2.

1 HR Planning
-Teleworking: working away from employers or customers by using electronic forms of communication -Home working Advantages of teleworking/ home working - geographical distance no problem-customers can save time and money by not having to travel to retail stores-just phone - business can pay less rent as dont need to locate call centers. Office space in city - absenteeism not an issue employees dont have to travel 2 work employee can enjoy autonomy in decision making, less formal than traditional office - employees benefit from tax allowances by using personal property 4 conducting business - child care can reduce financial burden Advantages+ Disadvantages: Employee Employer - job creation, -reduced office especially for overheads those living in -flexible and extended remote areas working hours available - suitable 4 people to customer that have to care -can cater for peak and for family off peak trading periods members -continuity of service - flexible working from those with young hours children or other - benefits of not dependents having to work Disadvantages -heavy reliance on ICT -set up cost high -not always possible lack -requires tight control in of space at home or lack recruitment as not of confidentiality everyone independent, -teleworkers often self-motivated & exceed legal limits on experienced working hours -management and -suffer from social control more difficult isolation -technological -often less job security breakdowns can cause and less trade union big problems 4 business. representation for teleworkers Portfolio working: person employed ikn number of different jobs carried out simultaneously, part time or tempory basis.increased flexibility and mobility and have varied experiences. However lack of job security. Advantages

Part time: cheaper to employ, lower enumeration, easier tio replace if need. Handy Shamrock recommended that business place greater emphasis on meeting needs of workers by methods such as flexile working practices and enrichment. Shamrock org based on 3 leaf clover: 1. core staff-full time professional workers 2. peripheral workers part-time, tempory + portfolio workers 3. outsourced workers-not employed by organisation to complete tasks also known as contractual fringe

Business Strategy: Five Rs : if managers dont make most of HR, suffer these consequences: 1. recruitment higher = higher induction + training cost 2. resources- increasing resources and time spent 3. reservations lower morale 4. returns- lower levels of productivity therefore competitiveness and profits 5. reputation poorer image since business cant retain staff Successful training + development plan should: show commitment to training + development of staff link training + development needs to objectives help promote culture of continuous learning assess operational requirements of org against skills of staff provide equal opportunities for all staff yet be cost effective

2.2 Organisational Structure:

Responsibility = shows who in charge of whom, accountability = who held responsible 4 what job. Org structures helps: identify supervisor/ line manager form of accountability which people have authority + extent of responsibility they have for others determine how different areas of business link 2 one another verify own position in overall org identify various channels of communication in org CEO- devise + implement strategies, act as figure head, leaders directors, represent ideas + beliefs of BOD, formulate org objectives with BOD.

BOD: executive directors-work full time @ org-make decisions about daily running of business non-executive dont work full time but are consultants 4 particular area of expertise. Advise on corp strategy BOD- set targets, devise long-term plans, establish policies + codes of practise, monitor org activities, advise + support + managing director/CEO Organisational charts- diagrammatic representation of firms formal structure. Shows : shows functional departments within a business shows chain of command-positions of authority in org, which people have direct line of authority over others span of control-number staff directly accountale 2 single (horizontal) line manager official channels of communication levels of hierarchy gives indication of employees rank orgs can be organised by functions, product, process, geographically. Delegation=passing on control + authority to others, involve line managers trusting + empowering staff 2 complete task or project but holding them accountable. Delegation=form of empowerment and can act as non-financial motivator. However, line manager has ultimate responsibility. Poor delegation can lead to confusion + feeling of inadequacy, leading to demotivaton, result in failure to achieve set task. Benefits: manager saves time-not tackling every task focus better on strategic issues can motivate + develop employees-feel trusted and talents recognised Managers use SMARTER acronym: Specific Measurable Agreed Realistic Time bound Ethical Recorded Span of control: number of subordinates controlled by manager (or directly accountable to). E.g. CEO has narrow direct span of control, wide indirect. Wider: fewer layers of hierarchy = many people under manager Narrow: fewer subordinates under manager Advantages of wider: (flatter structures) delegation becomes more important part of managing more opportunities 2 develop professionally communication improved as fewer layers of hierarchy

cheaper 2 operate wider span of control= fewer layers of management smaller psychological distance between top and bottom of org

