Classlcal vlewpolnL

W Penrv 8 1owne's call Lo esLabllsh manaaemenL as

a separaLe fleld aeneraLed ma[or approach called
Lhe Classlcal vlewpolnL
W lL comprlsed Lhree dlfferenL manaaemenL
approaches
SclenLlflc ManaaemenL
8ureaucraLlc ManaaemenL
AdmlnlsLraLlve ManaaemenL
W 1hls vlewpolnL lncludes earlv work and conLrlbuLlons
maklna up Lhe core of Lhe fleld of manaaemenL
W lrederlck 1avlor aLLended Penrv's paper presenLaLlon
CLA55ICAL 1nLCkI515 5CILN1IIIC
MANAGLMLN1
W lrederlck 1avlor
Causes of so|d|er|ng
W lncrease producLlvlLv mav cause Lhem or oLher worker Lo lose
!ob
W laulLv waae svsLem
W Ceneral MeLhod of worklna or rule of 1humb
W rlnclples
SelecL and Lraln Lhe besL
'Cne besL wav' Lo do work
CooperaLe wlLh workers for success
ulvlde work and responslblllLv
workers/manaaers
lavol's Ceneral prlnclples of manaaemenL
1ulvlslon of work
2AuLhorlLv
3ulsclpllne
4unlLv of Command
3unlLv of dlrecLlon
6SubordlnaLlon of lndlvldual lnLeresL Lo aeneral lnLeresL
78emuneraLlon
8CenLrallzaLlon
9Scalar chaln
10Crder(8lahL person 8lahL place)
11LqulLv
12SLabllLv of personnel 1enure
13lnLlaLlve
14LsprlL de corps
lrederlck 1avlor
W lrederlck 1avlor (18361913) called Lhe faLher of
sclenLlflc manaaemenL
W Was an apprenLlce paLLern maker and machlnlsL aL a
local flrm
W Moved Lo Mldvale SLeel rlslna from labourer Lo chlef
enalneer ln slx vears allowed hlm Lo Lackle a serlous
problem he saw
W Workers were worklna aL raLe less Lhan full capaclLv
lrederlck belleved Lhe reason was
Workers feared LhaL lncreased producLlvlLv would cause loss
of [obs
ManaaemenL waae svsLem encouraaed workers Lo operaLe
slowlv
Ceneral meLhods of worklna and rules of Lhumb were ofLen
lnefflclenL
CLA55ICAL 1nLCkI515 8UkLAUCkA1IC
MANAGLMLN1
Max Weber
lormal rules and
procedures
SpeclallsaLlon
of labour
lmpersonallLv of
processes
Plerarchv of
poslLlons
AdvancemenL
on merlL
CLA55ICAL 1nLCkI515 ADMINI51kA1IVL
MANAGLMLN1
Penrl lavol
CoordlnaLlna
Commandlna
ConLrolllna
lannlna
Craanlslna
8LPAvlCu8AL 1PLC8lS1S
Lar|y theor|sts
W Puao MunsLerbera
SelecLlon
CreaLlna opLlmal psvcholoalcal condlLlons
behavlour shaplna
W Marv arker lolleLL
lmporLance of aroup funcLlonlna
8LPAvlCu8AL 1PLC8lS1S CCn1
1he nawthorne stud|es
I|rst set of stud|es(19241927)lllumlnaLlon
SLudles
5econd set of stud|es(19271933)AlerL work
condlLlonssupervlsorv arranaemenL and
evaluaLe resulL
1h|rd set Cf stud|es SLudvlna aroups
nawthorne effect
PhysioIogicaI
Safety
SociaI
Esteem
SeIf-actuaIisation
MASLCW'S PlL8A8CP? Cl nLLuS
%heory X
Work is naturaI Work is naturaI
CapabIe of seIf-direction CapabIe of seIf-direction
Seek responsibiIity Seek responsibiIity
Can make good decisions Can make good decisions
Work avoiding Work avoiding
Need to controI Need to controI
Avoid responsibiIity Avoid responsibiIity
Workers seek security Workers seek security
%heory Y
MCC8LCC8'S 1PLC8? x ?
8LPAvlCu8AL 1PLC8lS1S CCn1
8ehav|oura| sc|ence
SclenLlflc sLudv of human behavlour ln
oraanlsaLlons
"uantitative management
Management science - mathematical and
statistical methods & modelling
Operations management - control of inventory,
scheduling, planning
CCn1LMC8A8? 1PLC8lLS
SvsLems Lheorv
lnpuLs LransformaLlon ouLpuLs feedback
Cpen closed svsLems
ConLlnaencv Lheorv
lew unlversal rules exlsL
1ransformaLlon
rocess
lnpuLs
CuLpuLs
8esources
Puman
MaLerlals
LqulpmenL
llnanclal
lnformaLlon
manaaerlal
lannlna
CraanlsaLlon
Leadlna
ConLrolllna
1echnoloav
CuLcomes
roducLs servlces
roflL loss
emplovees arowLh
saLlsfacLlon
1heorv Z (1he besL of !apanese and Amerlcan pracLlce)
American
$hort term
employment
ndividual decision
Making, responsibility
Rapid promotion
Formalized Control
$pecialized Career
path
$egment concern
apanese
ife time employment
Consensual decision
making
Collective
responsibility
$low Promotion
nformal Control
non specialized
Career Path
Holistic Concern
theory
Long-term
empIoyment
ConsensuaI decision
making
IndividuaI
responsibiIity
SIow promotion
FormaIized measures
ModerateIy
speciaIized career path
HoIistic concern
lMLlCA1lCnS lC8 MAnAClnC
lnnCvA1lCn
W Classlcal
W 8ehavloural
W CuanLlLaLlve
W ConLemporarv
SvsLems
ConLlnaencv
externa| env|ronment
1he ma[or forces ouL slde Lhe
ora LhaL have poLenLlallv
slanlflcanL effecL on Lhe
success and fallure of Lhe
producLs and servlces
1he |nterna| env|ronment
1he aeneral condlLlon LhaL
exlsL wlLhln Lhe oraanlzaLlon
Crgan|sat|ona| cu|ture
A svsLem of shared values
and bellefs and norms LhaL
unlLes Lhe oraanlzaLlon
members
1nL MLGALNVIkCNMLN1
1he broad cond|t|ons and trends |n the soc|ety w|th |n wh|ch
organ|zat|on operates
1he
oraanlsaLlon
SocloculLural
elemenL
LeaalpollLlcal
elemenL
lnLernaLlonal
elemenL
1echnoloalcal
elemenL
Lconomlc
elemenL
1he 1echnoloalcal LlemenL
W 1he Lechnoloalcal elemenL ls Lhe parL of Lhe
meaaenvlronmenL reflecLlna Lhe currenL sLaLe of
knowledae reaardlna Lhe producLlon of aoods
and servlces
W 8esearch lndlcaLes Lechnoloav Lends Lo evolve
Lhrouah perlods of lncremenLal chanae
puncLuaLed bv Lechnoloalcal breakLhrouahs LhaL
elLher enhance or desLrov Lhe compeLence of
flrms ln an lndusLrv
1he Lconomlc LlemenL
W ls Lhe parL of Lhe meaaenvlronmenL
encompasslna svsLems of produclna dlsLrlbuLlna
and consumlna wealLh
ln a caplLallsL economv economlc acLlvlLv ls aoverned
bv markeL forces and Lhe means of producLlon are
prlvaLelv owned bv lndlvlduals elLher dlrecLlv or
Lhrouah corporaLlons
ln a soclallsL economv Lhe means of producLlon are
owned bv Lhe sLaLe and economlc acLlvlLv ls co
ordlnaLed bv plan
ln pracLlce counLrles Lend Lo have hvbrld economles
lncorporaLlna elemenLs of caplLallsm and soclallsm
CraanlsaLlons are lnfluenced bv a varleLv of economlc
condlLlons over whlch Lhev have llLLle conLrol such as
lnflaLlon and lnLeresL raLes
1he LeaalollLlcal LlemenL
W 1he leaalpollLlcal elemenL ls Lhe parL of Lhe
meaaenvlronmenL LhaL lncludes Lhe leaal and
aovernmenLal svsLems wlLhln whlch an
oraanlsaLlon musL funcLlon
CraanlsaLlons musL operaLe wlLhln Lhe aeneral leaal
framework of Lhe counLrles ln whlch Lhev do buslness
CraanlsaLlons are currenLlv belna sub[ecLed Lo an
lncrease ln lawsulLs flled bv cusLomers or emplovees
1he pollLlcal lssues affecLlna oraanlsaLlons lnclude
Lhose whlch lnfluence Lhe exLenL of aovernmenL
reaulaLlon
1he Soclo culLural LlemenL
W ls Lhe elemenL of Lhe meaaenvlronmenL
lncludlna Lhe aLLlLudes values norms bellefs
behavlour and assoclaLed demoaraphlc Lrends
characLerlsLlc of a alven aeoaraphlcal area
1he soclo culLural elemenL ls of parLlcular
lmporLance Lo mulLlnaLlonal corporaLlons
CurrenL chanaes lnclude Lhe delav of marrlaae Lo a
laLer aae Lhe emeraence of Lhe slnale head of
household Lhe aaelna of Lhe babvboomer aroup
and lncreaslna lnfluence of mlnorlLles
Soclo culLural Lrends resulL ln lmporLanL shlfLs ln
producL demand
1he lnLernaLlonal LlemenL
W ls Lhe meaaenvlronmenL elemenL whlch lncludes
developmenLs ln counLrles ouLslde an
oraanlsaLlons home counLrv wlLh Lhe poLenLlal of
havlna an lmpacL on Lhe oraanlsaLlon
llucLuaLlons of Lhe dollar aaalnsL forelan currencles
lnfluence an oraanlsaLlons ablllLv Lo compeLe ln
lnLernaLlonal markeLs
lree Lrade aareemenLs offer vasL posslblllLles for lona
Lerm markeL arowLh wlLhln Lhe freeLrade relan
new alobal compeLlLors can aaln a slanlflcanL share of
Lhe domesLlc markeL
Suppllers
CompeLlLors
CovernmenL
reaulaLors
1he emplovmenL
markeL
ubllc pressure aroups
1nL 1A5k LNVIkCNMLN1
1he spec|f|c out s|de e|ements w|th|n wh|ch organ|zat|on |nterfaces |n course of
conduct|ng bus|ness
1he
Crgan|sat|on
CusLomers/cllenLs
Analvslna LnvlronmenLal CondlLlons
W erspecLlves
opulaLlon ecoloav model Lnv facLors ls Lhe cause of
survlval or fallure of an oraanlzaLlon
8esource dependence model CraanlzaLlon can
aLLempL Lo manlpulaLe Lhe Lnv Lo reduce
dependence
W CharacLerlsLlcs
LnvlronmenLal uncerLalnLv
W LnvlronmenLal complexlLv homoaeneous/heLeroaeneous
W LnvlronmenLal dvnamlsm sLable/unsLable
Manaalna LlemenLs of Lhe
LnvlronmenL
W AdapLaLlon
8ufferlna
SmooLhlna
lorecasLlna
8aLlonlna
W lavourablllLv lnfluence
AdverLlslna 8
8oundarv spannlna
8ecrulLlna
W lavourablllLv lnfluence
(conL)
neaoLlaLlna conLracLs
CoopLlna
SLraLealc alllances
1rade assoclaLlons
ollLlcal acLlvlLv
W uomaln shlfLlna
1he lnLerenal LnvlronmenL
CraanlsaLlonal CulLure
W ueflnlLlon a svsLem of shared values
assumpLlon bellefs and norms unlLlna
oraanlsaLlonal members" (Smlrclch 1983 kllman
eL al 1986)
W 1he wav we do Lhlnas around here"
W 1he 'alue' blndlna Lhe dlsparaLe parLs (or Lhe oll
LhaL keeps Lhem movlna)
W 1he lnLerpreLlve parL of oraanlsaLlonal behavlour
lL explalns alves dlrecLlon susLalns enerav
commlLmenL and coheslon
1?LS Cl 8C8LLMS
W crisis prob/em ls a serlous dlfflculLv requlrlna
lmmedlaLe acLlon
W noncrisis prob/em ls an lssue requlrlna
resoluLlon buL noL wlLh Lhe lmporLance and
lmmedlacv characLerlsLlcs of a crlsls
W n opportunity prob/em ls a slLuaLlon offerlna
a sLrona poLenLlal for slanlflcanL oraanlsaLlonal
aaln lf approprlaLe acLlons are Laken
An CC81unl1? 1C LxCLL
W CpporLunlLles lnvolve ldeas Lo be used raLher
Lhan dlfflculLles needlna resoluLlon
W nonlnnovaLlve manaaers Lend Lo focus on
problems lnsLead of opporLunlLles
1PL nA1u8L Cl MAnACL8lAL uLClSlCn
MAklnC
W roarammed declslons appllcaLlon of
experlence rules pollcv
W nonproarammed declslons new or complex
dearees of uncerLalnLv
W 1he elemenL of rlsk
8CC8AMMLu uLClSlCnS
W Programmed decisions are those made in routine,
repetitive, well-structured situations through
predetermined decision rules.
