BUSINESS MANAGEMENT 2
– IMM GRADUATE SCHOOL
K MELVILLE
,Table of Contents
UNIT 1 PART 1: INTRODUCTION TO MANAGEMENT ................................................................................ 8
Introduction ............................................................................................................................................... 8
Business Organisations and Managers and the Nature of Management ............................................ 8
Definition of Management ........................................................................................................................ 8
Different Levels and Kinds of Management in the Organisation ......................................................... 8
Top Management ..................................................................................................................................................... 9
Middle Management ................................................................................................................................................ 9
Lower/First Line Management ................................................................................................................................. 9
The Role Distribution of Managers ......................................................................................................... 9
Managerial Skills and Competencies at Various Managerial Levels ................................................. 10
Management and Organisational Performance ................................................................................... 10
The Scope of Management .................................................................................................................... 10
Conclusion .............................................................................................................................................. 10
UNIT 1 PART 2: THE EVOLUTION OF MANAGEMENT THEORY .............................................................11
Introduction ..............................................................................................................................................11
Why Study Management Theory? ..........................................................................................................11
Understand the Different Management Theories..................................................................................11
The Theories of Management ................................................................................................................ 12
Classical Approaches ............................................................................................................................................ 12
Contemporary Approaches .................................................................................................................................... 15
Current and Near Future Management Realities ................................................................................. 17
Conclusion .............................................................................................................................................. 17
UNIT 1 PART 3: MANAGING IN A CHANGING ENVIRONMENT............................................................... 18
Introduction ............................................................................................................................................. 18
Concepts of Systems Theory ................................................................................................................ 18
The Organisation as a Micro-System of its Environment ....................................................................................... 18
The Systems Approach in Management ............................................................................................... 18
The Composition of the Business/Management Environment........................................................... 19
Micro environment ................................................................................................................................................. 19
The Market or Task environment ........................................................................................................................... 20
Macro Environment ................................................................................................................................................ 21
Interfaces between the Organisation and the Environment ............................................................... 22
Ways in Which Management can Prepare for Environmental Changes ............................................ 22
Information Management ....................................................................................................................................... 22
Strategic Response ............................................................................................................................................... 23
Structural Changes ................................................................................................................................................ 23
Conclusion .............................................................................................................................................. 23
UNIT 2 PART 1: STRATEGIC PLANNING .................................................................................................. 24
Introduction ............................................................................................................................................. 24
Strategic Planning: What it Encompasses ........................................................................................... 24
The Strategic Planning Process ............................................................................................................ 24
Vision ..................................................................................................................................................................... 24
Mission ................................................................................................................................................................... 25
Choosing a Strategy .............................................................................................................................................. 29
Grand Strategy ...................................................................................................................................................... 30
1
, The Selection of Grand Strategies ......................................................................................................................... 33
Conclusion .............................................................................................................................................. 33
UNIT 2 PART 2: PLANNING ........................................................................................................................ 34
Introduction ............................................................................................................................................. 34
The Nature and Importance of Planning............................................................................................... 34
Kinds of Organisational Plans............................................................................................................... 34
Strategic Plans ........................................................................................................................................ 34
Tactical Plans .......................................................................................................................................... 35
Operational Plans ................................................................................................................................... 35
Single-use Plans .................................................................................................................................................... 35
Standing Plans ....................................................................................................................................................... 36
The Time Frame of Planning .................................................................................................................. 36
Steps in the Planning Process .............................................................................................................. 36
Barriers to Effective Planning ............................................................................................................... 36
Planning Tools ........................................................................................................................................ 36
Forecasting ............................................................................................................................................................ 37
Budget ................................................................................................................................................................... 37
Scheduling and Monitoring .................................................................................................................................... 37
Goal Formulation .................................................................................................................................... 38
The Process of Goal Setting .................................................................................................................................. 38
Techniques for Goal Setting ................................................................................................................................... 38
Conclusion .............................................................................................................................................. 39
UNIT 2 PART 3: ORGANISING AND DELEGATING .................................................................................. 40
Introduction ............................................................................................................................................. 40
Organising, Organisation, and Organisational Structure ................................................................... 40
Reasons for Organising ......................................................................................................................... 40