Advantages of narrower spans of control (taller) quicker communication between small teams easier 2 control and manage small teams greater specialisation + division of labour greater opportunities 4 more people to earn promotion, as more layers may motivate. The degree of control granted 2 a manager will depend on : experience, competence + traits of manager nature of management styles-management feel need to control subordinates may have smaller teams, narrower span type of production system- e.g. flow production managers wide span as simple tasks that dont need as much supervision skills and dynamics of subordinates e.g. highly skilled usually in smaller teams nature of work- complex tasks where communication important-may have smaller teams Hierarchical structures: shows lines of communication-improve co-ordination + productivity of workforce establish department or teams, create sense of belonging in workplace and act as a form of motivation Limitations: -departmentalization can lead 2 workers being isolated to official teams -lead to inflexibility delayering is the process of removing one or more levels in hierarchy to flatten structure. Therefore reduces management + widens span of control. Reduce costs (by removing management) Improve speed of communication (structure flatter) Encourage delegation-since wider spans provide opportunities 4 employees 2 take on more responsibilities Drawbacks of downsizing: Create anxiety + sense of insecurity among workers effect motivation + productivity Delayering can overstretch employees as workforce increase effect quality Decision-making may take longer since managers deal with larger teams Flexible working practises require regular up-grading of skills cost implications. Bureaucracy refers to execution of tasks that are governed by official administrative + formal rules of the organisation. Bureaucratic orgs characterized by prescribed rules + responsibilities standardized procedures and formal hierarchical structures This may include: Frequent requirement to fill out unnecessary paperwork Staff working in several departments reporting 2 more than 1 manager

Too many working parties investigating issues of concerns of org Long official chains of command Management with duplicate roles + responsibilities

Max Weber believed bureaucracy to be synonymous with efficiency as it is division of labour being applied to the administrative tasks within org. bureaucratic org governed by: Continuity-must follow official rules + regulations, rather than taking high risks Rules + regulations Hierarchical structures Accountability Core problem with bureaucracy is that work expands filling time available for completion. It prevents creativity + risk taking, slows decision-making and is highly inflexible + over cautious. Centralised structures: majority decisions made by small number people favoured by Fayol, Taylor + Ford. Advantage: -Rapid decision making no need to consult employees -better control -better sense of direction-decisions made by senior management team more qualified to lead business. Disadvantages: Possible delays so many decisions 2 make by so few Increased pressure +stress 4 senior management Inflexibility org becomes rather bureaucratic + inflexible since less autonomy Demotivating- employees may lack motivation, since feel less valued Decentralised: decision making sometimes passed 2 others in org. Advantages: Imput from workforce benefit from + exploit different skills of staff Speeder day 2 day decision-making Higher morale feel valued, can use initiative + sense of ownership of work higher productivity Improved accountability staff directly accountable 4 input may improve quality Encouragement of teamwork-collaborative work can generate innovative ideas Disadvantages: Loss of control-authority diluted Greater chance of mistakes-empowered person must be competent, more people involved more likely different options, becomes difficult 2 track mistakes Greater reliance on effective communication Duplication of functions-if no set overview may carry out same tasks Centralised or decentralized structure depends on:

*Size of org larger =greater need 4 decentralisation *Scale of importance of decision-higher cost decision may be more centralised *Corporate structure creative + innovative based orgs tend to be unwilling 2 let go of power + control centralised *level of risk high risk =key decision makers centralised *corporate structure-creative + innovative based orgs tend to be decentralised *management attitudes + competencies manager may be unwilling 2 let go of power + control centralised *use of info +communication techniques-adopt up-2 date methods of ICT are available to delegate a greater extent. The matrix structure-flexible organisation of employees from different departments within org temporarily working together on a particular project. Advantages: -culture of teamworking +collaboration is created -experts from different parts of business brought together 2 work on project -good career and personal development opportunities -project can be spread out among various teams reduce pressure on senior management -adds interest + varying 2 work + increase staff motivation Disadvantages: -members of project may neglect department roles -potential team members may not get on with one another especially from different departments with different culture -project managers may have a difficult task in controlling team members who have conflicting interests + priorities Matrix structures tend to work best in orgs with relatively flat hierarchical structure with a wide span of control. Flexible organisational structures should enable business 2 adopt when there is a need to respond to rapid change, allowing business to be more successful. They help developed multi-skilled workforce. Re-engineering is a radical form of organisational flexibility involving re-design of org structures due to the driving forces of customers, competitors and change. Due to drastic and disruptive nature of change caused by reengineering, most large firms would not tend to adopt it. Organisational structure theorists: Mitnzberg-business can only remain successful if structure flexible enough 2 deal with rapid changes in market. 6 organisational configurations: 1. innovative org or adhocray-system where people split into small project teamsdeal with specific tasks 2. entrepreneurial orgs-decision-making power retained by strategic apex= centralised 3. machine orgs- coordination done by specifying work progresses + people. Inflexible

4. divisionalised orgs-coordination through middle line who encourage standardisation of output-inflexible to rapid change 5. professional orgs-professionals with standardised skills, inflexible due to high specialisation 6. missionary orgs-coordination through standardisation of org norms Peters argued that flatter org structures are more successful since better channels of communication, greater opportunities for delegation + empowerment and greater flexibility in adapting 4 change. 2 key features of successful companies contributing to the development of flexible structures: -removal of bureaucracy -use of project teams e.g. matrix structures Advantages of informal organisations (relationships existing beyond formal groups of org) motivation promote sense of belonging facilitates communication assist decision making informal groups can come up with innovative + original Outsourcing = act of moving non-core activities away from internal operations by finding a external party to carry out such functions. The purpose is to reduce costs by using specialists parties that can carry out the function more efficiently + cost effectively business can focus on developing core competencies. Limitations: requires effective communication + coordination must be mutual trust between outsourcer + other parties quality of outsourced service passed onto external agent concerns whether expected standards will be met cause uncertainty among workforce due to restructuring + likelihood of redundancy Off shoring= extension of outsourcing involves relocating business + functions overseas Increase of migrates can have advantages 4 business easing of skill shortages flexible work structures marketing opportunities-migrant workers different tastes + habits provide niche personal opportunities net social benefits-pay income tax

