, fulfilment and
the needs and claims of friends welfare prevails and people take
and other relationships. In a their own initiative and take care of
themselves. In a principally
pluralistic culture, people see
culture in terms of human communitarian culture, people place
friendship and intimate the community before the individual.
relationships. While rules do exist Thus, it is the responsibility of the
in a pluralistic culture, they individual to act in ways which serve
society. In doing so, individual needs
merely codify how people relate
to one another. are automatically attended.

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Seven Dimensions of Culture - Trompenaars and Hampden-Turner (1998)

SPECIFIC versus DIFFUSE AFFECTIVITY versus NEUTRALITY

“How far to we get involved?” Do we display our emotions?”

The degree to which responsibility is The degree to which individuals


specifically assigned or is diffusely
display their emotions. In an affective
accepted. In a specific culture, people first
analyse the elements individually and then
culture, people display their emotions
put them together, the whole is the sum of and it is not deemed necessary to
its parts. People’s lives are divided hide feelings. However, in a neutral
accordingly and, only a single component culture, people are taught not to
can be entered at a time. Interactions display their feelings overtly. The
between people are very well-defined. degree to which feelings become
Specific individuals concentrate on hard manifested is therefore minimal.
facts, standards and contracts. A diffusely
While emotions are felt, they are
oriented culture starts with the whole and
sees individual elements from the
controlled.
perspective of the total. All elements are
related to one another. Relationships
between elements are more important
than individual elements.

INNER DIRECTED OUTER versus DIRECTED ACHIEVED STATUS versus ASCRIBED STATUS

“Do we control our environment or work Do we have to prove ourselves to receive


with it?” status or is it given to us?”

The degree to which individuals believe The degree to which individuals must prove
the environment can be controlled themselves to receive status versus status
versus believing that the environment simply given to them. In a culture with
controls them. In an inner-directed achieved status, people derive their status
culture, people have a mechanistic view from what they have accomplished.
of nature; nature is complex but can be Achieved status must be proven time and
controlled with the right expertise. time again and status will be given
People believe that humans can accordingly. In a culture with ascribed status,
dominate nature, if they make the effort. people derive their status from birth, age,
In an outer-directed culture, people have gender or wealth. Here status is not based
an organic view of nature. Mankind is on achievement but it is accorded on the
viewed as one of nature’s forces and basis of the person’s being.
should therefore live in harmony with
the environment. People therefore adapt
themselves to external circumstances.

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Seven Dimensions of Culture - Trompenaars and Hampden-Turner (1998

SEQUENTIAL TIME versus SYNCHRONIC TIME

“Do we do things one at a time or several


things at once?”

The degree to which individuals do things one


at a time versus several things at once.
Cultures developed their own response to
time. Time orientation has two aspects: the
relative importance cultures assign to the
past, present and future, and their approach
to structuring time. In a sequential culture,
people structure time sequentially and do
things one at a time. In a synchronic time
culture, people do several things at once,
believing time is flexible and intangible.

Cultural Types: The Lewis Model

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Cultural Types: The Lewis Model

God’s of Management - Charles Handy

In Handy’s book, “Gods of Management”, he guides the reader through organisational


culture. In it, he distinguishes between four different types of managers and uses four
archetypal Greek Gods:
Zeus | Apollo | Athena | Dionysus

Zeus

Small and Entrepreneurial


Club Mentality
Built upon Trust, Respect and Affinity
Quick Decision Makers
Smacks of “Paternalism”
Can be blinded by their own egotistical tendencies
If you’re not part of the ‘club’, you’re not getting in

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God’s of Management - Charles Handy

Apollo

Bureaucratic Organisations
Hierarchical in Nature
Individuality means nothing
Following rules and regulations mean everything
Lacks creativity
Employees are over-managed and under-led
Resists Change
Slow at Communicating

Athena

Composed of Teams
Problem Solvers
“Can Do” Spirit
Brilliant when faced with new problems
Based upon ability and a desire for group success
Loves to experiment
Require heady capital investment
Do not always get ROI (Return on Investment)
Can be idealistic at times

Dionysus

Work for themselves, though an organisation signs a pay check


Likes to work alone, on what they find satisfying and rewarding
Works best in “Organisations of Consent”
Lack of security
Lack of predicability and certainty
Loyal only to themselves

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Final Word

In today’s highly competitive and globalised world companies are forced to compete on the
international stage under the guise of ‘Free-Trade.’

Not only have the forces of globalisation brought a new supply of products and services
onto domestic markets but it has also brought with it a new supply of labour.

In a similar way to managers needing to understand and appreciate the cultural


implications associated with launching a new product or service on the international
market, managers must be aware of the implicit and explicit cultural differences among this
new and diverse workforce in order to communicate effectively.

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