W Computers are an ideal tool Ior dealing with complex
programmed decisions.
W Most decisions made by Iirst-line managers and many
by middle managers are programmed decisions.
nCn8CC8AMMLu uLClSlCnS
W Non-programmed decisions are those Ior which
predetermined decision rules are impractical (novel
situations and/or ill-structured.
W &ncertaintv is a condition in which the decision maker
must choose a course oI action without complete
knowledge oI the consequences Iollowing
implementation.
W #isk is the possibility a chosen action could lead to
losses rather than the intended results.
W &ncertainty is seen as the reason why a situation is
risky.
W A rapidly changing environment is a maior cause oI
uncertainty.
MAnACL8S AS uLClSlCn MAkL8S
W 1he raLlonal declslonmaklna model
W nonraLlonal models
SaLlsflclna
lncremenLal
8ubblsh bln
Managers as
decision makers
Assumptions of the
Rational Model
Managers as
decision makers
Assumptions of the
Rational Model
kat|ona|
dec|s|on
mak|ng
kat|ona|
dec|s|on
mak|ng
An opt|ma| dec|s|on
|s poss|b|e
An opt|ma| dec|s|on
|s poss|b|e
A|| re|evant |nformat|on
|s ava||ab|e
A|| re|evant |nformat|on
|s ava||ab|e
A|| re|evant |nformat|on |s
understandab|e
A|| re|evant |nformat|on |s
understandab|e
A|| a|ternat|ves are known A|| a|ternat|ves are known
A|| poss|b|e outcomes known A|| poss|b|e outcomes known
Managers as
decision makers
$atisficing
Managers as
decision makers
$atisficing
#5at|sf|c|ng'
dec|s|on
mak|ng
#5at|sf|c|ng'
dec|s|on
mak|ng
1|me constra|nts 1|me constra|nts
L|m|ted ab|||ty to
understand a|| factors
L|m|ted ab|||ty to
understand a|| factors
Inadequate base
of |nformat|on
Inadequate base
of |nformat|on
L|m|ted memory of
dec|s|onmakers
L|m|ted memory of
dec|s|onmakers
oor percept|on of factors
to be cons|dered
|n dec|s|on process
oor percept|on of factors
to be cons|dered
|n dec|s|on process
EvaIuation
of decision
effectiveness
EvaIuation
of decision
effectiveness
Identification
of the probIem
Identification
of the probIem
Generate aIternative soIutions Generate aIternative soIutions
EvaIuate aIternatives and choose an aIternatives EvaIuate aIternatives and choose an aIternatives
ImpIementation and monitoring
of the chosen aIternative
ImpIementation and monitoring
of the chosen aIternative
$teps in decision-
making
$teps in decision-
making
Scanning Categorization Diagnosis
Don't criticize FreewheeI Offer as many ideas as
possibIe
Combine and
improve
FeasibiIity "uaIity AcceptabiIity Costs ReversibiIity Ethics
PIan ImpIementation Decision's Effect FoIIow-up Mechanism
1he overall plannlna process
mlsslon aoals plans
aoal aLLalnmenL
(oraanlsaLlonal
efflclencv and
effecLlveness)
1PL LAnnlnC 8CCLSS
W Ma[or componenLs
Coals/ob[ecLlves Lhe ends
lans Lhe means
ueclslonmaklna processes
lannlna declslon alds
W CraanlsaLlonal mlsslon
fundamenLal reason for exlsLence"
Mav be unwrlLLen
Mav address cusLomers producLs or servlces locaLlon
Lechnoloav concern for survlval phllosophv selfconcepL
concern for publlc lmaae concern for emplovees (uavld 1989)
1he mlsslon sLaLemenL
W CusLomers
W producLs or servlces
W LocaLlon
W 1echnoloav
W Concern for survlval
W hllosophv
W SelfconcepL
W Concern for publlc lmaae
W Concern for emplovees
1PL nA1u8L Cl C8CAnlSA1lCnAL
CCALS
W 8eneflLs of aoals
lncreases performance
Clarlfles expecLaLlons
laclllLaLes conLrol
lncreases moLlvaLlon
W Levels of aoals
1 CperaLlonal aoals (base)
2 1acLlcal aoals (mld)
3 SLraLealc aoals (Lop)
LacLlcal
aoals
LacLlcal
aoals
LacLlcal
plans
LacLlcal
plans
operaLlonal
aoals
operaLlonal
aoals
operaLlonal
plans
operaLlonal
plans
sLraLealc
aoals
sLraLealc
aoals
sLraLealc
plans
sLraLealc
plans
1op ManaaemenL
oraanlsaLlonalwlde perspecLlve
Mlddle ManaaemenL
deparLmenL perspecLlve
llrsLLevel ManaaemenL
unlL/lndlvldual perspecLlve
MAnACLMLn1 8? C8!LC1lvLS S1LS ln
1PL M8C 8CCLSS
1 uevelop overall
oraanlsaLlonal aoals
2 LsLabllsh speclflc
aoals for unlLs
and lndlvlduals
3 lormulaLe acLlon plans
4 lmplemenL plans
malnLaln selfconLrol
3 8evlew proaress
6 Appralse performance
S18LnC1PS Anu WLAknLSSLS Cl M8C
SLrenaLhs SLrenaLhs
ne|ps ||nk goa|s w|th p|ans ne|ps ||nk goa|s w|th p|ans
C|ar|f|es pr|or|t|es
expectat|ons
C|ar|f|es pr|or|t|es
expectat|ons
Iosters organ|sat|ona|
commun|cat|on
Iosters organ|sat|ona|
commun|cat|on
8u||ds member
mot|vat|on
8u||ds member
mot|vat|on
Weaknesses Weaknesses
Need for strong
endur|ng comm|tment
Need for strong
endur|ng comm|tment
kequ|res tra|n|ng
of managers
kequ|res tra|n|ng
of managers
May be m|sused to pun|sh May be m|sused to pun|sh
k|sk of dom|nance
of quant|tat|ve goa|s
k|sk of dom|nance
of quant|tat|ve goa|s
43
1he SLraLealc ManaaemenL rocess
W SLraLeav lormulaLlon
ldenLlfv oraanlsaLlonal mlsslon and sLraLealc aoals
erformlna compeLlLlve slLuaLlon analvsls conslderlna
boLh exLernal envlronmenL and lnLernal oraanlsaLlonal
facLors
ueveloplna Lhe sLraLeales Lo reach Lhe sLraLealc aoals
W SLraLeav lmplemenLaLlon
LffecLlve lmplemenLaLlon of Lhe sLraLealc plan
8rllllanLlv formulaLed sLraLeales wlll noL succeed lf
Lhev are lmplemenLed lneffecLlvelv
44
dentify
current
mission
and
strategic
goals
Conduct
competitive
analysis:
Wstrengths
Wweakness
Wopportunity
Wthreats
Develop
specific
strategies:
Wcorporate
Wbusiness
Wfunctional
carry out
strategic
plans
maintain
strategic
control
assess
organisational
factors
assess
environmental
factors
SLraLeav lmplemenLaLlon SLraLeav formulaLlon
43
ConducLlna CompeLlLlve Analvsls
W SLrenaLhs on whlch Lo caplLallse
W Weaknesses vou need Lo address
W CpporLunlLv avallable Lo vou and
W 1hreaLs LhaL could adverselv affecL vou
5wO1 Aoolvsls 5wO1 Aoolvsls
46
SWC1 Analvsls
kev kev
SLrenaLhs SLrenaLhs
kev kev
Weaknesses Weaknesses
kev kev
CpporLunlLles CpporLunlLles
kev kev
1hreaLs 1hreaLs
,st llkelv ,st llkelv
lsslble lsslble
lsslble lsslble
uollkelv uollkelv
lnLernal lacLors lnLernal lacLors
LxLernal lacLors LxLernal lacLors
47
CraanlsaLlonal AssessmenL
CraanlsaLlonal culLure
lnformaLlon svsLems
(upLodaLe)?
