PPM Revision

Question 1
It is often observed that most government projects fail to be smartly implemented. Projects
tend to costs more than the initial estimated value and are seldom delivered on time.
Elaborate on controlling function for organisations
Controlling – Management function that involves monitoring actual performance, comparing
actual to standard, and take action, if necessary. That is; Controlling is concerned with seeing
that the right things happen at the right time in the right way. Example of government
projects in Mauritius that lack control include Metro Express, Terre Rouge Verdun, bagatelle
Dam, Stadium and as well as “New York City” Vacoas Phoenix

In controlling managers evaluate how well the organization is achieving its goals and takes
corrective action to improve performance. Managers will monitor individuals, departments,
and the organization to determine if desired performance has been reached. The outcome of
the controlling function is the accurate measurement of performance and regulation of
efficiency and effectiveness.

Control means to check or to regulate, or to give directions, so as to ensure that action is

taken to achieve a goal or target, or to conform to expectations. A control is a device or
technique for putting control into practice. Controlling is monitoring performance, comparing
it with goals, and taking corrective action as needed. Controlling is the fourth management
function, along with planning, organising and leading, and its purpose is plain: To make sure
that performance meets objectives.

Purpose of Control - The purpose is to get people reporting to you to achieve productivity
and results. Control is making something happen the way it was planned to happen.

The Importance of Control - There are six reasons why control is important.
 To adapt to change and uncertainty;
Uncertainty arises because organisational goals are set for future events on the basis of
the best knowledge at the time, yet things do not always go according to plan. A variety
of factors in the environment typically operate to bring about changes in such areas such
as customer demand, technology and the availability of raw materials. By developing
control systems; managers are able to monitor specific activities and react quickly to
significant changes in the environment more efficiently

 To discover irregularities and errors;

Controls also help managers detect undesirable irregularities such as product defects,
costs – overrun or rising personal turnover. Early detection of such irregularities often can

1|Page
 save a great deal of time and money by preventing minor problems from mushrooming
into major areas. Finding mistakes early also sometimes avoid problems that can be
difficult to rectify such as missing deadlines or selling faulty merchandises to customers

 To reduce costs, increase productivity and add value; - MBO

Higher productivity, with minimum costs & resources [Output Inputs – least resources
being used for maximum profitability

 To detect opportunities; - TQM Approach

Controls also help highlight situations in which things are going better than expected
which alerts management to possible future opportunities

 To deal with complexity; and To decentralise decision-making and facilitate team work
As organisations grow larger or engage in more complex operations and projects, control
enhance coordination and help managers keep track of various major elements to be sure
that they are well synchronised. Operating on an international basis often increases
complexity and calls for further consideration of necessary controls

The Problems Of Control

Control theory may sound all well and good, but there are a number of serious problems to
overcome in applying theory to practice. The problems are:
(a) Preparing a standard or plan in the first place, which is reliable, and acceptable to the
manager who will be responsible for the achievement of the standard or plan.

(b) Measuring actual results with sufficient accuracy; this may be particularly difficult in-
service departments such as offices, since clerical work is not often directly measurable as
“output”.

(c) Measuring actual results with suitable feedback periods – keeping the reporting cycle
time sufficiently short to give managers a chance to take prompt control action when
serious deviations from plan occur.

(d) Identifying the causes of variations between actual results and the standard or plan, and
distinguishing controllable from uncontrollable causes.

(e) Drawing the attention of managers to a deviation between actual results and plan, and
persuading them to do something about it.

(f) Co-ordination the plans and activities of different departments in the Organization.

(g) Everybody who needs to be informed about how results are going must be kept in touch
in a way that they can understand. In actual work environment, this may be difficult to
achieve.

2|Page
Question 2
The impact of management in the current business world has increased considerably due to
various challenges in the current context and briefly elaborate on those; supporting your
answers with suitable examples
“Management is the art of getting things done through other people” (Follett, 1924) That is,
it is the process of coordinating work activities so that they are completed efficiently and
effectively with and through other people.

The Challenge of Management

1. The Need for Vision
 New technologies (sophisticated and capital-intensive technology) – The world is
shrinking. New telecommunication technologies continue to expand our reach and speed
up our communication. Expansion of e-commerce due to the growth of the Internet has
enabled businesses to compete globally. Essentially, due to the availability of the Internet,
consumers are interested to buy products online at a low price after reviewing best deals
from multiple vendors. At the same time, online suppliers are saving a lot of marketing
costs.

The world is fast becoming a global village where there are no boundaries to stop free
trade and communication. Keeping pace with it, the way we do business has changed in
an unprecedented manner. The competition, in the global marketplace, is at its peak
where all companies want to sell their goods to everyone, everywhere on the globe.

 Changing economy - The International business environment includes various factors

like social, political, regulatory, cultural, legal and technological factors that surround a
business entity. There are exogenous factors relative to the home environment of the
organization in the international environment.

These factors influence the decision-making process on the use of resources and
capabilities. They also make a nation either more or less attractive to an international
business firm.

Firms do not have any control over the external business environment. Therefore, the
success of an international company depends upon its ability to adapt to the overall
environment.

Its success also depends on the ability to adjust and manage the company’s internal
variables to leverage on the opportunities of the external environment. Moreover, the
company’s capability to control various threats produced by the same environment, also
determines its success.

 Globalisation - Globalization is a much larger process and often includes the assimilation
of the markets as a whole and the cultural context as well (what does it bring to the
business arena either locally or internationally)

3|Page
 Cut throat competition in the market, are we still being protected, textile agreement,
sugar cane orders- the selling rate in external market

2. The Need for Ethics and Social Responsibility

Ethics deals with both conflict and opportunity in human relationships. Ethics provides the
glue that holds our relationships, and the larger society together. Business ethics is a major
concern today. To increase performance while remaining ethical managers.

