3 Three specific criteria are used to define large-scale organisations (LSOs), with the most generally accepted being the number of employees.

Transcription

1 CHAPTER 1 SUMMARY 1 Every organisation needs effective corporate management to succeed. 2 An organisation is two or more people working together to achieve a common goal. 3 Three specific criteria are used to define large-scale organisations (LSOs), with the most generally accepted being the number of employees. 4 LSOs normally require a complex organisational structure. 5 LSOs can vary according to: ownership public or private business activity primary, secondary, tertiary, quaternary or quinary profit or non-profit motive. 6 It is critical that all managers keep in mind the vision/mission of the organisation so all other objectives developed are complementary. 7 Objective setting is complex. Given that, plans can be formulated for three time frames: long, medium and short term. 8 Objectives provide direction, set standards and motivate employees. 9 Each organisation has a unique set of objectives. 10 Strategies are the actions that an organisation takes to achieve specific objectives. 11 The traditional definition of management is that management is the process of coordinating an organisation s resources to achieve specific objectives. 12 The contemporary definition views management as the process of working with and through other people to achieve the objectives of the organisation in a rapidly changing environment. 13 Management has four basic functions: planning, organising, leading and controlling. 14 LSOs contribute in a number of significant ways to the level of economic activity. 15 The organisational environment is the surrounding conditions in which the organisation operates, and can be divided into two broad categories: internal and external. 16 Organisations are also required to constantly measure and assess both their financial and non-financial performance. 17 Financial performance indicators include profitability, cost reduction and sales. 18 Non-financial indicators include quality and customer satisfaction. 19 Society expects organisations to accept responsibility and accountability towards all stakeholders. 20 Senior management must constantly assess the actions of the organisation and attempt to satisfy as many stakeholders as possible, while at the same time acting in a responsible manner.

2 CHAPTER 2 SUMMARY 1 There are normally three levels of management: senior, middle and frontline/ supervisor. 2 An organisational structure is a chart depicting the working relationships and division of work, among other matters, within a particular organisation. 3 There is no one type of structure that is suitable for all organisations. An organisational structure essentially falls within one of two categories: centralised or decentralised. 4 Most organisations favour a decentralised structure, and there are many examples of this, including functional, matrix, team and network. These structures are favoured for their flexibility, simpler chain of command and more direct communication system. 5 Organisational culture is the values and beliefs held by the people within an organisation. It has a significant impact on the work patterns and relationships that are formed within the workplace. 6 Contemporary management practices encourage the development of a positive culture that values loyalty and goodwill. This approach has a significant impact on the level of productivity and quality of work. 7 All managers are expected to carry out the four roles of management: planning, organising, leading and controlling. 8 Planning is considered the most significant function since it involves setting the organisation s objectives. 9 Decision making is a regular feature of management. A SWOT analysis supports management in effective decision making by obliging consideration of all internal and external pressures. 10 Organising involves structuring the organisation so it can translate its plans and objectives into action. 11 Leading requires a manager to have a vision of where an organisation should be in the long and short term and to motivate employees to achieve the organisation s objectives. 12 Controlling is monitoring the planning, organising and leading processes to ensure the objectives of the organisation are being met. 13 Henry Mintzberg criticised Henri Fayol s traditional functional approach as too simplistic and, therefore, unrealistic. 14 Mintzberg identified 10 roles that managers must, from time to time, adopt. These 10 roles can be grouped into three categories: interpersonal, informational and decision-making types of role. 15 Policies are formalised guidelines that identify a corporate objective and the specific strategies that must be actioned throughout the organisation. 16 By documenting policies, an organisation is more likely to achieve consistency and equity in the treatment of all employees. 17 Management is an art not a science; there is no simple formula for all workplace situations.

3 18 Managers can adopt a range of different management styles, including: autocratic persuasive consultative participative/democratic laissez-faire. 19 Each management style has advantages and disadvantages. 20 Contingency management theory stresses the need for flexibility and adaptation of management styles to suit changing circumstances. 21 Effective managers are those who: possess a range of specific management skills can use these skills in a number of managerial roles. 22 The key finding of the Karpin Report was that Australia must develop a new generation of senior and frontline managers with very different profiles of skills, knowledge and experience. 23 According to the Karpin Report, to carry out their work effectively, managers should: have people skills be strategic thinkers be visionaries be flexible and adaptable to change practise self-management be team players be able to solve complex problems and make decisions have high personal standards/ethics. 24 Competencies are used to determine a person s level of skills and their ability to perform a task effectively. 25 Managers must act ethically so employees perceive the importance of ethical considerations. 26 A corporate code of conduct can encourage ethical behaviour. 27 Social responsibility includes obligations to the community, above and beyond making a profit, obeying laws or honouring contracts. 28 There are two views of social responsibility: the economic (traditional) model and the socioeconomic (non-traditional) model.

