Professional Documents
Culture Documents
Personal Effectiveness in The Work Place (QQI Level 5) - Unit 1v1
Personal Effectiveness in The Work Place (QQI Level 5) - Unit 1v1
the Workplace
QQI Level 5
Introduction &
Unit 1
Contents
Course Units ................................................................................................................................ 4
Unit 1: Organisational Awareness ................................................................................................. 5
Introduction ................................................................................................................................ 5
Your CV ....................................................................................................................................... 6
What your CV must contain: ............................................................................................................... 7
CV Template ........................................................................................................................................ 7
Creating your CV: ................................................................................................................................ 7
Personal Details: ................................................................................................................................. 8
Education and Qualifications: ............................................................................................................. 8
Employment History: .......................................................................................................................... 8
Key Skills:............................................................................................................................................. 9
Personal Interests and Achievements: ............................................................................................. 10
References: ....................................................................................................................................... 10
Cover letter: ...................................................................................................................................... 10
Career Questionnaire ........................................................................................................................ 14
General Information ......................................................................................................................... 14
Education and Training ..................................................................................................................... 15
Career Review ................................................................................................................................... 15
Personality ........................................................................................................................................ 17
Occupations ...................................................................................................................................... 17
Your Current Situation ...................................................................................................................... 18
Functions/Departments in a chosen Organisation ....................................................................... 20
A Company’s Mission Statement ................................................................................................ 21
Mission Statements .......................................................................................................................... 22
Principal of Classical and Behavioural Organisation Theory ......................................................... 32
Frederick Taylor - Known as the Father Figure of Scientific Management ....................................... 32
Principles of Scientific Management ................................................................................................ 32
Elton Mayo ........................................................................................................................................ 33
Chester Barnard ................................................................................................................................ 36
Organisational Chart of a Chosen Organisation ........................................................................... 37
Organisation Structures (Samples) ................................................................................................... 37
Course Units
Introduction
Each one of us wants to have some place in society. We want to show that we are someone special
and helpful to society. The workplace is one of the most vital places for us to show our
determination and prove ourselves. We prove that we can do every piece of work assigned to us and
also do more and more, provided things go well. Or in other words, we show that we are very
effective and efficient in the workplace and life in general.
Personal effectiveness leads to success in our career. So, what does personal effectiveness mean? It
entails improving ourselves in a way such that we are recognised to be a person of courage, high
spirits and determination and also a good and balanced person. In the workplace, it is that character
which helps us towards success. To be the best performer we can be, we don’t need the highest
grades or gold medals. Rather, what we need is self-improvement.
So, what should be done to improve our personal effectiveness in the workplace? Here are some
tips:
• Dissolve conflict.
• Remain composed.
• Prioritise.
• Be a good listener.
• Be understanding.
• Reduce stress.
• Be proactive.
• Motivate others.
• Be optimistic.
• Be a continuous learner.
• Be professional.
• Be flexible.
• Be mature.
• Dress appropriately.
Your CV
It’s a good idea to think of your CV as a sales brochure, its role is to “sell” your skills and
experience to employers.
Before you begin the CV writing process, it is important to determine the suitability of the
ole. It is imperative that you double check to ensure you’re applying for a suitable job. In the
digital age, the majority of CVs are now sent online which means you must be aware of
keyword optimisation. In other words, your application needs to contain words relevant to
the role you’re seeking.
When you look through the job and the required keywords and compare it to your skills,
qualifications and achievements, it should quickly become apparent whether or not it’s a
good fit. Don’t try and shoehorn keywords that don’t fit into your CV as this will not be
beneficial.
There are two types of CVs, one which gets you called for interview, the other one does not.
In 2010, in a sample of some 500 CVs received by a well-known Dublin agency, only 8% passed the
basic quality test - in other words, received a call for interview. You must remember that a
prospective employer only spends around 30 seconds reading each CV they receive.
In order to be considered for a role in an organisation, you must have your CV well-structured and
laid out as the Human Resources function in an organisation scans through CVs for skill set,
experience and qualifications and will only consider those who can demonstrate the requirements
that match the role they have on offer.
The following CV Template and CV Questionnaire should guide you through the process.
The first page of your CV decides whether you are put on the Yes pile or Not.
Personal Profile
This should be written just below your contact information and is a great way to pique the interest
of the recruiter. It should be a short (3-5 sentences) summary of why you want the job and provide
an overview of your skills and experience and how they make you a good fit. Basically, your personal
profile is your sales pitch. Get it right and the recruiter will keep reading.