3. The Need for Responsiveness to Cultural Diversity

Managers must be prepared to deal with diversity at the workplace. More women have
incorporated in today’s workforce.
Result from changes in the nature, composition and diversity of a population. These include
gender, age, ethnic origin, etc. For example, during the past 20 years, women have entered
the workforce in increasing numbers.
̶ It is a fact that woman cannot perform the same amount and extent of physical work as
men, but now in the age of automation; both may be having the same competency

̶ The productivity and results should be the same; whether a man or woman has done it.
But each one of them would have different means of doing the same job.

̶ Uses of technology and new organisation’s structures are available nowadays that would
counteract the differences that exists between the 2 gender

̶ Woman at any level of management are more prepared to do compromise than their male
counterparts – position of power as compared to their male counterparts

Cultural environments include educational, religious, family, and social systems within the
marketing system. Knowledge of foreign culture is important for international firms.
Marketers who ignore cultural differences risk failure.
 Language
 Colours
 Customs
 Values
 Aesthetics
 Time
 Religious beliefs

4. The Need for Training

Managers have to continually upgrade their management skills through formal education or
ongoing practice to maintain high levels of productivity and to keep pace with new
technology.
Other factors
4|Page
 i. Emergence of new regulations for business by government – Permits such as working
permit, residence permits and as well as working permit

ii. Increase in size & complexity of business

̶ Diverse tourism & Diverse activities – business entities
̶ Different capital values
̶ Appropriate working conditions to reduce employee turnover
̶ Currently, most industrial countries are aging.
̶ This will change the opportunities for firms competing in these areas.
̶ New demand for health care, assisting living can be forecast.
̶ Given cultural diversity of the workforce today, effective feedback is very important to
ensure proper communication.

iii. Increase specialisation of work

Recruiting specialised employee (Locally / Abroad) This is synonymous to division of
labour. It is the degree to which task in an organisation are divided into separate jobs.

iv. The need for research & development

 More forward in the competitive working environment – very useful
 Make organisations more proactive and business need to be more proactive than reactive

v. The need for concealing the interest of various groups - That is owners, workers,
governments and the general public; commonly referred to as stake - holders. The object
is significantly to increase the awareness of all employees and stakeholders that quality is
vital to the organisation’s success and their future.

vi. Importance of optimum utilisation of scarce resources – identify opportunity costs –

investments

Question 3
Why is motivation important?
Managers have a direct responsibility for ensuring that the workforce is highly motivated.
One of the manager’s primary tasks is to motivate people in the organisation to perform at
high levels. If managers fail in this role, the consequences for the organisation can be very
severe. Where motivation is low or absent, performance is poor and organisations very often
face difficulties and make losses.

Definitions

5|Page
According to Luthans (1999), the word motivation is derived from the Latin word “movere”,
meaning to move.
 Robbins & Coulter (1999) have defined motivation as “the willingness to exert high
levels of effort to reach organisational goals as conditioned by that effort’s ability to
satisfy some individual need.”

 To Nelson & Quick (1997), motivation is “the process of arousing and sustaining goal-
directed behaviour.”

There are many motivation theories. Each motivation theory attempts to describe what
human beings are and what human beings can become.

Employee motivation is a critical aspect at the workplace which leads to the performance of
the department and even the company. Motivating your employees needs to be a regular
routine. There are companies that sadly fail to understand the importance of employee
motivation. Research shows that many companies have disengaged employees with low
motivation; only 13% of employees are engaged at work

Importance of Employee Motivation

There are several reasons why employee motivation is important. Mainly because it allows
management to meet the company’s goals. Without a motivated workplace, companies could
be placed in a very risky position.

Motivated employees can lead to increased productivity and allow an organisation to achieve
higher levels of output. Imagine having an employee who is not motivated at work. They will
probably use the time at their desk surfing the internet for personal pleasure or even looking
for another job. This is a waste of time and resources. Hence there must be a must to improve
employee engagement

Employee motivation is highly important for every company due to the benefits that it brings
to the company. Benefits include:

Increased employee commitment - When employees are motivated to work, they will
generally put their best effort in the tasks that are assigned to them.

Improved employee satisfaction - Employee satisfaction is important for every company

because this can lead towards a positive growth for the company.

6|Page
Ongoing employee development - Motivation can facilitate a worker reaching his/her
personal goals, and can facilitate the self-development of an individual. Once that worker
meets some initial goals, they realise the clear link between effort and results, which will
further motivate them to continue at a high level.

Improved employee efficiency - An employee’s efficiency level is not only based on their
abilities or qualifications. For the company to get the very best results, an employee needs to
have a good balance between the ability to perform the task given and willingness to want to
perform the task. This balance can lead to an increase of productivity and an improvement in
efficiency.

Improve communication - The easiest way to increase employee motivation is by having

positive communication at the workplace. Not relying only on emails but by making sure
they talk to their employees in person and even on a personal level, if possible.

Try setting aside some time each day to talk with employees or you can join them during
coffee breaks instead of sitting at your desk. By doing so, you actually make employees feel
as though you are part of the team; a leader instead of just the boss.

Positive workplace environment - Management could also post a positive quote or picture
by the copier, coffee machine or somewhere else that is visible and that receives high foot
traffic so that others can see. Flora and fauna also help create a serene workplace
environment for your employees, so why not add a couple of plants around the office. A
positive workplace is the basic element that will get your company to the top.

However, in order to achieve a high level of employee productivity, management needs to

encourage a positive workplace environment. Ensure that your employees feel that their work
and efforts is an important contribution to the company’s success. Remember to always keep
an ‘open-door’ policy and have an approachable management team.