2.3 Communication
The purposes or objectives of communication include to instruct, clarify, interpret, notify, warn, receive feedback, review and, above all, to inform Effective communication is vital to success of business so: Staff are aware of their roles and expectations Managers can gather and act upon feedback from employees, customers and other stakeholders Verbal communication: Advantages: Detailed questions can be asked Questions can be answered without any delay, i.e. feedback is quick and spontaneous Very little cost involved Interviews/presentations are a good way to judge an employees ability to communicate Facial reactions and body language, along with tone of voice, can be judged Information given may not always be truthful There is usually no permantent record of the conversation for future reference. Confidential messages may be difficult to communicate verbally Disadvantages:

Meetings and interviews can be very time consuming Non-verbal: Letters Reports Notices Memorandum(memo) Executive summaries Research proposal Visual communication: -easily understood -communicate quicker than words -cater 4 visual -may have longer lasting impact-e.g. marketing e.g. charts, graphs informal communication- unofficial channels of communication e.g. grapevine. Can hinder efficiency + productivity of workplace.

Benefits: -sense of belonging -security + support -pooling of ideas generate solutions ICT: emails, facsimile (fax), video conference, phones Factors influencing choice of communication method: Personal preference Organizational structure-tall=formal Security issues + concerns-hard copies needed just in case? Skills + training Ease of use Size of business-larger may use emails 4 large, smaller use verbal Storage issues- paperwork need to be stored Location-time-zone differences Urgency Cost-e.g email cheaper than sending mail Barriers 2 effective communication: High costs may not have finance to set up effective communication network Technological barriers Language Accents Geographical location Poor body language Physiological barriers-hearing, sight disabilities Jargon Different cultures Attitude Internal politics Chinese whispers-tall hierarchical structures messages pass through many layers

Poor communication hinders business: low moral- feel out of touch, lose confidence +direction, feel under valued errors + reworking as not fully aware what to do loss of competitiveness due to lower productivity caused by low moral or errors lack of control Communication networks: Communication network shows roots that allow different parties to communicate message. Centralized networks: involve key player or team holds decision making power. -wheel network-experienced person or team leader staff communicate with

-Chain-network- tall hierarchical structure- pass on info from higher managers to lower sometimes message can be distorted.

Y-chain: similar to chain but passed onto several different parties.

Decentralized: open nature, more ideas generated. Feel more valued, better solve complex issues. Decision making can be prolonged coz so may people in process -circle network- team based tasks or group of middle managers communicating with one another- good 4 solving complex issues

All chain networks: -communicate with whoever necessary, most ideal 4 solving complex issues.

Objective of introducing new or improved communication systems: -improved speed, access +accuracy of communication -greater potential 4 communication 2 reach wider audience -improved motivation + productivity as ICT reduce errors Disadvantages: -cost -threat of security-reliance of ICT -need for change management Mehrabian theory (3 Vs) -visual lifting- facial expression +body language accounts for 55% of interpretation -tone + paralinguistic cues account for 38% e.g anxiety, enthusiasm -only 7% of message interpreted by actual words spoken

2.4 Leadership and Management:

Leadership is the process of influencing and inspiring others to achieve goal. Leaders tend to focus on achieving broader goals or visions with no definite frame of mind.

Management is essentially problem solving based on reasoning, rather than emotion. Involved in complex organizational tasks. Managers likely to focus on attainment of specific goals within definite time frame. 3 broad levels of management: Senior management Middle management Junior management Leadership concerned with influencing others to achieve vision or target. Official leader is established by an organization and therefore has authority 2 give orders. An informal leader has natural charisma in influencing other people. All leaders have power to influence, although source of power is different for official and unofficial leaders. Warren Bennis found that no single best way to lead organization. General characteristics of successful managers: Management of attention-need clear vision or dream of where want business Management of meaning- able to communicate vision 2 others Management of trust- managers + leaders need 2 be consistent, dependable and honest 2 gain trust-environment created 2 allow people to openly disagree but still work together professionally. Management of self- self-reflective of strength and weakness, able to accept constructive criticism. Henry Mintzberg argued manager has 3 main roles 1. interpersonal roles- figurehead, liaison role and leader role 2. informational role- manager acting as communication channel between departments and senior management 3. decision-making role- tactical and strategic decisions made by managers. The work of managers: routine tasks planning tasks communication tasks Leadership styles: consensus model of leadership- found in countries like Japan + Netherlands where group-decision making is the norm. charismatic model of leadership- where there is tradition + expectation that leaders make decisions with decisiveness. Autocratic = suitable for situations that require quick decision making or critical decisions. However communication is top-down, no feedback given, opinions and suggestions ignored, can cause resentment, hence demotivate staff.

