CHAPTER 6

1. ORGANISATIONAL CONTROL Emphasises Nature of organizational design 2. OPERATIONAL CONTROL The process of ensuring that specific task are carried out effectively and efficiently 3. CONTROL PROCESS The purposes and method of organizational control are therefore to Standardise performance Prevent losses Correct deviavce Define and limit authority Define and direct performance

4. Main stages of the control process are Determining and agreeing objective Translating objectives into plans and performance standards Communicating plans and standards to those concerned with their implementation Measuring actual performance against agreed standards Ascertaining the reasons for deviations Taking appropriate corrective action.

5. CHARACTERISTICS OF CONTROL PROCEDURES Relevance Flexibility Focus on critical points Timeliness and reporting speed

Simplicity and clarity Cost effectiveness Suitability for corrective action

6. INTERNAL CONTROL The whole system of controls and methods both financial and otherwise, which are established by management to: * Safeguard its assets * Secure, as far as possible, the completeness and accuracy of the records * promote operational efficiency * monitor adherence to policies and directives 7. TYPES OF INTERNAL CONTROLS Organisation

* Separation of a companys operations into appropriate divisions and subdivisions * Appointment of persons to assume responsibility * Establishment of clear lines of responsibility between each division and sub-division and the board of directors * Overall co-ordination of the companys activities - Segregation of duties * Authorising or initiating the transaction * The physical custody and control of assets involved * Recording the transaction No one person should be in a position both to misappropriate an asset and to conceal his act by falsifying the records. Physical Authorisation and approval Arithmetical and accounting Personnel

Supervision Management

9. CONTROL CATEGORIES The individual components of an internal control system are kown as CONTROLS or INTERNAL CONTROLS The main areas of internal control can be more closely defined as follows Financial Controls

* Budgetary control: the organization should plan and control its expenditure and income to meet its predetermined objectives * Legitimacy of income and expenditure: all income and expenditure should be in accordance with the policies of the organization, should be properly authorized and should be within the law. * Security of assets: the assets of the organization should be kept in proper custody and not wrongly applied, either by error or intent. * Accounting controls: all transactions should be correctly recorded and accurately processed, and control accounts maintained. Management controls

The nature of management controls will vary widely according to the types of activity that is under review. However, there are several basic control areas that should always be in evidence. * Objectives: relating to any operational activity

* Procedures: Staff at all levels need to be informed both of their overall objectives and the organizational procedures which are to followed to ensure the achievement of the operational activity. * Organisation: the organizational structure should be clearly defined so that the staff appreciate their role, * Management information: needs to be continually informed

* Supervision: System of supervision and internal check (e.g. division of duties, independent checking of work, quality control, etc) should be maintain to ensure that breakdown * Reviews of operational effectiveness: management should regularly review the effectiveness and efficiency of operations under its control 11. SPECIFIC CONTROL PROCEDURES

Approval and control of documents Controls over computerized applications Checking the arithmetical application Maintaining and reviewing control accounts Comparing the results Comparing internal data with external sources

- Limiting direct physical access to assets and records - An important general principle with respect to assets and records is that of segregation. In particular there should be a division of responsibilities for: * Authorising or initiating the transaction * The physical custody and control of assets involved * Recording the transaction 13. INTERNAL CHECK Internal check can be describe as one of the features of internal control, the objective is the prevention or early detection of errors and fraud. Internal check therefore include such matters as the allocation of authority, the division of work, the proper method of recording transactions and the use of independently ascertained totals against which a large number of individual entries can be proved, such as a sales ledger control account The checks are designed to ensure that: * All transactions and other accounting information that should be recorded have in fact been recorded * Any errors or irregularities in processing accounting information are highlighted * Assets and liabilities recorded in the accounts do actually exist and are recorded at their correct amount 14. WEAKNESSES OF INTERNAL CONTROLS - the ususal requirement that the cost of an internal control is not disproportionate to the potential loss may result from its absence. - most systematic internal controls tend to be directed at routine transactions rather than non-routine transactions. - the potential for human error due to carelessness, distraction, mistakes in judgement and the misunderstanding of instructions

- internal controls depending on segregation of duties can be avoided by two or more people responsible for those duties colluding. - Authorization controls can be abused by the person empowered to authorize the activity. - mgmt can often override the controls that have put in place themselves - the procedure may become inadequate due to changes in conditions.

FEATURES OF EFFECTIVE CONTROL PROCEDURES Developing appropriate recruiting policies Screening prospective employees Developing training policies that communicate prospective roles and responsibilities. Exercising disciplinary action for violations of expected behavior Evaluating, counseling and promoting people based on periodic performance appraisals Implementing compensation programmes that motivate and reward superior performance while avoiding disincentives to enthical behavior.