Avoid vague descriptions and ‘buzz’ words such as ‘dynamic’ and ‘self-starter’. Instead, open with a
specific statement outlining your experience and specialisations.
• Excellent interpersonal and customer care skills with an approachable manner, the ability to
relate effectively with a wide range of people including senior management, line
management and vendors.
• Strong negotiation and influencing skills with a proven record for implementing change.
• Very good team player and people management skills, with the capacity to network
effectively.
CV Template
You need to make sure that your CV is selling you as best it can, therefore - please ensure that you
have included the following:
Personal Details:
▪ Full name and address.
▪ Email address, mobile and home telephone numbers.
Employment History:
Start with your most recent position and work backwards in reverse chronological order. The following
information should be given for each position held:
▪ Dates of employment.
▪ Company name, location, job title and outline the key duties and responsibilities of each role
and include any significant work achievements.
When it comes to past jobs that have a link to the existing vacancy, it makes sense to include more
detail. For example, you can include a sentence about the company such as ‘ABC Ltd. is a Dublin-
based footwear manufacturing company with 12 global offices and 1,000 employees’.
When describing past duties, focus on the ones relevant to the job opening and be as specific as
possible. If you were a manager, mention how many staff you oversaw. If you had budgetary
responsibilities, state the amount. Identify at least 3 achievements in the role (relevant to the job
opening obviously) and outline how they helped your past employer. Again, quantify your success if
possible; for example, “Introduced a program to insulate the building’s pipe work that cut €15,000 a
year off the company’s energy bill.”
This is an issue for a large percentage of people looking for work for various reasons. In some cases,
they haven’t worked for a long time while in other instances, they simply decided to take time off
due to stress or to raise a family.
Clearly, some employment history gaps are easy to explain and details can be added to a cover
letter. If it is a little more awkward, the first thing to remember is the importance of honesty. Adding
months or even years to existing jobs is a terrible idea as it takes just one phone call for your
deception to be uncovered.
Always look to be proactive when addressing gaps; if you used your time away from the workplace
to volunteer or study, this allows for an easy explanation. When all else fails, use the technique of
reframing. Instead of saying ‘I was unable to find work’, you can say ‘I felt the need to refocus my
career in order to pursue a position in a different industry, so I took a few months off work.’
If you have been unemployed for a considerable length of time, don’t be embarrassed. It is a difficult
job market which means employers are more understanding about employment gaps as long as you
don’t try and lie about them. In this case, it is crucial for you to remain up to date with your industry
to prove to recruiters that you haven’t lost touch. If your employment history isn’t up to par, tailor
your CV so that it focuses on your skills.
Key Skills:
This is arguably the most important section on your CV. Simply put; recruiters are keen to know
what you offer the company. As a result, it is necessary to showcase your skills and outline how you
will have a positive influence on the organisation going forward.
Adaptive: Skills proven by personality traits rather than experience which makes them difficult to
quantify.
Transferable: Skills you learn in one field that are relevant to another industry.
When writing your CV, try to focus on job-related and transferable skills such as:
• Teamwork.
• Communication.
• Problem Solving.
• Flexibility.
• Technical Skills.
• Initiative.
• Interpersonal.
• If you have knowledge of a programming language or computer systems relevant to the job,
make sure you include it.
• Include technical skills such as PC Applications (MS Office Suite), hardware/software and
operating systems; drivers licence etc.
• Outline any relevant non-technical/soft skills, such as presentation skills, team/management
skills etc.
References:
Add a line saying, ‘references available upon request’. There is no need to include them in your CV. If
the company specifically asks for references, include them on a separate sheet.
Cover letter:
▪ A cover letter is highly recommended. It is essential that you introduce your CV in the best
way possible.
▪ Introduce yourself and state which job you are applying for.
▪ Outline briefly the experience and competencies you have and why you are the ideal
candidate for the role.
▪ Sell yourself – tell the organisation why they should interview you!