Democratic= suitable if manager cannot always be around to ensure staff remain on task. Advantage= better morale + motivation, sharing ideas can help improve decisionmaking. Limitation= can delay decision-making not so good for large workforce as there is high dependence on clear leadership. Laissez- faire: minimal direct input into work of employees, leaves subordinates to make own decisions and complete own tasks. Limitations= coordination and decisionmaking can be time-consuming since there is lack of supervision or direction. Relies heavily on good will and teamwork 2 achieve goals. Situational leadership: using right person and right style for the right situation, managers must be able to change and adapt to different situations. CLOTS: Culture Leader how much trust do leaders have in subordinates and preferred leadership style. Organisation structure e.g. tall/ flat Task e.g. extent of difficulty, urgency Subordinates- level of skills, motivation, unity and number of. Trait Theorists: argue leadership/management stlye depends on personal characteristics of individual leaders/managers Likerts 4 styles: 1. exploitative autocratic 2. benevolent autocratic 3. participative 4. democratic Likert suggests that participative and democratic styles most successful. Fiedler no best way of leading, effectiveness depends on personality and situation under consideration. Three principals: 1. relationships how well get along and trust 2. situation- nature of task, level of difficulty 3. authority how much power or authority leader has. Weakness suggests almost anyone can lead if style is matched to task. Ignores other situational factors that effect leadership effectiveness e.g. experience + training of leader. Blake & Mouton: managerial grid model, 5 different leadership styles.

Tannenbaum and Schmidt :

tells autocratic, presents final decision sells- persuade 2 win support, although decision already made consults- ask 4 opinions before making decision although not necessarily act on opinions participates- absolutely involves employees in decision making democratic/laissez-faire

Contingency theory: states no single best way to manage an organization or to lead people because what may work in one situation doesnt necessarily work in other circumstances. The best style depends on internal + external factors that effect situation, such as size, knowledge + experience of workforce. Factors influencing: organizational culture attitudes of senior management e.g. optimistic about worker abilities? Traits of manager Subordinates how many Task- need to be performed by staff-routine or unfamiliar task is challenging or straight forward Time constraints e.g. deadline imminent Fiedler argued that a leaders own personality has large impact on leadership effectiveness. Situational theory: Similar to contingency theory- both assume no optimal style, difference is situational places greater focus on behavior of effective managers +leaders. Contingency theory takes a broader approach and considers the internal and external factors that effect leader ability. Blanchard & Hersey model- concern for people and tasks as well as ability and willingness of subordinates to achieve task set. Telling/Directing style: autocratic, employees unwilling to complete task, communication 1-way Selling/coaching style-used when employees not committed but have some ability. More 2-way, concern for both people and task. Participating/supporting workers have high degree of competence, inconsistent commitment. Delegating style- both ability and willingness high Effective leaders need to be flexible to given situation and that worker attitudes are situational. Criticism: fails to distinguish between management and leadership Robert House Path Goal Theory: Directive leadership Supportive leadership Participative Achievement orientated- sets challenging goals as has faith in subordinates and high expectations

House argued that leaders need to take account of 2 types of situational factors: -subordinate personality -characteristics of environment John Adair Action-Centered leadership model: Manages and leaders not necessarily born leaders. Use of authority relevant to situation in question, four types 1. position official position 2. knowledge- access to important info/ experience 3. personality 4. moral persuasion- art of being able to convince or persuade others The difference between leadership and management: Time + devotion- managers set hours, leaders 24/7 Leaders have more long-term view + more strategic decisions Leaders accountable 4 much broader range of responsibilities, managers more day-2-day Influence managers listened to due to position of official authority, leaders inspire and motivate followers Managers follow pre-determined rules, leaders more radical/ risk taking thinking Vision- leaders= more vision

Key Functions Of Management: Henri Fayol: investigated scientific management, 5 functions Planning Organising Commanding Coordinating Controlling Principals of management: Division of labor 2 develop skills and specialization Formal lines of authority + wide span of control, like the military An authoritarian style management decisions made from top only Unity of command- employees should only have one line manager, to improve communication + productivity Equity in treatment of employees-ensure committed not resentful esprit de corp harmony Believed management should ensure discipline to prevent slack disobedience. However, use of equity of treatment pay reflective of input. Charles Handy: Common characteristics of effective managers/leaders intelligence initiative self-assurance

three key roles: managers as general practitioners- fix health problems of firm confronters of dilemmas balances of cultural mixes Formal structure not appropriate. Management must rise above situation and see bigger picture. Managers and leaders need to delegate by being generalists rather than specialists. Peter Drucker: People are the key to success of a business. Decentralization encouraged. Managers function: setting organizational objectives organizing tasks and people communicating with + moderating employees measuring performance developing people effective communication prevents a them and us culture. Maagement by objectives. Five main steps: 1. review 2. set 3. monitor 4. evaluate 5. reward All managers should be involved in strategic planning. Business should recognize the importance of change and embrace change, but should avoid meaningless change. Business Strategy: Wally Bock: suggests 5 Ps of effective leadership pay attension to whats important praise what you want to continue punish what you want to stop pay for results you want promote people who deliver the results you want leadership styles depend on: traits + personality level of skill, experience , motivation and confidence of employees time-frame how quickly descisions need 2 be made degree of importance- tactical or strategic decision making degree of difficulty of task- whether routine or crisis.