The Organising Process ........................................................................................................................ 40
The Principles of Organising ................................................................................................................. 40
Authority ................................................................................................................................................................. 41
Organisational Design............................................................................................................................ 42
Delegation ............................................................................................................................................... 42
Principles of Delegation ......................................................................................................................................... 42
Advantages of Delegation ...................................................................................................................................... 42
Obstacles to Effective Delegation .......................................................................................................................... 43
Overcoming Obstacles to Effective Delegation...................................................................................................... 43
Delegation Process ................................................................................................................................................ 43
Conclusion .............................................................................................................................................. 43
UNIT 2 PART 4: LEADERSHIP ................................................................................................................... 44
Introduction ............................................................................................................................................. 44
Leadership Defined ................................................................................................................................ 44
Leadership and Management ................................................................................................................ 44
The Components of Leadership ............................................................................................................ 44
Power ..................................................................................................................................................................... 44
The Theoretical Foundations of Leadership ........................................................................................ 45
Strong Leadership is Important in Business Success ............................................................................................ 45
Contemporary Approaches to Leadership ........................................................................................... 47
2
, Transactional leadership ........................................................................................................................................ 48
Transformational leadership .................................................................................................................................. 48
Emotional intelligence and leadership ................................................................................................................... 48
Value-based Leadership: ....................................................................................................................................... 48
Peer-to-Peer leadership ......................................................................................................................................... 48
Leadership and Political Behaviour in Organisations ........................................................................ 49
Conclusion .............................................................................................................................................. 49
UNIT 2 PART 5: INDIVIDUALS IN THE ORGANISATION .......................................................................... 50
Introduction ............................................................................................................................................. 50
The Importance of the Human Dimension in Management ................................................................ 50
People as a Sub-System ........................................................................................................................ 50
People in the Organisation .................................................................................................................... 50
Values and Attitudes .............................................................................................................................................. 50
Personality ............................................................................................................................................................. 51
Ability ..................................................................................................................................................................... 51
Motivation............................................................................................................................................................... 51
Perception .............................................................................................................................................................. 51
Learning ................................................................................................................................................................. 51
Emotional Intelligence (EI) ..................................................................................................................... 52
Mentoring and Coaching........................................................................................................................ 52
Types of Workplace Behaviour.............................................................................................................. 52
Conclusion .............................................................................................................................................. 52
UNIT 2 PART 6: GROUPS AND TEAMS IN THE ORGANISATION ........................................................... 53
Introduction ............................................................................................................................................. 53
Groups and Teams ................................................................................................................................. 53
Types of Organisational Groups ........................................................................................................... 53
Informal Groups ..................................................................................................................................................... 53
Formal groups ........................................................................................................................................................ 53
Stages in Group and Team Development ............................................................................................. 54
Notes for answering a question ............................................................................................................................. 54
Variables that Influence Group Behaviour ........................................................................................... 55
Organisational Context .......................................................................................................................................... 55
Group Member Resources .................................................................................................................................... 56
Group Structure ..................................................................................................................................................... 56
Group Processes ................................................................................................................................................... 57
Group Tasks ........................................................................................................................................................... 57
Organisational Teams ............................................................................................................................ 57
Characteristics of Effective Work Teams ............................................................................................................... 58
Why Organisations use Teams .............................................................................................................................. 58
Types of Teams ...................................................................................................................................................... 58
Developing Individuals into Team Members ........................................................................................ 59
Conclusion .............................................................................................................................................. 59
UNIT 2 PART 7: MOTIVATION..................................................................................................................... 60
Introduction ............................................................................................................................................. 60
The Motivation Process ......................................................................................................................... 60
The Classification of Motivation Theories............................................................................................ 60
Content Theories ................................................................................................................................................... 61
Process Theories ................................................................................................................................................... 61
Reinforcement Theory ........................................................................................................................................... 63
Money as a Motivator ............................................................................................................................. 63