LlquldlLv (and
oLher flnanclal
dlmenslons)
Skllls levels
(compeLencv proflles)
CraanlsaLlonal sLrucLure
(flexlblllLv)
1analble asseLs
(bulldlnas
and equlpmenL)
Sales and
dlsLrlbuLlon channels
1he oraanlsaLlon's
sLrenaLhs and
weaknesses
48
LnvlronmenLal AssessmenL
1he
oraanlsaLlon
1he
oraanlsaLlon
Soclal Analvsls
ollLlcal
8eaulaLorv
Analvsls
ollLlcal
8eaulaLorv
Analvsls
Puman
8esources
Analvsls
Puman
8esources
Analvsls
lndusLrv and
MarkeL Analvsls
lndusLrv and
MarkeL Analvsls
CompeLlLor
Analvsls
CompeLlLor
Analvsls
Lconomlc
Analvsls
Lconomlc
Analvsls
1echnoloalcal
Analvsls
1echnoloalcal
Analvsls
49
Levels of SLraLeav
W CorporaLeLevel SLraLeav
Lhe buslness an oraanlsaLlon wlll operaLe
coordlnaLlon of sLraLeales
allocaLlon of resources
W 8uslnessLevel SLraLeav
sLraLealc buslness unlLs
focuslna on a parLlcular buslness
W luncLlonalLevel SLraLeav
manaalna funcLlonal area Lo supporL buslnesslevel
sLraLeav
Lhe davLodav manaaemenL of buslness
30
CORPORATE
$TRATEGY
Operations
Management
$trategy
R & D
$trategy
Financial/
Accounting
$trategy
Marketing
$trategy
Human
Resources
$trategy
Business 1
$trategy
Business 2
$trategy
Business 3
$trategy
CorporaLe Level CorporaLe Level
luncLlonal Level luncLlonal Level
8uslness Level 8uslness Level
31
CoordlnaLlna Levels of SLraLeav
W CoordlnaLlna sLraLeales across Lhe levels ls
crlLlcal Lo maxlmlslna sLraLealc lmpacL
W 8uslnesslevel sLraLeav ls enhanced when
funcLlonallevel sLraLeales supporL lL
W CorporaLelevel sLraLeav wlll have more lmpacL
when supporLed bv buslnesslevel sLraLeales
complemenLlna each oLher
W 1hus Lhe Lhree levels musL be coordlnaLed as
parL of Lhe SLraLealc ManaaemenL
W 1opuown or 8oLLomup approach ?
32
liquidation
bankruptcy
Diversification
Vertical
integration
concentration
divestiture
turnaround
harvest
Defensive
$tability
Growth
GRAND
$TRATEGE$
33
CrowLh SLraLeav
W ConcenLraLlon
MarkeL developmenL
roducL developmenL
PorlzonLal lnLearaLlon
W verLlcal lnLearaLlon
8ackward lnLearaLlon buslness arows bv becomlna lLs
own suppller
lorward lnLearaLlon buslness arowLh encompasses a
role prevlouslv fulfllled bv a cusLomer
34
CrowLh SLraLeav ConL
W ulverslflcaLlon
ConalomeraLe dlverslflcaLlon when an oraanlsaLlon
dlverslfles lnLo areas unrelaLed Lo lLs currenL buslness
ConcenLrlc dlverslflcaLlon when an oraanlsaLlon
dlverslfles lnLo relaLed buL dlsLlncL buslness
W CrowLh sLraLeales can be lmplemenLed bv
lnLernal arowLh
An acqulslLlon
A meraer
33
SLablllLv SLraLeav
W MalnLalnlna Lhe sLaLus quo or arowlna ln a
meLhodlcal buL slow manner
W AdopLed bv small prlvaLelv owned buslnesses
W 8easons for adopLlna Lhls sLraLeav
Avold rlsk
rovlde an opporLunlLv Lo recover afLer a perlod
of an acceleraLed arowLh
LeLs companv hold on Lo currenL markeL share
Mav occur Lhrouah defaulL
36
uefenslve SLraLeav
W arvest entails minimising investments while
attempting to maximise short-run proIits and cash
Ilow, with the long-run intention oI exiting the
market.
W turnaround is designed to reverse a negative
trend and restore the organisation to appropriate
levels oI proIitability.
W A divestiture involves an organisation's selling or
divesting oI a business or part oI a business.
W iquidation entails selling or dissolving an entire
organisation
37
lormulaLlna 8uslness level SLraLeav
W Concerned wlLh how a parLlcular buslness
compeLes
W 1hree aenerlc buslness level sLraLeales
developed bv Mlchael orLer
W CosL leadershlp
W ulfferenLlaLlon
W locus
38
lormulaLlna luncLlonal sLraLeav
W Spell ouL Lhe speclflc wavs LhaL funcLlonal areas
can be used Lo bolsLer Lhe buslness level sLraLeav
W luncLlonal areas develop Lhe dlsLlncLlve
compeLencles LhaL lead Lo poLenLlal compeLlLlve
advanLaaes
W Such compeLencles need Lo be care fullv
concelved and mav Lake several vear Lo develop
39
SLraLeav lmplemenLaLlon
W rlnclpal facLor requlred Lo carrv ouL sLraLealc
plan(SLraLeav) are
W 1echno|ogy (knowledae Lools work
Lechnlques)
W numan kesources( lndlvldual wlLh necessarv
skllls ln Lhe approprlaLe poslLlon ls prerequlslLe
for effecLlve sLraLeav lmplemenLaLlon)
W Dec|s|on rocess( Means for resolvlna quesLlons
and problems LhaL occur ln oraanlzaLlon)
W 5tructure( lnLeracLlon and coordlnaLlon deslaned
bv manaaemenL Lo Lo llnk Lhe Lask of lndlvldual
and aroups ln achlevlna ora aoals)
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
60
naLure of oraanlsaLlonal sLrucLure
lormal paLLern of lnLeracLlons and
coordlnaLlon deslaned bv manaaemenL
Lo llnk Lhe Lasks of lndlvlduals and
aroups ln achlevlna oraanlsaLlonal aoals
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
61
naLure of oraanlsaLlonal sLrucLure
Iour e|ements
1 AsslanmenL of Lasks and responslblllLles
Lo lndlvlduals and unlLs
2 ClusLerlna Lhese Lo form a hlerarchv
3 Mechanlsms for verLlcal coordlnaLlon
4 Mechanlsms for horlzonLal co
ordlnaLlon
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
62
naLure of oraanlsaLlonal sLrucLure
W 1he oraanlsaLlon charL
Llne dlaaram deplcLlna broad ouLllnes of an
oraanlsaLlon's sLrucLure
W rlnclples charL deslan
As few hlerarchlcal levels as posslble
CharLs should show who has auLhorlLv over
who
CharLs should show offlclal llnes
responslblllLv communlcaLlon
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
63
naLure of oraanlsaLlonal sLrucLure
ABC NC.
DRECTOR
H.R.M.
$&BORDNATE
MANAGER
FNANCE
DRECTOR
FNANCE
DRECTOR
$AE$
C.E.O.
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
64
!ob deslan
W !ob deslan
SpeclflcaLlon of Lask acLlvlLles assoclaLed wlLh a
parLlcular [ob
W ueslan [obs Lo enhance moLlvaLlon
ob s|mp||f|cat|on breaklna [obs lnLo small elemenLs
ob rotat|on movlna Lhrouah seLs of Lasks ln
sequence
ob en|argement wlder ranae of slmllar Lasks
W AlLernaLlve work schedules
Manaalna work dlverslLv
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
63
MeLhods of verLlcal
coordlnaLlon
Llnklna of acLlvlLles aL Lhe Lop of Lhe
oraanlsaLlon
wlLh Lhose aL Lhe mlddle and lower levels Lo
achleve oraanlsaLlonal aoals
W lormallsaLlon
W Span of manaaemenL
W CenLrallsaLlon vs decenLrallsaLlon
W ueleaaLlon
W Llne sLaff poslLlons
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
66
MeLhods of verLlcal
coordlnaLlon
Iorma||sat|on
W uearee Lo whlch wrlLLen pollcles rules
procedures [ob descrlpLlons and oLher
documenLs speclfv whaL acLlons are(noL)
Lo be Laken under a alven seL of
clrcumsLances
W LxLenL of formallsaLlon Lends Lo arow
wlLh
aae slze
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
67
MeLhods of verLlcal
coordlnaLlon
Iactors |nf|uenc|ng span of management
Plah compeLence levels
Low lnLeracLlon requlremenLs
Work slmllarlLv (beLween oraanlsaLlonal peers)
Low problem frequencv and serlousness
hvslcal proxlmlLv
lew nonsupervlsorv duLles of manaaers
Conslderable avallable asslsLance
Plah moLlvaLlonal posslblllLles of work
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
68
MeLhods of verLlcal
coordlnaLlon
CenLrallsaLlon
LxLenL Lo whlch power auLhorlLv are reLalned aL Lhe
Lop oraanlsaLlonal levels
uecenLrallsaLlon
LxLenL Lo whlch power auLhorlLv are deleaaLed Lo
lower levels
lacLors favourlna cenLrallsaLlon
W Larae oraanlsaLlonal slze
W Ceoaraphlc dlsperslon
W 1echnoloalcal complexlLv
W LnvlronmenLal uncerLalnLv
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
69
MeLhods of verLlcal
coordlnaLlon
extent to which power and authority will be retained at
upper levels'. nfluenced by:
extent to which power and authority will be retained at
upper levels'. nfluenced by:
Large size: larger
organisations
likely to be more
Decentralised.
Large size: larger
organisations
likely to be more
Decentralised.
Geographic dispersion:
more dispersed likely to be
decentralised, to enable
control at a number of sites.
Geographic dispersion:
more dispersed likely to be
decentralised, to enable
control at a number of sites.
%echnoIogicaI compIexity:
with more complex
technology,need to devolve
authority to lower levels.
%echnoIogicaI compIexity:
with more complex
technology,need to devolve
authority to lower levels.
EnvironmentaI uncertainty:
with rapid change, need for more
employees to be involved in
responding to challenges.
EnvironmentaI uncertainty:
with rapid change, need for more
employees to be involved in
responding to challenges.
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
70
MeLhods of verLlcal
coordlnaLlon
ueleaaLlon
AsslanmenL of parL of a manaaer's work Lo oLhers
alona wlLh boLh responslblllLv auLhorlLv necessarv Lo
achleve expecLed resulLs
lacLors resLralnlna deleaaLlon
W lear subordlnaLe fallure
W 1lme Lo Lraln subordlnaLes
W Ln[ov dolna Lasks
W 8elease of auLhorlLv
W Concern for Lask performance
W lear subordlnaLe compeLence
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
71
MeLhods of verLlcal
coordlnaLlon
ConflauraLlon of llne and sLaff poslLlons
W Llne auLhorlLv
AuLhorlLv followlna Lhe chaln of command
esLabllshed bv Lhe formal hlerarchv
W luncLlonal auLhorlLv
AuLhorlLv of sLaff over oLhers ln Lhe oraanlsaLlon ln
maLLers relaLed dlrecLlv Lo Lhelr respecLlve funcLlons
ea P8M depL
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
72
MeLhods of horlzonLal
coordlnaLlon
PorlzonLal coordlnaLlon
Llnklna of acLlvlLles across deparLmenLs aL
slmllar levels
W need for lnformaLlon processlna across
Lhe oraanlsaLlon
W romoLes lnnovaLlon Lhrouah
dlssemlnaLlon of ldeas lnformaLlon
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
73
MeLhods of horlzonLal
coordlnaLlon
PorlzonLal coordlnaLlon promoLed bv
W Slack resources
Cushlon of resources LhaL faclllLaLes
adapLaLlons Lo lnLernal/exLernal pressures as
well as lnlLlaLlon of chanaes
W lnformaLlon svsLems
Cne lnformaLlon source for manv users
W LaLeral relaLlons
ulrecL conLacL llalson roles Lask forces Leams
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
CraanlsaLlon sLrucLure deslan
W SLraLeav sLrucLure whlch comes flrsL?