2.5 MOTIVATION
motivation = desire, effort and passion to achieve something or willingness to complete task with enthusiasm. Intrinsic: people do task out of own desire

Extrinsic: people participate because of benefits or rewards Advantages of worker motivation: higher morale/job satisfaction, improved productivity and quality better industrial relations-reduce chances of conflict in work place lower staff turnover reduces cost of hiring staff lower absenteeism higher profits generated from above factors =) Signs of poor motivation: -high absenteeism rates -high wastage level high % defected output/ poor quality increased customer complaints poor punctuality increasing number of disciplinarily problems Taylor: scientific management- employees primarily motivated by money, efficiency targets and output related to pay. Repetitive tasks based on division of labour and specialization in production process. Piece work where worker receives payment based on level of output. Workers selected for jobs based on abilities rather than friendship groups. Criticized for ignoring non-physical contribution of workers, not easy 2 measure output of some professionals e.g. teachers, doctors etc. also not all people are motivated by money. Scientific management can lead to monotonous tasks, leading to job dissatisfaction rather than motivation. Firms use mass production and have many low skilled workers tend to use this theory. Maslow: focused on psychological needs of workers.

Criticism: Levels are difficult to measure- not quantitative measurement. Maslow = psychologist not business man

Assumes everyone is motivated in prescribed order- home workers dont have social office interaction but still highly motivated No explanation of what motivates after self-actualization

McGregor: Theory X negative management attitude about workforce- see workers as lazy people who avoid work if possible. Workers need close supervision, do not like work and lack ambition. Authoritarian style, emphasis on output and productivity, rather than people. Theory Y- positive approach, employees able to achieve org objectives with own accord and initiative. Managers believe workers gain satisfaction from work and take on own responsibility. Managers likely to be democratic and decentralized approach in management style. Hertzberg: Recommends democratic style. Hygiene factors-aspects that dont motivate but must be met to prevent dissatisfaction. E.g policies, supervision, working conditions, pay Motivators- factors that lead to psychological growth of workers, leading to increased satisfaction and performance @ work. Achievement, recognition, responsibility and advancement of worker led to increased worker satisfaction. 3 key areas to increase motivation: Job enlargement- variety Job enrichment- more complex and challenging tasks-exploit potential Job empowerment- delegating decision making power to workers, help boost overall morale. Criticisms: - doesnt apply to many occupations, especially low-skilled/low paid where job enrichment + empowerment not part of work. - Some employees dont want enriched jobs as this involves having extra responsibility and stress. - Ignores role of team working in motivating workforce Content theories: -seek to explain specific factors actually motivate people (hertzberg, McGregor and Maslow are all examples) Mayo: workers motivated by humane approach to management. Hawthorne experiments-increase in output due to people working together better Increase performance when scope 4 discretion, creativity ad teamwork. When views and efforts recognized, staff have sense of belonging, more motivated Encourage team spirit, group dynamics, exploiting skills + expertise of each team member. McClelland: theory of needs

Need for achievemet people will work better Need for power- people who like to influence behavior of others are strongwilled managers Need for affiliation-seek good social + working relationship with colleagues + management team

Process theories: look @ decision-making processes + behavior of people to determine motivation. Vrooms Expectancy theory: people only put in effort when they expect their role will help achieve required target. If feel lack ability then effort will be lower. 3 parts to motivate workforce: 1. expectancy 2. instrumentality-expect meet performance-rewarded accordingly 3. valence- people place different values on different rewards whether worth effort. Adams Equity theory: workers will naturally compare their efforts or rewards to others in the workforce. Each worker should receive a remuneration package that reflects his or her efforts Workers only motivated if remuneration package seems fair Degree of equity in rewarding efforts will have an impact on motivation level. If inequity allowed to continue then absenteeism may increase increasing costs: Hiring temporary staff 2 cover absent workers Overtime costs + disruptions 2 staff that take on work of absent staff Lower productivity Detrimental effects on staff morale and customer service Loss of output if workers position or role cannot be replaced by another. Financial motivation: wages-payment based on time devoted piece rate- rewards on output salary-fixed annual pay, paid at end of each month Disadvantages of time-based payment: -not easy to distinguish efforts/ output -little incentive to 2 work hard since people paid same amount 4 time Commission rather than time-based=output based Pays workers based on level of output contributed by worker as portion/ % of sales. Whereas piece rate is a fixed amount per unit sold or produced. Limitations: Speed in production not necessarily correlate with high quality output or customer care Added pressure on workers 2 sell more or to perform @ faster rate Tasks can be repetitive causing boredom

Since payments depend on fluctuating sales or output levels, lack of security There may be a need to hire more quality controllers, especially in manufacturing processes.

