Topic 1

Managing for Competitive Advantages / Successful Fundamentals Drivers of Performance

P1: Innovation

Introduction of new goods and services or ways of communication with customers.

Eg. Dunkin’ Donuts create a zero-grams trans-fat menu for customers.

P2: Quality

The excellence of your product (goods and services).

Eg. Starbucks gives consumers thousands of variations on the drinks to order.

P3: Service

Giving customers what they want or need, when they want it.

Eg. Haidilao provides extra services, such as manicure service and playground for kids.

P4: Speed

Fast and timely execution, response, and delivery.

Eg. Grab Food will deliver the food within 30 minutes to the customers.

P5: Cost Competitiveness

Keeping low costs to achieve profits and able to offer prices that are attractive to
consumers.

Eg. Air-Asia is a low-cost airline in Asia.

Functions of Management

Management is planning, organizing, leading, and controlling to reach organizational goals.

P1: Planning

Systematically make decisions about the goals and activities that individuals, groups,
work units, or the entire organization will pursue.

 The sales manager sets a sales target for the salesperson to increase sales by 5
percent.

P2: Organising

Assembling and coordinating the human, financial, physical, informational, and other
resources needed to achieve goals.

 The sales manager assigns tasks to the sales team.

P3: Leading

The function that involves the manager’s efforts to stimulate high performance by
employees.

 The sales manager motivates the salesperson by giving them rewards when they
perform well.

P4: Controlling

The function of monitoring performance and making needed changes.

 The sales manager evaluates the salesperson’s performance based on the sales
report.

Management Levels

 Top-level managers (Strategic managers)

 Senior executives are responsible for the overall management and effectiveness of the
organizations.
 Middle-level managers (Tactical managers)
 Managers are in the middle layers of the organizational hierarchy, reporting to top-level
executives.
 Frontline managers (Operational managers)
 Lower-level managers supervise the operational activities of the organization.

Management Skills

 Technical skills
 The ability to perform a specialized task involving a particular method or process
 Eg. Study admin would specialize in managing administrative tasks in the workforce.
 Conceptual and decision-making skills
 Skills relating to the ability to identify and resolve problems for the benefit of the
organization and its members.
 Eg. What is happening surrounding you? Covid-19
 Interpersonal and communication skills
 People skills; the ability to lead, motivate, and communicate effectively with others.
 Eg. Which form of communication is the most important? Face to face
 Topic 3
Levels of planning

 Strategic planning
 A set of procedures for making decisions about the organization’s long-term goals and
strategies.
 For example, the CEO is planning to set up a new branch in China.
 Tactical planning
 A set of procedures for translating broad strategic goals and plans into specific goals
and plans that are relevant to a distinct portion of the organization, such as a functional
area like marketing or human resources.
 For example, the division manager needs to identify the location of the new branch, such
as deciding to locate it in Shanghai, China.
 Operational planning
 The process of identifying the specific procedures and processes required at lower
levels of the organization.
 For example, the supervisor set a two-weeks promotion of 40 percent discounts on
products in Shanghai, China.

Topic 4
Span of Control

 Tall structure:
 Have many levels and narrow spans of control with centralisation decision-making.
 Pros: It provides a clear managerial control and close supervision to the employees.
 Cons: It takes too long time to communicate by going through all the levels, and it
hinders decision-making and progress.
 Flat structure:
 Have fewer levels and wide spans of control with decentralisation decision-making.
 Pros: It leads to better communication, more autonomy, and responsibility for
employees.
 Cons: The managers have a heavy workload, many subordinates, and lack of promotion
opportunities.

Centralisation and Decentralisation

 Centralised organisation (high decision-making authority)
 Most decisions made by high-level managers
 Decentralised organisation (low decision-making authority)
 Most decisions made by lower-level managers
 Topic 5
Responsive Organisation

 Two broad forms of the organisation include:

 Mechanistic structure
 Formal structure – Centralize – Bureaucratic - Follow rules to save cost
 E.g. Big-size company / Large company
 A form of organisation that seeks to maximize internal efficiency.
 It is a centralized authority and vertical communication flow. It controls through
strict rules and procedures to manage employees to save cost and time.
 It is a top-down approach and can be known as a formal structure like a bureaucratic
organization.

 Organic structure
 Informal / Flexible structure – Decentralize – Dependant – suitable for company
that is changing environment
 E.g. Small-size company, such as restaurant/sales then employees can give
discounts (make decisions by their own)
 An organisation form that emphasizes flexibility.
 It is a decentralized authority, and horizontal communication flows. It is cross-
departmental cooperation and is dependent on the judgement and expertise of
people with broad responsibilities.
 It is a bottom-up approach and can be known as an informal or flexible structure.

Organisational Size and Agility

 Big-size firm (more than 250 employees) [can use mechanistic structure to explain]
 Big-size firms are typically less organic and more bureaucratic.
 Larger size helps create scale economies and economies of scope.
 It will have lower costs per unit of production because materials and processes used
in one product can be used to make related products. (If buy one machine can make
more same products and caused lower costs)
 Specific advantages are such as lower operating costs, greater purchasing power, and
easier access to capital.
 Eg. Walmart’s size buy merchandise in large volumes and sell it at lower prices than
competitors.

 Small-size firm (less than 50 employees) [can use organic structure to explain]
 Small-size firms can move fast and inspire greater involvement from their people.
 They provide quality goods and services to targeted market niches, introduce new and
better products, and they steal market share.
 Being small can avoid diseconomies of scale (cost of being too large)
 The unique potential strengths of the small firms are such as flexibility and
responsiveness.
 Eg. Kobold Watch
 Topic 6
Leadership

Leadership is the ability to influence people towards the achievement of organisational goals.

Leader is the one who influences people to achieve goals.

*Leadership Behaviours (What people want; what leaders do)

A. Challenge the process

 They challenge conventional beliefs and practices, and create constructive
change.
B. Inspired a shared vision
 They appeal to people's values and motivate them to care about an important
mission.
C. Enables others to act
 They give people access to information and give them the power to perform to
their full potential.
D. Model the way
 They don’t just tell people what to do; they are living examples of ideals they
believe in.
E. Encourage the heart
 They show appreciation, provide rewards, and use various approaches to motivate
people in positive ways.

Sources of Power

 Legitimate power (authority)

o Leader has the right, or authority to tell others what to do; employees are
obliged to comply with legitimate orders.
o For example, A sales manager assigns tasks for the salesperson to follow.
 Reward power (control over reward)
o Leader influences others because he/she controls the rewards; employees will
comply with the leader’s wishes to receive those rewards.
o For example, the salesperson hits the sales target set by the sales manager and
receives extra bonus pay from the company.
 Coercive power (control over punishments)
o Leader controls over punishments; employees will comply to avoid those
punishments.
o For example, the salesperson will try to hit the sales target every month to
avoid termination by the company.
 Referent power (personal characteristics)
o Leader has personal characteristics that are attractive to others; employees will
comply because of admiration, a desire for approval, or to be liked by the leader.
o For example, the salesperson would like to be like that sales manager because
the sales manager has confidence when communicating with the customer.
  Expert power (expertise of knowledge or skills)
o Leader has certain expertise or knowledge; employees will comply because they
think they can learn or gain from that expertise.
 For example, the salesperson knows up to eight languages, so he or she
can easily communicate with customers.

Five Useful Leadership Characteristics or Traits (特征)

1. Drive 带动
 The leader always keeps on improving and aims to achieve more.
2. Leadership Motivation
 The leader has the desire to lead a team, always doing their best.
3. Integrity
 The leader has honesty and trustworthiness and be consistent between actions
and words.
4. Self Confidence
 The leader believes in their ability to overcome difficulties and can make
decisions on their own.
5. Knowledge of the Business
 The leader has a high level of knowledge about industries, companies, and
technical matters.

Hersey and Blanchard’s Situational Theory

2 Situational Factors:

Job maturity 工作成熟度

The level of the employee’s skills and technical knowledge relative to the task being performed.

Psychological maturity 心理成熟度

The high-maturity followers have both ability and confidence to do a good job.

4 Leaderships Style in this theory:

1. Telling

If followers are unable and unwilling to do a task, the leader needs to provide
clear and specific instructions.

2. Selling

If followers are unable and willing to do a task, the leader needs to provide an
opportunity for an explanation.

3. Participating
If followers are able and unwilling to do a task, the leader needs to share ideas
and helps in decision making.
 4. Delegating

If followers are able and willing to do a task, the leader can just turn over
responsibility for decisions and implementation to the followers.

Path-Goal Theory by Robert House

Path-Goal Theory is a theory that concerns how leaders influence subordinates’ opinions of their
work goals and the paths they follow toward to attain those goals.

2 Situational Factors:

Personal characteristics of followers and work environment. 追随者的个人特征和工作环境。

4 Leaderships Style in this theory:

1. Directive leadership
 The leader tells subordinates exactly what they are supposed to do.
2. Supportive leadership
 The leader makes work pleasant for the workers by showing concern for them
and by being friendly and approachable.
3. Participative leadership
 The leader consults with his followers before making a decision on how to
proceed.
4. Achievement-oriented leadership
 The leader sets challenging goals for his followers, expects them to perform
their best, and shows confidence in their ability to meet this expectation.

Topic 7
Motivation

Motivation is a force that energise, direct, and sustain a person's efforts.

Importance of motivation

Managers must motivate people to:

- Join the organization

- Remain in the organization
- Come to work regularly
- Perform (high output and high quality)
- Show good citizenship by doing extra things that help the company.
Key Consequences of Behaviour (4 Types of Reinforcement)

1. Positive reinforcement (good consequences 结果 with desired 期望 behaviour 行为)

 Applying consequences that increase the chance that a person will repeat the
behaviour that led to it.
 For example, the company will give extra bonus if the salesperson achieves sales
target.
2. Negative reinforcement (bad consequences with desired behaviour)
 Removing or withholding an undesirable consequence.
 For example, the company must stop criticising the salesperson when they start
improving the sales performance.
3. Punishment (bad consequences with undesirable behaviour)
 Managed an aversive consequence.
 For example, the company may send off the salesperson without pay when they
did not have a good sales performance.
4. Extinction (good consequences with undesirable behaviour)
 Withdrawing or failing to provide a strengthening consequence.
 For example, the company can withhold the transportation claim when they are
yet to achieve the sales target.

Basic Concepts of Expectancy Theory

Valence

Effort Performance Outcome

Expectancy Instrument
ality

Expectancy theory is a theory proposing that people will behave based on their perceived
likelihood that their effort will lead to a certain outcome and on how highly they value that
outcome.

Effort -> Performance -> Outcome

More effort will lead to the sales performance, after achieve sales target, will get desired
rewards.
  Expectancy
o Employee’s perception of the likelihood that their efforts will enable them to
attain their performance goals.
o For example, a salesperson is confident that if he works hard to find more new
customers, he will achieve the sales target.
 Instrumentality
o Perceived likelihood that performance will be followed by a particular outcome.
o For example, a salesperson is fully confident that if he does a good job, he will
be rewarded such as get promoted.
 Outcome
o A consequence a person receives for his or her performance
o For example, the best sales performance could lead to free trip to Hawaii by the
company.
 Valence
o The value of an outcome holds for the person contemplating it
o For example, if the salesperson is mainly motivated by money, they might not
value to a higher position.

Managers can be motivated by:

 Increase expectancies (provide training)

 Identify positively valent outcomes (give rewards that employees want)
 Make performance instrumental toward positive outcomes

Maslow’s Need Hierarchy

A conception of human needs organising needs into a hierarchy of five major types.

1. Physiological needs.
 These are basic human physical needs for survival.
 For example, employees need to have a steady income to support themselves and
pay for the rental, food, utilities, and other basic needs.
2. Safety or security needs.
 These are needs for a safe and secure physical and emotional environment, as
well as safety at the workplace.
 For example, you work for a company that provides ergonomics that can provide
you with proper support and reduce the risk of injury. That can safety prevents
dangerous people from entering company.
3. Social needs.
 These are desire to be accepted by peers, have friendships, be part of a group,
and be loved.
 For example, it is easier to feel motivated to work hard and achieve goals when
you feel that you belongs and fits in the work and also with the team.
 4. Ego or esteem needs.
 These are desire for a positive self-image and to receive attention, recognition,
and appreciation from others.
 For example, when you have confidence in yourself and your abilities, as well as
receive positive feedback and encouragement, this will help you grow, advanced,
and achieve results.
5. Self-actualisation needs.
 These needs include the need for self - fulfilment, which is the highest need
category.
 For example, you will feel challenged in the position that suites you, and you will
be motivated to keep working until you succeed.

Alderfer’s ERG Theory

A human needs theory assumes that people have three basic sets of needs that can operate
simultaneously.

 Existence needs
 All material and physiological desires.
 Relatedness needs
 Relationships with other people and are satisfied through the process of
mutually sharing thoughts and feelings.
 Growth needs
 Motivate people to change themselves or their environment productively or
creatively.
 Satisfaction of the growth needs comes from fully using personal abilities and
developing new abilities.

The Hackman and Oldham Model of Job Design

Core Job Dimensions (Job Characteristics)

Jobs can be enriched in more skill variety, task identity, task significance, autonomy, and
feedback.

 Skill variety
o Different job activities involving several skills and talents.
 Task identity (let the employee involves from start to end of the job)
o The completion of a whole, identifiable piece of work.
 Task significance (construction, nurse, fire-fighters)
o An important, positive impact on the lives of others.
 Autonomy (freedom)
o Independence and discretion in making decisions.
 Feedback (if they success, means he did a good job – clown)
o Information about job performance.
QWL Programmes

Programmes designed to create a workplace that enhances employee well-being.

1. Adequate and fair compensation

o E.g. Provide employees salary according to job market salary rate.
2. A safe and healthy environment
o E.g. Provide employees with job insurance due to hygiene factors and protect
them against harm.
3. Jobs that develop human capacities
o E.g. Provide training and seminar to develop employees' ability to perform the
job.
4. A chance for personal growth and security
o E.g. Provide job stability and career development, will helps employees to get
promoted to a higher position.
5. A social environment that fosters personal identity, freedom from prejudice, a sense of
community, and upward mobility
o E.g. A harmonious relationship between colleague will minimises workplace
discrimination.

Topic 8
What are the types of control systems? 3 Types of Managerial Control

Control:

Any process that directs the activities of individuals towards the achievement of
organisational goals.

1. Bureaucratic control
o The use of rules, regulations, and formal authority to guide performance.
o E.g. Budgets, statistical reports, and performance appraisals to regulate
behaviour and results.
2. Market control
o The use of pricing mechanisms to regulate activities within organisations as
though they were economic transactions.
o E.g. Business units are profit centres that trade resources with each other.
Managers who run these units are responsible for and evaluated by profit and
loss.
3. Clan / Cultural control
o Control based on the norms, values, shared goals, and trust among group
members.
o E.g. The organization often uses this control to link to company culture and helps
the organization achieve its goals by motivating the employees.
Bureaucratic Control System: The Control Cycle (Step1-4)

1. Setting performance standards

o Every firm has goals for profitability, customer satisfaction, costs, etc. The
standards can be set with respect to Quantity, Quality, Time used, and Cost.
 For example, the manager set the sales target for the sales teams 5%
more than last month.
2. Measuring performance
o Managers can count units produced, websites viewed, days absent, samples
distributed, profits earned, etc. The data are commonly obtained from three
sources, written reports, oral reports, and personal observation.
 For example, the manager can review the sales report monthly.
3. Comparing performance against the standards and determining deviations
o Managers can evaluate the performance with the relevant data obtained and
interpret it.
 For example, the manager compares actual performance with the
performance standards.
4. Taking action to correct problems and reinforce successes
o This is the last step in the control process, this is to take appropriate action on
significant deviations. This step ensures that operations are adjusted to better
results.
 For example, the manager can discuss the problem with the sales team to
get a better sale in the following month.