Sample CV
Name:
Address:
Tel numbers:
Home: Mobile:
Email:
Personal Profile
Dates:
Leaving Certificate:
Employer Name:
Job title:
What does the company do/make? (you will find this on their website you can cut and paste it in)
(explain why and what they were, such as cost savings, moving plants abroad; ramping up staffing levels;
getting the company through a recession or ISO ….; etc)
……………………………………………………
Employer Name:
Job title:
What does the company do/make? (you will find this on their website, you can cut and paste it in)
(explain why and what they were, such as cost savings, moving plants abroad; ramping up staffing levels;
getting the company through a recession or ISO ….; etc)
……………………………………………………
Employer Name:
Job title:
What does the company do/make? (you will find this on their website, you can cut and paste it in)
(explain why and what they were, such as cost savings, moving plants abroad; ramping up staffing levels;
getting the company through a recession or ISO ….; etc)
……………………………………………………
Employer Name:
Job title:
What does the company do/make? (you will find this on their website, you can cut and paste it in)
(explain why and what they were, such as cost savings, moving plants abroad; ramping up staffing levels;
getting the company through a recession or ISO ….; etc)
……………………………………………………
Other Details
Driver?
Car Owner?
Availability:
Hobbies/Interests:
Career Questionnaire
Note: Please read through the ‘Crafting Your Career’ Questionnaire before you begin to complete it.
This pre-work will help to prepare you for the programme and help to focus you on what you do and
don’t want in your career future.
General Information
Full Name:
Date of Birth:
Address:
Looking back on all your part and full-time education and training, which subjects and topics have
you:
Career Review
Looking back at all the work you have done, which particular skills, knowledge and experience
do you feel you are best able to offer?
Looking back at all the work you have done, please describe which activities:
Are you, or have you been, a member of any committee, group or club? Which ones and
when?
Please write below any non-work, voluntary activities you are involved in?
Personality
Occupations
1. 2.
3. 4.
Which occupations would you like to do, but are not seriously considering?
1. 2.
3. 4.
1. 2.
3. 4.
Are there any job opportunities currently available to you, and/or have you considered any further
training? If so, detail here:
What are your salary expectations for your new job? (Are you prepared to take a drop in salary for
the sake of a career change?)
1 Finance.
2 Marketing.
3 Production.
4 Stores.
5 Facilities.
6 Human Resources.
7 Information Technology.
8 Procurement.
9 Legal.
10 Transport.
3. Production – make what is needed, arrange schedules, ensure that production schedules are
adhered to and that customers receive their orders in time.
4. Stores – responsible for holding stock, keeping the show on the road and ensuring that there
are no stock outs, which, if it happens, will have major consequences for the company.
5. Facilities – managing the running of the building, making sure that security, cleaning and
maintenance etc. is carried out in accordance with the contracts in place.
8. Procurement – buying, negotiating, building relationships with suppliers and their own
internal customers.
9. Legal – finalising contracts, ensuring that the company is well protected under the Terms
and Conditions of contracts.
Some writers claim that a Mission Statement should describe the customer, their needs, and the
method the company will use to satisfy those needs.
Does it exist to satisfy the needs of stakeholders, including employees and society at large?
2. Definition of Strategy - “the framework within which choices about the future nature and
direction of an organisation can be made." (Strategy is the heart of the company.)
Strategy – Defines two things: the products and services it offers and its method of competing and
succeeding.
This could be achieved through the market, business method, product or the geography.
3. Policies and Standards of Behaviour - Mission needs to be translated into everyday actions.
Example – If business mission includes “outstanding customer service” then policies and standards
should be created and monitored.
Might involve monitoring the speed at which telephone calls are answered or number of complaints
received from customers.
4. Values and Culture – very often un-stated, beliefs of the people who work in the business.
Mission Statements
The mission statement describes the organisation’s basic function in society, in terms of the
products and services it produces for its clients. It describes the purpose of the organisation as a
whole – what it is trying to achieve over the medium or long term. An important first step in crafting
a mission statement is to come up with a definition of the organisation’s business – effectively
answering the questions “What is our business?”, What will it be?”, “What should it be?”. A
strategist’s job is to see the company not as it is today, but as it can become in the future. Peter
Drucker (1974) wrote that “business mission is so rarely given adequate thought, is perhaps the
most important single cause of business frustration”.
A mission statement is a formal document that is usually displayed throughout the workplace. There
is no standard format. It is said to be the “cultural glue” that enables organisations to function as a
collective entity. It motivates its readers (primarily employees) to action. It provides direction to the
business and a focus for activities and consistency. It generates the impression that a firm is
successful, has direction and is worthy of time, support and investment. The organisation’s mission
is said to act as an “invisible hand” that guides widely dispersed management to work independently
and yet collectively, towards the achievement of the organisational goals.