Profit-related pay (or profit sharing)- the higher amount of profit made, the greater pay received by employees. Usually paid as annual bonus. Amount paid is usually linked to employee salary and length of service. Can strengthen employee loyalty and foster teamworking, therefore boosting efficiency of labour. However, share can often be 2 small 2 motivate, tends to reward senior management, lower individuals feel no influence. Performance related pay- more flexible than profit-related pay. Rewards employees that meet certain goals- e.g. sales targets or competence. Can be paid in form of performance bonuses(workers who reach targets), loyalty bonus(if stayed in business long time), or pay rise. Advantage: create incentive for people to work and perform better. Disadvantages: Targets may be unrealistic/unachievable- cause resentment, hinder performance Stress caused by pressure 2 meet targets Non-financial motivators ignored PRP not appropriate in some professions where quality is seen as more important than quantity. May not promote teamwork. Workers may feel treated unfairly and colleagues better rewarded. Employee share ownership schemes: reward by giving shares in company, employees take direct interest in companys well-being. However, often only senior management benefit as others may not qualify or amount too insignificant. Fringe Payments: or perks are payments + benefits to any employee in addition to wages/salary. Vary depending on position in org. helps encourage employee loyalty + safty needs. Can potentially have huge cost. Non-financial Motivation: job enrichment job enlargement job empowerment job rotation- form of enrichment, workers perform different tasks of same complexity-fulfilling number of different tasks in order, again provides variety and avoids over-specialization teamworking- staff work alongside other employees e.g. cell production, quality circles, departmentalized teams

Adair Model of team building: Tasks: must be challenging enough to maintain interest Team: must work collectively 2 successfully complete task. Individual needs to be catered for by team Adair argued that too often, teams focus on performance paid 2 individuals group dynamics not exploited. Effective management of teams requires recognition and reinforcement of every member. Belbin model: of teamworking considers behaviour of managers. Team-role type
Shaper

Contribution (benefits)
Challenging, dynamic, thrives on pressure, drive and courage to overcome obstacles, directing team attention and priorities Disciplined, reliable, conservation and efficient. Turns ideas into practical actions, out agreed plans systematically and efficiently Thorough, conscientious, anxious. Searches out errors and omissions. Maintains sense of urgency within team and delivers on time. Mature, confident, good chairperson, clarifies goals, promotes decisionmaking, delegates well, recognizes where teams

Allowable weaknesses
Prone to provocation. Offends peoples feeling.

Suggested task allocation

Person best suited to overcome obstacles and opposition, create a sense of urgency and ensure that talk is turned into action. Appointed as organizer, responsible for procedures and practical steps to be taken once team reaches significant decisions Should ensure teams works meets necessary deadlines and conforms to highest standards. Responsible for ensuring no inaccuracies or error. Best person to coordinate group effort,ensure that everyone has a useful role and that team works towards common

AC T I O N O R I E N T A T E D P E O P L E O R I E N T A T E D
Implementer

Somewhat inflexible. Slow to respond to new possibilities.

Completer finisher

Inclined to worry unduly. Reluctant to delegate. Slow to respond to new possibilities.

Coodinator

Can oftn be seen as manipulative. Off loads personal work.

Team worker

Resource investigator

strengths and weaknesses lie. Cooperative, mind, observant and diplomatic. Listens, builds, averts friction. Support member in their strengths, e.g. building on suggestions, fostering team spirit generally. Extrovert, enthusiastic, communicative. Explores and report on opportunities, and resources outside the group.

goal. Indecisive in critical situations Should play a floating role, using versatile qualities to help where others cannot manage. Should use diplomatic skills to overcome conflict. Should be responsible for developing external contacts and exploring new opportunities, needs a chance to conduct negations nut must report back to group. Deal with most problem solving or be responsible for generating new strategies or ideas and proposing solutions to the rest of the team. Responsible for ensuring all worthwhile options are considered, need a key role in planning, an arbitrator in event of controversy. Should provide focus on technical issues confronting team, should provide knowledge and techniques in short supply.

Overoptimistic. Loses interest once initial enthusiasm has passed.

Plant

C E R E B A L O R I E N T A T E D

Monitor Evaluator

Creative, imaginative, unconventional, solves difficult problems, redefines problems, advances new ideas and strategies. Objective, impartial and good at carefully weighing up all possibilities to make the right decision, judges accurately.

Ignores incidentals, too preoccupied to communicate effectively.

Lacks drive and ability to inspire others, can come across as unenthusiastic or boring.