ROLE OF INTERNAL AUDITOR. An internal auditor is an independent appraisal function established with an organization to examine and evaluate its activities as a service to the organization. The auditor must be-: Completely divorced from executive responsibility and allowed to investigate any area of the organizations activities. Fully conversant with all clerical systems and methods of production and distribution Responsibilite directly to the board, or audit committee.

FUNCTIONS ASSOCIATED WITH INTERNAL AUDIT Reviewing systems and controls, financial or otherwise establishing adequate accounting and internal control systems is a responsibility of the directors and/or senior mgmt. Special investigations, and the prevention and detection of errors and fraud. Examination of financial and operating data, and testing transactions and balances this may include a review of the means used to identify, measure, classify and report information as well as specific enquiry into individual items Review of the operation of non-financial controls and the efficiency of business systems Review of implementation of corporate policies, plans and procedures.

EXTERNAL AUDITOR Auditors report must state whether in the auditors opinion-:

The accounts comply with the companies Act 1985. A true and fair view is given of the state of affairs of the company or group at the end of its financial yr, and of the profit and loss for that year.

The external auditor therefore does not have responsibility for: Preparing accounts Setting up control systems Evaluating the efficiency of systems and procedures Reporting on compliance with mgmt policies Detecting fraud and error.

WHY INTERNAL CONTROL INTERESTS THE AUDITOR The reliance on internal control will reduce the amt of testing of transactions and resultant balances in the ledger accounts required. The testing of transactions and balances is known as substantive testing. The testing of operation of internal control is known as compliance testing.

CHAPTER 7 WHAT IS FRAUD? Fraud may be defined as the use of deception with then intention of obtaining an advantage, avoiding an obligation or causing loss of another party. Theft dishonestly appropriating the property of another with the intention of permanently depriving them of it (theft act 1968) False accounting dishonestly destroying , defacing, falsifying any account, record or document required for any accounting prupose, with a view to personally gain or gain for another. Bribery and corruption offering a bribe to any public officer to influence behavior and similarly accepting such a bribe.

PREREQUISITIES FOR FRAUD Dishonesty this can be prevented by careful scrutiny of staff. Opportunity prevented by: segregation of duties. Physical security. Control over forms, control over and testing of new computer programs. Motive can be prevent by -: Good employment conditions Instant dismissal where appropriate Sympathetic grievance procedures

All crime is a combination of motive and opportunity. System detecting fraud-: An audit trail Logging of access to files, terminals, books and records Good documentation of accounting procedures and programs

Collusion individuals pool their resources together to achieve their aims. HOW FRAUD AFFECT THE BUSINESS The financial statements might nt give a true and fair view of the financial position of the business if the fraud is due to intentional misrepresentation. If fraud if due to the removal of funds/assets -: Profits being lower than they should be The net asset position being weakened because the business has less cash and fewer assets. Failing returns to shareholder The business will eventually b unable to operate if theft is long term.

CONDITION FOR FRAUD High staff turn over Chronic understaffing Inadequate internal reporting of mgmt accounting Loss of records or inadequate documentation about transactions Overly secret dealings with certain clients or suppliers Excessive hrs worked by key staff and insufficient delegation

PREVENTION OF FRAUD The best means to prevent fraud is to understand why it occurs. External factors the general environment in which the organization operates may lead to the rick of fraud occurring. Internal factors focus on the general and specific risks associated with each area and process in the organization itself. Unusual circumstances that may increase risk-: New personnel New technology New product Changed operating environ Rapid growth

Controls to prevent fraud -: Monitor sickness avbsence Physical and electronic access to sensitive areas must be controlled Screen new employees and check references Ensure that not goods or assets leave a site without despatach

Warning signs-: The demand for a certain products increase unusually Turnover goes up with out similar increase in costs The organization starts under or over performing relatve to the competition There is increased activity in investment Staff showing signs of stress Late working Rluctance to take annual or other leave Refusal to accept a change in post New staff suddenly resign

Intimacy with suppliers and contractors Employee morale low

CHAPTER 8 CONTROL OBJECTIVES WAGES AND SALARIES The computation of wages and salaries should be ony in respect of the clients employees and at authorized rates of pay. Wages and salaries should be in accordance with records of work performed Payrolls should be calculated accurately. Pmt should be made to the correct employees Liabilities to the tax authorities for PAYE and NIS should be properly recorded.

CONTROL OBJECTIVES PURCHASES To ensure that: Purchased goods/services are ordered under proper authorities and procedures Purchased goods/services are only ordered as necessary for the proper conduct of the business operations and are ordered from suitable suppliers Goods/ services received are effectively inspected for quality, quantity and conditions Invoices and related documentation are properly checked and approved as being valid before entered as trade creditors All valid transaction relating to payables and only those transactions should be accurately recorded in the accounting records.

