Module 1

FUNAAB
COLMAS
DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206
2016
 Introduction to Entrepreneurship
• Definition of Entrepreneuship- Entrepreneurship is the
act of designing, launching and starting new businesses,
which often start as small businesses

• Definition of an Entrepreneur- An entrepreneur is a

person who organizes and manages an enterprise or
business with strong initiative and risk taking skills
 Introduction to Entrepreneurship
• The earliest documented use of the word Entrepreneur in English
was in the 17 century. Entrepreneur was loaned from french and
means the act of being able to lead, be initiative , innovation and
engage in new venture creation.

• Early 17th century Scholars also defined the entrepreneur as

follows

• Joseph Schumpeter defines it as on who engages in the gale of

creative destruction (during negative business cycles) to replace
part or a whole of an inferior offering in industries, to create a
new product and new business
 Introduction to Entrepreneurship
• Richard Cantillon also defined an entrepreneur as a risk
taker, who deliberately allocates resources to exploit
opportunities in order to maximize returns

• Alfred Marshall viewed the entrepreneur as a multi-

tasking capitalist. And states that the entrepreneur
utilizes opportunities of economic disequllibrium to
maximize financial returns
 Historical Barriers to
Entrepreneurship
• Historical barriers to Entrepreneurship refers to early restrictions
that prevented people from entrepreneurial activities.

• a.) The introduction of early guild systems- Guilds system where

tasked with the job of issuing permits to certain craftsmen to
participate in certain trade e.g. the 1908 introduction of the Guild
Certificate in Germany called the Meister Certificate. This ensured
that certain specialized people participated in entrepreneurial
activities. This required people to go into entrepreneurship after a
period of apprenticeship, these apprentice where trained by the
meister certificate holders
 Historical Barriers to
Entrepreneurship
• b.) Introduction of proof of business competence
certificate in 1935 in Germany also restricted the
participation in Business.

• In Nigeria today similar practices apply which allows

apprentices to undertake trade after a period of
apprenticeship and corporate businesses to be
registered by the Corporate Affairs Commission.
 Introduction to Entrepreneurship Management

• Definition- Entrepreneurship management is the process of managing risk,

opportunities, material, human and financial resources in an organization to
meet the defined organizational goals.
• Advantages of Entrepreneurship Management
• a.) It helps define the goals and objectives of the organization
• b.) Entrepreneurship management helps identify the risk of an organization with
the possibility of avoiding or overcoming them
• c.) Entrepreneurship management helps organizations in identifying their
opportunities for growth
• d.) Good entrepreneurship management helps to harness all material, finanancial
and human resources for organizational growth
 Principles of Entrepreneurship
• The Entrepreneur is basically a manager that manages a new business venture, which
usually starts as a small business. The aim of the entrepreneur is to direct all sources of
finance,human resources to opportunities for growth of the organization. The
entrepreneur will be guided by principles of undertaking

• a.) New venture creation: The entrepreneur is tasked with the responsibility to create
new venture from nothing. Therefore all resources are directed to new business models
for profit making purposes
• b.) Risk taking responsibility : This means that the entrepreneur must be willing to take
calculated risk to improve the fortunes of his or her organization
• c.) Human resource recruitment- This means that the entrepreneur must be willing to
take the responsibility of identifying competent human resource to meet the goals of
his organization
 Principles of Entrepreneurship
• Human resource management: The entrepreneur should have
capability to efficiently manage the staff of the organization
towards meeting the goals of the organization
• Management of Material and Financial Resources: The
entrepreneur should be able to channel all material and financial
resources towards the growth of the organization
• Opportunity identification: The enetrepreneur should be able to
identify market opportunities, social needs and new products that
could lead to the growth of his or her organization
 Entrepreneurship and Principles of
Management
• Management in business can be defined as that activity that seeks to control
the efforts of people who work in coordination to accomplish specific task in
an organization.
• Entrepreneuship management are often subsumed into the basic management
concerns. They Include:

• a.) Organizing Concerns- since managers have to coodinate and organize

resources of the firm towards organizational growth

• b.) Leading Concerns: Managers have to provide sound leadership and direction
for their organizations.

• c.) Financial Concerns: Managers have to manage the financial resources in their
organizations.
 Entrepreneurship and Principles of
Management
• d.) Staffing concerns: They have the responsibility to hire experts
to meet the organizational goals
• e.) Setting Workers Remuneration: They are also tasked with the
responsibility to set wages for their employees
• f.) Exerting Discipline: They are responsible for exerting authority
and ensuring compliance with organizational rules and regulation
• g.) Corporate Social Responsibility: They are tasked with the
management of organizational societal relationships and
responsibility of the firm to the public
• h.) Exerting Equitable Treatment: they ensure all staff and
customers are fairly treated.
 Characteristics of Good Entrepreneurship Management

• These are the expected qualities of a good

entrepreneur. The entrepreneur must :
• a.) be a good Talent Hunter
• b.) have good risk taking abilities
• c.) be a good manager of human resources
• d.) be a good multitasking abilities
• e.) have high Charisma and good motivational
skills set
 Characteristics of Good Entrepreneurship Management

• f.) have good speaking abilities: Needed to

articulate and drive the goals of the organization.

• g.) have a strong sense for innovative capabilities

and identification of new opportunities and ideas
 Risk of Bad Entrepreneurial Management Practices

• a.) Poor communication skill: this could lead to risk in poor

aticulation of the organizational objectives
• b.) poor risking taking skill: this could lead to business
misadventure and losses
• c.) poor human relations skill: this could lead to poor public image
and product management for an organization
• d.) it col lead to poor multi tasking abilities, costing the
organization time and money
• e.) poor talent acquisition skill: this could lead to poor human
capacity build up leading to a host of organizational inefficiencies.
 end
• end
Module 2 - Introduction to Change Management

FUNAAB, COLMAS
DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206
2016
 Definition of Change and Reasons for Change

• Definition of Change - Change is a transition from one

state to another by an entity.
• Reasons for Change-
• a.) to become more efficient
• b.) to become more focused
• c.) to strategically position one self for future
challenges
• d.) to attract attention and capacity to perform
• e.) to attain equilibrium or stability
 Definition of Change Management and organizational
change
• Definition of change management- change management is the
approach to transitioning individuals, teams, and organizations
to re-direct the use of resources, business process, budget
allocations etc to significantly reshape a company or
organization

• Definition of organizational change management- organizational

change management is the approach of transitioning the
individual, teams, units, organizational process, budget allocation
etc of the full organization to suit its present needs.
 Reasons for organizational change

• some of tne reasons for organization change are also the reasons for change in
general, they include-
• a.) to make the organization more efficient
• b.) to make the organization more focused
• c.) to strategically position the organization for future challenges
• d.) to attract attention and capacity to the organization to enable it to
perform
• e.) to attain equilibrium or stability for the organization
• f.) to adapt to business environmet challenges
• g.) to adjust to globalization and changes in innovation and technology
 Resistance to Change in Organization

• a.) Cost of change - since change is expensive if not in cost it

could be in kind
• b.) the leisure of maintaining status quo or what is called inertia.
Inertia is the reluctance to part with current circumstance
• c.) Resistance from employees of the organization
• d.) Questions from and possible loss of some customers who
might already be accustomed with old organizational practices
about to be done away with
• e.) Fear - e.g. fear of loss of the share and fear of loss of vital
employees
 Principles of Change management

• Principles of change management- these are the guidlines that guide the change management
process in an organizartion. They include:

• a.) Change management process should evolve from a detailed and schalarly study of the
organization where it is to be implemented
• b.) Change management process should begin with a systematic diagnosis of what the problem of
the organization is in order to determine the need for change and the organizations capacity for
change
• c.) Change management process must be guided by a management plan that should specify the
objective of the change process, the content of the change process and the steps involved in the
change process itself.
• d.) The change management process should be well marketed or communicated to staff,
customers and stakeholders of the organization to keep all members of the organization informed
about the process
• e.) A definite time line for the process should be set and strictly adhered to
four Steps in effectively managing the organizational change process

• four Steps in effectively managing the organizational change process

• a.) A thourogh understanding of the changes in the broader business
environment will create a sense of the magnitude of change needed internally
• b.) Developing the necessary steps and adjustment to be caried out by the
organization that is to undergo the change process
• c.) Enlightening and training of employees to understand and master the new
direction of change that the organization is about to follow
• d) Winning the support of the employees of the organization through
persuation to follow thorugh with the change
 Factors necessary for good change
management-
• Factors necessary for good change management include-
• a.) The degree of change to be effected must be measurable
• b.) The change to be effected must be monitorable e.g. for decrepancies of cost,
role and department status and roles
• c.) Effective communication is vital, it should be ensured that all organization
stake holders are carried along
• d.) Resistance from employees should be addressed and countered with logical
arguments
• e.) capacity to manage change must be identified and ascertained before
embarking on the change.
 characteristics of good change management

• These are the signs that change in an organization is well managed or features
associated with good change management
• a.) change is well managed if all stakeholders are well informed, support and realize the
need for the changes
• b.) Change is well managed if the steps involved in the process are well defined
• c.) change is well managed if a clear definition of the magnitude of the change is well
understood and effected accordingly
• d.) Change is well managed if it is driven more by extrinsic factors rather than instrinsic
• e.) Change is well managed if cost associated with the change process follow the
minimum best path to realization thereby reducing cost for the organization
• f.) change is well managed if it improves overall efficiency of the organization and its
strength to compete with its peers
 Risks of not responding to change

• There exist several risks of not responding to change some include

• a.) continous poor performance of organizations maintaining old operating
practices
• b.) Loss of local and global relevance due to the loss of efficiency and quality
• c.) Loss of revenue due to poor perfomance of product and services in the
market
• d.) Poor utilization of organizational resources leading to redundancy and
wastages in production
• e.) poor technology and innovation utilization due to non changing attitude in
the operation processes
• f,) likelihood of organization folding up and going into extinction
Module 3- Organizational
management Strategies

Department of
Entrepreneurial Studies ETS
206 funaab
 Module 3
• Module 3- Organizational management
Strategies
• Definition of organizational Strategies
• Link between Strategies and management in
organizations.
• Theories of Strategies
• Methods of developing good organizational
strategies
• Methods of application of organizational
strategies to organizational problems.
 Definition of organizational Strategies

• organizational Strategies-
• Strategy is a comprehensive plan for achieving
competitive advantage.

• Organizational strategies is an organizations

comprehensive plan for achieving dominance over
its peers
• Organizations use different types of strategies
they include-
• a.) corporate, b.) business, c.) functional strategies
d.) Growth strategies e.) cooperative f.) global
and g.) e-business strategies etc
 Types of Organizational strategies

• Global Strategies - These are global

business initiatives adopted by businesses
or organizations that improves their
overall performance .

• Cooperative strategies- These are strategic

alliances with other organizations.

• E businres strategies- These are the use of

the internet and other electronic sources
to improve business performances
 Types of Organizational strategies

• corporate strategies- These are strategies that

emanate from the management of the
organization as a result of management decisions
and gives the organization strategic advantage
over other organizations in the markets
• busines strategies- These are strategies arising
from business practices and brand quality that
often improve the performance of the
organization as a whole.
• functional strategies- These are strategies that
are based on the functional operations of the
organization such as logistics delivery process or
customer feedback process that improves the
performance of the organization.
 Organizational Management

• organizational management is the act of

planning and utilizing organization
resources to improve organizational
performance.

• Organizational strategies often act as a

means for making organizational
management more effective by specifically
channeling management efforts towards
the goals and objectives of the
organization.
 Link between Strategies and management in
organizations

• The link between strategies and

management in organization often leads
us to the study of strategic management.

• strategic management is the process of

formulating and implementing
organization strategies in line with the
mission and objectives of the organization.
 Link between Strategies and management
in organizations

strategic management therefore takes place

in two stages
a.) strategic formulation - this is the
process of creating strategies
b.) strategic implementation - this is the
process of putting strategies into action
therefore strategic management = strategic
formulation + stategic implementation
The Strategic Management Process
 Strategic Formulation Process

• The strategic formulation process

considers the organization mission
statement, which clearly defines the
direction of the organization

• the organizational operating objectives

which outlines what is to be achieved and
how they will be achieved.
 Strategic Implementation Process

• Strategic Implementation Process -

this evaluates the management,
systems, practices and leadership
strategies for implementing the goals

• And explores the expected results

from each adopted strategy to
choose the most optimal strategies
that will yield the best results.
 Strategic Management
Theories
• SWOT Analysis
• SWOT analysis is a tool used in strategic
planning to determine the current status
of the organization.
• Internal assessment of the organizational
strengths and weaknesses
• External assessment of environmental
opportunities and threats
SWOT Analysis
Porter Five Forces Analysis
 Porter Five Forces Analysis
• Porter’s five forces provide an opportunity
to evaluate the attractiveness of an
industry for investment.
• Unattractive industry
intense rivalry, easy entry, substitute
products, powerful suppliers and
customers
• Attractive industry
low rivalry, barriers to entry, few or no
substitute products, weak supplier and
customer power
 Porter’s Competitive Strategies

• Porter’s Competitive Strategies - these are strategies

recommended by Porter for effective competitive
advantage in organizations. They include :
• Differentiation Strategy
• Offers products and services that are uniquely different
from the competition.
• Focused Differentiation Strategy
• offers a unique product to a special market segment.
• Cost Leadership Strategy
• Seeks to operate at lower costs than competitors.
• Focused Cost Leadership Strategy
• uses cost leadership and target needs of a special market.
 Methods of developing good organizational
strategies
• they include:

• a.) Evaluating the missions and objective of the

organization
• b.) formulating the strategies based on the
missions and objectives of the organization.
• c.) Evaluating the management strategies in
running the organization to ensure that the
formulated strategies align with them
• d.) weigh the possible outcome of the formulated
strategies in different scenerios
• e.) Choose the best set of strategies that will
achieve optimal results for the organization.
 Entrepreneurship and Change Management

Module 4- Managing Organizational Change

Department of Entrepreneurial Studies ETS

206 COLMAS
Federal University of Agriculture Abeokuta

1
 Module 4

• Module 4- managing organizational Change

• Why organizations often fail?
• Why organizations need change?
• Value creation and introduction of change strategies
• Methods of Implementing change strategies in modern day
organizations
• How to manage change and retain organizational identity

2
 Module 4
Managing Organizational change
Organization change if not well managed, could lead to problems in Organizations. The
process of the effective management of organization change be a wholistic approach such
that, it will be goal and vision driven.
In order to achieve this certain questions often asked include:
a.) Why do organizations need to effect change? b.) Why do organizations often fail? c.)
What value can be added to organizational efforts to promote performance? d.) What
methods can be used in modern day organizations to promote change? e.) How can an
organization be restructured or reformed without the organization losing it's original
identity?

3
 Why do organizations often fail?
• in this case we ask the question why organizations fail or perform
below expectations
• Some of the reasons for organizationational failure include:
• a.) Short term planning -
• b.) Risk Hiding-
• c.) Misallocation of resources-
• d.) Poor delegation of authority-
• e.)poor allocation talents-
4
 Why do organizations often fail?

• short planning- short term planning of organizations often stress out

employees with high target levels making many employees to result to
unethical practices which could affect organizational performances. Ways
through which this can affect organizational performance include
• a.) fines on the organization for unethical practices b.) poor foundation
building which affects ability to adequately compete in the future c.) poor
strategies often developed in a hurry due to short term plans
• d.) lack of synergy- short term plans often lack strength, coordination and
adequate focus to meet needed goals

5
 Why do organizations often fail?
• Risk hiding- This is actually the act of overlooking pressing
concerns and shortcomings that can lead to failure in
organizations some of these shortcomings include-
• a.) mounting losses
• b.) poor performing products
• c.) production lapses such as inefficient machinery
• d.) poor management team

6
 Why do organizations often fail?

• Misallocation of resources- this is a situation where resources are not

efficiently allocated across the sections or departments in an organization.
This can lead to the following
• a.) Poor output production i.e. less that would have been produced
• b.) losses in the use of raw materials
• c.) poor brands and ability of brands to compete with alternatives offered by
other organizations
• d.) Cost build up and revenue shinkage
• e.) poor market penetration due to low competing ability of products

7
 Why do organizations often fail?
• Poor delegation of authority- This is the delegation of authority to either
inefficient line managers or picking incompetent people to head strategic
operations in organizations.Poor delegation of authority can lead to the
following-
• a.) inability to centralize operations to target specific goals b.) poor
execution of organizational directives c.) appointment incompetent line
managers who lack ability to drive organizational goals across department
d.) poor reporting of organizational bottom operations in an adequate
manner to top level management e.) gradually failure and operational
inefficiency leading to poor organtional performance
8
 Why do organizations often fail?
• poor allocation talents- poor allocation of talent of the poor deployment of
competent human resource capabilities of an organization across the
departments in the organization. some problems with poor organization talent
allocation include:
• a.) poor contributions of human resources or employees across departments in
organization
• b.) leads to systematic hiccups in work output targets leading to time delays
• c.) affects the quality of the organizations brand and service delivery
• d.) It leads to cost build up since internal operations that will have otherwise be
handled might be outsourced since time is money

9
 Why organizations need change?

• a.) to build a stronger organizational culture

• b.) to improve employee work attitude
• c.) to manage an impeding or ongoing crises
• d.) to keep abreast with technological advancement
• e.) due to new government legislation that affects business
• f.) to take on new market opportunities
• g.) to improve competing abilities
• h.) to reduce bloated cost

10
 Value creation and introduction of change strategies
• Value creation and introduction of change strategies
• One of the factors that organization change aims to drive is to
create additional value for the organization either through the
improvement of its operations and the quality of its products to
satisfy its customers and retain their loyalty.

• Change strategies are only strategies of organizational change that

help oragnizations improve operational efficiency as well as product
quality so as to enable organizations meet with their visions and
objectives
11
 Value creation and introduction of change strategies

• value creation is the primary aim of any business organization. The

reason for this is that it helps organizations sell products and
services to customers and help the organization make money to
pay shareholders , handle operational cost and pay employees.
• Advantages of value creation a.) improves operational efficiency
(cuuting cost) b.) reduces marketing drive since products are
competitive c.) improves revenue base of the organization d.)
improves the social image of the organization

12
 change strategies
• Change strategies are strategies utilized to effect change to improve value
crations in organizations. Change strategies include:
• a.) Downsizing operations
• b.) cost trade offs
• c.) management shakeups
• d.) product rebranding
• e.) employee training and redeployment
• f.) vision and mission reduction
• g.) radical innovation and new product introduction
• h.) Social image reposition and identity retention

13
 Methods of Implementing change strategies in modern
day organizations

• a.) Sectoral or departmental studies of organizational weakness b.) wholistic

overview of organizational weaknesses c.) Review of mission and vision and
their reduction and refocusing d.) employee reorientation e.)product or
service delivery evaluation f.) gradual organization reform in case of minimal
organization weakenesses g.) total skakeup and total restructuring in case
of significant non performance h.) Organizational breakup or merger in case
of near case fail or shut down i.) Sectorial sell off or total sell off in cases of
non redeemable loss level to set up a smaller and more robust business

14
How to manage change and retain organizational identity
• This describes how organization can manage change and retain
their organizational identity. Retaining organizational identity is
often of paramaount concern to organizations and one that many
organizations are not likely to achieve in times of crisis or in a
period where the concern to improve efficiency and create value is
upper- most in the goals of the organization.

15
How to manage change and retain organizational identity

• Some specific methods of managing change and retaining organization

identity include:
• a.) product brand name retention b.) organization name retention c.)
effective communication with customers on new value addition and joint
venture operations with other organizations d.) brand name adjustments
should have a feel of the previous brand name (e.g. coca cola can adjust to
coca cola plus) e.) in case of Mergers organization should include a noticeable
part of previous name e.g elephant cement when bought by larfage retained
the name and included larfarge (e.g. larfarge elephant cement)

16
Module 5 - People Management 1
FUNAAB, COLMAS
DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016
Module 5 - People Management I
• Module 5 - People Management I
• Role of Human Resources in Organizational growth
• Managing change among organization resource persons
• Overcoming resistance to change
• Redefining individual role in organizations
• Redefining organization role in the society
 Role of Human Resources in Organizational growth

• Employees are asset to any business organization.

• A key to maintaining organizational growth is through the implementation of the
organizations ethics, objectives and goals
• Organizational growth is the improvement in output and maintenance of
organizational well being in general such as
• a.) Employee satisfaction and retention b.) Public image maintenance and revenue
growth c.)revenue growth d.)skill acquisition and application d.) product development e.)
market development and growth
• Human resource in organization bring skill, effort and drive towards the relization of
organizational goals and objectives if well managed.
 Role of Human Resources in Organizational growth

• Some of the role of human resources in organization growth include

• a.) Product drive
• b.) Market facilitation
• c.) organizational Information reporting to management
• d) Market information reporting
• e.) Product information reporting
• f.) Utilization of organizational facilities as required to meet organizational objectives
 Human resource Management
• Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people
in an organization. It focuses on people in organizations. Human resource management is designing management systems
to ensure that human talent is used effectively and efficiently.

• HRM is also the personnel function which is concerned with procurement, development, compensation, integration and
maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the
organization’s objectives.

• According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people
• to achieve organizational and individual goals. It is the way of managing people at work, so that they give
• their best to the organization”.

• According to Dessler (2008) the policies and practices involved in carrying out the “people” or human
• resource aspects of a management position, including recruiting, screening, training, rewarding, and
• appraising comprises of HRM.
 Scope of Human Resource Management

• Human Resource Planning

• Design of the Organization and Job
• Selection and Staffing
• Training and Development
• Organizational Development
• Compensation and Benefits
• Employee Assistance
• Union/Labour Relations
• Personnel Research and Information System
 Scope of Human Resource Management

• a) Human Resource Planning: The objective of HR Planning is to ensure that the organization has
the right types of persons at the right time at the right place. It prepares human resources inventory
with a view to assess present and future needs, availability and possible shortages in human resource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR
Planning develops strategies both long-term and short-term, to meet the man-power requirement.

b) Design of Organization and Job: This is the task of laying down organization structure, authority,
relationship and responsibilities. This will also mean definition of work contents for each position
in the organization. This is done by “job description”. Another important step is “Job specification”.
Job specification identifies the attributes of persons who will be most suitable for each job which
 Scope of Human Resource Management

• c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching
people and their expectations with which the job specifications and career path available within the
organization.

• d) Training and Development: This involves an organized attempt to find out training needs of the
individuals to meet the knowledge and skill which is needed not only to perform current job but also to
fulfil the future needs of the organization.

• e) Organizational Development: This is an important aspect whereby “Synergetic effect” is generated in

an organization i.e. healthy interpersonal and inter-group relationship within the organization.
 Scope of Human Resource Management

• f) Compensation and Benefits: This is the area of wages and salaries administration
where wagesand compensations are fixed scientifically to meet fairness and equity
criteria. In addition labour welfare measures are involved which include benefits and
services.
• g) Employee Assistance: Each employee is unique in character, personality,
expectation andtemperament. By and large each one of them faces problems
everyday. Some are personal someare official. In their case he or she remains
worried. Such worries must be removed to make himor her more productive and
happy.
• h) Union-Labour Relations: Healthy Industrial and Labour relations are very
important for enhancing peace and productivity in an organization. This is one of
the areas of HRM.
 Managing change among organization resource persons

• In managing
Overcoming resistance to change
Redefining individual role in organizations
Redefining organization role in the society
 Module 6 - People
Management 2
FUNAAB, COLMAS
DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016
Module 6- People Management 2

• On this module the following will be discussed

• a.)Human resource and organizational innovation
• b.) Entrepreneurial innovation management and human resource
development
• c.) Human resource platform for innovation growth and product
development
• d.) Market entry, people management and product success
Human resource and Organizational Innovation
• As stated earlier human resource comprise of all skilled and unskilled labour
accessible to an organization overtime

• Organizational innovation is the level of technology initiative at the disposal

of an organization over a specified time, in this case innovation could be
• a.) A set of methodology for carrying out a task
• b.) A well ordered plan that can be used in realization of a job function
• c.) Some form of technology that is utilized by an organization in the
realization of its task
Organizational Skill and Productivity
• Organizational Innovation is a subjective way of improving the overall
productivity of an organization using some form of technology or set of
methodology
• skilled labour often determine the extent to which an organization can
drive productivity using technology and innovation.

• This is true since people often have to utilize technology to expand

productive capabilities in organizations and in many instances these have
to be skilled workers
Organizational Skill and Productivity
• Advanatages of Skilled labour on Productivity and output include
• a.) It reduces cost of training new personnel on learning to use new technology and
adaptation to new technology
• b.) Saves time in the technology change and transformation process in organizations
• c.)Helps the organization to leverage on its production efficiency and competitive ability
in its operating environment
• d.) Skilled and up to date personnel often draw the attention of the management of
organizations to new developments in technology yet to be acquired and utilized
• e.) Reduces the length of production time since use of technology by skilled workers
increases speed in production
• f.) Cuts down on wastages particularly of raw materials since machines are often more
efficient than man
Entrepreneurial Innovation management and human resource development

Managing innovation in organizations often mean that firms have to invest

in research and development. This often cost lots of money.
For an organization to be able to manage innovation a research and
development department (R&D Department) unit could do the following:
i.) If the organization is a production firm, it could research into new
methodologies of carrying out specific tasks in its production process
Entrepreneurial Innovation management and human resource
development
• ii.) It can decide on which innovations to generate internally or acquire
externally based on reports of its R&D Department.
• iii.) The branding process of a new product could mean that a firm could
invest in the brand design. This can also be carried out by the R&D
department in order to produce a generally successful product.
• iv.) A path to improvement of existing products or innovation can be
designed in the R&D Department through collection of feedback from the
organizations feedback channels
Human resource Platforms for innovation growth and Product
development
• The R&D department are often present in large organizations for driving
innovation growth and new product development.

• However smaller organizations can outsource this to R&D consulting firms

or consultants to save cost.
•
• To sustain R&D policies, Human resource platforms have to be created in
many organizations to drive growth, innovation and product development
in general
Entrepreneurial Innovation management and human resource
development
• a.) Some of these platforms include: a.) Internal training platforms. This is common to
large organizations where inhouse training is available.
• b.) External professional training: This is often an external technical training available
to enable personnel acquire trade certificates to practice e.g. guilds certicates or the
full trade certificate for technicians
• c.) Study exemption programmes: This allows workers to go away for some years to
acquire a college degree but this occurs after serving the organiztion for some
specified period.
• d.) Product design training feedback work: This is often conducted in house. This is
different from inhouse training since it takes a different dimension because product
test has to be conducted externally in the field or some form of external market pre
product test.
Market Entry, Peoples Management and Product
Success
Human resource training, remuneration and maintaining staff morale are
key to sustaining organizational market advantage against competitors.

Managing both personnel and customers as well as getting good product

approval rating
Market Entry, Peoples Management and Product
Success
Some Importance of skilled personnel on organizational performance and product
success include

a.) The skill of personnel reflects on product quality

b.) Personnel skill improves product appeal, since presence of highly skilled personnel
often means the product is well researched and design to meet customers taste
c.) The presence of skill personnel reduces the number of defective products in the
production process increasing the reliability to product to a high degree
d.) If there exist an already competitive market skilled personnel enables an
organization produce products that can compete in such competitive markets
Module 7 - Organiztional
Goals and Management
FUNAAB, COLMAS
DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016
Content
• Definition of the Concepts of Goals
• Defintion of organizational Goals
• Link between organizational success and organizational goals
• How to develope robust goals
Definition of Goals, Types, Advantages and
Disadvantages
• Definition of Goal: A goal is a desired result or outcome of an event

• Organizational goals is the desired results or outcome that an organization

envisions, and plans to commit to and achieve over a period of time

• Types of Goals
• a.) Short term goals b.) Long term goals
• Short term goals are the vision that an organization envisions over a short
period of time. Examples of short term goals are weekly, monthly or yearly
goals
Definition of Goals, Types, Advantages and
Disadvantages
• Advantages of short term goals
• 1.) They are usually simpler than long term goals
• 2.) They are often more effective in driving on the short term efforts by an
organization
• 3.) They are less costly than long term goals
• 4.) They are less likely to be affected by sudden environmental changes and
conditions
• 5.) They are usually easily reviewable, since they require less resource and are
often temporal, in cases where there are major challenges with realizing the
plan
Definition of Goals, Types, Advantages and
Disadvantages
• Disadvantages of short term goals
• 1.) They plague organizations with the need to review goals once the period
for goal implementation expires
• 2.) They might not help to provide concrete framework for sound
organization building since they are for limited periods
• 3.) It might lead to wastages on the longrun making them a penny wise
pound foolish goal setting arrangement
• 4.) Short term goals could have far reaching effects on organizational
planning resources since the organization has to assemble a team to present
a new goal once a plan expires distracting attention from implementation
Definition of Goals, Types, Advantages and
Disadvantages
• Long Term Goals: These are plans that an organization envisions over a long period
of time
• Examples of long term goals
• a.) Five year goal plan b.) 15 year goal plan c.) Twenty five year goal plan
• Advantages of long term goals
• a.) They are more concrete and robust than short term goals
• b.) They often produce higher returns for an organization if well planned
• c.) Investors in an organization are more comfortable with such organizations since
there is a fixed direction there is no sudden change in organizational goals
• d.) They are more effective in driving longterm organizational efforts
Definition of Goals, Types, Advantages and
Disadvantages
• Disadvantages of Long term goals
• a.) They are costlier to achieve
• b.) They are not easily adjustable due to sudden changes in environmental
conditions
• c.) If poorly projected it might not be easily realizable and have negative
effect on organizational resources
• d.) They are more complex due to the detailed enumerations and
requirements of such goals
Link Between Organizational Goals and Success
• Organizational Success as defined earlier is the measure of positive performance of an
organization.

• Therefore the total performance of an organization is a set of all its successes and
failures.

• performance = (+ success)+(-failure)

• The relationship between organizational goals and success is that goals been a plan
and vision of an organization helps the organization project itself for maximum
success.
Link Between Organizational Goals and Success
• Some of the link or relationship between goals and success are:
• a.) Goal helps redirect all organizational efforts towards optimality reducing wastages
• b.) Goals help direct organizational efforts only to specifics of an organizations visions preventing
divergent drive in efforts
• c.) Goals specify organizational norms and ethics thereby helping organizations ensure standards
• d.) Goals assist organizations in improving the quality of services and goods produced in relation to
those of its competitors giving the organization a competitive advantage or edge over its peers
• e.) Goals often help organizations make future projection or targets enabling organizations to have a
vision of an expected outcome of positive performance for the firm
How to Develop Robust Organizational Goals
• Some factors an organization may wish to consider, they include:
• a.) In developing goals an organization should consider its immediate
responsibility to its customers
• b.) It should consider what image it wishes to project
• c.) It should consider its operating environment so that goals set should
allow compete and have an edge over its rivals
• d.) Goals should be realistics and achievable
 Entrepreneurship and Change Management

Module 8- - Theories of Change Management

Department of Entrepreneurial Studies ETS 206 COLMAS

Federal University of Agriculture Abeokuta
 Contents
• Module 8
• - Theories of Change Management
• Introduction to the thoeries of change management
• Applications of Theories of change management to organization
development
• Comparisons of different change theories in strategically engineering the
change process in an organization
Introduction to the thoeries of change management

• These are theories that help define the way change should take place in
organizations.
• They include
• a.) Psychological Contract Theory
• b.) Nudge Theory
• c.) The John P. Kotter eight step change theory
• d.) The Elisabeth Kubler - Ross's Five Stages of Grief theory
• e.) The Sharon Drew Morgens Facilitation Model
 Psychological Contract Theory
• Psychological Contract Theory - This helps to explain the complex relationship
between an organization and its employee. It emerged in the 1960 and is based on the
works of theorist like Chris Argyris and Edgar Schein.

• It focus on the
• a.) nature of relationship between the emplyee and organization
• b.) the mutual expectations between the employee input and organizaiozations output
• c.) the fairness of the employer or organization to its employees
• d.) it shows that the relationship between the organization and employee is dynamic
and a situation that changes relative to employee remuneration and organization
output.
 Nudge Theory
• The Nudge theory- is a modern and more flexible way of understanding change in
organiztion. It became popular in the US in the 2008.
• It focus on
• a.) Understanding of how people think,make decision and behave in organizations
• b.) managing change in individuals and organizations
• c.) modifying and identifying unhelpful influences on individuals in organizations
• d.) It encourages indirect motivation of employees in organiztions
• e.) it avoids direct enforcement of organization policies or forceful enforcement of
policies
• f.) it accepts that people are different and need diferent approach to lead them
• g.) It is a soft and gentle way of enforce change in organization
 The John P. Kotter eight step change theory

• John P. Kotter is a Harvard professor who postulated the Kotter eight step change theory. His ideas help in
understanding the pressures of change on people and peoples reaction to change. It states that change
should be achieved through the following steps
• a.) Increase urgency - i.e. through inspiring people to embark on specific change
• b.) Build the guiding team- that is a team to direct the change process
• c.) get the vision right- get this team to understan the right vision
• d.) communicate for buy in- persuade people to join the change train
• e.) empower action- remove barriers for the empowerment of the change
• f.) create short term wins- set goals within the change process that can be acived in stages to encourage
the team and employees
• g.) dont let up or give up- promote persistence and a no quiting spirit
• h.) Make the change stick- the change should be reinforced through through training and reminding the
team of the goals of the change process
 The Sharon Drew Morgens Facilitation Model

• The Sharon Drew Morgens Facilitation Model- This is use in the process of facilitating change in
organizations. It emphasis how change can be facilited in organization through effective communication
- these include

• a.) enabling communication instead of Tender push or persuation - this invloves presenting the change
process through interaction instaed of a mild manner and encouraging employees to change
• b.) communicating employees to buy in- this involves making employees believe in the change through
communication of change rahter than convincing
• c.) rather than Persuade allow employees to see a superior alternative
• d.) let final decision to join the change crew rest with the employee do not unduly influence.

• It is many a times not feasible it is only useful in buying and selling where the seller has no authority
over the buyer.
 The Elisabeth Kubler - Ross's Five Stages of
Grief theory
• The Elisabeth Kubler - Ross's Five Stages of Grief theory refers to refers
to the management of change and loss. These include personal loss like
bereavement and trauma.

• The five stages of losses management include

• a.) Denial management b.) anger management c.) bargaining management
d.) depression management e.) acceptance management
• It belives that the loss process forces humans into the the cycle of denial,
anger, bargaining, depression and finally acceptance of the status quo.
 Applications of Theories of change management to organization
development

• The psychological contract change theory has stronger positive consequences on

organizational change outcome
• this is because
• a.) It defines the relationship between the organization and employee and states that
the employee joins the organization to help the organization meet its goal for which
the employee is rewarded
• b.) And that the reward must be conmeasurate to the employees effort
• c.) That fairness to the employee is the responsibility of the organization
• d.) Helping the organization meet its goal is the responsibilities of the employee
• e.) And that the relationship may change subject to what ever party's input and level
of adherence to its obligations.
Applications of Theories of change management to
organization development
• Other theories though applicable are only rudimental
• for instance the nugde theory only shows how change should be
implemented and an alternative non forceful way of implementing change.
It however does not emphasis the responsibilities of the parties
• The Elizabeth Kubler - Ross theory shows how individual change is
managed and is applicable to individuals in the organization
Quizz
• 1. Explain five factor responsible for the resistance to change
• 2. Explain five reasons for organizational failure