Question 4
Distinguish between intrinsic and extrinsic rewards - Douglas Mc Gregor Philosophy
 Intrinsic rewards are ones that come from within the employee. An employee who is
motivated intrinsically is working for his/her own satisfaction and may value challenging
work he/she perceives to be meaningful to the company. (recognition, sense of
achievement, growth)

7|Page
 Extrinsic rewards—usually financial—are the tangible rewards given employees by
managers, such as pay raises, bonuses, and benefits. They are called “extrinsic” because
they are external to the work itself and other people control their size and whether or not
they are granted. (pay rise, bonus, promotion, commissions, awards)

Question 5
Describe the importance of Maslow Theory of motivation to a manager
People --- Unsatisfied People (Abraham Maslow) - The Human Relations Movement
Abraham Maslow’s Hierarchy of Needs - Maslow identified five main need categories
which apply to people in general. (psychological, safety, social, esteem, self-actualisation)

His theory of human needs had three assumptions:

a. Human needs are never completely satisfied. 

b. Human behaviour is purposeful and is motivated by the need for satisfaction.

c. Needs can be classified according to a hierarchical structure of importance, from the

lowest to highest.

According to Maslow, individuals will be motivated to fulfill whichever need is prepotent, or

most powerful, for them at a given time.
 The prepotency of a need depends on the individual’s current situation and recent
experiences.

 Starting with the physical needs, which are most basic, each need must be satisfied
before the individual desires to satisfy a need at the next higher level.

According to Maslow, these needs can create internal pressures that can influence a person's
behaviour.

8|Page
1. Physiological needs are those needs required for human survival such as air, food, water,
shelter, clothing and sleep. The manager can account for physiological needs of
employees by providing comfortable working conditions, reasonable work hours and the
necessary breaks to use the bathroom and eat and/or drink.

2. Safety needs include those needs that provide a person with a sense of security and well-
being. Personal security, financial security, good health and protection from accidents,
harm and their adverse effects are all included in safety needs. The manager can justify
for the safety needs of your employees by providing safe working conditions, secure
compensation (such as a salary) and job security, which is especially important in a bad
economy.

3. Social needs, also called love and belonging, refer to the need to feel a sense of belonging
and acceptance. Social needs are important to humans so that they do not feel alone,
isolated and depressed. Friendships, family and intimacy all work to fulfill social needs.
As a manager, he / she can account for the social needs of employees by making sure
each employee knows each other, encouraging cooperative teamwork, being an accessible
and kind supervisor and promoting a good work-life balance.

4. Esteem needs refer to the need for self-esteem and respect, with self-respect being
slightly more important than gaining respect and admiration from others. The manager
can account for the esteem needs of employees by offering praise and recognition when
the employee does well, and offering promotions and additional responsibility to reflect
the belief that they are a valued employee.

5. Self-actualization needs describe a person's need to reach his or her full potential. The
need to become what one is capable of is something that is highly personal. While I might
have the need to be a good parent, you might have the need to hold an executive-level
position within your organization. Because this need is individualized, as a manager, one
can account for this need by providing challenging work, inviting employees to
participate in decision-making and giving them flexibility and autonomy in their jobs.

3 Additional Needs
a) Cognitive needs - Maslow believed that humans have the need to increase their
intelligence and thereby chase knowledge. Cognitive needs are the expression of the
natural human need to learn, explore, discover and create to get a better understanding of
the world around them. This growth needs for self-actualization and learning, when not
fulfilled leads to confusion and identity crisis. Also, this is directly related to need to
explore or the openness to experience.

b) Aesthetic needs: Based on Maslow’s beliefs, it is stated in the hierarchy that humans
need beautiful imagery or something new and aesthetically pleasing to continue up
towards Self-Actualization. Humans need to refresh themselves in the presence and
beauty of nature while carefully absorbing and observing their surroundings to extract the
beauty that the world has to offer. This need is a higher level need to relate in a beautiful

9|Page
 way with the environment and leads to the beautiful feeling of intimacy with nature and
everything beautiful.

c) Transcendence needs: Sometimes referred to as spiritual needs. Spiritual Needs are a

little different from other needs, accessible from many levels. This need when fulfilled,
leads to feelings of integrity and take things to another level of being.

Question 6
Write short notes on the following concepts
 Span of control
Span of Control refers to the number of subordinates reporting to a superior. It is the number
of employees a manager can efficiently and effectively manage.

Narrow Span of Control - A few subordinates reporting to their superior (assume span of 4).
Too narrow a span in contrast is inefficient because managers are underutilised (Depends on
the size of the organisation)

Wide Span of Control - Large number of subordinates reporting to their superior (assume
span of 8).
Too wide a span may mean that managers are over extended and employees are receiving too
little guidance or control. When this happens, managers may be pressured to ignore or
condone serious errors. And employees ‘efforts can be stymied also. In a department where a
dozen or more employees are awaiting for their managers’ feedback; there is potential for
frustration as well as errors
 Sources of power
Power is the extent to which a person is able to influence others so they respond to orders.
1) Legitimate power
2) Reward power
3) Coercive power
4) Expert power
5) Referent power

1. Legitimate Power
The leader with legitimate power has the right or the authority to tell others what to do.
Employers are obligated to comply with legitimate orders. Example; a superior tells an
employee to remove a safety hazard and the employee removes the hazard because he has to
obey the authority of his boss

10 | P a g e
2. Reward Power
The leader who has reward power influences others because he controls valued rewards.
People comply with the leader’s wishes in order to receive those rewards. Example; a
manager works hard to achieve his performance goals to get a positive performance review
and a big pay rise from his boss.

3. Coercive Power
The leader with coercive power has control over punishments. People comply to avoid those
punishments. Example; a manager implements an absenteeism policy that administer
disciplinary actions to offending employees. A manager has less coercive power, if say; a
union contract prohibits him from punishing employees harshly

4. Expert Power
The leader who has expert power has certain expertise or knowledge. People comply because
they believe in, can learn from, or can otherwise gain from that expertise. Example; a sales
manager gives his sales people some tips on closing a deal. The sales people then alter their
sales techniques because they respect the manager’s perspective

5. Referent Power
The leader with referent power has personal characteristics that appeal to others. People
comply because of admiration, a desire for approval, personal liking or a desire to be like the
leader. Example; young, ambitious managers emulate the work habits and personal style of a
charismatic executive.

