MODULE 1 - CORPORATE MANAGEMENTCHAPTER 1 MANAGING LARGE SCALE ORGANIZATIONSCharacteristics of large scale organizationsBusiness enterprises can be classified according to certain characteristics.There are a number of characteristics that may be used to classify a business enterprise as a large-scale organization rather than as a small or a medium business enterprise. The following characteristics may be used as a basis of such a classification. Before we attempt this classification, however, we should recall the basic rules of classification - exhaustiveness and exclusivity. The organizations we are attempting to classify as either small, medium or large-scale must all be able to be placed in at least one of the three categories (exhaustiveness) and the organization being classified must be placed in one, and only one, of the categories (exclusivity).If we take these characteristics and apply them to a large-scale enterprise then the following will normally be true. However, not all large-scale organizations will necessarily exhibit all of the following characteristics: Large scale organizations will normally exhibit these characteristics. More than 100 employees The enterprises assets are of similar value to turnover There is a clear distinction and separation of power between owners and managers There are many owners or the nation owns it as a government enterprise Turn over/revenue is in the hundreds of thousands or millions of dollars The enterprise operate from a number of intrastate, interstate and overseas venues

Distinguishing large-scale organizationsThere are many ways that large-scale organizations can be classified and a variety of forms which they may take. The main way of distinguishing between large-scale organizations is by the ownership of the entity and its principal form of operation. Hence, we are able to distinguish between government (public sector) and non-government (private sector) organizations or, put in another way, between publically owned and privately owned organizations. By 'publically owned' we mean that the community as a whole owns the organization and that it is operated on their behalf by the government. Public sector or government organizations may in turn be categorized into three distinct forms - general government entities, providing non-market goods and services (e.g. roads, hospitals and the like), public trading enterprises, providing market goods and services which meet their community service obligation and finally, public financial enterprises providing financial services e.g. government, banks and insurance offices.Next, we can distinguish between those large-scale organizations which have as their primary or core objective, the 'profit motive', and those which are nonprofit oriented. Also, we can distinguish between large-scale organizations according to the industry to which they belong - primary, secondary or tertiary, or as to whether their core function is manufacturing or service provision.We could also distinguish between organizations according to their legal status and the extent of their legal liability (e.g. sole trader, partnership, company, statutory authority, government department, and those large-scale organizations which have limited and those which have unlimited liability), and their size in terms of the number of employees, production levels and turnover.

POLC CCMThere is a wide range of essential functions that must be performed by managers in large-scale organizations. These functions may be categorized into two broad types - generic functions and specific functions.POLC CCM is a mnemonic for the ingredients of overseeing business functionsThe generic management functions which all managers perform to some extent include the 'POLC CCM' functions: P - planning - managers must perform the task of planning at their designated level (the strategic, tactical or operational level) everything that the organization must do to achieve its objectives, i.e. the long-term, the mid-term and the short-term plans Three important levels of planning O - organizing - managers must ensure that all of the necessary resources, i.e. the natural resources, the human resources, the capital resources and the entrepreneurial or 'street smart' resources are available and are able to be used to perform the required tasks or for the required purposes so that the service can be provided or the product manufactured Essential resources needed for business organizations. L - leading - managers must lead the way for employees, customers and competitors; they must be at the forefront of trends and fashions and lead by example in the workplace through their technical skill and competencies. C - controlling - managers must perform a supervisory and control function to ensure that work is performed to the optimal level and that the quality of service provision of product manufacture is at world's best practice level. C - communicating - managers must keep everyone in the organization informed of what is occurring within the organization as well as members of the wider community Communication is vital for successful organizations. C - creating - managers must be able to create innovative ways to perform tasks and to market the organizations products or services in order to enhance the organizations effectiveness and efficiency. M - motivating managers must be able to motivate staff to maintain them in the first instance and then to ensure that their performance is optimized both for their own benefit and also for the benefit of the organization.

Specific management functionsHuman Resource Managers are responsible for motivating employees to achieve their organizational objectives.Operations managers meet customer demands and organizational objectives.The specific management functions a manager will perform are determined by the structure of the organization and by the area of expertise that the manager specializes in within the organization. Examples of these functions include: Marketing and Public Relations - managers must ensure that the right products and services are produced in the right style, at the right time for the right consumers, and to satisfy all consumer complaints if the organization is to be successful. Banking and Finance - managers must ensure that the organization has the necessary financial resources to achieve its objectives and then they must control these organizational finances. General Administration - managers must ensure that all the necessary paperwork, data entry and analysis are completed in the most efficient manner. Distribution - managers must ensure that the products are delivered on time to customers and that delivery charges are kept to a minimum.

Contributions of large-scale organizations to the economyLarge-scale organizations make a significant contribution to the economy as a whole and it is for this reason that governments take a special interest in the successful operation of these organizations.The main significant contributions that these organizations make include: Employment - any downturn in organizational performance which sees these organizations downsize the number of their employees or close part or all of their operations will have a significant impact on the community. Also, these organizations provide indirect employment through the many organizations from whom they purchase their components or parts. Goods and services - these organizations provide a significant number of important goods and services not only for the general public but for other organizations as well. In addition, these organizations undertake extensive research and development to extend the type and the range of products and services available, as well as to improve their quality and serviceability. Revenue - these organizations are a major source of revenue for the government through the taxation system. Competition - these organizations provide a source of competition between themselves, which benefits the consumers and the community as a whole through lower pricing structures and better quality products or service. Community welfare - some of these organizations provide the necessary infrastructure or goods and services, which enable members of the community to achieve minimum levels of welfare. They may also have a community service obligation to provide certain goods and services to the general community at zero cost or at a cost which simply recovers expenses. Some of these organizations also sponsor certain activities and groups within the community and undertake research into ways to preserve our environment and our heritage. Foster international relations - many of these organizations are multinational corporations and as a result are de facto diplomats which represent their country in their international dealings and, as such, assist with government policy implementation.

Business environmentsLarge-scale organizations do not operate within a vacuum, they operate within constantly changing commercial and non-commercial environments. These organizations are not static, they are dynamic organizations operating within an open (as opposed to a closed) system. It is important for managers within these organizations to understand the environment within which they operate so that they can be proactive about any likely impacts that the environment may have on the organization. In this way managers can make any necessary changes to ensure the continued success of the organization and the attainment of its goals and objectives.Large-scale organizations operate within essentially two broad environments - the internal environment and the external environment. The external environment may be further divided into the task environment and the general environment.There are three major sectors or contributors to the internal environment which may impact on the organization: management, employees and the culture of the organizations.Management obviously has a significant impact on the way that the organization operates and functions, through the management functions already discussed. The employees may impact on the organization through the tasks that they perform and the way that they execute those tasks. The culture of the organization is a significant impactor as it incorporates 'the way that things are done within the organization'. The culture of the organization includes the 'system of shared values' inherent within the organization, i.e. what people both within and outside the organization believe the organization stands for and how it operates, e.g. the quality of its service and the level of the organizations employee relations. If the culture was to alter then the operations of the organization would change as well. It is worth noting that the organization has a fair degree of control over these sectors and the impact that they have on the organization.