CONTROL OBJECTIVES SALES Customers orders should be authorized , controlled and recorded in order to execute them promptly and determine any provision required for losses arising from unfulfilled commitments Goods shipped and work completed should be controlled to ensure that invoices are issued for goods and revenue recorded for sales Goods returned and claims by customers should be controlled in order to determine the liability for goods returned and claims received but not entered in the rec records. Invoices and credits should be appropriately checked as being accurate and authorized before being entered in the rec records Validated rec transactions and only those transactions should be accurately entered in the accounting records

ACHIEVEMNT OF OBJECTIVES SALES Accepting customers order sequence-controlled documents should be used to acknowledge all orders rec. Despatch department Sequence-controlled documents shold be used for all goods leaving the premises. Invoicing the goods sequence-controlled invoices should be raised by the sales department and then passed to the accounts department for recording.

ASSESSING THE EFFECTIVENESS OF THE CONTROLS Carry out sequence test checks Check the authorization Seek evidence of checking of the arithmetical accuracy Check dispatch notes and goods returned notes Check that control account reconciliations have been performed and reviewed Ensure that batch total controls have been applied by seeking signatures and tracing batches from input to output.

CONTROL OBJECTIVES CASH All sums are received and subsequently accounted for No pmt are made which should not be made All receipts and payments are promptly and accurately recorded.

CHAPTER 9 Information processing is where data is put into the system and information is output. Formal systems for external information include: Legal and regulatory update information changes to company law, tax law etc. Research intelligence information about technology changes Other forms of mkt intelligence eg feedbk from customers

SYSTEMS OUTPUTS Routine reports or transaction documents - those required to conform to business conventions eg. Payslips, invoices, Mgmt information in the form of reports are summaries od or extracts from the data which has been processed.

STRUCTURED AND UNSTRUCTURED DECISIONS A structured problem is one in which there is a defined number of elemenys and it ispossible to go about solving the problem in a systematic way. Tend to be repetitive and will defined. An unstructured problem is less to analyse, as it appears to lack any obvious logical underlying procedures for solving it. Tend to be unique. Semi-structured decisions the information requirements and the methodology to be applied are often known, but some aspects of the decision still rely on the mgr.

LEVELS OF DECISION MAKING

Strategic information this is mainly used by directors and senior mgrs to choose between alternative courses of action, to plan the organisations overall objectives and strategiy and to measure whether these are being achieved. Prepare irregualry Profitability of main business segment Investment appraisal methods Cash requirements

Tactical information this is used by mgrs at all levels, but mainly the middle level for tactical planning and mgmt control activities. Prepare regulary Sales analysis Inventory levels Productivity measures

Operational information used mainly by mgrs on the operational level who have to ensure tht routine task are properly planned and controlled. Listings of rec and payables Payroll details Raw material requirement and usage Delivery schedule

DIFFERENT INFORMATION SYSTEMS LEVELS OF HIERACHY Strategic planning decision where the decision maker develops objectives and allocates resources to achieve these objectives. Decisions are unstructured and non-programmed. Managerial control decision deal with the use of resources in the organization and often involve personnel or financial problems Operational control decisions deal with the day-to day problems of the organization.

TRANSACTION PROCESSING SYSTEMS Transaction processing systems represent the lowest and most basic use of information w/I the organization, and are intergral part of the operation of the organization.

MANAGEMENT INFORMATION SYSTEMS

A management information system can be defined as a set of formalized procedures designed to provided mgrs at all levels w/ appropriate information from all relevant sources to enable them to make timely and effective decisions for planning and controlling the activities for which they are responsible. MANAGEMENT SUPPORT SYSTEMS Decision support systems computer systems that are used by mgmt as an aid in making decisions when presented w/ semi-structured or unstructured problems. Intelligence Design of possible solutions Choice of solution Executive information systems give the executive easy access to key internal and external data. Ability to call up summary data from the organizations main systems The ability to drill down to a more detailed level The ability to manipulate the summary data Built-in graphics charts and other presentations The ability to set up techniques so that information from different areas is always summarized in the same forms. Expert systems computer systems that hold expert knowledge that attempt to replicate th decision making procedures of a human expert.

MANAGEMENT REPORTS Regular reports reports that relate to a cycle of activities Exception reports reports prepared to highlight some unusual occurrence and prompt the user to take corrective action. Analyses items of dat grouped by various attributes, and analysis may be done on a regular or on an ad hoc basis. Forecasts merely the result of intelligent conjectures about the future based upon the past.