 Business ethics
Business ethics is a form of art of the apply ethics that examine ethical rules and principles
within a commercial context; the various moral or ethical problems that can arise in a
business setting and any special duties or obligations that apply to persons who are engaged
in commerce. That is; what is good and right to business. The debate here regarding business
ethics “There is common perception that the priority of business is to maximise profits

 Trait Theory Of Leadership

 This approach assumed that leaders share certain inborn personality traits.

 Qualities that come to mind when one thinks about leadership – intelligence, charisma,
decisiveness, strength, bravery, integrity and self-confidence;

 Ex: Mahatma Gandhi, Condoleezza Rice, Tony Blair.

11 | P a g e
 What traits do they have that non-leaders don’t?

 They meet definition of a leader but have different characteristics.

 Attempts made to identify certain traits consistently associated with leadership.

 6 Traits - drive, desire to lead, honesty, integrity, self-confidence, intelligence and job
relevant knowledge.

 However, Traits alone do not sufficiently explain leadership.

Question 7
Managers are required to be well versed in the function of management and have to put these
functions well into practice in order to ensure the success and survival of organisations.
Discuss the importance of planning and organising as the 1st 2 functions
Henri Fayol was the first to describe the four managerial functions when he was the CEO of a
large mining company in the late 1800s.
Planning – Management function that involves the process of defining goals, establishing
strategies for achieving those goals, and developing plans to integrate and coordinating
activities.

3 steps to good planning:

 Which goals should be pursued?
 How should the goal be attained?
 How should resources be allocated?
The planning function determines how effective and efficient the organization is and
determines the strategy of the organization.

What is Planning?
A process that involves defining the organisation’s goals, establishing an overall strategy for
achieving those goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work.

Planning involves defining the organisational goals, establishing an overall strategy for
achieving these goals and developing a comprehensive set of plans to integrate and
coordinate organisational work.

12 | P a g e
All planning occurs within an environmental context. If managers don’t understand this
context; they are unable to develop effective plans, thus, understanding the environment is
essentially the first step in planning.

 Plans and decisions are essential requirements to organisational tasks and management.
Business success depends significantly upon successful planning and decision making.

 The planning process itself can best be thought of as a generic activity. All organizations
engage in planning activities, but no two organizations plan in exactly the same way.

Mission – Vision – Goals / Objectives – Strategies – Control – Standards

Planning can be defined as deciding now what to do in the future given certain intended
conditions
 An organisation’s mission is a statement of its fundamental unique purpose that sets a
business apart from other firms of its type and identifies the scope of the business
operations in product and market terms.

This definition of planning incorporates three important element that require attention –now,
what to do and future.

Planning involves: -
 Objective setting
 Environment scanning
 Decision making

Purposes of Planning
a) Gives direction
Planning establishes coordinated effort. It gives direction to managers and non-managers
alike. When employees know where the organisation or work unit is going and what they
must contribute to reach goals; they can coordinate their activities, cooperate with each
other and do what it takes to accomplish those goals.

b) Enables predictability (Forecasts things accordingly)

Planning also reduces uncertainty by forcing managers to look ahead, anticipate change,
consider the impact of change and develop appropriate responses

13 | P a g e
c) Enables adaptation to changes without crisis
Contingency Approach – adapting business to reduce uncertainty in the environment
Examples: Embrace technology, adding value to the Organization, Know Your Niche,
improve its market position

d) Minimizes waste and redundancies

Planning reduces overlapping and wasteful activities; when work activities are
coordinated around establish plans, waste time and redundancy can be minimized

e) Sets the standards used in CONTROLLING

Planning establishes goals or standards that are used in controlling. We can compare
actual performance against set goals, identify the deviations and take corrective actions

Benefits of planning
 Helps to prepare for unforeseen eventualities;

 Helps to clarify objectives;

 Helps to develop criteria for monitoring performance;

 Helps to think ahead systematically;

 Demands conscious co-ordination of projects and active participation and co-

operation of subordinates;

 Eases accommodation of change;

 Helps to identify opportunities for greater efficiency;

 Reveals duplication of effort, bottlenecks in workflows and foreseeable pitfalls;

 Assists in integrating activities; and

 Helps to take decisions unhurriedly, using maximum or optimum information

Criticisms of Planning
 Plans may create rigidity
 Plans can’t be developed for a dynamic environment
 Formal plans can’t replace intuition and creativity

14 | P a g e
  Formal planning reinforces success, which may lead to failure.
 Planning focuses manager’s attention on today’s competition, not on tomorrow’s
survival.

Organizing – Management function that involves the process of determining what tasks are
to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and
where decisions are to be made.

In organizing, managers create the structure of working relationships between organizational

members that best allows them to work together and achieve goals.

Managers will group people into departments according to the tasks performed.

An organizational structure is the outcome of organizing. This structure coordinates and

motivates employees so that they work together to achieve the goals.
Organising is the process by which managers establish working relationships among
employees to achieve goals. It is the process of creating an organisation structure.

Organisational structure is a formal system of task and reporting showing how workers use
resources. It is the formal arrangement of jobs within an organisation.

Organisational Design is when managers make specific choices resulting in a given

organisational structure. It is developing or changing an organisation’s structure.

Managers must take into account 2 kind of factors when they organise;
a) First, they must outline their goals for the organisation, their strategic plan for
pursuing those goals and the capabilities of their organisation for carrying out those
strategic plans.

b) Secondly, simultaneously; managers must consider what is going on and what is

likely to happen in the future in the organisational environment. At the intersection of
those 2 sets of factors; that is plans and environments, managers make decisions that
match goals, strategic plans and capabilities with environmental factors. This critical
first step on organising which logically follows from planning is the process of
organisational design.