CHAPTER 2 EVALUATIING ORGANIZATIONAL PERFORMANCEEvaluation of organizational performanceThere are numerous ways organizations collect data.An evaluation or assessment of an organizations performance needs to be undertaken in order to ensure that the objectives of that organization are being met. It does not matter whether the objectives are long, mid or short-term, there is no point in setting objectives if you do not intend to measure whether they have been successfully met. Such as assessment of performance will measure the effectiveness of the organization. In addition, the way that the organization employs and uses its resources to achieve these goals and objectives must be evaluated to see whether these resources are being used to their optimum capacity. Such an assessment of the organizations performance will measure the efficiency of the organizations operations. In addition to measuring the performance of the organization as a whole, the performance of individual employees or teams of employees may be measured, as well as the performance of sections or departments of the organization. Such evaluations will be carried out for different purposes.There are three stages to the evaluation of organizational performance. Firstly, we need to know WHAT it is we intend to measure the performance of, i.e. the indicators or the criteria. Secondly, we need to know HOW we intend to measure these indicators or criteria. Thirdly, we need to establish what we intend to do with the outcomes of the evaluation process.Organizations will look at their principal objectives, their core functions, and the key elements of their policies, then prioritize the key indicators or key result areas that they want to measure. Next, a specific criterion, measure or indicator will need to be established. These indicators will either be quantitative or qualitative in nature. Quantitative indicators are 'objective', as they measure aspects of performance that are quantifiable and are not subject to variation once they have been defined, e.g. the number of employees, the level of profit, the number of industrial accidents, the number of customer complaints. Qualitative indicators are, on the other hand, subjective in nature and vary according to who is providing the information, e.g. the level of customer satisfaction, the level of employee satisfaction, or the level of customer service. Organizations will select a number of key performance indicators (KPIs) to measure the key objectives or elements of organizational policy. Next, the organization must decide how the data will be collected, i.e. the method that will be used. A number of options exist - statistical research, survey, observation, questionnaire, and benchmarking. An organization may use a variety of methods to collect the necessary data that needs to be analyzed.

KPIsData analysis is the basis of future planning for organizations.Finally, once the data has been collected and analyzed, it must be interpreted. The interpreted data may then form a basis for future action. The organization may decide to do nothing as it is performing to the benchmark. The organization may take corrective action as the organizational objectives were not met, it may change the direction in which the organization is heading, or it may set new and revised organizational goals to improve the performance of the organization to a higher level.Examples of KPIs that large-scale organizations commonly use to measure their performance include: the level of profit the return on investment the return on assets the level of staff turnover the level of customer satisfaction the number of customer complaints the number of industrial disputes

CHAPTER 3 MANAGEMENT STRUCTURES AND OBJECTIVESManagement structuresTeamwork at management level produces common goals and directions.In order to attain the objectives of the organization, an organizational chart which sets out in diagrammatic fashion the roles and responsibilities of managers and, hence, their main work areas and tasks within the organization, should be established. The primary purpose of establishing this chart is to assist in the efficient and effective operation of the organization. The chart will enable stakeholders to gain a clear picture of what should happen within the organization.The structure established through this chart will highlight for the individual organization: the primary or core areas of responsibility and the degree of specialization adopted. the distribution of power and authority. the level of delegation and accountability. the communication channels within the organization and the methods of communication used for reporting purposes. the key result areas that will be evaluated. the control mechanisms adopted e.g. degree of centralization and the span of control used. the co-ordination processes used. the decision-making processes adopted. other arrangements associated with the good order and functioning of the organization.This organizational chart is the formal structure of the organization which will be determined after considering the following factors: the strategic, tactical and operational objectives. the size in terms of the number of employees, locations, financial and physical assets. the age. the environment within which the organization operates. the level of specialization and independence that exists and its various sections. the current distribution of power and authority between managers. other characteristics (as discussed in section Characteristics of large-scale organizations).However, in reality, the actual structure of the organization may vary greatly from this formal structure due to the dynamic nature of large-scale organizations and the environments within which they operate.

Management structures and objectivesVertical management structure

Horizontal management structure

This resource covers management structures and objectives. It looks at the corporate culture - and management roles within that culture - as well as organizational charts and policy development. This unit of work begins by looking at organizational charts.Organizational chartsThere are many different forms that these organizational charts may take. The specific form drawn up by the organization may be based on one of the following types: hierarchical structure - specialization within the organization which relies on a vertical or a pyramid style of power, authority and decision-making. functional, divisional and matrix structures - specialization within the organization which relies on a horizontal style of power, authority and decision-making.The functional structure or chart separates out the main areas of responsibility for various functions within the organization. These areas (as covered and discussed in section Different forms of large-scale organizations and their management functions) may include: Human Resources Operations Marketing and Public Relations Banking and Finance General Administration.The functional structure or chart separates out the main areas of responsibility based on the various departments of sections of the organization. These departments may be based, in turn, on the types of products manufactured or sold by the organization; the various locations from which the organization operates; or the types of customers that the organization services or supplies.The functional structure or chart separates out the main areas of responsibility based on projects that the organization is currently working on.

Goals and objectivesThe mission or vision statement is normally determined by the Chief Executive Officer of the organization in consultation with the board of directors and senior management of the organization.Organizational objectives

Every organization, when it is established, has a specific purpose or objective that it wants to achieve. In fact, many organizations have multiple objectives that they want to achieve. It does not matter whether the organization is part of the public sector or the private sector, both will have their specific objectives that they want to achieve.These guiding goals and objectives are normally formulated in the form of a mission or vision statement. This statement attempts to summarize in a concise and precise manner the essential or core objective(s) of the organization. It is a broad statement relating to what the business intends to do or to achieve both now and in the future. It is developed from the history of the organization, its past performance, the environment within which it operates, the personnel associated with the organization and their vision of the organization. It is the overriding objective to which all other objectives are directed and is therefore strategic in nature. The mission or vision statement is established as a long-term objective.Once the mission or vision has been formulated, the next level of management within the organization will establish their own objectives. The senior management team will formulate the core drivers for their section of the organization. These core drivers should mirror the mission/vision statement. These objectives will be mid-term in nature and will in turn be used by the next level of management when formulating their objectives.Finally, the last level of management within an organization - the front-line managers will draw up their objectives based upon the core drivers and the mission/vision. These targets will be typically short-term and operational in nature.

Management uses of objectivesManagement uses these objectives to clearly define, for its employees and other management levels, the tasks that have to be performed and the targets that have to be achieved. These objectives will then be used to measure or to assess the performance of the organization as a whole, a team of employees or managers, or individual employees or managers. As a result of this evaluation, the organization may revise its objectives for the next time period and then draw up a revised strategy for the organization to follow.There are a number of advantages or benefits to an organization of establishing objectives. These include: performance expectations of both managers and employees are clearly stated and defined. communication and liaison between managers and employees is made easier by establishing a common set of objectives. planning at all levels - strategic, tactical and operational - is made easier and an evaluation of the planning process may be undertaken. the objectives may be communicated to all stakeholders of the organizations (stakeholders being any individual, group of individuals or organizations which have a 'vested' interest in the successful operation of the organization, i.e. they stand to lose something if the organization does not succeed) and thus become part of the culture of the organization. a measuring yardstick or standard will be established and the organization can set itself up as the benchmark for other organizations. a system of accountability and responsibility is established within the organization.