A sense of mission within an organisation requires that the values of the business as a collective
entity, are in tune with the personal values of the individuals working for it. Employees are
motivated by more things than money. A sense of mission and values helps to motivate employees –
mission statements are largely motivational, encouraging loyalty and commitment. A sense of
mission is felt by the employees, who are willing to sacrifice their own personal interests for the
good of the whole. This needs to be reciprocated by company loyalty to its staff. Missions help to
create an environment with a common sense of purpose.
Note however, that there can be problems with mission statements because:
Dell – Dell’s mission is to be the most successful computer company in the world by delivering the
best customer experience in the markets we serve.
Intel – Do a great job for our customers, employees and stockholders by being the pre-eminent
building block supplier to the worldwide Internet economy.
Glaxo Smith Kline – To improve the quality of human life by enabling people to do more, feel better
and live longer.
Amnesty International – Amnesty International’s vision is of a world in which every person enjoys all
of the human rights enshrined in the Universal Declaration of Human Rights and other international
human rights standards.
University College Dublin – The mission of the University is to serve Ireland in the wider world by
achieving the highest international standards in the advancement of knowledge through research
and scholarly publications and by the communication of that knowledge to successive generations of
students through excellence in teaching.
McDonalds – To be the world's best quick service restaurant experience. Being the best means
providing outstanding quality, service, cleanliness, and value so that we make every customer in
every restaurant smile.
Microsoft - To empower people through great software – any time, any place anywhere. In 2002,
Microsoft changed to: “To enable people and businesses throughout the world to achieve their full
potential”.
- Taxation policies.
- Employment law.
- Competition laws.
- Government stability.
- Demographics.
- Lifestyle patterns.
- Educational levels.
- Income distribution.
- Birth rates.
- Dominant religion.
- Interest rates.
- Inflation.
- Money availability.
- Debt levels.
- Unemployment levels.
- Levels of innovation.
- Automation.
- Rates of obsolescence.
QUICK plc is a well-established company providing telecommunications services both in Ireland and
internationally. Its business has been concerned with telephone calls, the provision of telephone
lines and equipment and private telecommunications networks. QUICK plc supplements these
services with mobile phones, which is an expanding market world-wide. The company maintains a
diverse customer base, including residential users, multi-national companies, government agencies
and public sector organisations. QUICK plc handles over 100 million calls daily and employs nearly
10,000 personnel.
Strategic Development
The chairperson of QUICK plc wrote in the last annual report that there are three main areas in
which they aim to develop, in order to remain a world leader in the telecommunications market.
These three main growth areas reflect the evolving nature of the telecommunications market and
will provide scope for development. The areas in which development is planned are:
(1) Expansion of the telecommunications business in the national and overseas markets by the
company acting on its own and through partnership arrangements with overseas suppliers.
(2) Diversification into television and multimedia services, providing the hardware to permit
telephone home shopping and broadcasting services.
(3) Extension of the joint ventures and strategic alliances already established with companies in
North America, Europe, India and Far East.
The chairman explained that QUICK plc is intent on becoming a world leader in communications. This
will be achieved through maintaining its focus on long-term development, by improving its services
to customers, developing high quality, up-to-date products and being innovative, flexible and market
driven. His aim is to deliver a world class service at competitive cost.
Financial Information
Turnover has increased from €15.9 billion to €16.6 billion in the current year. Profit before interest
and tax has increased by 17.8% from €2.8 billion to €3.3 billion. Capital employed is up from €21.3
billion to €22.2 billion. The company estimates its cost of capital to be approximately 11%. The
chairman expressed satisfaction with the increase in turnover and stated that cost efficiencies were
now being generated following completion of a staff reduction programme. This would assist the
company in achieving a target return on capital employed (ROCE) in this market, of 20% over the
next three years.
Business Opportunities
The CEO of QUICK plc has stated that the major opportunities for the company lie in the following
areas:
• Provision of advanced services and research and development into new technology,
including the internet and systems integration.
QUICK plc is engaged in an extensive television and poster advertising campaign, in order to
penetrate the residential market further, by encouraging greater use of the telephone with varying
charging incentives to be offered to residential customers. To further the objective of increasing long
term shareholder value, the company is actively considering investment of €200 million in each of
the next three years in new technology and quality improvements in its national markets. Because of
its special technical nature, the investment is not expected to have any residential value at the end
of the three-year period. Following the investment, the directors of QUICK plc believe that its rate of
profit before interest and tax to turnover in its national telecommunications market, will remain
constant. This rate will be at the same level as last year for each of the three years of the
investment.