2. Purposes of Organising

15 | P a g e
  Divides work to be done into specific jobs and department;
 Assigns tasks and responsibilities associated with individual jobs;
 Coordinates diverse organisational tasks;
 Clusters jobs into units;
 Establishes relationships among individuals, groups and departments;
 Establishes formal lines of authority; and
 Allocates and deploys organisational resources.
A comprehensive approach to organizing helps the management in many ways. Organizing
aligns the various resources towards a common mission.

Efficient Administration - It brings together various departments by grouping similar and

related jobs under a single specialization. This establishes coordination between different
departments, which leads to unification of effort and harmony in work.

It governs the working of the various departments by defining activities and their authority
relationships in the organizational structure. It creates the mechanism for management to
direct and control the various activities in the enterprise.

Resource Optimization - Organizing ensures effective role-job-fit for every employee in the
organization. It helps in avoiding confusion and delays, as well as duplication of work and
overlapping of effort.

Benefits Specialization - It is the process of organizing groups and sub-divide the various
activities and jobs based on the concept of division of labour. This helps in the completion of
maximum work in minimum time ensuring the benefit of specialization.

Promotes Effective Communication - Organizing is an important means of creating

coordination and communication among the various departments of the organization.
Different jobs and positions are interrelated by structural relationship. It specifies the channel
and mode of communication among different members.

Creates Transparency - The jobs and activities performed by the employees are clearly
defined on the written document called job description which details out what exactly has to
be done in every job. Organizing fixes the authority-responsibility among employees. This
brings in clarity and transparency in the organization.

Expansion and Growth - When resources are optimally utilized and there exists a proper
division of work among departments and employees, management can multiply its strength

16 | P a g e
and undertake more activities. Organizations can easily meet the challenges and can expand
their activities in a planned manner.

Disadvantages of Organising
 It will lead to poor communication and coordination across functional units.
 There will be lack of understanding across departments.
 They focus more on their own goals and neglect the overall company objectives.
 Communication in organizations with functional organizational structures can be rigid.
 Slow to react in response to environmental changes.
 It stifles innovation when the problem occurs or environment changes.
 The autonomy within units might increase when the company grows, which cause
difficulties in management.

 The specialization will lead to a narrow viewpoint and lack of overall perspective

Leading – Management function that involves motivating subordinates, influencing

individuals or teams as they work, selecting the most effective communication channels, or
dealing in any way with employee behaviour issues.

Leadership involves a manager using power, influence, vision, persuasion, and

communication skills; help employees understand the role they play in attaining objectives.

The outcome of the leading function is a high level of motivation and commitment from
employees to the organization.

Question 8
Team based work structures have become one of the most important tool of the modern
manager in this increasingly competitive globalised world where efficiency and effectiveness
are the order if the day for both growth and survival. What is the importance of teamwork in
organisations?
Work teams are groups whose members work intensely on a specific, common goal using
their positive synergy, individual and mutual accountability, and complementary skills.
Teams are a special subset of groups; that is, the team will emanate itself
Teams can do a variety of things. They can design products, provide services, negotiate deals,
coordinate projects, offer advice and make decisions.
 Members of teams are highly interdependent, typically being connected through
comprehensive interdependence.

17 | P a g e
 Teams are formed using work flow grouping. So, the members of a team are responsible
for performing several functions

 Skills, knowledge, expertise and information are often distributed among the members of
a team; owing to differences in their background training, abilities and access to
resources. Thus, the members are not interchangeable
A key ingredient that allows teams to succeed is trust. Trust is the glue that bonds all teams
together. Without trust you can't have a team

Importance
Work Efficiency - Teamwork enables employees to accomplish tasks faster and more
efficiently than tackling projects individually. Cooperating together on various tasks reduces
workloads for all employees by enabling them to share responsibilities or ideas. Teamwork
also reduces the work pressure on every worker, which allows him to be thorough in the
completion of the assigned roles. In sharing ideas or responsibilities, every employee should
have a role that suits his specialization. To also consider employees' levels of interest in the
project at hand, which positively influences the efficiency or speed of their output in
accomplishing the task.

Improved Employee Relations - Teamwork is important in an organization because it

provides employees with an opportunity to bond with one another, which improves relations
among them. Workers who constitute a team working on a project often feel valued upon the
successful completion of such tasks. A situation in which all of them find a chance to
contribute towards the tasks improves relations within the team and enhances their respect for
each other. Improved employee relations also result from the fact that teamwork enhances
cohesion among members, thanks to increased trust among them.

Increased Accountability - Teamwork increases the accountability of every member of the

team, especially when working under people who command a lot of respect within the
business. Team members do not want to let each other down and hence do their best to
contribute to the successes of their teams. In contrast to working solo on a project, peer
pressure is usually high within teams such that cases of low morale are less likely to impact
individuals. As a business owner, you would benefit from increased productivity through
efficient team projects, which may be completed well ahead of the deadline.

Learning Opportunities - Cooperating on a project is an opportunity for new workers to

learn from more experienced employees. Teams often consist of members who differ from
one another in terms of skills or talents. Working together is a great opportunity to acquire
skills that an employee never had beforehand. Unlike working alone on a project, teamwork
affords people the opportunity to challenge the ideas of each other and come up with a
compromise solution that contributes to the successful completion of the task.

18 | P a g e
Disadvantages
Takes More Time - Many processes can take much longer when there's a team involved.
Much more coordination, work distribution, feedback, and general organization is needed in a
team. This can end up costing more money, as well as time and resources. Decisions can also
be harder to reach in a group situation.

Personality Clashes - Even if the team is perfectly balanced in terms of skill sets, personality
clashes can develop over time. Conflicts can arise due to different styles or approaches, or
because members of the team are competing with each other in an unhealthy way.

Some People Work Better Alone - Some workers are much better at working on their own
and don't fit well into a team environment. These people are happier and work more
efficiently alone. They should be screened out at the interview stage, or given independent
roles.