SLraLeav sLrucLure are closelv llnked wlLh
each oLher
MlsmaLches ln sLraLeav/sLrucLure lead Lo
dlfflculLles
W lacLors lnfluenclna oraanlsaLlon deslan
ConLlnaencv facLors Lechnoloav slze
envlronmenL
need Lo promoLe lnnovaLlon roles
dlfferenLlaLlon Lransfer processes
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
CraanlsaLlon sLrucLure deslan
Strategy Strategy
Contingency factors
WTechnology
W$ize
WEnvironment
Contingency factors
WTechnology
W$ize
WEnvironment
Organisation structure
WFunctional
WDivisional
WHybrid
WMatrix
Organisation structure
WFunctional
WDivisional
WHybrid
WMatrix
StructuraI methods for
promoting innovation
WRoles
WReservations
WDifferentiation
WTransfer processes
StructuraI methods for
promoting innovation
WRoles
WReservations
WDifferentiation
WTransfer processes
OrganisationaI goaIs
(efficiency &
effectiveness)
OrganisationaI goaIs
(efficiency &
effectiveness)
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
W luncLlonal sLrucLure
W ulvlslonal sLrucLure
W Pvbrld sLrucLure
W MaLrlx sLrucLure
W LmeraenL sLrucLure
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
luncLlonal sLrucLure
SLrucLure ln whlch poslLlons are arouped
accordlna Lo Lhelr maln funcLlonal (or
speclallsed) area
CEO
Manager,
Distribution
Manager,
Administration
Manager,
Manufacturing
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
luncLlonal sLrucLure
AdvanLaaes
W lndepLh experLlse
developmenL
W Clear career paLh wlLhln
funcLlon
W LfflclenL use of
resources
W Lconomles of scale
(posslble)
W Lase of coordlnaLlon
W 1echnlcal advanLaae on
compeLlLlon
ulsadvanLaaes
W Slow response re
mulLlfuncLlon problems
W ueclslon backloa aL Lop
of hlerarchv
W 8oLLlenecks re
sequenLlal Lasks
W lnexacL measures of
performance
W narrow Lralnlna of
fuLure manaaers
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
ulvlslonal sLrucLure
SLrucLure ln whlch poslLlons are arouped
accordlna Lo slmllarlLv of producLs
servlces
or markeLs
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
CEO, AIpha Industries CEO, AIpha Industries
Chief GeneraI
Manager
Copier products
Chief GeneraI
Manager
Copier products
Chief GeneraI
Manager
Scanner products
Chief GeneraI
Manager
Scanner products
Chief GeneraI
Manager
Photographic
products
Chief GeneraI
Manager
Photographic
products
Chief GeneraI
Manager
IndustriaI
Imaging products
Chief GeneraI
Manager
IndustriaI
Imaging products
Chief GeneraI
Manager Computer
Storage products
Chief GeneraI
Manager Computer
Storage products
Chief GeneraI
Manager
Marine EIectronic products
Chief GeneraI
Manager
Marine EIectronic products
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
ulvlslonal sLrucLure
Advantages
W lasL response Lo
envlronmenLal chanae
W Slmpllfled coordlnaLlon
across funcLlons
W SlmulLaneous emphasls on
oraanlsaLlonal aoals
W SLrona cusLomer orlenLaLlon
W AccuraLe measuremenL of
performance
W 8road Lralnlna ln
manaaemenL skllls
D|sadvantages
W 8esource dupllcaLlon ln each
dlvlslon
W 8educLlon of lndepLh
experLlse
W CompeLlLlon amonasL
dlvlslons
W LlmlLed sharlna of experLlse
beLween dlvlslons
W lnnovaLlon resLrlcLed Lo each
dlvlslon
W nealecL of overall aoals
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
Pvbrld sLrucLure
SLrucLure adopLlna boLh funcLlonal and
dlvlslonal sLrucLures aL Lhe same manaaemenL
levels
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Pvbrld sLrucLure
Advantages
W AllanmenL of
corporaLe
dlvlslonal aoals
W luncLlonal experLlse
/or efflclencv
W AdapLablllLv
flexlblllLv ln
dlvlslons
D|sadvantages
W ConfllcLs beLween
corporaLe
deparLmenLs
dlvlslons
W Lxcesslve
admlnlsLraLlon
overhead
W Slow response Lo
excepLlonal
slLuaLlons
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
MaLrlx sLrucLure
SLrucLure superlmposlna a horlzonLal seL of
dlvlslonal reporLlna relaLlonshlps onLo a
hlerarchlcal funcLlonal sLrucLure
ApproprlaLe when
W need for a sLrona focus on boLh funcLlonal
dlvlslonal dlmenslons
W need Lo qulcklv process lnformaLlon co
ordlnaLe acLlvlLles
W 1here ls pressure for shared resources
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
GM,
%ransport
GM,
SaIes
GM,
HRM
GM,
Finance
Manager,
Business A
Manager,
Business B
Manager,
Business C
Manager,
Business D
Manager,
Business E
Transport,
Business A
Transport,
Business B
Transport,
Business C
Transport,
Business D
Transport,
Business E
$ales,
Business A
$ales,
Business B
$ales,
Business C
$ales,
Business D
$ales,
Business E
HRM,
Business A
HRM,
Business C
HRM,
Business D
HRM,
Business E
Finance,
Business A
Finance,
Business B
Finance,
Business C
Finance,
Business D
Finance,
Business E
HRM,
Business B
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
MaLrlx sLrucLure
Advantages
W uecenLrallsed declslon
maklna
W SLrona producL co
ordlnaLlon
W lmproved
envlronmenLal
monlLorlna
W llexlble use of human
resources
W LfflclenL use of supporL
svsLems
W lasL response Lo chanae
D|sadvantages
W Plah admlnlsLraLlve
cosLs
W Confuslon over
auLhorlLv
responslblllLv
(poLenLlal)
W Lxcesslve focus on
lnLernal relaLlons
W Cveremphasls on aroup
declslon maklna
W Slow response Lo
chanae (posslble)
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Assesslna sLrucLural alLernaLlves
Lmeralna sLrucLures
W rocess sLrucLure
1vpe of deparLmenLallsaLlon where poslLlons are
arouped bv a compleLe flow of work
W neLworked sLrucLure
lorm of oraanlslna where manv funcLlons are
conLracLed ouL Lo oLher lndependenL flrms
coordlnaLed bv use of lnformaLlon Lechnoloav
neLworks Lo operaLe as lf Lhev were wlLhln a slnale
corporaLlon
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Welahlna conLlnaencv facLors
1he besL sLrucLure for an oraanlsaLlon
depends
on conLlnaencv facLors such as
W 1echnoloav
W Slze
W LnvlronmenL
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Welahlna conLlnaencv facLors
1echno|ogy
W 1echno|og|ca| comp|ex|ty (Woodward)
unlL small baLch producLlon
Larae baLch mass producLlon
ConLlnuous process producLlon
W 1echno|og|ca| |nterdependence (1hompson)
ooled lnLerdependence
SequenLlal lnLerdependence
8eclprocal lnLerdependence
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Welahlna conLlnaencv facLors
Four trends Four trends
With growth:
more departments,
shift from functional
to divisional form
With growth:
more departments,
shift from functional
to divisional form
With growth:
more staff positions
to assist senior
management
With growth:
more staff positions
to assist senior
management
With growth:
tendency to decentralise
(enabled by
formalisation)
With growth:
tendency to decentralise
(enabled by
formalisation)
With growth:
additional rules
& regulations
(formalisation)
With growth:
additional rules
& regulations
(formalisation)
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
Welahlna conLlnaencv facLors
$tab|e env|ronments,
mechan|st|c
Na((oW las|s. p(esc(|oed
las|s. r|e(a(cr|ca| corl(o|.
dec|s|or-ra||rd |eve|s.
corrur|cal|or ve(l|ca|.
|rsl(ucl|ors ov supe(|o(s.
|ova|lv lo o(dar|sal|or &
ooed|erce lo supe(|o(s
Unstab|e|uncerta|n
env|ronments, organ|c
0ere(a| las|s. las|s suojecl lo
corl|ruous redol|al|or. relWo(|
corl(o|. dec|s|or ra||rd (esls W|lr
lrose W|lr |roW|edde.
corrur|cal|or ac(oss & oelWeer
|eve|s. 'supe(v|s|or' |s |rlo(ral|or &
adv|ce. corr|lrerl lo
o(dar|sal|ora| doa|s. possess|or ol
expe(l|se
Lawrence & Lorsch: a|ance of d|fferent|at|on & |ntegrat|on Lawrence & Lorsch: a|ance of d|fferent|at|on & |ntegrat|on
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
MaLchlna sLraLeav sLrucLure
Manaaers musL maLch sLraLeav sLrucLure
Lo
achleve effecLlveness ea
|che
d|fferent|at|on:
-ra((oW la(del ra(|el
|che
d|fferent|at|on:
-ra((oW la(del ra(|el
6ost |eadersh|p:
-o(dar|sal|ora|
ell|c|ercv.
|oWe( p(|ces
6ost |eadersh|p:
-o(dar|sal|ora|
ell|c|ercv.