TYPICAL REPORTS Production and material control Marketing, including distribution Personnel Financial and management accounting

TYPES OF PROCESSING - Batch Processing a group of similar transactions are processed in the same processing run. Advantages 1. Error dection is simplier

2. No special hardware/software is needed 3. It contributes to large-scale economies due to bulk processing 4. System design is simple Disadvantages 1. The system is time-driven and not geared to rapid action 2. System provides bulk information and so is not selective 3. Preparing batches results in duplication of effort Demand processing mode used when a transaction must be processed straightway, and delay through batch processing cannot be allowed. A request for information from transaction files The decision to pay a large account immediately Recording of an infrequent or special activity Batch-Demand Processing mix Batch input/processing of all transactions On-line mode referred to as on-line when the dat is input directly to the computer from the point of origination, and where the output si transmitted to the users location Advantages 1. Higher level of customer satisfaction is achieved 2. Information needed is obtained by adopting very simple procedures 3. Prompt and early informaitn assists in improving and maintaining the quality of mgmt decisions. Disadvantages 1. The system is relatively hig-cost 2. A high level of security is required 3. To avoid loss should the system fail duplicate processors and files are needed 4. System failure could cause great organizational problems.

CHAPTER 10 Authority the right that an individual has to require certain actions of others. The right to use power. Sources of authority Formal organ bestows authority Technical authority arises due to personal skills, training or knowledge Personal, informal authority not recognized in organ chart. Person is accepted as being a leader.

Responsibility in charge os something for which one is accountable. TYPES OF POWER Reward power a person has power because he can mediate rewards for him. Coercive power this enables a person to mediate punishment for others Referent power based upon the identification with the person who has the resources or the desire to be like that person (imitative power) Expert power based upon one person perceiving that the other person has expert knowledge of a given subject and is a recognized authority in a given situation.

WEBER AND LEGITIMATE POWER Max Weber two media by which commands are obeyed-: 1. Power, the ability to force people to obey, regardless of their resistance. 2. Authority , where orders are voluntarily obeyed by those who receiving them, and subordinates accept the ideas and directives from above because they are legitimate. Max Weber three types of administrative apparatus FAYOL Scalar principle authority and responsibility should flow in a direct line vertically from the highest level fo the organisaion to the lowest level. Establish hierarchical structure. Refers to vertical division of authority and responsibility. Authority, Responsibility and accountability (the principle of coordination) authority is the right to give orders and the power to exact obedience. Official authority - derives from the office Personal authority compounded of intelligence, experience, moral worth Authority is the right ot exercise power Charismatic leadership the individual has some special quality of personality Traditional authority is based upon customs and practice Rational-legal authority is exercised by means of a system.

Responsibilty if an obligation placed on a person who occupies a certain position Accountability if the need for individual to explain and justify any failure to fulfil their responsibilities to their superiors in the hierarchy Power is the ability to exert a positive influence over others/situations Delegation is the act by which a person or group of person possessing authority transfers part of that authority to a subordinate person or group.

FAYOL believed mgmt should plan, direct and control the activites of the work group. Functions of mgmt Planning seeking objectives, and the strategies, policies for achieving these objectives Organising the establishment of a structure of tasks which need to be performed to achieve the goals of the organization Commanding this involves giving instructions to subordinates to carry out tasks over which the manager has authority for decisions and responsibility for performance. Co-ordinating the task of harmonizing the activities of individuals and groups w/I the organization. Controlling the task of measuring and correcting the activities of individuals and groups, to ensure tht their performance is inaccordance with plans.

THE CONTINGENCY APPROACH No best way to organize . what is important is the fit between the organizations structure, size, its technology and the requirements of its environment. Contingency / situational theories. JOAN WOODWARD classification of technology-: Custom (small batch of job order) relies on skill, craftsmanship and ability of the worker, work supervision is not helpful and there is no economy of scale. Mass production (large batch)- requires control to ensure standardized production. Skill of large labour force is low. COntinuos (process) production controlled by manufacturing process , requires little worker involvement.

MECHANISTIC AND ORGANIC STRUCTURES T. BURNS AND G.M. STALKER concluded that organizational structures could be categorized along a continuum. Mechanistic smooth machine with order, clear definitions stability and rigidity providing main source of strength. Organic flexibility. Emphasis on goal achievement rather than conformity to hierarcy and rules. The mechanic - gains strength from the ability to resist pressure to change.

The organic gains strength from its ability to respond promptly and appropriately to change.