Reduced Innovation and New Ideas - Some workers focus too much on the well-being of
the team and don't bring their own creative ideas to the table, resulting in less innovation and
a lack of new ideas. Peer pressure can also make some workers suppress their own ideas for
fear of "rocking the boat" or undermining a consensus.

Leadership Issues - Team leaders play a disproportionately large role in the success or
failure of a team. Overbearing or disorganized leaders can make the experience for members
stressful or dysfunctional and render the team ineffective for the organization. Team leaders
can also sometimes take sole credit for work that they didn't do, aggravating team members
and presenting an inaccurate impression to senior management.

Groups and teams are very different from each other

A group is defined as two or more interacting and interdependent individuals who come
together to achieve particular goals. Groups can either be formal or informal

Benefits of team-based structures

In a team-based organization, employees work in specific groups that are tasked with a
project. With a few exceptions, these teams don’t have supervisors, which means that
employees must establish trust with each other to achieve project goals. This also means that
employees share responsibility for managing every task, and are given the authority to make

19 | P a g e
decisions that are typically made by managers and supervisors in more traditionally
structured businesses. In most team-based organizations, managers establish goals,
milestones, and performance standards, but allow team members to determine how to meet
these requirements.

Better Communication - The primary advantage of a team-based organization is that

because there are usually no managers or only one manager supervising multiple teams,
communication between employees is much more free-flowing and effective. Team-based
organizations lack the multiple layers that employees would otherwise have to go through
before making a suggestion or receiving the go-ahead to implement a new idea.

Teams Resolve Problems Quicker - This improved communication also means that
companies can resolve work issues quicker because employees can share information at a
faster rate, which speeds up responsiveness.

Flexible and Empowered Workforce - Another advantage is that team-based organizations

are more flexible than organizations that are traditionally structured. As a business owner,
you can shift employees from one team to another to maximize their skills and talent and to
also keep them motivated with new challenges. Employees that work in teams are also more
likely to understand their specific roles in the organization and are also more likely to feel
validated and empowered.

Problem Solving Team

A team of 5 to 12 employees from the same department or functional area who are involved
in efforts to improve work activities or to solve specific problems. Here, members share ideas
and offer suggestions on how work processes and methods can be improved.

8.2 Self-Managed Work Team

A type of work team that operates without a manager and is responsible for a complete work
process or segment. The self-managed team are responsible for getting the work done and for
managing themselves. This usually includes planning and scheduling of work, assigning task
to members, collective control over the pace of work, making operating decisions and taking
action on problems.

8.3 Cross Functional Team

A type of work team that’s a hybrid grouping of individuals who are experts in various
specialties and who work together on various tasks. E.g. used in hospitals for ICU treatment.

20 | P a g e
8.4 Virtual Team
A type of work team that uses computer technology to link physically dispersed members in
order to achieve a common goal. E.g. advertising agency

Question 9
How will you create effective teams?
Teams are not automatic productivity enhancers. They can also be disappointments. Research
on teams provides insights into the characteristics associated with effective teams. These
characteristics are:

9.1 Clear Goals

High performance teams have a clear understanding of the goal to be achieved. Members are
committed to the team’s goals; they know what they’re expected to accomplish and
understand how they will work together to achieve these goals.

9.2 Relevant Skills

Effective teams are composed of competent individuals who have the necessary technical and
interpersonal skills to achieve the desired goals while working well together. This last point is
important since not everyone who is technically competent has the interpersonal skills to
work well as a team member.

9.3 Mutual Trust

Effective teams are characterized by high mutual trust among members. That is, members
believe in each other’s ability, character and integrity. But as you probably know from
personal relationships, trust is fragile. Maintaining this trust requires careful attention by
managers.

9.4 Unified Commitment

It is characterized by dedication to the team’s goals and a willingness to expend extraordinary
amounts of energy to achieve them. Members of an effective team exhibit intense loyalty and
dedication to the team and are willing to do whatever it takes to help their team succeed.
9.5 Good Communication
Not surprisingly, effective teams are characterised by good communication. Members convey
messages, verbally and nonverbally, to each other in ways that are readily and clearly
understood. Also, feedback helps to guide team members and to correct misunderstandings.

21 | P a g e
Like a couple who has been together for many years, members on high-performing teams are
able to quickly and efficiently share ideas and feelings.

9.6 Negotiating Skills

Effective teams are continually making adjustments as to whom does what. This flexibility
requires team members to possess negotiating skills. Since problems and relationships are
regularly changing in teams, members need to be able to confront and reconcile differences.

9.7 Appropriate Leadership

Effective leaders can motivate a team to follow them through the most difficult situations.
How? By clarifying goals, demonstrating that change is possible by overcoming inertia,
increasing the self-confidence of team members, and helping members to more fully realise
their potential. Increasingly, effective leaders act as coaches and facilitators. They help guide
and support the team but don’t control it.

9.8 Internal and External Support

The final condition necessary for an effective team is a supportive climate.
Internally, the team should have a sound infrastructure which means having proper training,
a clear and reasonable measurement system that team members can use to evaluate their
overall performance, an incentive program that recognizes and rewards team activities, and a
supportive human resource system. The right infrastructure should support members and
reinforce behaviours that lead to high levels of performance.

Externally, managers should provide the team with the resources needed to get the job done.

Question 10
Describe the different stages in the development of a group. Illustrate your answer with
appropriate examples
Group development is a dynamic process. Most groups are in a continual state of change.
Even though groups probably never reach complete stability, there is a general pattern that
describes how most groups evolve. Research shows that groups pass through a standard
sequence of five stages. They are Forming, Storming, Norming, Performing and Adjourning.

The first stage, Forming has two aspects:

1. people join the group either because of a work assignment or for some other benefit
desired. (status, self-esteem, power, or affiliation)

22 | P a g e
2. The tasks of defining the group’s purpose, structure and leadership

The second stage is Storming - It is characterised by intragroup conflict. There is conflict as

to who will control the group. When this stage is complete, there will be a relatively clear
hierarchy of leadership within the group and agreement on the group’s direction.