|oWe( p(|ces
Harket d|fferent|at|on:
- adve(l|s|rd. p(esl|de
p(|c|rd &
ra(|el sedrerlal|or
Harket d|fferent|at|on:
- adve(l|s|rd. p(esl|de
p(|c|rd &
ra(|el sedrerlal|or
|nnovat|ve
d|fferent|at|on:
-corp|ex p(oducl
o( se(v|ce |rroval|ors
|nnovat|ve
d|fferent|at|on:
-corp|ex p(oducl
o( se(v|ce |rroval|ors
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
romoLlna lnnovaLlon
SLrucLure's ablllLv Lo supporL sLraLeav can be
enhanced bv uslna sLrucLural means Lo
encouraae lnnovaLlon
lnnovaLlon ls crlLlcal Lo varlous dlfferenLlaLlon
sLraLeales
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
romoLlna lnnovaLlon
lour ma[or means of uslna oraanlsaLlon
sLrucLure Lo faclllLaLe lnnovaLlon are
W vlLal roles
ldea champlon sponsor orchesLraLor
W 8eservaLlons
CraanlsaLlon unlLs devoLed Lo Lhe aeneraLlon of
lnnovaLlve ldeas
W ulfferenLlal paradox
SeparaLlna lnnovaLlon process decreases chance of
lmplemenLaLlon
W 1ransfer process
1he dlfflculLv of LranslaLlna ldeas lnLo
producLs/servlces
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
93
1he P8M framework
1hose manaaemenL funcLlons concerned
wlLh aLLracLlna malnLalnlna and
developlna people ln Lhe emplovmenL
relaLlonshlp
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
96
1he P8M framework
P8M funcLlons
dentifying HR needs
Attracting human resources
Maintaining human resources
Terminating the relationship
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
97
1he P8M framework
r|nc|p|es of nkM
W roacLlve approach llnk Lo sLraLealc
plannlna culLural chanae
W vlew of people as caplLal noL cosL
W osslblllLv of muLuallv beneflclal
relaLlonshlp beLween sLakeholders
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
98
1he P8M framework
kegu|atory framework
W AusLralla new Zealand lona hlsLorv of
aovernmenL supporL for unlon lnvolvemenL
W Slnce earlv 1990s ma[or shlfL Loward
enLerprlse or lndlvldual aareemenLs
W lncreaslna rellance on clvll law processes
W CrowLh of reaulaLlon relaLlna Lo human rlahLs
dlscrlmlnaLlon LLC CPS envlronmenLal
maLLers
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
99
LsLabllshlna Lhe emplovmenL
relaLlonshlp
W Puman resource plannlna
W !ob analvsls
W 8ecrulLmenL
W SelecLlon
W lnLervlews
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
100
LsLabllshlna Lhe emplovmenL
relaLlonshlp
numan resource p|ann|ng
ueLermlnlna fuLure human resource needs ln
relaLlon Lo an oraanlsaLlon's buslness
ob[ecLlves or sLraLealc plan
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
101
LsLabllshlna Lhe emplovmenL
relaLlonshlp
ob ana|ys|s
1he svsLemaLlc collecLlna and recordlna of
lnformaLlon abouL Lhe purpose of a [ob lLs ma[or
duLles Lhe condlLlons under whlch lL ls performed
Lhe requlred conLacLs wlLh oLhers and Lhe
knowledae skllls and ablllLles needed Lo perform
lL effecLlvelv
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
102
LsLabllshlna Lhe emplovmenL
relaLlonshlp
ob ana|ys|s
CuLcomes
W !ob descrlpLlons and [ob speclflcaLlons
lmpacLs upon
W 8ecrulLmenL selecLlon
W erformance appralsal
W 8emuneraLlon
W 1ralnlna developmenL
W !ob deslan redeslan
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
103
LsLabllshlna Lhe emplovmenL
relaLlonshlp
ob ana|ys|smethods
W lor exlsLlna [obs lnLervlews wlLh emplovees
W lnLervlews wlLh supervlsors
W CbservaLlon
W ComblnaLlon lnLervlews observaLlon
W SLrucLured quesLlonnalres
W Lmplovee [ournals/loabooks
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
104
LsLabllshlna Lhe emplovmenL
relaLlonshlp
kecru|tment
'1he process of flndlna and aLLracLlna [ob candldaLes
capable of effecLlvelv fllllna [ob vacancles' (WeLher
uavld Schuler Puber)
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
103
8ecrulLmenL
Objectives Objectives
Maximising the
pool of applicants
at minimum cost.
Maximising the
pool of applicants
at minimum cost.
Attracting suitably
qualified &
skilled applicants.
Attracting suitably
qualified &
skilled applicants.
Ensuring
compliance
by organisation
with government
Regulations.
Ensuring
compliance
by organisation
with government
Regulations.
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
106
LsLabllshlna Lhe emplovmenL relaLlonshlp
MeLhods of recrulLmenL
Advertisements Advertisements
EmpIoyee referraIs EmpIoyee referraIs
InternaI promotion InternaI promotion
EmpIoyment
agencies
EmpIoyment
agencies
Internet job
& career sites
Internet job
& career sites
Contractors Contractors
Campus interviews Campus interviews
Executive recruitment
('head hunters')
Executive recruitment
('head hunters')
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
107
LsLabllshlna Lhe emplovmenL
relaLlonshlp
SelecLlon process
1he declslonmaklna svsLem used Lo ldenLlfv
whlch [ob appllcanLs are besL sulLed Lo Lhe
vacanL poslLlon
kev aspecLs
8ellablllLv
valldlLv
SelecLlon devlces
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
108
LsLabllshlna Lhe emplovmenL
relaLlonshlp
kev aspecLs of selecLlon
ReIiabiIity
The degree to which the
decision making process
will measure the same
Consistently.
VaIidity
Whether the decision
process actually measures
what it sets out to measure.
SeIection devices
W Application form
W Written tests
W $election interview
W Assessment centre
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
109
MalnLalnlna Lhe relaLlonshlp
W 8emuneraLlon
1he flnanclal pavmenL Lo emplovees for Lhelr
work
W 1ralnlna
1he process of equlpplna people wlLh skllls
and compeLencles
W uevelopmenL
8road preparaLlon emplovee for fuLure
opporLunlLles Lhrouah Lhe acqulslLlon of new
knowledae skllls
W erformance appralsal
!udaemenLal assessmenL of emplovee
performance
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
110
MalnLalnlna Lhe relaLlonshlp
8emuneraLlon beneflLs
W Llnked Lo [ob analvsls
W Coverned bv reaulaLorv framework
W lnLernal pav equlLv
W LxLernal pav equlLv
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
111
MalnLalnlna Lhe relaLlonshlp
1ralnlna developmenL
Cholces
8uv skllls bulld Lhem or a mlxed approach
SLraLealc raLlonales for Lralnlna
roacLlve
8eacLlve
LnhancemenL of emplovee moLlvaLlon
commlLmenL reLenLlon
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
112
MalnLalnlna Lhe relaLlonshlp
PERFORMANCE APPRA$A$
V0uL0 EVPL0YEE
8ElA\l0uR T0
C0VPANY N0RV3
lVPR0\E 0uALlTY
0F 3ALARY RE\lEw3
lVPR0\E lR PLANNlN0
TRAlNlN0 & 3uCCE33l0N
8ulL0 C0N3l3TENCY 0F
EVPL0YEE ACTl0N3 &
0R0ANl3ATl0N 00AL3
PR0\l0E REC0R0 F0R 0l3Vl33AL.
0EV0Tl0N. 0RlE\ANCE. APPEAL
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
113
MalnLalnlna Lhe relaLlonshlp
Performance
appraisaI
Performance
appraisaI

o
feedback -
non-hierarchicaI method

o
feedback -
non-hierarchicaI method
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
114
P8lS lnLerneL lnLraneLs
LxLraneLs
W P8lS
Puman 8esource lnformaLlon SvsLem
W lnLerneL
Clobal connecLlon of compuLer servers Lhrouah whlch
users can access sLored lnformaLlon from Lhelr Cs
W lnLraneLs
Closed neLworks of lnformaLlon daLabases svsLems
wlLhln an oraanlsaLlon
W LxLraneLs
Closed neLworks of lnformaLlon svsLems beLween
oraanlsaLlons
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
113
P8lS lnLerneL lnLraneLs
LxLraneLs
!erformance appra|sa|,
|nc|ud|ng 30
0
feedback
w|despread
e|ectron|c
systems
Enhanced d|str|but|on
of hR po||cy,
news, |nformat|on
etter |nterna|
commun|cat|on
Emp|oyee ma|ntenance
of own hR records
Hu|t|-s|te co||aborat|ve
work teams, e|ectron|ca||y
||nked
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
116
1he fuLure of work
W lewer core emplovees
W lncreased parLLlme casual Lemporarv sLaff
W 1eleworklna
W PoLdesklna
W 1emporarv aaencv work shorLLerm labour
hlres oncall conLracL workers
W ersonnel supplv flrms
W ldea of emplovee as an lndependenL
conLracLor
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
117
1he fuLure of work
I|ex|b|e emp|oy|ng organ|sat|ons
W need for sLraLealc vs cosL reducLlon
focus
W 8ellance on sLafflna aaencles
I|ex|b|e emp|oyees
W Selfemploved
W use of sLafflna aaencv
W MalnLaln skllls base
W 'orLfollo' worker
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
118
1ermlnaLlna Lhe relaLlonshlp
W 8eLrenchmenL
1he forced LermlnaLlon of Lhe emplovmenL
relaLlonshlp due Lo flnanclal Lechnoloalcal or
oraanlsaLlonal clrcumsLances
W 8edundancv
A forced LermlnaLlon of Lhe emplovmenL relaLlonshlp
resulLlna from Lhe permanenL deleLlon of speclflc
poslLlons
W ulsmlssal
1he emplover alves Lhe requlred noLlce Lo LermlnaLe
Lhe emplovmenL relaLlonshlp
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
119
1ermlnaLlna Lhe relaLlonshlp
key aspects
W 8eaulaLorv requlremenLs
W LxlL lnLervlews
W use of ouLplacemenL consulLanLs
W LffecL on P8 oLher funcLlons of Lhe oraanlsaLlon
nUMAN kL5CUkCL5 DLIINLD
W 1he peop|e an organ|zat|on emp|oys
1o carry out var|ous
W [obs tasks and funct|ons
In exchange for
W wages sa|ar|es and other rewards
WnA1 I5 nUMAN kL5CUkCL
MANAGLMLN1?
W 1he comprehenslve seL of manaaerlal acLlvlLles and
Lasks concerned wlLh developlna and malnLalnlna a
quallfled workforcehuman resourcesln wavs LhaL
conLrlbuLe Lo oraanlzaLlonal effecLlveness
W P8M ls a process of developlna applvlna pollcles
procedures meLhods relaLed Lo lndlvlduals ln Lhe
oraanlzaLlon ln order Lo achleve lndlvldual
oraanlzaLlonal socleLal aoals
P8M lS MAnACLMLn1 Cl LMLC?LLS
WnA1 I5 nUMAN kL5CUkCL
MANAGLMLN1?