Single-minded, self- Contributes starting, dedicated. only on a Provides technical narrow front, knowledge and skills dwells on in rare supply. technicalities. Contributes professional viewpoint on subject under discussion. Belbins research showed that a balanced team-one with highest chance to succeed- would contain a balance of team roles.

Specialist

Other forms of non-financial motivation:

recognize and praise

the working environment- worker comfortable? Worker participation Continuous professional development- opportunities provided for ongoing training. More loyal and productive workforce- easier 2 delegate

Argyriss Maturity and immaturity theory suggests that if managers treat workers as adults, they will behave as rational as adults. If treated like children, then workers will behave like immature children. Benefits of higher staff retention: -lower recruitment cost -better corporate image -skills + knowledge kept in org -greater labour productivity as greater stability - better customer service, leading to better customer satisfaction +loyalty -improved competitiveness -ultimately helps improve profitability.

2.6 Organizational and corporate culture

-what is considered normal to business org and guide behavior within the org. may be based on set of beliefs, values and attitudes of management ant employment. A negative culture can lead to increased absenteeism and lateness, thus esculating costs to the business. A culture of acceptance and cooperation with management will aid a business in responding to the changing needs of the market. Fostering improved culture: main problem 4 managers in fostering desired culture is that must be established over long-period of time. Culture largely formed by subjective views of people + becomes ingrained in workers minds-how see org. not always easy 2 change views, particularly for large workforce, can be resistance to change. Employees who are rational, motivated +attentive can attain an acceptable level of cultural intelligence. Helps foster desired culture. Influences of organizational culture: Nature of business- depends on mission, objectives, aims. Organisation structure- tall structures tend 2 have small teams, flatter=more likely 2 have fggggggggggggggggggcollaborative team working. Rewards- employees appropriately remunerated 4 efforts=motivated culture of workers ggggggggstriving 2 achieve good results. Management style- theory Y=workers deal with problems themselves, theory X=threats + mggggggggggggggmanagement solve problems Sanctions-org with few sanctions may encourage staff 2 be slack. However, too many = gggggggggresentment The strength of culture depends on unity. Advantages of strong corporate culture: Create sense of belonging + security 4 staff because feel apart of business Mistakes + misunderstanding may be minimized since staff familiar with process Promotes team cohesiveness Problems associated with culture gap e.g. conflicts between different groups minimized. Theories of organizational and corporate culture: Charles Handy: different cultures needed for different business activities.

Power cultures-one dominant individual/group hold decision-making power. Structure likely 2 be flat, wide span of control Role cultures- occur in highly structured orgs with formal rules and procedures.

Job roles clearly stated in formal job descriptions Task cultures- occurs in org where focus on getting result from work done, no single source of power. Employees empowered and control over responsibilities. Person cultures- occur in org where staff in similar positions with similar expertise + training form groups 2 share knowledge + enhance their own skills

Edgar Schein: 3 levels of corp culture 1. artifacts- superficial aspects of org can be easily detected e.g. building, dress code. 2. espoused values- deal with culture of staff, symbols/metaphors e.g. logos, brands, mission statement, used to express culture of staff 3. basic assumptions +values- represent deepest level of culture entailing culture that is unseen + not easily identified. Deal and Kennedy: described culture as way things get done within org. based on feedback + reward and risk (either drives workers or demotivates)

Kotter and Heskett: 2 types 1. adaptive culture-receptive 2 change 2. inert cultures- resistant 2 change Goffee & Jones: double S model- 2 dimensions 1. sociability- extent of concern 4 colleagues. Tend 2 focus on people rather than task. 2. solidarity- degree of cohesiveness or unity in org. high= aid harmony + efficiency, low = self-interest. The ideal culture when both high sociability and high solidarity. Geert Hofstede: link between international culture and org culture power- extent subordinate accept unequal distribution of power

individualization Vs collectivism- extent people care 4 themselves or be cared

for by network +society, look after others masculinity vs femininity- extent culture conforms to traitional gender values e.g. males aggressive, ambition, selfish. Women= family orientated, caring.
Uncertainly avoidance- extent people in org prefer structural routine or flexible structures Long-term vs short-term orientation- extent 2 particular culture values

sacrifices 4 benefits in future.

Culture clashes: Exist when there is conflict between 2 or more cultures within org. e.g in mergers/takeovers, firm expands overseas and ignorant of international cultural differences. Difficulties of changing corp culture: -costs- of implementing change may be very high -resistance to change -public opinion- perception of an orgs expected values may also hinder changes -national cultures-may be so strong that any attempts to change the way things done may cause resistance + resentment. Business strategy: Schein argues that cultural understanding is a prerequisite to effective management + leadership. Management viewed 2 set corp culture, as they get values, rules, benefits + norms. Several interrelated steps to creating a positive and harmonious culture: Develop sense of history- past success glorified, helps keep past present and shape org future Create sense of unity-by establishing SMART objectives-establish teamworking culture Promote sense of value- strong positive culture created. Encourage sense of responsibility dedicated + responsible 4 work. More likely if sense of unity

2.7 Employer and Employee Relations

Negotiation is bargaining process whereby 2 or more parties attempt to achieve a mutually acceptable outcome. Collective bargaining describes the process of negotiation between management and trade unions. Standoff/ deadlock occurs when failure 2 reach satisfactory compromise and therefore commencement of dispute likely to follow. 3 levels of negotiation: 1. management negotiations day 2 day concerning affairs of business 2. commercial negotiations between different orgs 3. international- extension of commercial negotiations involving considering crossboarder cultural and language differences. Stages of negotiation process: 1.preparation 2.proposal 3.debate

4.bargaining 5.closing 6.review Approaches to negotiation: -avoidance sometimes leads to a lose, lose situation -level playing field- negotiation both parties being equal -winner takes all -the win-win approach Trade union: org that consists of worker-members who unite to protect rights + welfare of members. Issues unions focus on: improving work conditions provide legal advice provide financial support, to those unfairly dismissed or redundant supporting right of its members to have continuous professional development + training pressure employers to ensure equiptment + machinery safe 4 use outcome of negotiation depends on: experience +skills of representatives number members + degree of unity within trade union state of economy-if high unemployment, employees weaker position 2 negotitate demand for labour derived from demand of product/service degree of substitution between labour and capital-if continually push 4 pay rise, business may become more capital intensive. public and media opinion government involvement workers objectives: increased pay or prevention of pay cuts improved remuneration e.g. fringe benefits, paid holidays better working conditions training and development opportunities enhanced terms of employment better quality staff facilities trade unions+individuals methods to achieve objectives: negotiations go slows work 2 rule overtime bans strike action a walk out is often used in conjunction with strike action. Workers collectively leave work as sign of protest. Whatever method of industrial action used by unions and workers, they attempt to reduce output and efficiency of business, thus competitiveness. Due to decrease in popularity of trade unions, many organizations have developed staff associations within org. Employer objectives: lower cost of production in order to remain competitive

increased levels of productivity lower rates of absenteeism + staff turnover.

Senior management tactics 2 achieve objectives: negociations public relations threats of redundancy-intimidation changes of contract-if on finite contracts, possible to change terms and conditions of pay when offering next contract. Closure Lockouts Conflict = situation of friction or mutually exclusive goals between 2 or more parties. Sources: -needs and wants being ignored -perceptions- different interpretations of situation -values-incompatible beliefs or values -power-person in power makes people do things against own will. -feelings + emotions ignored Conflict is a problem: Hinders productivity-less focus on task Reduce level of staff morale Cause inappropriate conduct Fuel internal politics of org Hinder opportunities for collaborative team working High Moderate Low Avoidance Low Moderate Surrender Compromise Compete High Collaborate

Concern for self

Conflict resolution: Conciliation is a process whereby parties involved in dispute agree to use services of an independent mediator. Conciliator encourages parties to negotiate and compromise Arbitration- similar but involves independent arbitrator who decides outcome. Single union agreements: organization agreeing to participate in collective bargaining process with a sole labor union representing workers.

No strike agreements-rade union negativee image of causing disruptions, memberships declining, thus no strike agreements help attract more members Consultation: ask employee view on key issues before negotitation, allowing some influence in decision making although views may be ignored Litigation- seek legal remedy for conflict- win-lose situation Expectations- conflict can occur when unrealistic expectations set Avoidance- agree 2 disagree= lose-lose situation

2.8 Crisis Management and Contingency planning:

Crisis= situation of instability which results in major problems for a business. Crisis management= response to crisis in order to minimize impact on business. Crisis planning is about being reactive to changes that may cause damage. Business will usually find it difficult to plan for. By contrast contingency planning looks at how to deal with such crisis- a plan for appropriate action. Therefore managers better prepared to deal with crisis. Advantages: Careful planning can help reduce risks since most if not all eventualities have been accounted for Reduce impact of crisis- since plan 2 follow Reassure staff, hence satisfy safety needs- maslow Necessitates effective communication between management, thus enhancing productivity and motivation Disadvantages: Uses up valuable management time and resources, thus increase costs Crisis may not happen, therefore time and money could be used elsewhere If plans based on inaccurate or outdated info/data, the inappropriate action may be taken in crisis No amount of planning can prevent totally unexpected Crisis management or disaster recovery requires managers to deal with potential crisis in swifter manner before they escalate into a real problem for the business, thus media wont hear about it. Stages: 1. select a team of staff trained to deal with crisis-senior manager, PR person 2. team analyses +assesses potential threats. 3. develops and implements alternative tactics 4. information and decisions systematically communicated to those involved and affected 5. resume normal business operations once crisis dealt with 6. reflect on experiences in order to better deal with crisis in future by up-dating plan some risks uninsurable since difficult to quantify, making planning more challenging. Strategy: -important 2 act fast important 2 have coordinator 2 work closely with external agencies e.g. lawyers, emergency services, press.

Investigate root cause-Ishikawa cause and effect model or pareto principal