MINTZBERGS PRINCIPLES OF ORGANISATIONAL DESIGN HENRY MINTZBERG suggested that organizational structure is more complex than just differentiating between hierarchical types. Building blocks

The operating core represents the basic productive work of the organ. The strategic apex refers to the higher levels of mgmt The middle line is the intermediate levels of mgmt The technostructure refers to staff who provide a technical imput w/o being directly engaged in core activities. The support staff provide services ancillary to the core operations of the organization Size of blocks will vary with organizations MINTZBERG argues that the organization structure exists to co-ordinate the activities of different individuals and work processes. The nature of co-ordination is achieved -: Mutual adjustment through informal communication

Direct supervision one person co-ordinates by giving orders to others Standardisation of work processes programming the content of the work directly and in detail. Standardisation station of outputs the specification not of what s to be done but of its results Standardisation of skills the worker rather than the work or the outputs that is standardized Standardisation of norms the workers share a common set of beliefs and can achieve coordination based on this.

CHALRES HANDY believes that in organizations dominated by the new professionals, you cannot tell people what to do unless they respect you, agree with you or both. LEADERSHIP a means of directing. BUCHANAN AND HUCZYNSKI define a leader as someone who exercises influence over other people. Leadership is seen as a social process in which one individual influences the behavior of others without the use of threat of violence. Leadership-: An attribute of a position A charactereistic of a person A category of behavior

Authoritarian leaders get others to do things by giving them little scope to influence decisions. Democratic loeader see to persuade and consider the feelings of others and encourage their participation in decision-making The formal leader is the appointed leader, who holds a particular rank/position. The informal leader is the natural leader chosed or selected by the group to which he or she belongs. THE SKILLS OF A LEADER Sufficient knowledge of the set task Knowledge of the group skills/weaknesses Understanding of the precise requirements needed from the group Ability to communicate clearly and succinctly Ability to make decisions, sometimes under pressure An understanding of human nature Confidence both in the group and his/her self Ability to motivate the group

REQUIRMENTS OF LEADER satisfy task needs satisfy group needs

satisfy individual needs

CLASICAL THEORIES trait theories leaders are born not made physical traits such as drive, energy, appearance height personality traits adaptability, enthusiasm social traits co-operation, tact, courtest leader are products of particular situations

Activity based theory behavioural theory emphasis the function of the leader and the style of the leader. Goal attainment.

CONTINGENCY BASED THEORIES FIEDLERs contingency theory of leadership offers a systematic way of analysising situations and then prescribing the most effective leadership responses to the situation. Least preferred co-worker.

MODERN THEORIES HERSEY-BLANCHARD SITUATIONAL THEORY based on the amt of direction and amt of socio-emotional support a leader must provide given the situation and the level of maturity of the followers. Task behavior the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group. Relationship behavior the extent to which the leader engages in two-way or multi-way communications. Maturity the willingness and ability of a person to take responsibility for directing their won behavior. To determine the appropriate leadship style must first determine the maturity level of followers in relationship to task. Four leadership styles-: Delegating to subordinates low relationship/low task behviour Participating w/ subordinates high relationship / low task behavior Selling ideas to subordinates high task / high relationship behaviour Telling subordinates what to do High task / low relationship behaviorS

HANDYS BEST FIT APPROACH CHARLES HANDY suggest that a leader needs to consider four sets of influences in any situation. There is no such thing as a right style of leadership. The leader his/her preferred style, whether it is directive of supportive The subordinates their preferred style in light of the circumstances The task the job and its objectives

The environment the position of power the leader has in the organization and the relationship with the group.

STYLE (BEHAVIORAL) THEORIES Task-centred leadership the main concern of the leader is getting the job done, achiving objective and seeing the group as simply a means to an end. Group-centred leadership the prime interest of the leader is to maintain the group, stressing factors such as mutual trust, friendship R. LIKERT four key styles of systems - System 1: Exploitative autocratic which is the epitome of the authoritatian style - system 2: Bebevolent authoritative basically a paternalistic style. Limited lelment of reward but communication is restricted. - system 3: Participative the leader has some incomplete confidence in subordinates, listens to them but controls decision-making. - system 4: Democratic Mgmt gives economic rewards. WHITE AND LIPITT argued that to research the effectiveness of various styles, it is necessary to hold the situation constant. ROBERT BLAKE AND JANE MOUTON Recognised it was possible for production to be independent of concern for people. Concern for production includes the manager attitude towards procedures, processes, vol of output. Concern for people includes personal commitment, ensuring good working condition.