1|ann|ng
2 Crgan|z|ng
3 Lead|ng
4 Contro|||ng
1 rocurement
2 Deve|opment
3 ketent|on
4 5eparat|on
nUMAN kL5CUkCL MANAGLMLN1
A5 A CLN1Lk CI LkLk1I5L
1nL nUMAN kL5CUkCL MANAGLMLN1
IUNC1ICN A1 1LkA5 IN51kUMLN15
nk Department
Crgan|zat|ona|
Chart
IUNC1ICN5 CI nk MANAGLk
1 P8 lannlna
2 ueslanlna rlahL [obs Lo achleve oraanlzaLlonal
aoals
3 Acqulrlna rlahL people for rlahL [obs
4 ueveloplna emplovees Lo keep Lhem updaLe
3 CompensaLlna emplovees Lo make Lhem saLlsfled
6 ueallna wlLh separaLlon lssues for smooLh funcLlonlna
of oraanlzaLlon
7 ueveloplna amlable relaLlon wlLh emplovees unlon
for conaenlal producLlve envlronmenL
8 ueallna wlLh afflrmaLlve acLlon plans (AA)
1 nk LANNING
W Lst|mat|ng Demand for numan kesources
W Lnsure 5upp|y of requ|red eop|e
2 DL5IGNING kIGn1 C85 1C ACnILVL
CkGANI2A1ICNAL GCAL5
W ob Ana|ys|s (Data Co||ect|on)
W Des|gn|ng the ob
ob Descr|pt|on
ob 5pec|f|cat|on
ob 5tandards
3 ACCUIkING kIGn1 LCLL ICk kIGn1 C85
W kecru|tment
W 5e|ect|on
4 DLVLLCING LMLCLL5 1C kLL 1nLM
UDA1L
W Cr|entat|on
W 1ra|n|ng
W Career Counse||ng
W erformance Appra|sa|s
W 1eam 8u||d|ng
CCMLN5A1ING LMLCLL5 1C MAkL 1nLM
5A1I5IILD
W Waaes and salarles
W lncenLlves and aaln sharlna
W 8eneflLs and servlces
DLALING WI1n 5LAkA1ICN I55UL5 ICk 5MCC1n
IUNC1ICNING CI CkGANI2A1ICN
W Pandllna reLlremenL lncome penslon and
araLulLv fund lssues
W aper work relaLed Lo separaLlon
W LxlL lnLervlew
7 DLVLLCING AMIA8LL kLLA1ICN WI1n
LMLCLL5 AND CCNGLNIAL AND
kCDUC1IVL LNVIkCNMLN1
W CWL lnLervenLlon Lhrouah emplovee
lnvolvemenL
W laclllLaLe communlcaLlon
W M8C approach ln declslon maklna
W ueallna wlLh collecLlve baraalnlna
DLALING WI1n AIIIkMA1IVL AC1ICN LAN
(AA)
W Abldlna bv all rules and reaulaLlons lmposed
bv CovL
W ueveloplna and sendlna LLC/AA reporLs Lo
CovL
1nL C8LC1IVL5 CI nkM
W CraanlzaLlonal ob[ecLlves
W luncLlonal ob[ecLlves
W SocleLal ob[ecLlves
W lndlvldual ob[ecLlves
nUMAN kL5CUkCL MANAGLMLN1
IN 5MALLLk CkGANI2A1ICN5
W Small oraanlzaLlons sLlll use operaLlna
manaaers Lo handle Lhelr baslc human
resource funcLlons
W Small lndependenL buslnesses are aenerallv
operaLed ln Lhe same wav as small
oraanlzaLlons Some admlnlsLraLlve acLlvlLles
mav be subconLracLed
W verv small oraanlzaLlons are exempL from
manv leaal reaulaLlons
nUMAN kL5CUkCL MANAGLMLN1
IN LAkGLk CkGANI2A1ICN5
W As Lhe oraanlzaLlon arows a separaLe human
resource unlL becomes a necesslLv
W When an oraanlzaLlon reaches 200 Lo 230
emplovees lL aenerallv esLabllshes a self
conLalned human resource deparLmenL
W As Lhe oraanlzaLlon conLlnues Lo arow Lhe
human resource deparLmenL arows as well
lnLo speclallzed deparLmenLs
551LM VILW CI nkM
leedback
W lnpuLs LransformaLlon ouLpuLs
*Challenaes *P8M acLlvlLles * roducLlve
*LducaLlon *8ecrulLlna MoLlvaLed Workers
*people *SelecLlon
*Skllls
kCAC1IVL V/s kLAC1IVL nkM
VILW CIN15 CI nkM
W SLraLealc Approach
W Puman 8esource Approach
W ManaaemenL Approach
W SvsLem approach
W roacLlve Approach
WnA1 INILULNCL5 1nL kAC1ICL CI
nkM?
A Lxterna| Inf|uences
W SLaLe of Lhe Lconomv
W CompeLlLlon for roducL and Labor MarkeLs
W CovernmenL Laws 8eaulaLlon and ubllc
ollcv
W CharacLerlsLlcs of Lhe Labor lorce
W 1echnoloav
8 Interna| Inf|uences
W unlons
W CharacLerlsLlcs of P8M AcLlvlLles
W ALLlLudes of Manaaers
141
1he naLure of MoLlvaLlon
W MoLlvaLlon ls an lnLernal force LhaL we cannoL
dlrecLlv measure
W MoLlvaLlon ls lnferred bv Lhe observaLlon of
behavlour
W lL mlahL be concluded LhaL an enalneer who
sLarLs work earlv and flnlshes laLe aoes Lo Lhe
offlce on weekends and conLlnuallv reads and
researches Lhe fleld ls hlahlv moLlvaLed
142
W Cn Lhe oLher hand we mlahL suspecL LhaL an
enalneer who ls usuallv flrsL Lhrouah Lhe door
aL Lhe end of Lhe dav who rarelv puLs ln exLra
hours and aenerallv spends llLLle Llme readlna
ls noL moLlvaLed Lo excel
W Pow successful Lhese Lwo enalneers are ln
Lhelr work wlll depend noL onlv on Lhelr
moLlvaLlon buL also on Lhelr ablllLv as
enalneers
143
Work LnvlronmenL
W Work envlronmenL can have a loL of lnfluence
on Lhe performance of Lhose Lwo enalneers
W lnLerrupLlons exLra asslanmenLs or cramped
offlce space mav affecL performance
neaaLlvelv
W CuleL workplace and Lhe avallablllLv of
supporL and help personnel mav enhance
performance ln a poslLlve wav
144
erformance
letftmooce ,tlvotlo
ovltomeotol
coJltlos
Abllltv
x x
143
1he MoLlvaLlon rocess
Needs
hlerarchv of needs Lheorv
L8C Lheorv
LwofacLor Lheorv
acqulredneeds Lheorv
Cogn|t|ve Act|v|t|es
expecLancv Lheorv
equlLv Lheorv
aoal seLLlna Lheorv
kewards/re|nforcement
relnforcemenL Lheorv
soclal learnlna Lheorv
behavlours
146
baslc pav work space heaL waLer companv
cafeLerla
[ob securlLv beneflLs (llke llfe lnsurance) safeLv
reaulaLlons
aood coworkers peers superlors cusLomers
lmporLanL pro[ecLs recoanlLlon presLlalous
offlce locaLlon
Maslow's Plerarchv of needs
challenalna pro[ecLs opporLunlLv for lnnovaLlon
and creaLlvlLv Lralnlna
phvsloloalcal needs
safeLv needs
belonalnaness needs
esLeem needs
selfacLuallsaLlon
needs
147
MoLlvaLors help
Lo promoLe saLlsfacLlon
Perzbera's 1wolacLor 1heorv
Pvalene facLors help Lo
prevenL dlssaLlsfacLlon
nyg|ene factors
- pav
- work condlLlons
- supervlsors
- companv pollcles
- frlnae beneflLs
Mot|vators
- achlevemenL
- responslblllLv
- work lLself
- recoanlLlon
- arowLh and
advancemenL
Plah
dlssaLlsfacLlon
Plah
saLlsfacLlon
neuLral polnL
148
L8C 1heorv
L LxlsLence needs xlsLence needs
hvsloloalcal (food waLer) hvsloloalcal (food waLer)
av av
8eneflLs 8eneflLs
Worklna condlLlons Worklna condlLlons
L LxlsLence needs xlsLence needs
hvsloloalcal (food waLer) hvsloloalcal (food waLer)
av av
8eneflLs 8eneflLs
Worklna condlLlons Worklna condlLlons
88elaLedness elaLedness needs needs
8elaLlonshlps wlLh famllv 8elaLlonshlps wlLh famllv
work and professlonal work and professlonal
aroups aroups
88elaLedness elaLedness needs needs
8elaLlonshlps wlLh famllv 8elaLlonshlps wlLh famllv
work and professlonal work and professlonal
aroups aroups
CCrowLh needs rowLh needs
CreaLlvlLv CreaLlvlLv
lnnovaLlon lnnovaLlon
roducLlvlLv roducLlvlLv
CCrowLh needs rowLh needs
CreaLlvlLv CreaLlvlLv
lnnovaLlon lnnovaLlon
roducLlvlLv roducLlvlLv
SaLlsfacLlon SaLlsfacLlon proaresslon proaresslon
prlnclple prlnclple
lrusLraLlon lrusLraLlon rearesslon rearesslon
prlnclple prlnclple
SaLlsfacLlon SaLlsfacLlon proaresslon proaresslon
prlnclple prlnclple
lrusLraLlon lrusLraLlon rearesslon rearesslon
prlnclple prlnclple
149
Acqulredneeds 1heorv
Deve|oped by Dav|d McC|e||and Deve|oped by Dav|d McC|e||and
clLes Lhe need for clLes Lhe need for ach|evement power ach|evement power
and and afflllaLlon as ma[or moLlves ln work afflllaLlon as ma[or moLlves ln work
Deve|oped by Dav|d McC|e||and Deve|oped by Dav|d McC|e||and
clLes Lhe need for clLes Lhe need for ach|evement power ach|evement power
and and afflllaLlon as ma[or moLlves ln work afflllaLlon as ma[or moLlves ln work
Need for ach|evement Need for ach|evement drlve Lo excel drlve Lo excel
Need for power Need for power lnfluence oLhers behavlour lnfluence oLhers behavlour
Need for aff|||at|on Need for aff|||at|on deslre for frlendlv deslre for frlendlv
and close lnLerpersonal relaLlonshlps and close lnLerpersonal relaLlonshlps
Need for ach|evement Need for ach|evement drlve Lo excel drlve Lo excel
Need for power Need for power lnfluence oLhers behavlour lnfluence oLhers behavlour
Need for aff|||at|on Need for aff|||at|on deslre for frlendlv deslre for frlendlv
and close lnLerpersonal relaLlonshlps and close lnLerpersonal relaLlonshlps
130
8aslc ComponenLs of LxpecLancv
1heorv
LfforL LfforL erformance erformance
CuLcomes CuLcomes
(ea bonus pralse (ea bonus pralse
feellnas of accompllshmenL) feellnas of accompllshmenL)
WhaL ls Lhe WhaL ls Lhe
probablllLv probablllLv
LhaL l can LhaL l can
perform aL perform aL
Lhe requlred Lhe requlred
level lf l Lrv? level lf l Lrv?
WhaL ls Lhe WhaL ls Lhe
probablllLv probablllLv
LhaL mv aood LhaL mv aood
performance performance
wlll lead Lo wlll lead Lo
deslred deslred
ouLcomes? ouLcomes?
WhaL value WhaL value
do l place on do l place on
Lhe poLenLlal Lhe poLenLlal
ouLcomes? ouLcomes?
131
LxpecLancv 1heorv
W 1he efforLperformance llnk wlll our efforLs
lead Lo requlred performance levels?
W erformance ouLcome llnk wlll successful
performance lead Lo parLlcular ouLcomes?