3
– IMM GRADUATE SCHOOL
K MELVILLE
,Table of Contents
UNIT 1 PART 1: INTRODUCTION TO MANAGEMENT ................................................................................ 8
Introduction ............................................................................................................................................... 8
Business Organisations and Managers and the Nature of Management ............................................ 8
Definition of Management ........................................................................................................................ 8
Different Levels and Kinds of Management in the Organisation ......................................................... 8
Top Management ..................................................................................................................................................... 9
Middle Management ................................................................................................................................................ 9
Lower/First Line Management ................................................................................................................................. 9
The Role Distribution of Managers ......................................................................................................... 9
Managerial Skills and Competencies at Various Managerial Levels ................................................. 10
Management and Organisational Performance ................................................................................... 10
The Scope of Management .................................................................................................................... 10
Conclusion .............................................................................................................................................. 10
UNIT 1 PART 2: THE EVOLUTION OF MANAGEMENT THEORY .............................................................11
Introduction ..............................................................................................................................................11
Why Study Management Theory? ..........................................................................................................11
Understand the Different Management Theories..................................................................................11
The Theories of Management ................................................................................................................ 12
Classical Approaches ............................................................................................................................................ 12
Contemporary Approaches .................................................................................................................................... 15
Current and Near Future Management Realities ................................................................................. 17
Conclusion .............................................................................................................................................. 17
UNIT 1 PART 3: MANAGING IN A CHANGING ENVIRONMENT............................................................... 18
Introduction ............................................................................................................................................. 18
Concepts of Systems Theory ................................................................................................................ 18
The Organisation as a Micro-System of its Environment ....................................................................................... 18
The Systems Approach in Management ............................................................................................... 18
The Composition of the Business/Management Environment........................................................... 19
Micro environment ................................................................................................................................................. 19
The Market or Task environment ........................................................................................................................... 20
Macro Environment ................................................................................................................................................ 21
Interfaces between the Organisation and the Environment ............................................................... 22
Ways in Which Management can Prepare for Environmental Changes ............................................ 22
Information Management ....................................................................................................................................... 22
Strategic Response ............................................................................................................................................... 23
Structural Changes ................................................................................................................................................ 23
Conclusion .............................................................................................................................................. 23
UNIT 2 PART 1: STRATEGIC PLANNING .................................................................................................. 24
Introduction ............................................................................................................................................. 24
Strategic Planning: What it Encompasses ........................................................................................... 24
The Strategic Planning Process ............................................................................................................ 24
Vision ..................................................................................................................................................................... 24
Mission ................................................................................................................................................................... 25
Choosing a Strategy .............................................................................................................................................. 29
Grand Strategy ...................................................................................................................................................... 30
1
, The Selection of Grand Strategies ......................................................................................................................... 33
Conclusion .............................................................................................................................................. 33
UNIT 2 PART 2: PLANNING ........................................................................................................................ 34
Introduction ............................................................................................................................................. 34
The Nature and Importance of Planning............................................................................................... 34
Kinds of Organisational Plans............................................................................................................... 34
Strategic Plans ........................................................................................................................................ 34
Tactical Plans .......................................................................................................................................... 35
Operational Plans ................................................................................................................................... 35
Single-use Plans .................................................................................................................................................... 35
Standing Plans ....................................................................................................................................................... 36
The Time Frame of Planning .................................................................................................................. 36
Steps in the Planning Process .............................................................................................................. 36
Barriers to Effective Planning ............................................................................................................... 36
Planning Tools ........................................................................................................................................ 36
Forecasting ............................................................................................................................................................ 37
Budget ................................................................................................................................................................... 37
Scheduling and Monitoring .................................................................................................................................... 37
Goal Formulation .................................................................................................................................... 38
The Process of Goal Setting .................................................................................................................................. 38
Techniques for Goal Setting ................................................................................................................................... 38
Conclusion .............................................................................................................................................. 39
UNIT 2 PART 3: ORGANISING AND DELEGATING .................................................................................. 40
Introduction ............................................................................................................................................. 40
Organising, Organisation, and Organisational Structure ................................................................... 40
Reasons for Organising ......................................................................................................................... 40
The Organising Process ........................................................................................................................ 40