The company is currently experiencing some erosion of its market share and faces increasingly
strong competition in the mobile phone market. While QUICK plc is the leader in its national market,
with an 85% share of the telecommunications business, it has experienced a reduced demand for
the supply of residential lines in the last 5 years, as deregulation has taken effect and competition
has increased.
The marker for the supply of equipment in the national telecommunications market is perceived to
be static. The investment of €200 million in each of the next three years is estimated to increase
QUICK plc’s share of this market to a level of 95%. This extra 10% is expected to be received by
QUICK plc next year and its market share will then remain at this level for the full three-year period.
It is anticipated that unless further investment is made after the three-year period, QUICK plc’s
market share will revert to its current level as a consequence of the expected competitive response.
Industry Regulation
The government has established an industry regulatory organisation to promote competition and
deter anti-competitive behaviour. As a result of the activities of the regulator and aggressive pricing
strategies, it is likely that charges to customers will remain constant for the full 3-year period of the
new investment.
Suggested Answers
Q1. Explain the nature of the political, economic, social and technical forces that influence QUICK
Plc in developing its business and increasing its market share.
Political Factors:
Everybody has access to a phone and thus, there are many stakeholders. As a major service provider,
employer, economic force and public company, QUICK Plc has to deal with customers, employees,
the government representing the public interest and, as such, QUICK Plc is a profit orientated
business with shareholders.
With an 85% share of the market, QUICK Plc is the dominant player. As it is no longer under public
ownership, customers' and competitors' interests are protected by a regulator. Ultimately, the effect
of the new competitive environment, enforced by a regulator, will be to reduce market share.
As QUICK Plc is central to the communication infrastructure, its activities are relevant to the
government's own objectives. The government may wish to improve communications in education,
for example. This influence may eventually ensure market growth.
Economic Factors:
Ireland is QUICK Plc’s home market, which currently provides the bulk of its revenues. A healthy
economy means that consumers have more money to spend on communications. This affects the
total size and growth of the market.
QUICK Plc is not a market leader with any overseas markets, so it can only grow here. QUICK Plc has
the opportunity in the markets which are rapidly growing, to increase revenues and share. Many
developing markets however, are able to “leap-frog” some of the old technology and so, QUICK Plc
can install the newest technology to gain market share.
There is also a market for services on a global scale, hence the various merger discussions and
strategic alliances in the telecommunications industry. International economic integration offers a
major opportunity.
Wider economic trends influence QUICK Plc's cost of capital (e.g. interest rates). QUICK Plc is also
seeking a target return on investment.
Social Factors
Most households in the developed world have a phone. QUICK Plc will try to encourage greater
usage. Social trends include:
Technological Factors
These are most uncertain because of the ways in which technology develops and changes.
ii. Technological developments enable a reduction in the cost base as new systems are brought
in.
Q2. Identify and describe the alternative directions i.e. the various product/market opportunities
that are available to QUICK Plc.
There are many strategic directions that an organisation can take, but among the alternative
directions available to QUICK Plc, four product/market options might be considered. These are
market penetration as part of a project/building strategy, product development, market
development and diversification.
Market Penetration: More of the same product or service to existing customers – a strategy to gain
market share – difficult and costly in a static market and may be at the expense of short term
profitability.
Domestic Markets: QUICK Plc has 85% of its home market at present and there is a regulator whose
job it is to ensure that the market is a competitive one. The only hope for a penetration strategy
here is by an increase in the size of the market, but this does not seem to be likely. Quick Plc cannot
increase prices, because of the regulator's price cap. Quick Plc might encourage domestic customers
to make more use of the phone with friends and family discounts for example, thus generating
additional revenue for the same exact amount of fixed costs.
Overseas Markets: As a new entrant, QUICK Plc is in a better position to pick up customers,
especially if overseas governments are keen to promote competition. Overseas penetration is also
an opportunity, but not at the expense of a massive investment, which would decrease return on
capital and take time to generate profits. It seems likely that QUICK Plc should concentrate its efforts
on alliances with local firms.
Mobile phone communications are expanding in Ireland and overseas, and so is a useful option for
penetrating strategies.