LxLrlnslc lnLrlnslc rewards
W valence anLlclpaLed value of varlous
ouLcomes"
132
LqulLv 1heorv
W we prefer slLuaLlons of balance or equlLv
whlch exlsL when we see our lnpuLs lncomes
raLlo Lo be equal Lo LhaL for a comparlson
oLher (or oLhers)"
133
8elnforcemenL 1heorv
W oslLlve uses pleasanL rewardlna consequences Lo
encouraae deslred behavlour use of shaplna
W neaaLlve (unpleasanL) sLlmull so an lndlvldual wlll
enaaae ln Lhe deslred behavlour Lo sLop Lhe sLlmull"
W LxLlncLlon sLopplna prevlouslv avallable poslLlve
ouLcomes from a behavlour Lo decrease Lhe
behavlour"
W unlshmenL provldlna neaaLlve consequences Lo
decrease or dlscouraae a behavlour"
134
1vpes of 8elnforcemenL SlLuaLlons
Sklnner
loolsbmeot loolsbmeot
Neootlve Neootlve
keloftcemeot keloftcemeot
xtloctlo xtloctlo
lsltlve lsltlve
keloftcemeot keloftcemeot
LffecL on maLurlLv
Lncouraaes
maLurlLv
Lncouraaes
lmmaLurlLv
lncreases
behavlour
decreases
behavlour
L
f
f
e
c
L

o
n

b
e
h
a
v
l
o
u
r
' 2003 McCrawPlll AusLralla
Lv LLd owerolnL Slldes L/a
,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
133
naLure of moLlvaLlon
Mot|vat|on ls Lhe force eneralslna or alvlna
dlrecLlon Lo behavlour
lL ls a complex lnLeracLlon of behavlours
needs rewards/relnforcemenL and coanlLlve
acLlvlLles
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
136
naLure of moLlvaLlon
ab|||ty
mot|vat|on
env|ronmenta|
cond|t|ons
performance

x
X
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
137
needs Lheorles
W Plerarchv of needs Lheorv (Maslow)
W 1wofacLor Lheorv (Perzbera)
W L8C Lheorv (Aldefer)
W Acqulred needs Lheorv (McClelland)
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
138
needs Lheorles
Plerarchv of needs Lheorv (Maslow)
W 1heorv araulna LhaL lndlvldual needs form a
flvelevel hlerarchv
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
139
needs Lheorles
PhysioIogicaI
Safety
BeIongingness
Esteem
SeIf-actuaIisation
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
160
needs Lheorles
1wofactor theory (nerzberg)
Perzbera's Lheorv LhaL hvalene facLors are necessarv
Lo keep workers from feellna dlssaLlsfled buL onlv
moLlvaLors can lead workers Lo feel saLlsfled and
moLlvaLed
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
161
needs Lheorles
Achievement
ResponsibiIity
Work itseIf
Recognition
Growth
Advancement
Pay
Working
Conditions
Supervisors
Company
PoIicies
Fringe
benefits
hyg|ene factors
Hot|vators Hot|vators
Tnese laorors ne|o orevenr Tnese laorors ne|o orevenr
o|ssar|slaor|on o|ssar|slaor|on. .
Tnese laorors oromore sar|slaor|on Tnese laorors oromore sar|slaor|on. .
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
162
needs Lheorles
LkG theory (A|defer)
AlLernaLlve Lo Maslow's hlerarchv of needs
Lheorv whlch araues LhaL Lhere are Lhree
levels of lndlvldual needs
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
163
needs Lheorles
Existence needs
Physiological (food, water)
Pay
Benefits
Working conditions
Existence needs
Physiological (food, water)
Pay
Benefits
Working conditions
ReIatedness needs
Relationships with family,
work and professional
groups
ReIatedness needs
Relationships with family,
work and professional
groups
Growth needs
Creativity
nnovation
Productivity
Growth needs
Creativity
nnovation
Productivity
$atisfaction-progression
principle
Frustration-regression
principle
$atisfaction-progression
principle
Frustration-regression
principle
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
164
needs Lheorles
Acqu|red needs theory (McC|e||and)
1heorv sLaLlna LhaL our needs are acqulred or
learned on Lhe basls of our llfe experlences
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
163
needs Lheorles
Acqulred needs Lheorv
DeveIoped by David McCIeIIand -
cites the need for achievement, power,
and affiliation as major motives in work
DeveIoped by David McCIeIIand -
cites the need for achievement, power,
and affiliation as major motives in work
Need for achievement -drive to excel
Need for power-influence others behaviour
Need for affiIiation-desire for friendly
and close interpersonal relationships
Need for achievement -drive to excel
Need for power-influence others behaviour
Need for affiIiation-desire for friendly
and close interpersonal relationships
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
166
CoanlLlve Lheorles
W LxpecLancv Lheorv
W LqulLv Lheorv
W CoalseLLlna Lheorv
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
167
CoanlLlve Lheorles
Lxpectancy theory (Vroom)
1heorv araulna LhaL we conslder Lhree
maln lssues (efforLperformance
performanceouLcome valence) before
we expend efforL necessarv Lo perform
aL a alven level
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
168
CoanlLlve Lheorles
W LfforLperformance expecLancv
Cur assessmenL of Lhe probablllLv our efforLs wlll lead
Lo Lhe requlred level of performance
W erformanceouLcome expecLancv
Cur assessmenL of Lhe probablllLv our successful
performance wlll lead Lo deslred ouLcomes
W valence
Cur assessmenL of anLlclpaLed value of varlous
ouLcomes or rewards
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
169
CoanlLlve Lheorles
Lqu|ty theory (Adams)
1heorv araulna LhaL we prefer slLuaLlons of
balance or equlLv
lmpllcaLlons for manaaers
CommunlcaLlon essenLlal Lo assess
equlLv/lnequlLv percepLlons ln emplovees
CompllmenLarv Lo LxpecLancv Lheorv
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
170
CoanlLlve Lheorles
Goa|sett|ng theory
CoalseLLlna Lheorv Lechnlque works bv
focusslna aLLenLlon acLlon moblllslna
efforL lncreaslna perslsLence
encouraalna Lhe developmenL of
sLraLeav Lo achleve aoals
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
171
CoanlLlve Lheorles
ke|nforcement theory
1heorv araulna LhaL our behavlour can be
explalned bv consequences ln Lhe
envlronmenL
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
172
CoanlLlve Lheorles
1ypes of re|nforcement
W os|t|ve
uses pleasanL rewardlna consequences Lo encouraae
deslred behavlour use of shaplna
W Negat|ve
(unpleasanL) sLlmull so an lndlvldual wlll enaaae ln Lhe
deslred behavlour Lo sLop Lhe sLlmull
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
173
CoanlLlve Lheorles
1ypes of re|nforcement
W Lxt|nct|on
SLopplna prevlouslv avallable poslLlve ouLcomes from a
behavlour Lo decrease Lhe behavlour
W un|shment
rovldlna neaaLlve consequences Lo decrease or dlscouraae a
behavlour
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
174
8elnforcemenL Lheorv
F|xed |nterva|:
d|ver or l|xed l|re
scredu|e. urever
(esporses. exl|rcl|or
(ap|d |l (e|rlo(cererl
|ale. o( slops
F|xed |nterva|:
d|ver or l|xed l|re
scredu|e. urever
(esporses. exl|rcl|or
(ap|d |l (e|rlo(cererl
|ale. o( slops
F|xed rat|o:
d|ver alle( l|xed ruroe(
ol cases ol des|(ed oerav|ou(.
l|dr (esporse (ales. (ap|d
exl|rdu|srrerl |l slopped
ever lerpo(a(||v.
F|xed rat|o:
d|ver alle( l|xed ruroe(
ol cases ol des|(ed oerav|ou(.
l|dr (esporse (ales. (ap|d
exl|rdu|srrerl |l slopped
ever lerpo(a(||v.
Var|ab|e rat|o:
d|ver or va(|ao|e o(
(ardor l(ecuercv
ol oerav|ou( oas|s.
l|dr (esporse (ale.
ve(v s|oW exl|rdu|srrerl
Var|ab|e rat|o:
d|ver or va(|ao|e o(
(ardor l(ecuercv
ol oerav|ou( oas|s.
l|dr (esporse (ale.
ve(v s|oW exl|rdu|srrerl
Var|ab|e |nterva|:
d|ver or va(|ao|e o(
(ardor l|re oas|s.
l|dr. sleadv
(esporse (ale. s|oW
exl|rdu|srrerl.
|l slopped
Var|ab|e |nterva|:
d|ver or va(|ao|e o(
(ardor l|re oas|s.
l|dr. sleadv
(esporse (ale. s|oW
exl|rdu|srrerl.
|l slopped
Us|ng
re|nforcement
theory:
ercou(ade des|(ed
oerav|ou(. oe c|ea(
or Wral |s des|(ed.
use va(|ao|e |rle(va|
& va(|ao|e (al|o
(e|rlo(cererl.
Pur|sr rode(ale|v
seve(e|v & p(orpl|v.
Us|ng
re|nforcement
theory:
ercou(ade des|(ed
oerav|ou(. oe c|ea(
or Wral |s des|(ed.
use va(|ao|e |rle(va|
& va(|ao|e (al|o
(e|rlo(cererl.
Pur|sr rode(ale|v
seve(e|v & p(orpl|v.
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
173
Soclal learnlna Lheorv
5oc|a| |earn|ng theory (8andura)
1heorv araulna LhaL learnlna occurs Lhrouah
conLlnuous reclprocal lnLeracLlon of our
behavlours varlous personal facLors and
envlronmenLal forces
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
176
Soclal learnlna Lheorv
Learnlna occurs bv conLlnuous lnLeracLlon
beLween our behavlours personal facLors
and
envlronmenLal forces vlz
W Svmbollc processes
W SelfconLrol/reaulaLlon
W vlcarlous learnlna
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
177
Leadershlp
rocess of lnfluenclna oLhers Lo achleve
oraanlsaLlonal aoals
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
178
Pow leaders lnfluence oLhers
Sources of leadershlp power
W Leg|t|mate power
ower sLemmlna from a poslLlon's placemenL ln Lhe
manaaerlal hlerarchv
W keward power
ower based on Lhe capaclLv Lo provlde valued rewards Lo
oLhers
W Coerc|ve power
ower based on Lhe ablllLv Lo punlsh oLhers
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
179
Pow leaders lnfluence oLhers
Sources of leadershlp power
W Lxpert power
ower based on Lhe possesslon of experLlse valued bv
oLhers
W Informat|on power
ower based on access and conLrol over Lhe
dlsLrlbuLlon of lnformaLlon
W keferent power
ower resulLlna from belna llked admlred or ldenLlfled
wlLh
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
180
Sources of leadershlp power
6oerc|ve power Reward power
Leg|t|mate
power|
forma| author|ty
Expert power
Referent power
|nformat|on
power
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
181
ueveloplna leadershlp Lheorv
5|tuat|ona| |eadersh|p mode|
1heorv based on Lhe premlse LhaL leaders
need Lo alLer Lhelr behavlours dependlna on
one ma[or slLuaLlonal facLorLhe readlness of
followers
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
182
ueveloplna slLuaLlonal Lheorv
SlLuaLlonal leadershlp model
n|gh n|gh
k
L
L
A
1
I
C
N
5
n
I

Low Low
n|gh n|gh
1ask 1ask
n|gh
re|at|onsh|p
and
|ow task
n|gh task
and
h|gh
re|at|onsh|p
Low
re|at|onsh|p
and
|ow task
h|gh task
and
|ow
re|at|onsh|p
$e|||ng $e|||ng
Te|||ng Te|||ng
0e|egat|ng 0e|egat|ng
!art|c|pat|ng !art|c|pat|ng
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
183
1ransformaLlonal leadershlp
1ransformat|ona| |eaders
Leaders who moLlvaLe lndlvlduals Lo perform
bevond normal expecLaLlons bv lnsplrlna
subordlnaLes Lo focus on broader mlsslons
Lranscendlna Lhelr own selflnLeresLs
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
184
1ransformaLlonal leadershlp
Motivate others Motivate others
Vision beyond seIf-interest Vision beyond seIf-interest
Seek intrinsic higher IeveI goaIs Seek intrinsic higher IeveI goaIs
Seek performance beyond expectations Seek performance beyond expectations
Have charisma Have charisma
Key
characteristics
of
transformationaI
Ieaders
Key
characteristics
of
transformationaI
Ieaders
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
183
Are leaders necessarv?
neuLrallsers
SlLuaLlonal facLors prevenLlna leader behavlour
from lnfluenclna subordlnaLe
performance/saLlsfacLlon
1hese lnclude
W SubordlnaLe hlah need for lndependence
W Low subordlnaLe valence for avallable rewards
W hvslcal dlsLance of leader from subordlnaLes
' 2003 McCrawPlll AusLralla
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,ooooemeot A loclflc klm
lcos Lnhanced LdlLlon Slldes
prepared bv uavld Meacheam
186
Are leaders necessarv?