4 CHAPTER 3 SUMMARY 1 Operations management refers to the manner in which an organisation, whether it be service or manufacturing, looks after its resources to develop and produce a final product or service. 2 There are essentially three key elements that make up operations management: inputs, process and outputs. 3 Inputs refer to the resources necessary for production. Such resources include materials, capital, people, information, time and money. 4 Process refers to the activity stage that is, the transformation of resources into a final product or service. At this stage, a number of management strategies and considerations apply to ensure efficiency. 5 Outputs refer to the end result of an organisation s efforts that is, the service or product that is delivered or provided to the customer. 6 Operations management cannot be studied without considering competitiveness. For an organisation to find its best possible market position and create market leadership, all management considerations and strategies must prioritise efficiency and effectiveness. 7 Management of quality is one example of the way in which an organisation may demonstrate competitiveness. Operations managers have a variety of ready made strategies including total quality management (TQM), employee empowerment and benchmarking at hand to support them in achieving qualitative competitiveness. 8 Facilities design and layout, the management of materials and the management of quality are examples of strategies designed to focus on efficiency and optimise operations. 9 Different organisations will require different responses to each of these management strategies. 10 Layout models include project production, process production, product production, retail layout and office layout. Each has a different emphasis on use of technology, available space, inventory considerations, and employee and consumer considerations. 11 Materials management is essentially about developing the most effective ways of controlling stock/inventory at minimal cost to the organisation. It is not economical to have excess stock on hand ready for the transformational process. 12 Production planning materials requirement planning (MRP) and master production scheduling (MPS) and inventory control processes such as just in time (JIT) support effective materials management. 13 Developments in technology have transformed the management of operations dramatically in recent years. Technology has helped refine or even transform the way in which products/services are designed, manufactured, stored, retailed and delivered as a finished output to the consumer. 14 Many organisations recognise the importance and necessity of pursuing organisational objectives with a consciousness of social and ethical responsibilities. 15 Operations managers are confronted by numerous ethical issues ranging from defective products to bribery.

5 CHAPTER 4 SUMMARY 1 People are the organisation s most valuable asset, so it is crucial to have effective employee relations procedures in place. 2 Employee relations involves all aspects of people management, including acquiring, developing, maintaining and terminating. 3 The forces driving change come from internal and external pressures. 4 These changes have combined to alter how the human resource function is carried out in organisations. 5 The needs of a diverse range of employees must be catered for, as well as employee expectations being met. 6 All managers, supervisors and team leaders are responsible for human resource management. 7 Flexible working conditions such as part-time work and flexible working hours may benefit employees and employers. 8 Conflicting views are emerging about the benefits to employees from flexible working hours. 9 Growing community and worker awareness of safety and environmental issues, along with ballooning compensation costs in recent decades, have prompted both federal and state governments to improve workplace occupational health and safety (OH&S). 10 Job security is protection against the loss of employment. 11 Motivating employees is one of the most important management functions because high levels of motivation result in increasing rates of productivity. 12 The classical scientific theories of motivation and management suggested that strict controls should be put in place and that jobs should be divided into small, specialised activities. 13 Behavioural motivation and management theories stressed the human relations side of motivation and that employees should be the main focus of the way in which the organisation is structured. 14 Other theories of motivation include: Maslow s hierarchy of needs McGregor s theory X and theory Y Herzberg s motivation hygiene theory Vroom s expectancy theory Adams equity (fairness) theory Skinner s reinforcement theory. 15 Each of the motivation theories highlighted different factors that would motivate an employee. However, due to the extremely complex nature of employee motivation, all theories have their limitations. 16 An ethical framework must be developed for the workplace. 17 Key principles of human resourse management may include equity, honesty and fairness.