Product Development: In order to continually satisfy customers' changing needs and ensure
survival, a business must introduce new ‘products’. For QUICK Plc, this might include options such as:
(2) Cross-selling – mobile telephones can be sold to the same customer base.
QUICK Plc should be able to exploit its knowledge in research and development expertise. Examples
in recent years have been caller identification, call waiting, voice mail. QUICK Plc is also able to offer
business users a wide range of communications service needs e.g. banking.
It must, however, be recognised that continually introducing new products can be expensive, risky
and potentially unprofitable.
Market Development through exploitation of current products in new markets. This can be done in
three ways; extension into markets that are not currently served, development of new uses for
existing products and geographic spread into new markets.
QUICK Plc can enter countries which are already developed, through the use of joint ventures (as BT
has established throughout Europe) enabling it to benefit from local knowledge and lower risk.
Diversification: the organisation moves away from its present markets and its present products,
both at the same time. It may involve developing outside the present products and market but still
within the same industry, or completely outside present products, markets and industry.
The chairman has said that he intends to diversify. Given that new services will be marketed to the
existing customer base, this is more characteristic of product development. True diversification
involves a more radical shift, but QUICK Plc is only considering selling more hardware.
People have been managing work for hundreds of years, and we can trace formal management ideas
to the 1700s. But the most significant developments in management theory emerged in the 20th
century. We owe much of our understanding of managerial practices to the many theorists of this
period, who tried to understand how best to conduct business. One of the earliest of these theorists
was Frederick Winslow Taylor. He started the Scientific Management Movement, and he and his
associates were the first people to study the work process scientifically. They studied how work was
performed, and they looked at how this affected worker productivity. Taylor's philosophy focused on
the belief that making people work as hard as they could was not as efficient as optimising the way
the work was done.
• In 1911 produced a book “Principles of Scientific Management” which became a best seller.
• He selected the right people and then trained in the “one best way”.
• His methods gave US companies a competitive advantage over foreign companies for over
fifty years.
6. He promotes the idea of only ‘one best way’, too many layers of authority.
9. Social factors were not considered and quality was not important.
Elton Mayo
A Harvard Research Professor was employed in 1927 by the Western Electric Company to
study the effects of physical working conditions on worker productivity and efficiency. This
became known as the ‘Hawthorne Studies’. Elton Mayo's contribution to management
theory helped pave the way for modern human relations management methods.
• The phenomenon known as the ‘Hawthorne Effect’ suggests that employees work
harder when they believe that management is concerned about their welfare and when
managers pay special attention to them.
• It also concluded that the social environment of workers and their informal work groups,
had a positive influence on productivity.
• It reinforced Mayo’s concept of the ‘Social Man’ motivated by social needs and
responding more to work group pressure than to management control.
• Mayo concluded that workers are more influenced by psychological and social factors
than by physical and logical factors.
1. Workers experienced greater work satisfaction, because they had greater freedom in the
work environment and pace setting.
2. The importance of the group as a work unit became apparent for the first time ever.
3. The significance of close personal contact between supervisors and employees also
became apparent for the first time.
5. It also highlighted that people who are made to feel special are greatly motivated and
increase outputs.
7. Attitudes towards, and achievement of, increased output, seemed to be affected by the
group to which workers belong.
These conclusions led Mayo to conduct further research into employee attitudes and the factors
that influence these.
• They developed a sense of a normal rate of output and all the group adhered to this rate.
• They believed that if they produced too much that the piece-rate would be reduced by
management.
• Group members exercised informal sanctions against colleagues who worked too hard (or
too slowly) until they came into line.
• Sanctions included being ‘binged’ = tapped on the shoulder to let them know that what they
were doing was wrong.
• Managers had little or no control over these groups, who appointed their own leader.
1. Personal and social factors have an important role to play in motivation and performance.
3. Supervision has an important role to play in employee job satisfaction and productivity
(Illumination Experiment).
4. Informal work groups have an important influence on employee performance (Bank Wiring
Room Experiment).
• Informal work groups could exert control over employee behaviour and performance.
• Mayo argued that managers should focus on motivation, communication, employee welfare
to gain co-operation of the group.
3. Informal groups at work exercise a strong influence over the behaviour of workers.
4. Supervisors and managers need to be aware of the social needs of workers and care for
them.