The Principles of Organising ................................................................................................................. 40
Authority ................................................................................................................................................................. 41
Organisational Design............................................................................................................................ 42
Delegation ............................................................................................................................................... 42
Principles of Delegation ......................................................................................................................................... 42
Advantages of Delegation ...................................................................................................................................... 42
Obstacles to Effective Delegation .......................................................................................................................... 43
Overcoming Obstacles to Effective Delegation...................................................................................................... 43
Delegation Process ................................................................................................................................................ 43
Conclusion .............................................................................................................................................. 43
UNIT 2 PART 4: LEADERSHIP ................................................................................................................... 44
Introduction ............................................................................................................................................. 44
Leadership Defined ................................................................................................................................ 44
Leadership and Management ................................................................................................................ 44
The Components of Leadership ............................................................................................................ 44
Power ..................................................................................................................................................................... 44
The Theoretical Foundations of Leadership ........................................................................................ 45
Strong Leadership is Important in Business Success ............................................................................................ 45
Contemporary Approaches to Leadership ........................................................................................... 47
2
, Transactional leadership ........................................................................................................................................ 48
Transformational leadership .................................................................................................................................. 48
Emotional intelligence and leadership ................................................................................................................... 48
Value-based Leadership: ....................................................................................................................................... 48
Peer-to-Peer leadership ......................................................................................................................................... 48
Leadership and Political Behaviour in Organisations ........................................................................ 49
Conclusion .............................................................................................................................................. 49
UNIT 2 PART 5: INDIVIDUALS IN THE ORGANISATION .......................................................................... 50
Introduction ............................................................................................................................................. 50
The Importance of the Human Dimension in Management ................................................................ 50
People as a Sub-System ........................................................................................................................ 50
People in the Organisation .................................................................................................................... 50
Values and Attitudes .............................................................................................................................................. 50
Personality ............................................................................................................................................................. 51
Ability ..................................................................................................................................................................... 51
Motivation............................................................................................................................................................... 51
Perception .............................................................................................................................................................. 51
Learning ................................................................................................................................................................. 51
Emotional Intelligence (EI) ..................................................................................................................... 52
Mentoring and Coaching........................................................................................................................ 52
Types of Workplace Behaviour.............................................................................................................. 52
Conclusion .............................................................................................................................................. 52
UNIT 2 PART 6: GROUPS AND TEAMS IN THE ORGANISATION ........................................................... 53
Introduction ............................................................................................................................................. 53
Groups and Teams ................................................................................................................................. 53
Types of Organisational Groups ........................................................................................................... 53
Informal Groups ..................................................................................................................................................... 53
Formal groups ........................................................................................................................................................ 53
Stages in Group and Team Development ............................................................................................. 54
Notes for answering a question ............................................................................................................................. 54
Variables that Influence Group Behaviour ........................................................................................... 55
Organisational Context .......................................................................................................................................... 55
Group Member Resources .................................................................................................................................... 56
Group Structure ..................................................................................................................................................... 56
Group Processes ................................................................................................................................................... 57
Group Tasks ........................................................................................................................................................... 57
Organisational Teams ............................................................................................................................ 57
Characteristics of Effective Work Teams ............................................................................................................... 58
Why Organisations use Teams .............................................................................................................................. 58
Types of Teams ...................................................................................................................................................... 58
Developing Individuals into Team Members ........................................................................................ 59
Conclusion .............................................................................................................................................. 59
UNIT 2 PART 7: MOTIVATION..................................................................................................................... 60
Introduction ............................................................................................................................................. 60
The Motivation Process ......................................................................................................................... 60
The Classification of Motivation Theories............................................................................................ 60
Content Theories ................................................................................................................................................... 61
Process Theories ................................................................................................................................................... 61
Reinforcement Theory ........................................................................................................................................... 63
Money as a Motivator ............................................................................................................................. 63
3
