PART A

Chapter 8 Organisation design

Centralization & Decentralization
Centralization the degree to which decision-making is concentrated at the upper levels of
the organization.

Amount of authority delegated to different positions in the organisation structure.

Decision making is focused at the top of the organisation hierarchy and lower level just carry
out decisions made.

Authority and work is little delegated.

Advantages

Top management is aware of the happenings and overall needs, better control over
activities

Better standardised procedures and policy

Easier to maintain secrecy

Decentralization the degree to which lower-level employees provide input or actually

make decisions.

Decision are made at all management levels.

Lower level management provide input in decision making.

Authority and work is delegated

Advantages

Reduces work load for Top management

Faster decisions

Better decisions

Employees learn to make decisions

Improves staff morale

Organisation becomes flexible

Chapter 4 Decision making

Decision making
Step 1:
Identify a problem.
You must be aware of the problem.
You must be under pressure to act.
 You must have the authority or resources to act.
Step 2:
Identify decision criteria. Decision criteria are criteria that define what is relevant in
a decision.
Step 3:
Allocate weights to the criteria. Assign a weight to each of the items in order to give
each item accurate priority in the decision.
Step 4:
Developing alternatives. Identify viable alternatives that could resolve the problem.
Step 5:
Analyze alternatives. Appraising each alternatives strengths and weaknesses.
Step 6:
Select an alternative. This step to select the best alternative from among those
identified and assessed is critical.
Step 7:
Implement the alternative. The selected alternative must be implemented by
effectively.
Step 8:
Evaluate decision effectiveness. Assesses the result of the decision to determine
whether or not the problem has been resolved.

PART B
Chapter 6 Change and Innovation
Why Do People Resist Change?

ambiguity and uncertainty

old habits

concern over personal loss

perception that change is incompatible

Techniques for Reducing Resistance to Change

Chapter 3 Management History
Taylors Scientific Management Principles
Management should observe and analyse all jobs in order to determine the best
method to accomplish them
Management should scientifically select and then train, teach and develop the best
worker for the job
Heartily corporate with the workers so as to ensure that all work is done in
accordance with the principles of the science that has been developed
Divide work and responsibility almost equally between management and workers.
Management takes over all work for which is better suited than the workers

DRAWBACKS TO SCIENTIFIC MANAGEMENT

It reduced the workers role to that of rigid adherence to methods and procedures
It generated a carrot-and-stick approach to the motivation of employees by enabling
pay to be geared tightly to output
Led to fragmentation of work on account of its emphasis on the analysis and
organisation of individual tasks or operations
Planning and controlling of workplace activities exclusively in the hands of the
management
It ruled out any realistic bargaining about wage rates since every job was measured,
timed and rated scientifically
The creation of boring, repetitive jobs
The introduction of systems for tight control over work
The alienation of shop-floor employment from their management
BENEFITS OF SCIENTIFIC MANAGEMENT
Its a rational approach to the organisation of work enabled tasks and processes to be
measured with a considerable degree of accuracy
Measurement of tasks and processes provide useful information on which to base
improvements in working methods, plant design
By providing working methods it brought enormous increases in productivity
Employees were paid by results
Stimulated managements into adopting a more positive role in leadership at the shop-
floor level
Contributed improvements in physical working conditions for employees
It provided the foundations on which modern work study and other quantitative
techniques could be soundly based

Chapter 9 Motivation
Motivation can be enhanced by:

Job design- the way tasks are combined to form complete jobs
Job enrichment- changing the tasks to make it inherently more rewarding, motivating and
satisfying
Job enlargement- people are given different / addition tasks to alleviate boredom
Designing Appropriate Rewards Programs

Maslows Hierarchy of Needs Theory

Maslows theory that human need physiological, safety, social, esteem, and self-
actualizationform a sort of hierarchy.

Maslow argued that each level in the needs hierarchy must be substantially satisfied before
the next need becomes dominant.

An individual moves up the needs hierarchy from one level to the next.

The theory also says that once a need is substantially satisfied, an individual is no longer
motivated to satisfy that need.

Therefore, to motivate someone, you need to understand what need level that person is on
in the hierarchy and focus on satisfying needs at or above that level.

Chapter 10 Monitoring and controlling

The Control Process:
1. Measuring Actual Performance - Measuring involves deciding how to measure
actual performance and what to measure.
2. Comparing Actual Performance Against the Standard - Comparing involves looking
at the variation between actual performance and the standard (goal).
 3. Taking Managerial Action - Taking action can involve doing nothing, correcting the
actual performance, or revising the standards.

Allocate resources
Ratio analysis
Budget analysis
Balanced scorecard
Scheduling- Detailing what activities have to be done, the order in which they are to
be completed, who is to do each, and when they are to be completed.
Breakeven analysis- Technique for identifying the point at which total revenue is just
sufficient to cover total costs.
Linear programming- Mathematical technique that solves resource allocation
problems.

Measures of Organizational Performance

Productivity - the output of goods or services produced divided by the inputs
needed to generate that output.
Effectiveness - a measure of how appropriate organizational goals are and how well
those goals are being met.
Industry and company rankings compiled by various business publications.
Tools for measuring Organizational Performance:

Feed forward control control that takes place before a work activity is done.

Concurrent control control that takes place while a work activity is in progress.

Management by walking around a term used to describe when a manager is out in

the work area interacting directly with employees.

Feedback control control that takes place after a work activity is done.