An interview programme carried out by Mayo identified 5 main factors which affect people at
work:
1. Status of individual.
2. Social aspect of company.
3. Amount of job satisfaction.
4. Policies of the company.
5. Social and family demands of the employee.
- later analysis by Greenwood et al (1983) suggests that the research had underestimated the
influence of financial incentives.
- the idea of social man is now seen as an incomplete picture of people at work.
Based on his well-known Hawthorne experiments, Mayo's management theories grew from
his observations of employee productivity levels under varying environmental conditions.
His experiments drew a number of conclusions about the real source of employee
motivation, laying the groundwork for later approaches to team building and group
dynamics. Mayo management theory states that employees are motivated far more by
relational factors such as attention and camaraderie, than by monetary rewards or
environmental factors such as lighting, humidity, etc.
Chester Barnard
Was a practitioner who was president of New Jersey Bell Telephone Company.
He wrote a book: “The Functions of the Executive” which was published in 1938.
2. He saw the manager’s role was to communicate and stimulate staff to high levels of effort.
3. Success for the company depended upon maintaining good relationships with staff and
those that the company regularly interacted with outside the company – ie. suppliers,
customers.
Today, there is great emphasis on building co-operation and relationships and making companies
more socially responsible.
Accountancy Firm:
Managing
Partner
Manager Manager
Supervisor
Supervisor
Senior
Junior
Garage
Proprietor
Secretary
Repairs/Maintenance
Accounts Manager Sales Manager
Manager
Accounts Payable
Purchasing Clerk Senior Mechanic Senior Sales Person
Accounts Recievable
Credit Union
Manager
Assistant
Manager
Credit
Controller
Assistant
Controller
Foreign
Senior Teller Senior Teller Senior Teller
Exchange
Merchant Bank
Chief Executive
Associate Director
Senior Manager
Manager
Assistant Manager
Supervisor
Staff
Hotel
Owner/Manager
Senior Advertising
Head Waiter Head Chef
Receptionist Executive
Owner/Manager
Web/E Commerce
Manager
Repairs
Sales Person
Technician
Installation
Technician
Activity:
Draw an organisation chart for your own organisation, making sure you capture all the relationships
among the various positions. Is it similar to any of the generic types outlined above? Is it an
appropriate structure which facilitates achievement of the organisation's objectives? If it’s not, what
structure would you consider more economic and effective?
Forms of Organisations
1. Entrepreneurial/Simple Structure
Small owner-run organisation, organised on simple company structure. Owner takes on all
managerial tasks. Everything revolves around 1/2 decision makers. Employees take on many
different tasks. Once the company starts to grow, the simple structure will not cope.
2. Functional Structure
Advantages include - greater control at senior level, clear roles and tasks.
Disadvantages - as the company grows, senior people get sucked into operational issues/rely on
specialists' skills. The long term tends to be ignored due to poor communication.
3. Divisional Structure
Company is sub divided into different divisions, on the basis of products, services, geographical
spread. Main advantage - can concentrate on problems of its business environment.
Disadvantages are:
Disadvantages are:
4. Matrix Structure
Matrix structure is a combination of a function and product structure, seeking to add flexibility. An
example would be where there is a project involving a team made up of a variety of different
functions each having a duel role (functional/project team). This structure is appropriate for large,
diverse, multi-product companies. Matrix structures are Complex structures.
People find difficulty working with matrix structures. In this situation staff are assigned to a
functional along with being involved in a specific project. In other words, the main job may be
working as part of a finance team but to also have responsibility for a project which reports into a
different area of the business
Advantages are:
Disadvantages are:
• Centralised authority.
• Few authority levels.
• Wide span of control.
• Tends to apply to small companies less than 500.
CEO - level 4
Supervisors - level 2
Workforce - level 1
CEO -level 7
Supervisors - level 2
Operatives - level 1
• De-centralised authority.
• Many authority levels.
• Narrow span of control.
• Problems with communication
1. Decision Making – much more difficult in a tall structures, as there are a number of people
to consult with before making the decision.
2. Communication - again communication much more difficult in a tall structure due to the
number of layers of management.
3. Politics – again a tall structure much more political than the flat structure.
4. Promotion Prospects - a tall structure offers more promotional prospects than the flat
structure.
5. Cost– much more expensive to run the tall structure with a higher percentage commanding
higher salaries. Less flexibility also with pay scales in the tall structure.
End of Unit 1
NOTES: