Question 1: Planning (25)
1.1 Explain why managers Plan
A plan comprise of objectives together with ways of accomplishing these objectives. In general, managers plan to map out the future direction of the company by determining goals and making decisions on activities or policies that ensure goal accomplishment. Plans serve as the foundation of management efforts to control, lead and organize business organization and operations. As such, managers plan for a number of specific reasons. First is to provide direction to the members of the organization so that personnel act in such a way to contribute to the achievement of business goals. Employees informed of an organization-wide plan become aware of the contribution expected from them so they become more cooperative in efficiently working towards organizational goals. Second is to minimize the impact of change since plans look ahead to identify potential changes and develop effective responses intended to achieve the intended consequences. Third is to minimize waste of effort and resources since plans coordinate efforts of the different business areas or units. Fourth is to provide standards and objectives in controlling activities and directing outcomes. Plans compared to actual results determine the extent of goal accomplishment. (Schermerhorn 2001; Bangs 2002; Lasher 2005)
1.2 Describe the role goals play in planning
Planning involves two general components, which are goals and plans. Goals provide the roadmap for the realization of the firm’s mission and vision. Goals also comprise the desired outcomes for the business firm as a whole to direct and support decisions. Goals provide the bases of plans. Plans are outlines of the means and ways of achieving goals covering the sourcing or acquisition of resources, allocation of resources, direction of individual and group actions, scheduling of intended outcomes, and other necessary actions to accomplish goals. This means that while goals are the passive aspect of planning, plans are the active aspect of planning. Goals provide guidance for action while plans comprise of specific actions, techniques, and timeframe for completion. Without goals, plans would be meaningless and worthless. (Schermerhorn 2001; Bangs 2002; Lasher 2005)
1.3 Describe the characteristics of well-designed goals
Well-designed goals align with the acronym SMART (specific, measurable, action-oriented, realistic, and timely). A specific goal is clear and defined to make it easy to actualize as well as measure in evaluating performance and progress. Ambiguous or vague goals are not likely to lead to the intended outcomes for the business organization because these do not offer collective direction. A measurable goal offers benefits by providing a standard with which to compare actual progress or outcomes. In case of a disparity between goals and actual outcomes, the disparity would show the problem areas in order to redirect action towards goals but the disparity can also justify adjustments in the goals in case actual results serve the business firm better. An attainable goal is realistic and grounded on the context of the business firm. This means the goals are set not very high or very low based on the resources and competencies of the business firm to achieve significance. A result-oriented goal is one that brings the business firm optimally closer to its vision for the firm by having a significant impact of business performance. A time-bound goal is one that has an initial and concluding points and fixed durations. Goals capable of translation into deadlines in plans are important in achieving intended outcomes since without deadlines, distraction can delay completion. (Schermerhorn 2001; Bangs 2002; Lasher 2005)
In addition, well-designed goals are effective when written by focusing on outcomes instead of actions to provide effective guidance to plans that in turn should focus on actions. It is also better for goals to be in writing for reference especially during the evaluation of outcomes. Moreover, to achieve recognition and cooperation, goals require communication to the members of the organization. (Schermerhorn 2001; Bangs 2002; Lasher 2005)
1.4 Discuss the barriers to plan
Certain barriers could affect successful planning but an understanding and consideration of these barriers in the planning process could foster, in itself, effective planning. First barrier is the lack of ability to plan. Managers come up with inadequate plans because of limited experience, knowledge and skills of the planning process, the essential elements, and even the rational attitude in planning. Second barrier is weak commitment to plans because of fear of failing or limited time. Third is inaccurate or inferior information that leads to effective or appropriate plans. Fourth is focus only on the present and neglecting the future when plans also cover long-term outcomes. Fifth is over reliance on planning departments when managers have the necessary information necessary in developing appropriate and responsive plans. Sixth is focus only on controllable areas and neglecting to consider and understand contingencies that necessarily affects successful planning. (Schermerhorn 2001; Bangs 2002; Lasher 2005)
Question 2: Organizing (25)
2.1Explain why structure and design are important to an organization
Organizational structure and design are important to an organization because organizational structure determines the framework for dividing, grouping and coordinating of tasks while organizational design describes the process of developing the firm’s structure in terms of a number of elements (Kreitner & Kinicki 1998; Robbins 1998; Schermehorn 2001).
Organizational structure gives order to the firm by organizing hierarchical and functional relationships between and among members of the organization. Organizational structure defines the lines of communication and coordination within the business firms. Ordering of tasks also align with the organizational structure expressed through work specialization or the extent of division or separation of jobs across the organization as well as departmentalization or the manner of grouping tasks according to functions, products, processes, and geographical locations. Without organizational structure, the firm would fall into chaos since communication linkages between line employees and to managers or among managers are unclear. Productivity and performance also suffers since job assignment and grouping of task largely depends on the understanding or perception of the employees. Differences in perception and expectations lead to a poorly functioning organization. (Kreitner & Kinicki 1998; Robbins 1998; Schermehorn 2001)
Organizational design is important to the organization because it determines the extent of control over organizational functioning and processes as well as the degree of flexibility or adjustability of the organization to inevitable change. Successful organizations are those able to improve continuously.
2.2 Differentiate mechanistic and organic organization designs
As forms of organizational design, mechanistic and organic organization has differences so that these fall into opposite sides of a spectrum. In terms of the organization or grouping of tasks, a mechanistic design leans towards high specialization and strict departmentalization while organic design favors cross-hierarchical teams. With regard to the organization of relationships, a mechanistic design follows a defined chain of command while an organic structure adheres towards the free and open flow of information. In the case of the degree of control, a mechanistic design applies a narrow span of control while an organic design leans toward a wide span of control. In terms of decision-making, a mechanistic design supports centralization while an organic design fosters decentralization. With regard to the degree of business culture, mechanistic design favors a high degree of formalization while an organic design leans toward low formalization. As such, a mechanistic system focuses on the processes and standards that require compliance while an organic design focuses on the building of relationships and linkages to support the accomplishment of tasks. (Kreitner & Kinicki 1998; Robbins 1998; Schermehorn 2001)
2.3 Explain team-based structures and why organizations are using them
A team-based structure applies when the organization is comprised of different working teams. This is a contemporary organizational design because it deviates from the traditional designs. An organization made up of many teams relies highly on the active role of employees so that this type of structure fosters empowerment. Since there are many teams, accomplishment of tasks or functions are through teams. In large organizations, team-based structures could complement divisional and functional structures since teams could comprise divisions and team formation can happen by considering the different functions. (Kreitner & Kinicki 1998; Robbins 1998; Schermehorn 2001)
Business firms apply a team-based structure to experience a wide-range of benefits. First is greater efficiency because of the better responsiveness of teams to problems or target completion. Working in terms enables the pooling of knowledge and skills in decision-making and policy implementation that focus on specific targets. Second is the fostering of creativity and innovativeness by empowering employees to become active players in business operations. Third is the flexibility of working in teams since teams are dynamic units sensitive and responsiveness to changes in the business environment. (Kreitner & Kinicki 1998; Robbins 1998; Schermehorn 2001
2.4 Explain the concept of a learning organization and how it influences organizational design
A learning organization describes a group of individuals engaged in the continuous enhancement of their capacity to create and do the things they want to create and do. A learning organization could also refer to firms operating based on the philosophy of vigilance, reactivity and responsiveness to changes, complexities, and uncertainties faced by the organization. This concept emerged because of the rapid changes in business environment in the past decade requiring firms to adjust lest they fall down the innovative bandwagon. This influences organizational design in terms of the degree of control and flexibility of the organization. Learning organizations are likely to exercise a certain degree of decentralization to allow front level decisions when necessary and a high degree of flexibility in accommodating change. (Kreitner & Kinicki 1998; Robbins 1998)
Question 3: The environment (25)
“Managers work in a dynamic environment and must anticipate and adapt to challenges” With regard to the above statement, discuss the impact of the macro environment and micro environment on Southern African business.
South Africa has become a promising and sophisticated emerging market because of the development of economic and business infrastructures and the emergence of a dynamic market economy. South Africa had its economic highs and lows with the start of its recent high spurred by the economic reforms in 1994 leading to the development of policies that ushered transformations in macro-economic policies to make South Africa’s domestic economy competitive to create employment and provide income to the residents of South Africa. To become competitive, the South African government has lowered taxes and tariffs, decrease fiscal deficit, and relaxed exchange controls. The central bank of South Africa also established and maintained its independence to implement effectively its regulatory functions and monetary policy implementation especially in dealing with inflation and interest rates to achieve financial stability. In 2005, the government focused on boosting economic growth by drawing large investments into small businesses. These developments created a macro environment fostering innovation and competition. (Department of Trade and Industry 2008)
Lower taxes and tariffs together with relaxed exchange rate controls create a macro environment that supports the expansion of South African firms in the domestic market and engagement of South African businesses in the international market. Policies and regulations favoring business growth opened firms to many opportunities for expansion not only in the different segments of the domestic market but also in the international market. (Department of Trade and Industry 2008)This means that managers of South African business firms need to adjust to the dynamic or changing business environment and recognize or understand the different opportunities available to the business firm in terms of expansion to different markets. This is especially crucial for firms with the capability to compete with their international counterparts. However, the management of international business entails changes in areas such as organizational structure, organizational culture, and management practices. Managing firms in a dynamic business environment, as in South Africa, requires managers to foster a dynamic attitude to become receptive to expansion opportunities and recognize the role of innovation in tapping into these opportunities. Otherwise, managers not flexible to the changing environment could stunt business growth.
In relation to the industries, the creation of employment opportunities that provided income to households supported greater demand for various products manufactured domestically as well as internationally. Income also resulted to greater investments in different sectors that led to the growth in suppliers of similar commodities. This resulted to enhanced competitiveness of firms since they now have to think of ways of enhancing their value offering to consumers to draw a bigger market share and maintain its customer base relative to its competitors. Competition fostered vibrancy by motivating business firms to engage in innovation in terms of products, processes, and brand equity to achieve an edge over the other firms as well as the joint ventures, mergers, and partnerships of firms to expand operations and pool capital.
This macro environment posts the challenge for business firms to address the call for competitiveness. With the development of a business environment conducive to business intended to attract foreign investments and created a competitive micro business environment, South African managers not only have to contend with domestic but also international competition. South African has become an investment hub in Africa because of its strategic location as an entry point to the region (Department of Trade and Industry 2008). As foreign firms enter South Africa, domestic companies face the challenge to ensure their market position so as not to lose their market share or engage in joint ventures or other forms of partnerships to improve their position in the domestic market and usher their entry into the foreign market. In this business environment, managers have to be forward looking to anticipate changes and develop contingency plans to support business viability and competitive sustainability.
Question 4: Motivation (25)
4.1 Outline the salient details of at least two motivation theories
Two theories sought to explain to motivation in the organizational setting. One is the hierarchy of needs theory of Maslow and the two-factor theory of Herzberg. The hierarchy of needs theory explains that motivation happens when incentives given to individuals allow them to fulfill their hierarchical needs from basic needs to fulfillment. This means that to motivate employees, the incentives given them should allow them to meet basic needs such as food, clothing and shelter and progresses to enable them to experience self-fulfillment through job satisfaction, recognition, awards and promotion. Motivation strategies then comprise a combination of material and non-material or financial and non-financial incentives or motivators to enable employees to achieve their highest need for self-fulfillment. (Katzell & Thompson 1990)
Hierarchy of Needs Theory
Two-Factor Theory
Basis of Motivation
Fulfillment of the hierarchy of needs
Satisfaction from the enhancement of motivators and consideration of de-motivators
Impact of Motivation Practices
Different effects on various employees resulting to customized motivation policies
Different effects on various employees resulting to customized motivation policies
Motivation Strategies
Material such as competitive wages and non material such as competitive benefits, reward and recognition, fair promotional policies
Job enlargement, job enrichment, and empowerment
The other is Herzberg’s two-factor theory, which explains that motivation is the product of the process of enhancing motivators or the incentives that make employees work harder while removing de-motivators or factors that discourage people to work when not present but would not encourage people to work harder. This means that employees join a firm because of its safe work environment but this would not necessarily encourage them to work harder. Examples of motivational strategies include job enlargement to make tasks interesting, job enrichment by giving employees challenging and rewarding tasks, and empowerment by delegating certain aspects of decision-making to employees to enhance their sense of achievement. (Katzell & Thompson 1990)
4.2 Explain how goals motivate people
Goals motivate people when these goals guide and drive people towards action. Goals are passive elements that reflect expectations and intended outcomes but do not provide the means of achieving these expectations and outcomes. However, the achievement of goals could provide a strong enough appeal to individuals and move them towards the completion of a series of steps to actualize goals. Goals represent what people want to achieve (Katzell & Thompson 1990) and the idea of actually actualizing these goals can drive people to act. The goal of getting a promotion could motivate people to improve their performance to meet the requirements of the position.
4.3 Describe the motivational implications equity theory
The equity theory explains that the perception of workers of fairness in workplace policies determines inputs and outcomes. The employer and employee negotiate a level of fairness agreeable to both to constitute the standard of action. The equity theory carries a number of implications. One is the avoidance of underpayment and overpayment since these creates perceptions of unfairness on both sides of the employment relationship respectively. Another is sensitivity to perceptions of inequity by placing due importance to feedbacks. Still another is the monitoring of emerging or potential inequities since this the de-motivating effect could be reversed. Last is in case of the need for distribution or redistribution, the distribution should apply equity starting from the top towards the bottom rung of the organization. (Katzell & Thompson 1990)
4.4 Describe current motivation issues facing managers
The motivation issues faced by managers mostly revolve around the adoption of technological innovations within the organization and adaptation of employees to technology-based processes that could affect the manner of task completion and relationship building. This issue emerged because of the realization that even if technology can benefit the business firm, the application of technology-based processes and tools is not necessarily easy. Some employees may exhibit resistance to technology because of lack of understanding of how this works and fear on its impact to their employment security and competency. Resistance can lead to the antagonism of efforts of managers to introduce technological tools and processes into existing business operations. (Robbins 1998)
4.5 Identify management practices that are likely to lead to more motivated employees
Many management practices could enhance employee motivation. One is receptivity to feedback from employees that necessitates open communications and participation of employees. This has links to employee empowerment and the application of decentralized decision-making. By being receptive to feedback, managers gain an idea of the factors that encourage improvements in the performance of employees based on their aspirations not only in their career but also in their personal lives. Knowing the goals of employees makes its easy to develop motivational practices that address these goals. As such, managers need to match organizational culture with the factors motivating employees. Another commonly mentioned but infrequently applied management practice is support for continuous learning and development aligned with the human resource objectives of the firm. Training and development programs not only enhance the knowledge and skills of employees to improver performance and productivity but also develop greater employee satisfaction from having accomplished something such as self-improvement. (Katzell & Thompson 1990; Robbins 1998)
References
Bangs, D. H., 2002.The business planning guide (9th ed.). New York: Kaplan Business.
Department of Trade and Industry. 2008. South Africa: Open for business. Available at http://www.southafrica.info/business/investing/open.htm [accessed 8 July 2008]
Katzell, R. A., & Thompson, D. E., 1990. Work motivation: Theory and practice. American Psychologist, 45, pp. 145-153.
Kreitner, R., & Kinicki, A., 1998. Organizational behavior (4th ed.). Boston, MA: Irwin McGraw-Hill.
Lasher, W., 2005. The perfect business plan made simple: The best guide to writing a plan that will secure financial backing for your business. New York: Made Simple.
Robbins, S., 1998. Organizational behavior (concepts, controversies, applications). New Jersey: Prentice Hall.
Schermerhorn, J., 2001. Management. New York: John Wiley & Sons, Inc.
Credit:ivythesis.typepad.com
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