6 CHAPTER 5 SUMMARY 1 Human resource planning forecasts future employee requirements and develops a plan to meet these human resource needs. 2 The employment cycle consists of four stages: 1. acquiring hiring new employees: recruitment and selection 2. developing improving employees skills and abilities: induction, training and developing 3. maintaining motivating employees to remain with the organisation: monetary and non-monetary benefits 4. separating employees leaving the organisation: voluntary and involuntary separation. 3 Anti-discrimination legislation has been enacted to protect employees from direct and indirect discrimination. 4 Equal employment opportunities (EEO) refer to equitable policies and practices in recruitment and selection. 5 Affirmative action refers to measures taken to eliminate direct and indirect discrimination. 6 Changes to traditional work patterns have influenced employment practices. 7 An Award is a centrally determined set of pay rates and conditions. 8 Enterprise or workplace agreements (employment contracts) are agreements about pay rates and conditions. They are made at the enterprise/workplace level between an employer and a trade union or a majority of employees in the workplace. 9 Induction is the process of acquainting new employees with the organisation and their job. 10 The aim of training is to seek long-term change in employees skills, knowledge, attitudes and behaviour to improve work performance in the organisation. 11 An effective rewards management system should attract, retain and motivate employees. 12 A performance appraisal is the formal assessment of how efficiently an employee is working. 13 Performance feedback is an important part of the appraisal process. 14 An important function for today s human resource manager is the separation (termination) of staff. 15 Separation from the organisation can be either voluntary or involuntary. 16 To avoid being accused of unfair dismissal, an organisation should be aware of the different types of employee classification so correct procedures are followed.

7 CHAPTER 6 SUMMARY 1 Employee relations refers to the total relationship between an employer and employee. 2 The main stakeholders in employee relations include employers and their associations; employees and their trade unions; governments and the various courts and tribunals. 3 Employers and managers handle employee relations on a daily basis. 4 Employees are demanding more challenging, interesting work and involvement in the decision-making process. 5 Trade union membership has been declining for the past 20 years. 6 Australia s Constitution gave the federal government the power to settle industrial disputes beyond one state through the Australian Industrial Relations Commission (AIRC). 7 The 1907 Harvester case made the first significant ruling concerning wages. 8 Until 1991 the following processes established wages and conditions for employees: centralised process and national wage cases. 9 Commencing in the mid-1980s, the industrial relations system became more decentralised. 10 The Workplace Relations Act 1996 further decentralised the system. 11 Certified agreements, Australian workplace agreements and individual contracts are at the centre of the Workplace Relations Act. 12 The government considered that a decentralised system would create a more productive, innovative, flexible and skilled workforce. 13 The role of the AIRC has undergone major change due to the Workplace Relations Act. 14 Effective employee relations involve a strategic approach and a management role. 15 Employee relations is an important aspect of an organisation s overall human resource strategy. 16 Employee relations is increasingly perceived as a function to be managed throughout the organisation. 17 Usually, the participative or consultative management style results in improved employee relations because it encourages employee involvement in the decisionmaking process. 18 Effective employee relations depends heavily on the strengths of an organisation s communications system. 19 Conflict generally refers to industrial disputes. 20 The number of industrial disputes has steadily decreased since the mid-1970s. 21 There are three different perspectives on conflict within the workplace: unitary, pluralist and radical. 22 When disputes develop, a number of methods can be used to try to resolve them, including grievance procedures, negotiation, conciliation, arbitration, mediation, common law action and organisational closure.

8 CHAPTER 7 SUMMARY 1 The organisational environment is undergoing extensive and unprecedented change. 2 Change must be considered a fundamental aspect of an organisation s strategic planning. 3 Numerous opportunities can arise from change. 4 Successful managers are the ones who anticipate and adjust to changing circumstances. 5 Change can come from the external or internal environment. 6 The main external influences include: the changing nature of markets economic influences geographic influences social influences legal influences government influences technological influences. 7 The main internal influences include: the effects of accelerating technological change e-commerce organisational alliances new corporate cultures. 8 Kurt Lewin developed the force-field analysis, which reveals driving and restraining forces for change. 9 The main reasons for resistance to change include: financial costs the inertia of managers and owners staffing considerations. 10 Resistance to change is common among managers and employees. 11 Kurt Lewin and John Kotter developed two change models: unfreeze/change/ refreeze and the eight steps. 12 Tactics for effective change management include low risk tactics, such as communication and support, and high risk tactics, such as manipulation and threat. 13 The ability to embrace, manage and adapt to change will increasingly determine an organisation s competitive advantage. 14 Identifying the need for change, encouraging teamwork and setting achievable objectives are three strategies for reducing resistance to change. 15 Leadership plays a crucial role in the successful implementation of change. 16 Changes can be major (transformational) or minor (incremental).

9 17 Organisations often undergo structural change as a result of external and internal influences. The main changes are: outsourcing flatter organisational structures strategic alliances diversification. 18 For an organisation to survive in the long term, its culture should reflect changes within the external and internal environments. 19 The significant issues of change that managers must deal with include: social responsibility business ethics globalisation mergers and takeovers technological developments compliance with legislation privatisation.