The task-oriented style (9,1) is in the best taylor tradition. Men are treated like machine. A Theory X approach. Creative energy might be channeled into beating system. The country club style (1,9) emphasized people. The impoverished style (1.1) no direct supervision, people do as they see fit. The middle road (5,5) give and take style The team style (9,9) advocates high degree of concern for production which generates wealth and for people who in turn generate production. DOUGLAS McGREGOR defined to opposing images of human nature, called Theory X and Theory Y and suggested that the style or mgmt adopted would depend on the view taken as to how subordinates behave. Douglas McGregor proposed authoritarian democratic approach to mgmt style. Theory X mgr the authoritarian is tough and supports tight controls with punishment/reward systems. Theory Y mgrthe democrat is benevolent, partcipative and beliver of self-controls. Theory X assumes that people dislike work and responsibility. Therefore must be coerced. Concern for production. Theory Y assumes that people value work. Concern for people. TANNENBAUM AND SCHMIDTS LEADER SHIP CONTINUUM A continuum suggests a range of styles between autocratic and democratic w/o suggestion that any one style is right or wrong. Appropriate style depends on -: The leader ( personality, values, natural style) The subordinates (their knowledge, esperience) The situation (organs culture, time pressures)

ASHRIDGE MGMT COLLEGE Further develop of continuum, suggest four mgmt styles-: OUCHI Ouchis Theroy Z emphasized a more democratic approach. Made the following assumptions about workers-: Tells the autocratic dictator Sells the persuaders Consults partial involvement. Joins the democrat

They have a very well developed sense of order, discipline, moral obligation They tend to want to build co-operative and intimate working relationships with those that they work for/with They are more participative, and capable of performing many and varied tasks They highly value a working environment in which such things as family, cultures and traditions These types of workers have a very well developed sense of order, discipline, moral obligation to work They can be trusted to do their jobs to their utmost ability, so long as mgmt can be trusted to support them and look out for their well being.

PETERS

(MBWA) managing by wandering about as the basis of leadership and excellence because it enables the leader to keep in touch with customers, innovation and people. Three major areas in the persuit of excellence Customers Innovation People

Labels MBWA as the technology of the obvious As the leaders wanders 3 major activities are going on-: Listening suggest caring Teaching values must be transmitted when face to face Facilitating able to give on-the-spot help

KANTER (Rosabeth Moss Kanter) Post-entreprenurial model corporation is a three part mix-: The values and goals which emanate from top mgmt The channels, programme and relationships designed in the middle to support those goals and values The project ideas pushing up from below

Kanter advocates-: Flatter, less rigid hierarchical organizations Teamwork

DUTIES AND RESPONSIBILITIES OF THE SUPERVISOR Allocating the task to and organisin the work of subordinates. Supervising the work of subordinates and being responsible for achieving targets in the most effective way Introducing newly appointed section to their sections Maintinaing discipline Dealing w/ unsatisfactory performance

FUNCTIONS OF SUPERVISOR -Planning preparing schemes or schedules for achieving targets that have been set - Organising allocating tasks, delegating and arranging the work and resources to enable the realization og the plan. -Controlling ensuring that the workers performance in terms of cost quality and quantity of output matches the plan. -Communication keeping all concerned adequately informed and himself in touch -Problem solving and decision taking handling day to day difficulties and problems and deciding what needs to be done to ensure the effective performance of the supervised. -Motivating and maintaining discipline encouraging people to give their best within the rules that govern their employment. OBJECTIVES OF THE SUPERVISOR 4 Ms Machine capacity Manpower Materials Money

ADAIRs action-drived theory is that the leader in any of any group or team has to strive contantly to achieve three major goals while at the same time maintaining a position as an effective leader.

Tasks needs the leader ensures tha the purpose- completion of task- is fulfilled. Group needs until the task is completed the group has to be held together Individual needs each member of a group or team has individual needs and the leader should try to ascertain these needs and work towards satisfying them.

ADAIRs model stresses that effective leadership lies in what the leader does to meet the needs of task, group, and individuals. MILLS & EDWARDS 3 types of command and the nature and effective of each-: Boss-centred subordinates find security in the power of personality of the owner . Rule-centred subordinates find security in the pattern of rules, regulations Task-centred employees find security and satisfaction from the tasks to be performed.

FIEDLER defines the situation as a combination of three factors: Leader/member relations based on the leaders view of thefavourableness or not of his work group. Task structure the extent to which the leader is able to define and control the groups activities. Leader position power the degree of formal authority/responsibility allocated to the position

BELBIN & ADAIR identify a range of actions that can foster greater team spirit and teamwork. Allowing teams time to develop groups take time to develop into teams Team typing pick people who balance each other Team building Team leadership Team culture

COMPARING LEADSHIP AND MGMT Mgmt traditionally focuses on the activites of planning, organizing, staffing and controlling whereas leadership emphasizes the general influence process. JOHN KOTTER mgmt is concerned with creating order and stability while leadership is about adaptation and constructive change. Leadership defines what the future should look like, aligns pep w/ that vision and inspire them to make it happen.

ABRAHAM ZALEZNIK mgrs are substance while leaders follow their own vision rather than swaying in compromise to the group. PETER DRUCKER & WARREN BENNIS leadership is doing the right things ; mgmt is doing things right LEADERSHIP & SUPERVISON ALAN BRYMAN defines leadership as the creation of a vision about the desired future state, which it seeks to enmesh all members of an organization in its net. Whereas supervision tends to involve a preoccupation with the here and now goal attainment. Qualities associated with leadership-: Creating a sense of direction Strategic thinking Entrepreneurial abilities Leading from the front Good communicator

DELEGATION Reasons for delegation-: The workload of the mgr is reduced allowing more time to concentrate on strategic duties Subordinates can gain good experience for future mgmt Delegation can lead to decentralization Allowing subordinates to perform work of a higher grade can aid their development Mgmt can see how subordinated tackle work of a higher grade and how they cope Effective development of resources fulfills value for money Subordinates are motivated by giving them new experiences.

CHAPTER 14 The organizational chart shows the formal relationships that exist between positions or offices. WORK ROLES Work roles are influenced by the individuals-: Normal behavior shown in group Ability and personality Position in the network of communications

JOB DESCRIPTION Three basic relationships between roles ar work-: The subordinate role you work for and report to others The peer role you work with others to achieve certain goals The authority role other people work for and report to you

Methods of job classification -: Identification of the job Purpose of the job Position in the orgnaisation Duties Responsibilities Physical conditions Social condition Grade and salary/wage range and fringe benefits

DATA PROTECTION ACT - about protecting data concerning individuals wher this data is processed automatically. COMPANIES ACT provides a statutory framework for the preparation of the accounts of limited companies. REPORTING PROCEDURES Faults and errors relating to machinery and equipment Theft Fraud Health and safety hazards Harassment, abuse , assault Sickenss absence

WORK PLANNING Basic steps and objectives in work planning include the following: The establishment and effective treatment of priorities Scheduling or timetabling tasks, and allocating them to different individuals within the appropriate time scales, to achieve work deadlines and attain goals Co-ordinating individual tasks within the duties of single employees or within the activities of groups of individuals Establishing checks and controls to ensure that priority deadlines are being met and work is not falling behind and routine tasks are achieveing their objectives Agreeing the mechanism and means to re-schedule ordinary work to facilitate and accommodate new, additional or emergency work by drawing up contingency plans for unscheduled events.

WORKING METHODICALLY Neatness and tidiness Order Routine

PLANNING AIDS Time charts schedules that shoe either the overall activities of the organization or of an individuals own department during a particular period. Diaries Checklist priorities task, points to cover in meeting, shopping list etc

Bar charts show needed time for an activity, display the time relationship between on activity and another. Schedules activity / time Action sheets summary of time of each stage and relationship to total completion time

TIME MANAGEMENT Main influences on a persons use of time -: Mgmt style Culture Nature of work Colleagues influence Staff demands Individuals personal skills Individuals personality

IMPROVING TIME MANAGEMENT Establish key tasks Set your objectives Identify performance stds Identify constraints Decide on action plans

CHAPTER 15 PURPOSE OF COMMUNICATION Communication is the transfer of information and may be defined as an exchange of facts, ideas, emotions by two or more persons. The purpose is to: Convey info about what is happening, Explain the nature and implications for the business of current and forecast problems Establish rules for dealing with different situations Stimulate action Create relationships between the members of the organization For collective decisions and render them generally acceptable

FORMAL COMMUNICATIONS CHANNELS Downward communications giving job instructions, policy decision, guidance etc Upward Communications feedbk from employees on results achieved and problems encountered. Lateral or horizontal communication communication between people or groups at the same level Task co-ordination Problemp-solving Information sharing Conflict resolution

INFORMAL COMMUNICATION CHANNELS Grapevine Lack of info and people try to fill th gap There is insecurity in the situation There is a personal interst in a situation People try to gain advantage by spreading rumors

Rumors- info that travel through the grapevine Gossip idle talk that travel through th grapevine MODEL OF COMMUNICATION PROCESS

Noise is anything in the environment that impeds the transamission of the message. RULES OF COMMUNICATION Timely Accurate, complete and to the point Directed to the right people Understable

EFFECTIVE COMMUNICATION Adopting feedback Usining more than one communication network Restricting the number of communication links in the chain Ensuring clarity

CONSEQUENCES OF POOR COMMUNICATION Lack or downward communicationPoor awareness of corporate objectives at lower management levels Poor understanding of working instructions and responsibilities Poor morale of junior managers because they are not consulted about changes which affect them or their working conditions.