Corporate cultureCorporate culture may be formal or informal depending on the expectations of the organization.The corporate culture of an organization may be defined as 'the system of shared values' that exists within the corporate structure of an organization. The existence of a corporate culture implies that there is a common set of values and norms that form the basis for all work practices and procedures that are carried out within the organization. It also implies that there are clearly established ideals and beliefs that all employees, managers and owners of the organization believe are the keys to the successful operation of the organization.These values represent: how employees believe they will be treated by management. how managers treat each other. how customers will be treated and how customers expect to be treated. how the organization interacts with other organizations and government agencies. how the organization views the wider environment and the level of corporate ethics and social responsibility that is evident in the actions of the organization.The existence of a corporate culture for an organization enables the many and varied sections or departments of an organization to feel a sense of belonging to each other rather than acting as independent units.Corporate culture is an intangible term, i.e. it cannot be touched or seen visibly. However, there are many signs or symbols that tell us about the corporate culture of an organization.The corporate culture is something that evolves from the initial establishment of the organization and the formulation of the mission and vision statement. In some instances, stakeholders view the organization differently from how the organization perceives itself. There may be, as a result, a difference between what is supposedly the 'official' culture and what the 'actual' culture is within the organization. Changes to the environment within which the organization operates may have an impact on the culture of the organization. The organization must be flexible and be able to adapt to these changes for the benefit of all stakeholders of the organization. The corporate culture of an organization is, however, difficult to alter and a significant change process would have to be implemented to achieve this. Management has a direct role to play in the development or change in the corporate culture. Management will act as a role model for their employees and their behavior should mirror what the organization is attempting to achieve through its goals and objectives. Management must provide the necessary infrastructure to train and to educate the employees with respect to this corporate culture and to ensure that they are properly motivated.

Management rolesManagers perform certain generic roles in any organization. The extent of these roles will be determined by the type of managerial position they hold within the organization - CEO, senior manager or front-line manager. However, the principal aim of any manager's role is to achieve the objectives of the organization.The generic management functions which all managers perform may be described as the 'POLC CCM' functions or roles as discussed earlier.

P planningP - planning - managers must perform the role of planning, at their designated level (the strategic, tactical or operational level), everything that the organization must do to achieve its objectives. Managers must develop the long-term, the mid-term and the short-term plans for the organization to achieve these objectives.Managers will need to implement a problem-solving and decision-making model to assist them in determining their strategic, tactical or operational plans.The steps that managers will need to consider include: establishing and understanding the objectives that are to be achieved in either the long, mid or short-term. gathering the necessary data to determine a reasoned and logical solution to the most effective way to achieve these objectives. This includes understanding all variables in the internal and external environment and forecasting likely events or impacts on the organization during the designated time period. analyzing the data by performing a SWOT analysis. A SWOT analysis involves the manager analyzing the relative strengths and weaknesses of the organization together with the opportunities and threats offered or imposed from outside the organization. determining a number of alternative plans of action and ranking these alternatives according to some predetermined scale or priority listing. selecting the preferred plan or course of action. implementing the plan through the use of an action plan, which will take the following into account: O - objectives - what is to be achieved through the plan - the goals and objectives P - personnel - the personnel who will be responsible for implementing the plan S - strategies - the strategies or methods to be adopted by the personnel T - tasks - the tasks that will need to be performed by the personnel and the delegation of tasks to specific personnel T - timeline - the timeline over which the plan is to be implemented E - evaluation - the evaluation process which will be adopted to assess whether the plan has been effectively implemented E - evaluating - the extent to which the plan has been effectively implemented. Managers will need to determine the KPIs to be used in the evaluation process and what method will be adopted to collect the required data

O organizingO - organising - managers must ensure that all of the necessary resources (i.e. the natural resources, the human resources, the capital resources and the entrepreneurial or ' street smart' resources) are available and able to be used or to perform the required tasks or purposes. Managers must organise their employees so that the 'right' resources are used in the 'right' way to achieve the 'right' objectives. The organisation of the business enterprise will involve establishing a workable organisational structure, an appropriate distribution of power and authority across the organisation and effective communication processes, delegating tasks to the most appropriate personnel, setting into place accountability and responsibility control mechanisms, and arranging an effective operations model.

L leadingL - leading - managers must lead the way for employees, customers and competitors. They must be at the forefront of trends and fashions and lead by example in the workplace through a display of their technical skills and competencies. Managers must be able to act as role models for employees and, thus, indirectly and directly lead them in their work tasks. Managers are often described as people who ensure that 'things are done in the right way', whereas leaders are described as people who ensure that 'the right things are done'. The two are thus not mutually inclusive. The leading role of a manager requires them to provide the necessary vision for the organisation to foresee opportunities and to implement action to take advantage of these opportunities. A good leader will also communicate effectively with the employees and provide feedback on their performance.

C controllingC - controlling - managers must perform a supervisory and control function to ensure that work is performed to the optimal level and that the quality of service provision of product manufacture is at world's best practice level. Managers must assess and monitor the performance of departments, teams of employees and individual employees to ensure that the objectives of the organisation are being achieved. There are a number of different techniques that the manager may adopt. The control mechanism may be implemented at the end of a predetermined period or a continuous method of assessment may be adopted. The standards of performance required by managers must be clearly communicated to employees or teams of employees. Once the performance has been measured, compared and analysed, then corrective action may be taken by the managers when appropriate. The level of control employed by the manager will, in many respects, be determined by the management style adopted by the manager and by the culture of the organisation.

C communicatingCommunication is vital in the corporate world.C - communicating - managers must keep everyone in the organisation informed of what is occurring within the organisation and also ensuring that members of the wider community are kept informed of what the organisation is doing. The communication role is important as it enables managers to coordinate the outcomes of the other managerial roles. Managers must set communication policies to ensure that the correct communication channels are used by employees of the organisation.

C creatingC - creating - managers must be able to create innovative ways to perform tasks and to market the organisation's products or services in order to enhance the organisation's effectiveness and efficiency. Managers should be thinking laterally and suggesting alternative processes and procedures to improve the efficiency and effectiveness of the operations of the organisation. The level of creativity evident from a manager will be determined by both the culture of the organisation and the management style adopted by the manager.

M motivatingM - motivating - managers must be able to motivate staff to maintain them in their employment with the organisation, in the first instance, and then to ensure that the performance of the employees is optimised both for their own benefit and also for the benefit of the organisation. The level of empowerment of employees will vary from organisation to organisation and is, once again, dependent on the culture of the organisation and the management style adopted by the manager. The form of motivation used by the manager will, likewise, vary between material to non-material methods dependent upon the culture of the organisation and the management style adopted. Managers will motivate employees to ensure that the organisational plans are implemented effectively, that the organisation is organised effectively, and that the control mechanisms implemented by managers are accepted as legitimate by the employees.

Policy developmentFollowing the development of a business strategy by management, all organisations should prepare policies and establish procedures that are to be followed by both employees and management of that organisation. By establishing such policies and procedures, the objectives of the organisation can be more readily attained. As well, all stakeholders within the organisation can be made aware of the expectations of the organisation and what must be done to achieve these objectives.Organisational policies will set out, in a formal manner, the practices and procedures that are to be followed within the organisation with respect to a significant issue or an area of business operations. The formulation of a business policy will provide a uniform way of handling matters by personnel within the organisation especially, where that organisation operates from more than one workplace.Policies may need to be developed because the environment within which the organisation operates has changed and therefore the organisation needs to alter or modify how they carry out certain activities and tasks, e.g. the legislation and government regulations may be changed and may impact on how organisations do things or prevent them from doing something. Organisations may also pre-empt likely changes in the environment and be proactive rather than reactive in regard to policy changes. In some cases, the objectives of the organisation may have been changed to give the organisation a new direction or purpose and, as a result, the policies of the organisation will need to be re-written or amended. As well, the competitive nature of the commercial marketplace may see a need for the organisation to modify or to change business strategies to maintain or to improve their market share. This could be through price differentiation, image differentiation, design differentiation, quality differentiation, support differentiation, market differentiation, market expansion, product development, corporate expansion or business contraction. Finally, there may be a need to change or modify certain policies to overcome problems encountered with their implementation.The development of a specific policy will normally follow a number of stages. These include: establishing the precise need for a written statement concerning a specific area of organisational operations because certain problems have arisen within the organisation or are impacting upon the organisation from the external environment. researching the specific issue area which includes obtaining as much information as possible from within and from outside the organisation and, consulting all stakeholders of the organisation (in some cases, external consultants are outsourced to carry out this research and even prepare a draft policy) as to their opinions about the issue area. drafting a policy by a committee, an external consultant or a management team, with or without employee representatives, delegated to perform the task and then distributing the draft policy for comment. reviewing comments and altering the draft policy where appropriate. passing the policy on to senior management for approval and for setting a date for implementation of the policy. distributing the policy to all interested parties and holding information sessions where appropriate to educate employees and other interested stakeholders about the policy to be implementedA policy will normally contain detail related to: the objective(s) of the policy. the expected outcome(s) and the level or standard of achievement desired. the timeframe within which the policy is to be implemented and assessed. the method(s) of evaluation to be employed by the organization. the activities that must be carried out, by both management and employees, to implement the policy.In addition, procedures relating to how a specific policy is to be carried out or implemented will also need to be written down. Procedures involve a written or an unwritten statement or understanding of what must be done in any particular situation, that is, the essential mechanics of the task. It involves a step-by-step account of what is to be done by employees and/or management when a specific task has to be completed or a specific decision has to be made.Management is largely responsible for establishing the policies and procedures of the organisation and of communicating these to all employees and other interested stakeholders of the organisation. Consultation between management and employees should take place before implementing these policies and procedures to ensure that they can be both effectively and efficiently carried out. In many organisations today, however, where employee empowerment is in place, employees or groups of employees may provide much of the impetus for policy development and implementation.The various policies of the organisation may be grouped together in a policy manual. This will become a ready reference for all managers to be referred to when the need arises in regard to how to handle certain procedures or tasks.

CHAPTER 4 MANAGEMENT STYLESCharacteristics of management stylesEach manager develops their own particular management style of operating.Whilst the functions and roles that managers have to perform follows a fairly uniform path, the manner in which they implement and exercise these various functions and roles varies from manager to manager. Each manager develops their own particular management style of operating. However, it is possible to see certain common characteristics in management styles exhibited by managers and, as a result, it is possible to group or to classify management styles into specific categories based on these common characteristics.The characteristics that may be used to distinguish between management styles include:C- centralisation - degree of centralisation. This characteristic relates to the distribution of power and authority within the organisation, whether it is highly centralised and administered by a single or a small number of managers or if it is highly decentralised and administered by a large number of managers. The span of control (the number of employees and tasks that the manager has responsibility for) is linked to this characteristic. The more centralised the power base, then the greater the span of control. The extent of the span of control can be seen in the organisational chart and the number of managerial levels and the number of managers at each of those levels.O - orientation. This characteristic relates to the extent to which the manager is task-oriented as opposed to employee-oriented, that is, what the manager sees as their core priority or responsibility. This characteristic is used to categorise managers according to the priority they place on getting the job done at any cost as opposed to taking into account the impact that the tasks may have on the employees.M - motivation. This characteristic relates to the extent to which the managers use purely material incentives, as opposed to non-material incentives, when attempting to motivate employees to enhance or to increase their performance levels or, simply, to remain with the organisation. This characteristic also looks at the extent to which the manager rewards individual employees, as opposed to groups or teams of employees, and also rewards not only the output of employees but also their input into the processes.D - decision-making. This characteristic relates to the extent to which the manager makes all decisions personally or allows the employees to have some degree of input into the decision-making process. Some managers will make all decisions themselves without any input from employees and, at the other extreme, some managers will allow employees to make all the decisions and will only make decisions in regard to timelines and resource levels and allocations.A - attitude. This characteristic relates to the extent to which the manager is concerned with the professional and the personal development of the employees as opposed to simply treating the employee like a number to be used accordingly. This characteristic looks at the degree to which the manager adopts a holistic approach to the individual employee, adopts a caring attitude and is concerned with both professional and personal development.C - communication. This characteristic relates to the extent to which the manager adopts open communication channels which are used for communicating with other managers and employees as opposed to closed information giving channels directed downwards from managers to employees. It also relates to the specific mediums used within these communication channels, e.g. memos as opposed to forums and discussions.These characteristics may be used to distinguish between and to contrast the various management styles that may be adopted by managers.

Four management stylesElements often used to distinguish between management styles include centralisation, orientation, motivation, decision-making, attitude and communication.There are four broad management styles that can be identified when applying these characteristics to how certain managers go about their job. These styles include: autocratic, authoritarian, dictatorial, directive, persuasive consultative participative democratic, laissez-faire, free-reinA manager will adopt a specific style and use that style to carry out the tasks and functions associated with their specific job. In some cases, the manager may adopt what is referred to as the 'contingency or situational' approach to their management style. This means that the manager will assess the current situation and then, dependent upon what that situation is, they will adopt a management style that is appropriate to that situation.In most cases, however, the manager will display the characteristics of one of the management styles identified above. Which management style a manager adopts will be determined by one or a combination of the following factors: P - personality. The personality of the individual manager along with the type and level of education they were exposed to, what the manager has learned from previous managerial role models, and the extent of both the manager's personal and professional development E - employees. The number of employees for whom that manager has responsibility and the skill level and motivational level of these employees, together with the capacity of these employees to make decisions about their work practices and procedures T - tasks. The type of tasks that have to be performed by the manager and the employees, the level of risk associated with the tasks, and the timeline within which the tasks must be completed satisfactorily C - constraints. The environmental factors which might impact on the way that the manager might operate, both the internal and external factors along with the normal daily constraints of time, cost and resources associated with the specific tasks and procedures to be carried out by the manager C - culture. The culture of the organisation will determine to a large extent the management style that will be exhibited by an individual manager. Organisations tend, in the main, to employ 'like' people and, therefore, managers will tend to exhibit similar management style except where the organisation is based on a diversity of its personnel and managers. The management style adopted will need to enable the organisation to achieve its long-term objectives as set out in the vision or mission statement.We can now look at each management style in turn and discuss the characteristics exhibited by each and then assess the relative strengths and weaknesses of each management style. The management styles may be thought of as being on a continuous line with the Autocratic on the extreme right and the Democratic on the extreme left.Democratic - Participative - Consultative - Autocratic

Autocratic management styleAutocratic, authoritarian, dictatorial, directive, persuasive - the characteristics exhibited by this management style include: C - This management style is highly centralised with all power and authority invested in one or a small number of managers. There is little or no delegation of tasks to employees and all responsibility remains with the manager. The span of control is broad with the manager in charge of a significant number of employees. O - The manager exhibiting this management style is totally task-oriented and no concessions or considerations are given to employees during the time when the task needs to be performed. M - The wage is used by management as the only incentive or reward to employees to perform their tasks. The manager believes that the wage should be the only necessary incentive and that if the employee is not performing to benchmark then the employee's employment status should be terminated. D - The manager makes all decision for the employees and the employees have no input into the decision-making process. The manager either believes that the employees do not have the time to assist with the decision-making process as it would distract them from their primary and core tasks or that they do not have the necessary skills to act in that capacity. A - Managers are not concerned about the welfare of the employees as they are task-oriented and any feedback to the employees tends to be negative and reactive. The managers are concerned with ensuring that the employees perform the tasks at hand and not what their career path may be and how to assist them to achieve it. C - The communication exhibited by the manager using the autocratic style is usually very formal in style, top down and one way information giving. There is little or no encouragement of input or feedback from employees to managers and any initiation of communication comes from the managers only. Communication tends to be in memo style in the main.

Consultative management styleConsultative - the characteristics exhibited by this management style include: C - This management style is still highly centralised but there are committees formed which are delegated the task of putting their comments and thoughts to management before any decision-making by management takes place. O - There is still a heavy emphasis on task orientation. M - Material incentives and the wage remain the overriding motivating factor for this management style. D - Decision-making remains the function of management but others in the organisation are asked for their opinions and thoughts even though they may be ignored by management. A - Attitude towards employees is still highly impersonal but some emphasis on professional development occurs. C - Formal, one-way lines of communication where individuals tend to rely on the formal authority associated with their positions to accomplish their goals and objectives.

Participative management stylesParticipative - the characteristics exhibited by this management style include: C - Decentralisation of power and authority with high levels of delegation of tasks and decision-making; the span of control is not as broad as in the autocratic style and teams are formed and made accountable to management and given responsibility for specific tasks. O - There is a priority towards employee orientation in this style; what and how the employees go about the tasks and the impact that the tasks have on employees is considered. M - Non-material incentives and motivators are used by management to increase employee performance and to improve productivity levels. D - Decision-making is in the hands of teams of employees with representation from management on these teams. A - A holistic approach and attitude towards employees is adopted by management; both personal and professional development training is provided by management; faith and trust are evident in the relationships that develop between management and employees; a greater sense of ownership is apparent and employees are prepared to contribute more to the performance of the organisation rather than simply pursing their own self-interest. C - Communication executed by this management style is fairly informal, two way with constant feedback form both management and from employees; a greater emphasis on verbal communication mediums adopted.

Democratic management styleDemocratic, laissez-faire, free-rein - the characteristics exhibited by this management style include: C - Highly decentralised organisational structure with narrow spans of control; total delegation of tasks and decision-making to teams of employees except with respect to budget and resource allocation and levels to the teams, and the timelines for completion of tasks. O - Total emphasis on employees and their role and place in the organisation; tasks must still be completed but the emphasis is on employees; management has faith that the employees will successfully complete the tasks within the designated timeline. M - Employees provide their own motivation and do not really need any external motivator in order to perform the tasks set; if anything, non-material incentives are more important under this management style to motivate employees to improve performance levels. D - Decision are left entirely in the hands of employees except for resource and timeline decisions; teams are held accountable for their actions and assume responsibility for all tasks and procedures undertaken. A - Management has total trust and faith in the employees and does little to interfere in what and how they go about their tasks and procedures; supervision and monitoring are at a minimum when this management style is adopted. C - Communication channels used in this management style are mainly bottom-up, informal with feedback from both management and employees.

Management skills and competenciesManagers need to possess a diverse range of skills to operate efficiently and effectively in today's marketplace.Skills and competency levels can be achieved or enhanced by training, by practice, by coaching, by mentoring, by observation and by benchmarking.Managers in today's organisations are expected to demonstrate specific skills and competency levels in order to exercise their respective managerial functions both effectively and efficiently. The skills they need to exhibit are extremely diverse as managers need not only to be able to work by themselves and as a member of a team, but they will also need to supervise and to coach employees in various processes and procedures.A skill is defined as 'practical knowledge in combination with ability, cleverness and expertness'. Skills are therefore those abilities which result from knowledge, information, practice and aptitude. A competency is defined as 'sufficiency in amount, quality or degree'. Competency levels are therefore those levels set by the organisation, or by an external organisation, which managers will be expected to reach and execute with respect to the exercise of a specific skill.Key competencies expected to be shown by employees within organisations (and therefore, by managers of those organisations) include the following seven key competencies: collecting, analysing and organising information. communicating ideas and information. planning and organising activities. working with others in teams. using mathematical ideas and techniques. solving problems. using technology.Skills and competency levels can be achieved or enhanced by training, practice, coaching, mentoring, observation and benchmarking.

Generic skill typesThere are three generic skill types that managers will be expected to display. They are:* T - technical skills. Those skills specific to the functions, tasks or processes that the manager is carrying out as part of their managerial job description, e.g. accounting, marketing, public relations, machinery use, computer skills. These skills require the manager to apply specialised knowledge and expertise to a specific task area.* IPC - inter-personal and communication skills. Those skills which managers need to exercise in order to communicate effectively with other managers, employees, and all other stakeholders of the organisation, and to develop effective relationships between themselves and stakeholders both within and outside the organisation, e.g. verbal and non-verbal communication skills, coaching skills, negotiations.* DMC - decision-making and conceptual skills. Those skills associated with being able to see the 'big' picture, and to recognise and understand the many complex issues that need to be dealt with by organisations, together with the ability to make decisions that will lead the organisation down the right path to achieve their stated objectives, e.g. visionary skills, strategic planning skills, analysing skills, interpreting skills, organisational skills and forecasting skills.

Expectations of an effective managerAn effective manager is expected to lead by example and inspire employees.The Karpin report also stated that Australian managers need to improve their skills in the areas highlighted here.An effective manager today will be expected to: have a sound knowledge and understanding of the objectives of the organization. be responsive and proactive to the changing environment in which the organisation is operating. be creative and innovative with respect to processes and procedures that the organisation needs to carry out. ensure that quality is achieved both in processes and outcomes. develop and foster teamwork within the organization. monitor training and development carried on in the organization. monitor outcomes and insist on benchmarks being attained. show empathy to the needs of employees. delegate effectively whilst maintaining appropriate levels of accountability and responsibility. lead by example and be highly motivated and enthusiastic. inspire employees. be honest and show integrity. be an effective communicator to all stakeholders in the organization. network effectively to enhance organisational performance. display a global perspective for the organization. know what skills are required to perform the managerial job effectively and efficiently.

Relationship between management styles and management skills and competenciesSome skills will need to be exhibited at higher levels for some management styles than others, while other skills may not be needed at all.Managers exhibiting different management styles will require different types of skills and differing competency skills to exercise their functions. Some skills will need to be exhibited at higher levels for some management styles than others, whilst others skills may not be needed at all.

CHAPTER 5 CHANGE MANAGEMENTOrganisational changeThe change to the operations of the organisation may require a modification to the culture of the organization.Employees may see the need for change if they want to retain their jobs or if management has provided them with an opportunity to become involved in the decision-making processes of the organisation.Change is a factor that confronts all organisations. The interaction of the organisation with both the internal and the external environments means that organisations must be seen as dynamic in nature and they must, as a result, modify their operations accordingly. If managers of these organisations do not modify their operations and do not manage the change process effectively then the organisations could possibly lose their competitive advantage and suffer some set back in their market share. The speed with which management responds to the pressures for change is critical to the continuing success of the organisation.The culture of the organisation must allow the managers to achieve the stated goals and objectives of the organisation. Managers must ensure that conditions surrounding and within the organisation are monitored so that they limit any performance gap (the difference between levels of performance that the organisation said that it wanted to achieve and what it is currently achieving) and ensure that they do not impact on the culture of the organisation.Managers must ensure that they adopt a proactive and planned process to the change process otherwise an ad hoc and reactive approach will be evident. The end result of the latter approach to the management of change is not usually a successful outcome for the organisation and usually involves high levels of performance gap. However, there will be occasions when the organisation and managers are not able to predict or foresee what will happen and therefore they must have specific strategies in place that can be implemented when these occasions arise.As we have seen, pressures for change arise from both the internal and the external environments. The main sources for change internally are from managers, employees and the business policies and strategies which form part of the culture of the organisation. Managers may see the need for a change in direction and policy. This may be a need to return to basics, to diversify or to expand in order to survive or to extend market share. It may simply be the result of a change in managerial personnel at the senior management level and a change in attitudes and approaches coming from these managers. The CEO and the directors of the organisation may see the need to change the culture of the organisation if the organisation is to survive in the changing commercial marketplace.

External pressures for changeTechnology changes the way tasks and processes are carried out in organisations and therefore impact on the employees.Externally, pressures for change arise from competitors in the marketplace, the technological environment, the government, the international sector, the society as a whole and the general economic environment. Competitors may have introduced new products or services, or undertaken extensive advertising campaigns and therefore the organisation must respond or risk losing market share and customer loyalty. Technological advances are occurring at an exponential rate and a significant cause for concern to organisations because of their associated costs. However, organisations cannot afford to ignore the changes as their competitors or new players may enter the marketplace and take some of their market share. Technology also changes the way tasks and processes are carried out in organisations and therefore impact on the employees. This in turn, forces management to make further changes to job practices and designs, and specifically to job descriptions and job specifications. This is equally true for service enterprises as it is for manufacturing enterprises.Governments may influence organisations by changes to legislation.The government pressures organisations to modify or change their operations by introducing legislation, changing their foreign policies and altering their political platform and agendas. A change in government may cause considerable change for businesses with significant changes taking place, e.g. changes to taxation laws. The government may also influence the state of employee or industrial relations, e.g. the introduction of enterprise bargaining and force organisations to change the relationship that exists between management, employees and unions. The international or overseas sector may also force organisations to change. The rapid rate of globalisation of business coupled with associated technological changes cannot be ignored by organisations. The society as a whole may also result in changes being made to the way organisations operate. The questions of social responsibility, environment and quality of life are areas that can be overlooked by organisations as their operations directly and indirectly impact on our communities. Changes to the workforce in terms of composition, age and qualifications may also force changes to the way organisations employ staff and the type of staff that are able to employ. Finally, organisations need to change depending upon the state of the general economic environment as evidenced by interest rates, the value of the dollar and other currencies and the stage in the economic cycle that the country is in at that time. Changes may also be necessary if the organisation is moving to the next level in its internal growth and development cycle.These pressures may be seen as driving forces pushing the organisation to change or restraining forces holding the organisation back and resisting the change. Usually there are numerous forces acting on the organisation at any one time and the management of the organisation must assess each in turn and carry out some sort of analysis of the continuing impact of these forces on the organisation. An example of a process or strategy that could be used is a SWOT analysis in which the relative Strengths, Weaknesses, Opportunities and Threats of each pressure are evaluated and balanced against each other.Managers who are responsible for implementing the change process are called change agents or facilitators.Many organisations also outsource this function to external specialists. The change agents are seen as the catalysts of the change process and depending upon the management style adopted by the manager, the task may also be delegated to an employee or team of employees on the shop floor.

Effects of change on large-scale organisationsThe effects of change on organisations are usually evidenced in one or more of the following areas: people - the employees and management of the organization. organisational structures. technology employed within the organization. planning and policies developed and implemented by management.Change may bring about a change in the attitude or behaviour of people within the organisation, that is, the employees and/or management. This change in attitude or behaviour may be necessary because of what competitors are doing or what the clients of the organisation are now demanding, e.g. the desire for greater levels of customer service and for better quality products or service provision. Whilst it is not easy to change people's attitudes and behaviour, unless the organisation does so there is the potential danger that the organisation will not survive. Organisational development may be the strategy used to effect these changes in attitudes and behaviour. This process will affect the way that the organisation operates as it involves changing the culture of the organisation. These changes in organisational culture will alter the forms and mediums of communication carried out within the organisation; the level of networking carried out between employees; the team building activities undertaken; and the problem solving techniques and conflict resolution strategies adopted by the organisation.This process of organisational development normally involves the following stages: the testing and then analysis of the current culture evident within the organization. the education and training of employees to enhance their work relationships and personal development within the 'new' culture. developing team building activities to improve performance. designing career planning activities for employees.Changes to organisations may occur as a result of diversification.Changes to the operations of an organisation usually also sees changes to the structures created and developed within the organisation. These changes may come about because the organisation may takeover or merge with another organisation; expand or reduce its current scale of operations, e.g. diversification or downsizing of operations; change its core activities, e.g. a return to basics or total change in product; and a change in location or an alteration to its managerial levels, e.g. organisational restructuring. Changes to the way that managers actually manage the organisation and its employees will also see changes to structures, e.g. in the decision-making processes adopted as a result of changing management styles.Technological changes may occur and these changes will inevitably impact on every aspect of the organisation's operations. The changes may alter the way that employees perform a task, the number of tasks that have to be carried out by employees, and the terms and conditions under which the employees work. The changes may also alter in a significant way how the organisation actually does its business with clients, e.g. the introduction of ecommerce.Changes in planning and policy development and implementation may also be effected. A turnaround in the performance of the organisation may require a change in strategy and business policy together with changes to the strategic planning that was previously carried out, e.g. through the adoption of globalisation strategies. Changes to the human resource policies may also be required because of changes to legislation (e.g. Equal Employment Opportunity legislation), changes brought about because of the introduction of technology (e.g. the introduction of robotics) and of changes to employment terms and conditions (e.g. the introduction of enterprise bargaining).

Processes for effective change managementManagement must set into place a designated plan and approach towards the effective management of the change process. The first step in this process to solve a particular problem confronting the organisation is to decide what it is that the organisation actually intends to do to overcome the pressures or forces for change confronting it.This decision-making and problem-solving process involves the following stages: I - identifying what the problem actually is that the organisation wants to overcome I - gathering all of the information relevant to the specific problem; this involves obtaining all of the relevant information from all internal and external sources and from all stakeholders; gathering all possible information will enable the management of the organisation to make an informed decision about what strategy or direction the organisation will need to adopt or take to overcome the problem. O - management will then need to come up with a list of possible alternative courses of action, options or strategies that the organisation could adopt to overcome the problem. R/S - management will need to establish a way of evaluating these possible options and of ranking each of them against certain predetermined criteria; once this process has been done then the preferred option may be selected by management. I - the preferred option can then be implemented by use of an action plan to ensure that it is implemented successfully; the action plan will require management to follow the following steps if the change in policy is to be implemented successfully: O - state the objectives of the revised or changed policy. P - determine which personnel within the organisation will be responsible for implementing the policy. S - establish which management strategy will be used to implement the policy. T- allocate and delegate specific tasks to the personnel involved in the implementation stage. T - set the timeframe within which the policy is to be implemented, e.g. implemented in stages or implemented as a complete policy at a specific point in time. E - determine the criteria or performance indicators that will be used to evaluate whether the policy has been implemented efficiently and effectively. E - management will then need to carry out an evaluation process to see if the policy has been successfully implemented and to establish the next stage in the change process. Analysis and interpretation of the data collected in relation to the performance indicators will tell management whether they are on track, whether they need to alter the change process or whether they need to take a completely different approach to solve the problem.

Forms of resistanceWhen implementing any form of change, management will need to appreciate that employees and even some managers and other stakeholders may well resist the change being implemented. This resistance must be understood so that a solution to overcoming the resistance, or to limiting its impact on the organisation, may be found.The forms that this resistance may take include: SQ - employees, management and stakeholders like what they are currently doing and the processes involved in these tasks; they may feel that there is no need to change and they would like to remain with the 'status quo' and, therefore, within their comfort zones; they are not able to see the 'big picture' and the long-term impacts of the pressures for change. R - employees and management may feel that they do not have the necessary resources to undertake the change process effectively; they do not have the time, the financial resources or the personnel to complete all of the necessary changes within the specified time without their normal workload suffering as a result. P/A - employees and management may resist the changed arrangements within the organisation as the new approach and processes will alter their current arrangements with respect to the distribution of power and authority within the organisation; some employees and management may perceive that they stand to 'lose' if the changes are implemented. C - a lack of effective communication concerning the proposed changes may be the cause of resistance within the organisation; employees and management may simply not fully understand or comprehend the changes being proposed or implemented and will, as a result, not see the benefits of the change or even the rationale behind the change. C - the culture of the organisation may in itself be a limiting factor; the history of change and the degree of acceptance of change within the organisation may act against specific forms of change or degrees of change being implemented. M - the employees and management may not be motivated to accept and subsequently implement the change process; they are not able to see any net benefit or 'value-added' for them personally or for the organisation as a whole as the change agent(s) may not have incorporated any intrinsic or extrinsic motivator(s) into the change process. K/S - the employees and management may resist the change process as they believe that they do not have the necessary knowledge or skills to implement the change; a fear of insecurity and failure may set in and lead to determined resistance of the change process.

Strategies to overcome resistorsEducating employees is a vital component of effective change management.Once the 'resistors' have been recognised and understood, then management may proceed to find solutions and to put into place strategies to overcome these 'resistors' or to limit their negative impact(s) on the organisation.These strategies may include one or more of the following: E/C - education of and communication to employees and management concerning the changes will establish the rationale for the changes and as a result ensure that the intended benefits and value added of the changes are understood and accepted by both employees and management; training of employees and management will ensure that they have the necessary knowledge and skills to successfully implement the changes. P/I - participation and involvement of employees and management in the actual change process will ensure a greater sense of 'ownership' and therefore acceptance of the change process; any perceived loss of power and authority may be overcome by this strategy. F/S - facilitation and support must be provided for employees and management resisting the change; they must be assisted to firstly accept and then to implement the change; counselling, coaching, mentoring and additional training may be required to get employees and management to proceed along the predetermined change path. I/R - incentives and rewards should be incorporated into the change process in order to motivate employees and management to accept the change; if employees see that there is something in it for them then they will be more likely to assist with the implementation process. M - manipulation may be adopted as a strategy to get employees and management on side; this is seen as a 'negative' strategy and really should only be used if the others explained above are not successfully implemented; employees and management may be told that they are the 'odd ones out' and that everyone else or that every other organisation has adopted the change and that the end result of continued resistance will be their job! C/T - coercion and threat - employees and management will be told that unless they accept and implement the change that they will have their employment status terminated; this is definitely the last resort if employees and management are not prepared to accept the change.

Processes for effective change management: implementationNow management is able to proceed in its attempt to successfully implement the proposed changes in policies and procedures. Management will need to follow a number of steps if the process is to be successful: firstly, management will need to unlock the current position of the organisation; the culture of the organisation must be that employees and management are prepared to commit themselves to the proposed changes and that they are in a frame of mind which will see the implementation phase readily accepted by them. secondly, management will need to implement their preferred strategy by use of their action plan; this stage may need to take place at the same time as current work practices are being carried out - a 'dual' system may need to be operated by employees and management for a specified period of time. finally, the revised or altered policy will need to be locked again; the change process will continue along its designated path and support for the changes will be provided to employees and management along the way; management will need to recognise that change in today's organisations is never static and that the 'locked' stage never really exists - the key must always be ready to be turned and the door of change and opportunity opened.It can be seen that the management of the change process is a very complex and crucial part of the day-to-day operations of any organisation and the daily routines and tasks of any manager. Leadership within this process is critical if the organisation is to survive and to achieve its long and short-term objectives. Equally as important is the stewardship and management of the resources, work practices and structures of the organisation during any change process.

Application of effective change management to significant issues

Issues that management of large-scale organisations in Australia have to deal with.Management must deal with each of these issue areas to ensure that the objectives of the organisation may continue to be achieved; that the performance levels of the organisation reach optimum levels and that there are no significant performance gaps apparent; and that the resources within the organisation (and especially the human resources) are both efficiently and effectively employed.Management must, as we have seen, assess the environment within which it operates, recognise the pressures that are impacting on it, assess the relative strengths, weaknesses, threats and opportunities of each of the forces for change, and then implement strategies and policies that will enable the organisation to grow and to develop.

Social responsibilityMany organisations are now recognising that they need to do more than what is required of them by law with respect to how their operations impact on the wider community. Not only must they look closely at the impact of their operations on the community as a whole but they must also take an active interest in other areas of community and social concern. This may necessitate the organisation establishing a specific department responsible for the public relations aspects of its operations. Today, these concerns of an organisation have taken on an added dimension with the globalisation of business and the increasing internationalism of governments; their corporate citizenship must also take onboard this international dimension.The policies and procedures implemented by the management of organisations must consider the impact of the following aspects of its operations on the community: corporate objectives can no longer afford to be profit-oriented alone; the 'bottom-line' must be tempered with the impact that this has on how they are viewed by people within the community and the extent to which they return part of the profit back into the community. the products and services provided must not be seen as harmful to people in the community nor must their sale be seen to be exploiting certain sectors of the community or discriminating against other sectors of the community. employment of staff brings with it a responsibility for the security of their employment and not to carry out indiscriminate sackings, dismissals or closure of the organisation which will have an adverse impact on a community which may rely totally on the organisation for its continued existence. resource use must also be considered; the undeniable fact of unrenewable natural resources must be taken into account with respect to the rights of future generations. the use of technology and its resultant displacement of some forms of human labour together with environmental emissions also need to be considered.The organisation must look beyond it own boundaries and consider what it can contribute to the welfare of the wider community. Education and training of its employees in developing a wider social conscience may need to be a starting point. Management will then need to look at other projects with a 'social conscience' platform. They may need to support or fund these projects to show to the wider community that they are concerned about the community generally and that they are good corporate citizens, e.g. anti-cancer campaigns, water conservation plans, recycling schemes, campaigns concerning drug use in the community, greenhouse effect programs.

Business ethicsBusiness ethics is another issue area that management in organisations today must take into account when developing and implementing its policies and procedures. Business ethics relate to the moral standards and principles that underpin the organisation's policies and procedures; it's about the judgements that the organisation makes in terms of what it considers to be 'right or wrong'. Organisations and their affiliated bodies and associations must develop a code of ethics which acts as a guide to the development and implementation of their policies and procedures. An example of such a code is the development and publication of 'corporate governance' statements that need to be drawn up by all public companies. The statements provide detail relating to: the composition, role and responsibilities of the board of directors. administrative structures of the board. descriptions of committee responsibilities and the responsibilities of individual members with respect to these specific committees. other details relating to subsidiary companies governed by the board. appointments to audit the accounts and operations of the organization. risk management procedures.These statements are seen to be significant in terms of protecting the interests of shareholders with respect to how organisation are operated and controlled by the board of directors.Business ethics also impacts on other aspects of the operations of an organisation. For example, advertising undertaken by the organisation must conform to certain legal requirements, but it should, in fact, go even beyond that by conforming not only to the letter of the law but also the spirit of the law. Government rules and regulations cover just about every aspect of the organisation's operations and management must make sure that they not only conform to these rules and regulations but that they also do not attempt to breach their provisions by any unethical practices or procedures, e.g. short cutting safety procedures in an effort to improve profit margins.

GlobalisationGoing global.Many organisations are finding that they need to move their competitive boundaries beyond local and national markets and into the international and global marketplace in order to survive in the competitive marketplace and to become internationally competitive. 'Going global' may provide an opportunity for an organisation to take advantage of economies of scale and to improve its competitive edge or advantage over other organisations.Management will need to examine carefully the impact of 'going global' as there are significant differences between the cultures of the countries in which the organisation wants to operate and the Australian culture and also that of the organisation itself.Organisations, in their attempts to 'go global', have a wide range of options and strategies that they can adopt to achieve that objective. These include: an export program involving local production. licensing organisations in other countries to manufacture its product or to provide its service. establishing franchises in other countries. establishing subsidiary enterprises in other countries. importing goods or resources from other countries for local manufacture. altering current practices and procedures to achieve internationally competitive standards against imported products or services.

Technological developmentThe rapid rate of change in the area of technological developments has had a dramatic and significant impact on organisations.Technology refers to 'that body of knowledge of information and of skills and experience which is developed for the production of goods and services. It includes scientific and technical knowledge related to products, processes and methods of production; engineering knowledge required to design, develop, implement, produce, operate, install, service, maintain, and adapt machinery; and, also, managerial knowledge required to marshal a labour force, operate plant and equipment, obtain and administer funds, and identify, establish and satisfy markets.'Management will be forced to alter their policies and procedures to take advantage of the direct and the indirect benefits of this development and to counter any disadvantages that may arise. Benefits may include: an increase in productivity. a reduction in high risk tasks and unpleasant tasks for employees. alterations in current work arrangements allowing greater flexibility and adaptability of the organisation's workforce. improvements in quality of process and output. increases in competitive edge or advantage from decreased costs and improved quality. decreases in time taken to complete tasks. a reduction in waste and material costs.The use of technology impacts on all aspects of an organisation's operations. The impacts may be seen in terms of: the type and level of equipment used within the organisational processes. what the employees and management have to actually do in terms of tasks and procedures. the composition and skill requirements of the organisation's workforce. managerial style and skills employed. training and education programs implemented. remuneration policies for employees. how the various sections of the organisation and the technology used within those sections are coordinated. the environment within which the organisation operates.Examples of technology that organisations may have to take into account includes computerisation, automation, robotics, CAD/CAM/CIM processes, information technology including, email, ecommerce, managerial information systems, elecommuting, and teleconferencing.The use of technology provides organisations with the opportunity to standardise their operations and work practices and, in the process, establish benchmarks against which to measure organisational performance. This will enable management to more effectively coordinate and control the operations of the organisation and to achieve organisational objectives.

MODULE 2 HUMAN RESOURCES MANAGEMENTCHAPTER 6 HUMAN RESOURCE MANAGEMENTIntroduction and factors involved in managing human resourcesWhat are the responsibilities of human resource departments and managers?Just about every organisation today claims that their human resources are their most important and valuable assets. So what is it about the staff, employees, workers, and operatives that make them so important to the management of any organisation?Human Resource Management involves the process of managing people to perform various tasks within the organisation so as to achieve organisational goals. Human resource managers are responsible for creating 'win-win' relationships for both the individual employee and the organisation as a whole. Employees are seen as the key to organisational success as they are the ones who implement management's policies and practices and they are usually the ones at the coalface dealing with customers or physically making the products. If employee performance is not up to the benchmark, then the organisation will not be working in synergy and will not be able to meet the standard set by the industry leader. Organisations have often tried to obtain a competitive advantage by various means - by use of specialised natural resources, by use of technology and other capital resources, or by entrepreneurial resources or 'street smarts'. Today, the human resource factor is really the only viable choice to achieve that competitive edge or advantage over corporate competitors.

Human resource Management responsibilitiesAreas of responsibility for human resource managers.Employee productivity (as measured by output per employee per time period) is important to every organisation. Managers of organisations look to enhance employee performance in order to increase employee productivity. Enhancing employee performance means that management must look at every aspect of the employment cycle of that employee. Management must ensure that employees are suitably selected, correctly trained and also appropriately remunerated and motivated to stay on the job. By developing policies that cover every aspect of the employment life cycle of an individual employee, management hope to retain and maintain an employee within the organisation and lift their performance level to the optimum level.Management must also take into account various legislative enactments which impact on the way that employees are actually employed. Laws dictate the minimum (or 'safety net') terms of employment and the conditions of employment; they dictate what employers can and can not do in the workplace; whom they can and can not employ; the nature of the environment within which employees work and what happens when employees want to leave the workplace voluntarily or are forced to leave the workplace by management. Organisations must ensure that they comply with these laws and regulations otherwise they face a fine, imprisonment or closure of the organisation.

The role of the human resources managerThe 'people oriented' approach adopted by many human resource departments is seen as the driving force behind the success of many corporations.In most organisations, the role of planning, organising, leading, controlling, creating, communicating, and motivating employees has become the sole responsibility of the Human Resource Manager. The role of the formerly titled Personnel Manager has been extended and has moved beyond basic data collection relating to such things as payroll, sick day entitlements and holidays taken. The role of the HR Manager involves every aspect of the employment cycle of each individual employee and it involves the implementation of policies and practices designed to enhance the performance of these employees.HR Managers are mainly responsible for implementing change in workplace procedures and for ensuring that employees are fully informed of the changes and are willing and able to accept the changes being implemented. In many organisations, this role is outsourced to external change agents or facilitators.Management of organisations can see that their relationship with employees is capable of giving them a competitive edge over their competitors and, hence, an increase in their market share, if the relationship is managed effectively.

Job specifications for human resource managersThe role of the Human Resource Manager is often seen indirectly in the job advertisements in the daily newspapers. These advertisements usually contain a summary of both the job description (an outline of the tasks that the HR Manager is expected to perform on the job) and the job specification (an outline of the qualifications, personal attributes and skills expected of a successful applicant for the job) of a Human Resource Manager.

Factors influencing the workforceFactors that influence the size and quality of the available workforce. The demographics of the local population. The diversity of the workforce. The skill level of the workforce. The education level of the workforce. The training made available to workers. The motivation of the workforce to work full-time. The provision of child-care facilities. The working conditions. The security associated with the employment contract. The level of remuneration associated with the job. General Empl