SubsLlLuLes
SlLuaLlonal facLors maklna Lhe lmpacL of
leadershlp lmposslble or unnecessarv
1hese lnclude
W SaLlsfvlna work
W Able and experlenced subordlnaLes
W rofesslonal orlenLaLlon of subordlnaLes
W 8ouLlne work clearlv speclfled
meLhods/feedback
' 2003 McCrawPlll AusLralla
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Leadershlp Lhe oraanlsaLlonal cvcle
EntrepreneuriaI EntrepreneuriaI
CoIIectivity CoIIectivity
FormaIisation &
controI
FormaIisation &
controI
EIaboration of
structure
EIaboration of
structure
%ransformationaI %ransformationaI
%ransactionaI %ransactionaI
%ransactionaI %ransactionaI
%ransformationaI %ransformationaI
' 2003 McCrawPlll AusLralla
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188
ConLrol as a manaaemenL funcLlon
ConLrolllna
rocess of reaulaLlna oraanlsaLlonal acLlvlLles
so LhaL acLual performance conforms Lo
expecLed oraanlsaLlonal sLandards and aoals
' 2003 McCrawPlll AusLralla
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189
ConLrol as a manaaemenL funcLlon
8ole of conLrols
W Coplna wlLh uncerLalnLv
W ueLecLlna lrreaularlLles
W ldenLlfvlna opporLunlLles
W Pandllna complex slLuaLlons
' 2003 McCrawPlll AusLralla
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190
ConLrol as a manaaemenL funcLlon
Levels of conLrol
3l(aled|c p|arr|rd 3l(aled|c p|arr|rd 3l(aled|c corl(o| 3l(aled|c corl(o|
Tacl|ca| p|arr|rd Tacl|ca| p|arr|rd Tacl|ca| corl(o| Tacl|ca| corl(o|
0pe(al|ora| p|arr|rd 0pe(al|ora| p|arr|rd 0pe(al|ora| corl(o| 0pe(al|ora| corl(o|
' 2003 McCrawPlll AusLralla
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191
1he conLrol process
SLeps ln Lhe conLrol process
Determine areas to control Determine areas to control
Establish standards Establish standards
Measure performance Measure performance
Compare performance Compare performance
Recognise positive
performance
Recognise positive
performance
ControI
process
steps
ControI
process
steps
Take corrective action Take corrective action
Adjust standards Adjust standards
' 2003 McCrawPlll AusLralla
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1he conLrol process
uecldlna whaL Lo conLrol
High dependence on the resource High dependence on the resource
Chance that expected resource flow will
be unacceptable
Chance that expected resource flow will
be unacceptable
Control-process feasibility Control-process feasibility
Cost acceptability Cost acceptability
0eterm|n|ng
strateg|c
contro|
po|nts
0eterm|n|ng
strateg|c
contro|
po|nts
Alternatives to control
WChange dependence relationships
WChange nature of dependence relationships
Alternatives to control
WChange dependence relationships
WChange nature of dependence relationships
' 2003 McCrawPlll AusLralla
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193
1vpes of conLrol
1vpes of conLrol
W Ma[or Lvpes bv Llmlna
W MulLlple conLrols
W CvberneLlc noncvberneLlc conLrols
' 2003 McCrawPlll AusLralla
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1vpes of conLrol
1vpes bv Llmlna
Input Input
%ransformation
processes
%ransformation
processes
Outputs Outputs
Feed-forward
contro|.
Arl|c|pal|rd
p(oo|ers
Feed-forward
contro|.
Arl|c|pal|rd
p(oo|ers
6oncurrent
contro|.
Allerd|rd lo
p(oo|ers as
lrev occu(
6oncurrent
contro|.
Allerd|rd lo
p(oo|ers as
lrev occu(
Feedback
contro|.
Co((ecl|rd
p(oo|ers alle(
p(oducl/ se(v|ce
|s p(oduced
Feedback
contro|.
Co((ecl|rd
p(oo|ers alle(
p(oducl/ se(v|ce
|s p(oduced
' 2003 McCrawPlll AusLralla
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193
1vpes of conLrol
W MulLlple conLrols
SvsLems uslna Lwo or more of Lhe feedforward
concurrenL and feedback conLrol processes and
lnvolvlna several sLraLealc conLrol polnLs
W CvberneLlc
SelfreaulaLlna conLrol svsLem whlch once operaLlna
can auLomaLlcallv monlLor Lhe slLuaLlon and Lake
correcLlve acLlon when necessarv
W noncvberneLlc
ConLrol svsLem relvlna on human dlscreLlon as a baslc
parL of lLs process
' 2003 McCrawPlll AusLralla
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196
Manaaerlal approaches
W 8ureaucraLlc conLrol
W Clan conLrol
W MarkeL conLrol
W ConLrol lnnovaLlon
' 2003 McCrawPlll AusLralla
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Manaaerlal approaches
8ureaucraLlc conLrol
Manaaerlal approach relvlna on reaulaLlon
Lhrouah rules pollcles supervlslon budaeLs
schedules reward svsLems and oLher
admlnlsLraLlve mechanlsms almed aL ensurlna
emplovees exhlblL approprlaLe behavlours and
meeL performance sLandards
' 2003 McCrawPlll AusLralla
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198
Manaaerlal approaches
Clan conLrol
Manaaerlal approach relvlna on values
bellefs LradlLlons corporaLe culLure shared
norms and lnformal relaLlonshlps Lo reaulaLe
emplovee behavlours and faclllLaLe reachlna
of oraanlsaLlonal aoals
' 2003 McCrawPlll AusLralla
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199
Manaaerlal approaches
MarkeL conLrol
Manaaerlal approach relvlna on markeL
mechanlsms Lo reaulaLe prlces for cerLaln
clearlv speclfled aoods and servlces needed bv
an oraanlsaLlon
' 2003 McCrawPlll AusLralla
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200
Manaaerlal approaches
ConLrol lnnovaLlon
lour levers for sLraLealc conLrol/lnnovaLlon
W 8ellef svsLems
Mlsslon core values
W 8oundarv svsLems
8lsk avoldance pollcles rules procedures
W erformance manaaemenL svsLems
CrlLlcal aoals evaluaLlon feedback
W lnLeracLlve monlLorlna svsLems
CpporLunlLv focus neLworklna conLlnuous search learnlna
' 2003 McCrawPlll AusLralla
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Assesslna conLrol svsLems
egat|ve att|tudes
lrduced ov excess|ve &
poo(|v des|dred corl(o|s
egat|ve att|tudes
lrduced ov excess|ve &
poo(|v des|dred corl(o|s
Operating deIays
actions needed by
feedforward &
concurrent controls'
Operating deIays
actions needed by
feedforward &
concurrent controls'
ame p|ay|ng
'rarade(s |rp(ove
lre|( slard|rd .ov
rar|pu|al|rd (esou(ce
usade &/o( dala'
ame p|ay|ng
'rarade(s |rp(ove
lre|( slard|rd .ov
rar|pu|al|rd (esou(ce
usade &/o( dala'
ehav|oura|
d|sp|acement
'oerav|ou(
ercou(aded |rcors|slerl
W|lr o(dar|sal|ora|
doa|s'
ehav|oura|
d|sp|acement
'oerav|ou(
ercou(aded |rcors|slerl
W|lr o(dar|sal|ora|
doa|s'
' 2003 McCrawPlll AusLralla
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Assesslna conLrol svsLems
CverconLrol versus underconLrol
Over-controI
limiting individual job autonomy
to the point where it seriously inhibits
job performance'.
Over-controI
limiting individual job autonomy
to the point where it seriously inhibits
job performance'.
Under-controI
...giving autonomy to an employee to
where the organisation loses the ability
to direct efforts'.
Under-controI
...giving autonomy to an employee to
where the organisation loses the ability
to direct efforts'.
' 2003 McCrawPlll AusLralla
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Assesslna conLrol svsLems
CharacLerlsLlcs of effecLlve conLrol svsLems
W luLure orlenLed
W MulLldlmenslonal
W CosLeffecLlve
W AccuraLe
W 8eallsLlc
W 1lmelv
W MonlLorable
W AccepLable Lo
oraanlsaLlonal members
W llexlble
The Nature Of Entrepreneurship The Nature Of Entrepreneurship
W Entrepreneurship
W Entrepreneur
W New venture
Factors nfluencing Entrepreneurship Factors nfluencing Entrepreneurship
W PersonaI characteristics
PersonaIity characteristics
Background characteristics (Corridor principIe )
thildhood familv environment. edueation. age
and work
historv.
Factors nfluencing Entrepreneurship Factors nfluencing Entrepreneurship
W Life path circumstances
Unsatisfactory work environment
Negative dispIacement
Career transitions
Positive puII infIuence
W EnvironmentaI faetors
Incubator
Preparing To Operate A $mall Business Preparing To Operate A $mall Business
W DeveIoping a Business PIan
It heIps to think carefuIIy through every
aspect of their proposed attempt.
It heIps in obtain financing
It provides a basis for measuring pIan
progress
It heIps to estabIish credibiIity with others
Preparing To Operate A $mall Business Preparing To Operate A $mall Business
W Obtaining Resources
Debit capitaI
Equity capitaI
W Human Resources
Venture team
Preparing To Operate A $mall Business Preparing To Operate A $mall Business
W SeIecting an appropriate site
W Community
W %rade area
W Lease or Buy
W oning and Iicensing
W Cost per square foot
Managing A $mall Business Managing A $mall Business
W Stages of SmaII-Business growth
Stage 1: Existence
Stage 2: SurvivaI
Stage : Success
Stage 4: %akeoff
Stage 5: Resource Maturity