The 3rd stage is Norming - It is characterised by close relationships and cohesiveness. There’s
now a strong sense of group identity. This norming stage is complete when the group
structure solidifies and the group has assimilated a common set of expectations of what
defines correct member behaviour.

The 4th stage is Performing - The group structure at this point is fully functional and
accepted. Group energy has moved from getting to know and understand each other to
performing the task at hand. Performing is the last stage in the development of permanent
work groups. Group members operates as a knit or unite team and members are well
conversed

Temporary groups such as project teams, task forces and similar groups that have a limited
task to perform have a fifth stage - Adjourning

3.5 The fifth stage is Adjourning

In this stage, the group prepares to disband. High levels of task performance are no longer the
group’s top priority. Instead, attention is directed at wrapping up activities. This occurs in
groups that are not permanent. They will terminate and the team will cease to exist.

Question 11
In the exercise of influence within organisations, leaders are allowed within prescribed and
well-defined limits to implement certain decisions cause certain actions to be taken
controlled resources on behalf of the organisations. Various theories have been put forward
to shed light on the concept and meaning of leadership. Differentiate between transactional
and transformational leadership

Transactional Leadership
As a manager, your power stems from your ability to provide rewards in exchange for your
subordinates’ doing the work. When you do this, you are performing transactional leadership,

23 | P a g e
focusing on clarifying employees’ roles and task requirements and providing rewards and
punishments contingent on performance.

Transactional leadership also encompasses the fundamental managerial activities of setting

goals and monitoring progress toward their achievement.

The leader uses position power and the followers are motivated by self – interest: -
“A fair – day’s pay for a fair day’s work” is the guiding principle
Transformational leaders are objective oriented

Transformational Leadership
Transformational leadership transforms employees to pursue organisational goals over self-
interests.

Transformational leaders, in one description, “engender trust, seek to develop leadership in

others, exhibit self-sacrifice and serve as moral agents, focusing themselves and followers on
objectives that transcend the more immediate needs of the work group.”

Transformational leaders build a transactional leadership and try to achieve performance

beyond expectation. Transformational leaders are vision oriented.

Comparison between a Manager and a Leader

Manager
 Motivates people and organises resources to attain stated organisational goals;
 Pragmatic;
 Limits focus;
 Rational;
 Does things right and by the book;

 Transactional (related to leadership) and linked to production; that is towards cost

management; and

 Static approach
Transactional leaders put their focus on deviation management and corrective action and is
comprised of four main components
a) Individualized Consideration

24 | P a g e
 b) Inspirational Motivation
c) Idealized Influence
d) Intellectual Stimulation

Leader
o Motivates people to generate new objectives;
o Visionary;
o Widens horizons;
o Emotional;
o Intuitive and does the right thing;
o Transformational; and
o Dynamic approach.

 Transformational leaders are visionary

 Transformational leaders attend to each follower’s needs
 Transformational leaders are excellent role models
 Transformational leaders have a strong sense of purpose

 Transformational leaders empower their followers to perform beyond normal

expectations

 Transformational leaders use intellectual stimulation to motivate followers to think

outside the box

 Compared to Transactional leadership, transformational leadership is positively related to

organizational performance

Question 12
Conflicts is the primary engine of creativity and innovation. Briefly discuss the statement
According to Ronald A. Heifetz “People don't learn by staring into a mirror; people learn by
encountering difference”
Cole (1998) defines conflict as:

“a condition that arises when the perceived interests of an individual or a group clash with
those of another individual or group in such a way that strong emotions are aroused and
compromise is not considered to be an option. Conflict, when managed effectively, can
contribute to organisational effectiveness, but when mishandled, can give rise to counter-
productive behaviour, in which both sides lose.”

Conflict it is important to productivity and growth in many organizations. When conflict is

poorly managed or gets personal, however, it causes stressful work relationships and leads to
poor organizational morale.

25 | P a g e
Conflicts Advantages
The only way to avoid conflict in a typical organization is to avoid opportunities for growth,
improvement or expansion. As top managers formulate strategies, it is natural for them to
identify and debate different visions and approaches to achieve goals. Conflict in
conversations and work team interaction contributes to greater innovation and creative
development. Positive conflict that arises in the course of work team conversations also
indicates that your business environment fosters diverse perspectives. As employees put forth
and debate the merits of various ideas, they negotiate through conflicts to come to the best
resolutions.

It should be noted that conflict supports the development of managers and employees alike in
an organization. Open sharing of ideas, tense discussion on important topics and passionate
perspectives all cause conflict, but they expose the parties involved to alternative ways of
looking at things. Over time, employees build their conflict-resolution skills in a way that
makes them more effective at turning conflict into strong ideas.

Conflict Disadvantages
The drawbacks of conflict often stem from an organizational culture or worker mentality that
prevents successful resolution. Heated conflicts that become personal cause stressful working
relationships. It is problematic when employees on a team don't like each other. Personal
conflicts in work teams get in the way of collaborative communication, and the stress can
distract each worker from carrying out his role optimally

Conflicts also are time-consuming and costly for companies. Some managers spend the
majority of their time resolving conflicts, according to the Business Performance
Improvement Resource. Conflicts contribute to about half of resignations, Turnover resulting
from conflicts is costly, as the companies have to recruit, hire and train new employees. In
addition, there is lost knowledge that leaves with the resigning worker. In some industries,
the costs of replacing a single worker exceed the annual salary for the position.

Causes of conflict
Causes of conflict are complex. Understand how conflict arises at work can be very helpful
for anticipating situations that may become trouble. There are six major causes will lead to a
workplace conflict, include: -

 Different cultures and assumptions

 Differing values, opinions and beliefs
 Lack of sensitivity to race, gender, age, class, education and ability

26 | P a g e
  Poor people skills, especially communication
 Volatile, fast-changing workplaces
 Limits on resources, physical and psychological
 Not completing work on-time or to quality goals
 Gossip
 Not returning phone calls or e-mails
 Passive/aggressive behaviours
 Not responding to requests for information
 Hoarding information that should be shared
 Finger pointing
 Not attending required meetings
 Absenteeism

These are the most direct causes result in conflict. The real causes of conflict may be deep
lying, other forms of conflict may not be so easily identified. Find out exactly conflict is the
first step to resolve the conflict. The sooner the managers see the sign, the sooner they can
intervene and resolve the problem. Resolve the problem as soon as possible is helpful to
reduce the damage and losses.

Managing conflict
Conflict is a normal and natural part of workplace, it influences the work can be done or not,
well or bad. Dealing with workplace conflict can be rewarding. Conflicts that arise because of
personality clashes can be exacerbated by organizational structures and personalities. But
addressing conflict in the workplace and resolving these issues can result in creative ideas,
improvements, enhanced work relationships, and a healthier work environment. After
recognize the reason of conflict, there are five steps to managing conflict. These steps are:
a) Determine the cause
b) Collaborate on solutions
c) Provide alternative options
d) Communicate key decisions
e) Implement solutions

Conclusion
Workplace conflict exists between individuals and groups, it may lead to a series of negative
influence to the organization. When people work together, cultural differences, gender
differences, style differences, all kinds of differences occur. Resolve and avoid the conflict in
workplace may increase effectiveness for work. Effectively managed work conflict has many
positive results for the organization even our life.
Create a harmonious workplace is a win-win situation. Today’s workplace makes conflict
management more important, also, more difficult. After all, interpersonal skill is necessary, to
communicate is one of the best ways to solution a conflict.

27 | P a g e
Recommendations
When a conflict take place, it is not just a bad sign, sometimes, it means innovation and a
more harmonious workplace has found
When be in a conflict in workplace, do not ‘hide head in sand’, try to face it and resolve it.
Improve communication skill, develop emotional intelligence, respects others, these are all
helpful to avoid conflict.

Question 13
Organisational design is a process that involves decisions about 6 elements. Describe fully
these elements
̶ Work specialisation
̶ Departmentalisation
̶ Chain of command
̶ Centralization & decentralization
̶ Formalisation

1. Work Specialisation – Classical (Frederick Taylor) – Geared towards production

side
This is synonymous to division of labour. It is the degree to which task in an organisation are
divided into separate jobs.

Benefits
Increase efficiency and productivity
Division of works create simplified tasks that can be learned and completed relatively
quickly. Thus, it takes and foster specialisation as each person becomes expert in a certain
job. And because it creates variety of jobs; people can choose or be assigned to positions that
match their talents and interests

Drawback
Boredom or monotony at work
Boredom can be a by – product of specialized tasks that become repetitions and personally
dissatisfying. Researchers have found that absenteeism form the job can linked to these
negative effects of job specialisation
2. Departmentalisation
Departmentalisation is the grouping of employees and task into areas of work activities that
are similar and logically connected. It forms the basis by which jobs are grouped together.

28 | P a g e
Every organisation will have its own specific way of classifying and grouping work activities.
Five common forms of departmentalisation exist:
 Functional
 Product
 Customer
 Geographical
 Process

Functional Departmentalisation - It is the grouping of people having similar working skills

and expertise (Group jobs by function performed).

Advantages of Functional Departmentalisation - It makes efficient use of specialized

resources. It makes supervision easier since each manager must be expert in only a narrow
range of skills. A functional structure makes it easier to mobilise specialised skills and bring
them to bear where they are most needed

Disadvantages of Functional Departmentalisation - Functional managers have to report to

central headquarters. It can be difficult to get quick decisions. It is often harder to determine
accountability and judge performance in a functional structure. If a new product fails, who is
to be blamed?
 Research & Development
 Production or Marketing
Coordinating the functions of the members of the entire organisation my become a problem
for top managers. Because members of each department may feel isolated or superior to those
in other department (Conflicts between different department in 1 organisation)

Product Departmentalisation - It is grouping jobs by product line. Here each product area is
placed under the responsibility of a manager who’s responsible for everything having to do
with that product line.

Advantages of Product Departmentalisation

1) High work performance is maintained
2) Both the quality and speed of decisions – making are enhanced
3) Accountability is clear
4) Because all the activities, skills and expertise requisites to produce and market particular
products are grouped in 1 place under a single head, a whole job can more easily be
coordinated

5) Performance of divisional management can be measured in terms of divisions’ profit and

loss

29 | P a g e
 Customer Departmentalisation - It is the grouping of jobs on the basis of common
customers.

 Geographical Departmentalisation - It is the grouping of jobs on the basis of territory

or geography.

 Process Departmentalisation - It is the grouping of jobs on the basis of product or

customer flow. In this approach, work activities follow a natural processing flow of
products or even customers. E.g: CMT – Structure - Different processes

3. Chain of Command
A chain of command is the continuous line of authority that extends from upper
organizational levels to lowest levels, and clarifies who reports to whom. It helps employees
answer questions such as “who do I go to if I have a problem?” or “To whom am I
responsible?” Chain of Command includes 3 concepts:
1) Authority (The rights inherent in a managerial position to tell people what to do and to
expect them to do it),
2) Responsibility (The obligation to perform any assigned duties) and
3) Unity of Command (Each person should report to only one manager).

4. Centralisation v/s Decentralisation

 Centralisation is the extent to which decision making is concentrated at the upper levels
of the organisation.

 Whereas Decentralisation is the extent to which power and authority is delegated to

lower levels of the organisation. (Freedom to act & Participation in decision – making)

5. Formalisation
Formalisation is the degree to which jobs within the organisation are standardised, and the
extent to which employee behaviour is guided by rules and procedures.
 Advantage: Procedures are like training tools and thus avoid making mistakes and be
more efficient.

 Disadvantage: The system can be rendered rigid – Prevent you from using your
creativity.

30 | P a g e