Lack of upward communicationsEarly warning of trouble areas not received Benefit of creatve ability subordinates is lost Participation of subordinates is limited Control becomes difficult Introduction of change is difficult

Lack of lateral communication Division in management teams Lack of co-ordinations Rivalry between sections and departments Lack of advice and involvement by staff specialists.

BARRIERS TO COMMUNICATION Typical barriers and breakdown which lead to poor communications include-: Lack of preparation and planning before communication Unstated or incorrect assumptions Wrong method of communication Poorly phrased message Loss in transmission or poor retention by receiver Biased interpretation Poor listening skills Mistrust and fear

CATEGORIES OF COMMUNICATION Factual information deals only with past and present and not w/ the future. Vertifiable. Opinions forecast, interpretations and value judgements. Ideas thought what might be done to achieve certain objectives. Feelings personal and may be communicated as either information or w/ emotional outburst.

METHODS OF COMMUNCATIONS Verbal Methods advantages Instant feedback with the opportunity to respond quickly if necessary Good persuasive medium Message can be unique

Verbal Method disadvantage No permanent record Cannot go bk and make amendments

Written Method advantageIt provides a permanent record It enables a difficult piece of communication to be re-worded and rewritten over a period of time The same message is conveyed to everyone It is the cheapest form of contacting a range of individuals

Written Method disadvantage There is not means of knowing whether the message has been received and understood by the person notified.

Visual Method advantage You will notice and remember the picture long after you have forgotten the words / figures A visual communication has the highest retention rate The availability of colour and moving images enables the communicator to add drama and grab attention.

Visual Method disadvantage Limited method in that the amt of content that can be included on one slide, poster is restricted. Facts can become secondary

INTERPERSONAL SKILLS Individuals need interpersonal skills to: Understand and manage the roles, relationships, etc in which to or more people are involved Communicate clearly and effectively Achieve his / her aims from interpersonal encounter.

EFFECTIVE MANAGEMENT PRACTICE The ability to get co-operation, make contacts and work w/ others to solve problems The ability to maintain the enthusiasm to persuade, negotiate and propose new possibilities Perseverance the ability to keep going bk to the same people to raise the same issues if they remain unresolved. Flexibility the ability to adjust to fit w/ other peoples ideas or constraints.

NEGOTIATING Skills of negotiator Interpersonal skill- thee use of good communication skills Analytical skills the ability to analyse information

Technical skills attention to detal and thorough case preparation

CONFLICT W/I AND ORGANISATION Any personal dievergnce of interest between groups of individuals Perception realization that conflict exists because goals of the two parties are incompatible and the opportunity for interference is present Feelings conflict may cause feelings such as anger or mistrust between the groups Behavior conflict results in behavior, which is a reaction to the first two levels

MARY PARKER FOLLETT two types of conflict Constructive conflict Challenge accepted Stimulate the development of a climate of change Define responsibility ad authority limits more closely Provide and opportunity for anxieties Provide a fresh approach

Destructive conflict damaging to personal working relationships. SIGNS OF CONFLICT Official or unofficial strikes Lock-outs Demarcation disputes Sabatoge Refusal to obey instructions Recial prejudice

HANDY causes of conflict Differences in objectives and ideologiesThe overlapping of formal objectives The existence of concealed objectives The contractual relationship is unclear

Differences over territory Where there is violation of territory Overcrowding where there are too many people for the amt of work Territorial jealousy

MANAGING CONFLICT

Avoidance Defuse the conflict Compromise Confront the problem Negotiation Power

NEGOTIATED SOLUTIONS WIN-LOSE LOSE WIN LOSE-LOSE

PRINCIPLES IN EVERYDAY NEGOTIATIONS Ask questions Win-win unddrstand each others inters and finds solutions Respect Trust

CHAPTER 16 IMPORTANCE OF TRAINING AND DEVELOPMENT ARMSTRONG training is the planned and systematic modification of behavior through learning events, programmes and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out their work effectively. ARMSTRONG development is the growth of a persons ability and potential through the provision of learning and educational experiences The definition of training stresses the relationship between training and human resource planning. The definition of development suggests a fulfillment of innate potential and ability through continuous involvement rather than just timely interventions to satisfy gaps in knowledge and abilty. TRAINING AND DEVELOPMENT POLICIES Organisations formulate training and development policies in order to: Define the relationship between the organisations objectives and the correct and future human resource needs. Provide a framework for facilitating development and training Provide information for employees. Enhance public relations.

An organization policy will be influenced by variables such as: Size, Products / services Economic and social objectives The labour mkt Training needs of the organization

TRAINING IN THE ORGANISATION A systematic approach to training will in