HBMN learning outcomes
Chapter 1: management theories
Give an overview of the traditional management theories:
1. scientific approach: to improve efficiency, workers must be scientifically selected and trained.
2. bureaucratic management: emphasises a fair and structured orgainsational environment, very rigid, less adaptive
3. administrative management: technical skills are second to administrative skills in ensuring business success
4. human relations approach to management:
5. operations management
6. quality management
7. information management
8. systems aproach
9. contingency approach
how did traditional theories evolve to become responsible
management?
responsible management is a contemporary approach which provides solutions to problems the traditional
approaches caused. Responsible management is the management of an organisation that is built on the principles of
sustainability, responsibility and ethics.
Sustainability: management practices should embrace the TBL.
Responsibility: focus on stakeholder engagement with the aim of optimising stakeholder value.
Ethics: consuct all business activities in an ethical manner and create moral excellence within the
organisation.
what are the drivers of responsible management?
1. responsible consumers: consumers make their purchasing choices based on responsible products, this forces
organisations to act more responsibly
2. responsible sourcing: people want to work for companies that stand for more than just profit that align with
socially responsible practices, companies that engage in responsible practices have lower operational risks and higher
employee retention
3. responsible employees:
4. new markets and the business case
5. glabalisation:
6. advances in technology and transparency
7. increasing corporate power
8. global business risks
,what is the relationship between strategy and responsible
management?
1. Broad perspective: any aadvantages a business could reap from activities related to society and the environment.
2. narrow perspective: refers to the field of strategic management and how responsible business can support the
strategic management process and create responsible competitiveness.
Chapter 2: strategic management
what are the universal principles of strategic management?
1. strategy is about positive change: achieving superior performance, creating competitive advantage, stakeholder
wealth and value for all stakeholders and surviving in difficult times e.g. Discovery introducing Discovery Bank
2. strategy takes a long-term view: focused on wealth creation and sustainability over the long-term
3. strategy is complex: associated with high levels of uncertainty and risk
4. strategy has an internal and external focus: its about mobilising resources and capabilities inside the organisation
to persue opportunities outside of the organisation and respond to opportunities and threats quickly.
5. strategy is deliberate and emergent: The realised strategy often ends up being different from the intended
strategy.
6. strategy involves various thought processes: it incorporates rationality, analytical, creativity and strategic thinking
7. strategy happens at different heirarchical levels: corporate, business and functional level
what is strategy and why is it important to the organisation?
strategy: long-term direction of the organisation, the means by which an organisation achieve their objectives and
achieve competitive advantage. It is important as it provides a framework to guide decision making processes.
what are the characteristics of strategic decision making?
Strategic decisions made by strategists are shaped by both cognitive/rational aspects and political processes:
1. Cognitive and Rational Aspects: Cognitive functioning involves mental abilities such as learning, problem-solving,
and decision-making. Strategists are expected to be logical and objective in their approach. Two key decision-making
models:
Rational model (optimising): Used when strategists aim to find the best possible solution. Suitable for high-
risk, uncertain situations.
Bounded rationality (satisficing): Due to limited information and processing capacity, strategists settle for the
first acceptable solution. Suitable for low-risk decisions.
2. Political Processes: Strategic decisions are not always objective. Power dynamics, personal influence, and
persuasion affect decision-making. Strategists, are influenced by personal background, culture, values, and the
pursuit of power/status. As a result, strategic decision-making includes both rational and subjective elements
what are the guidelines to strategic decision makers to help
them make more responsible strategic decisions?
Guidelines for Fast and Responsible Strategic Decision-Making
To improve speed and quality of decisions:
Develop multiple alternatives to reduce the impact of internal politics.
,Use real-time information via operational data and informal communication rather than relying solely on formal
reports.
Trust experienced, ethical advisors instead of only junior staff or consultants.
Aim for consensus where possible, but not at the cost of inaction. If needed, allow the majority to decide.
4. Balancing Accuracy and Practicality
Strategists must sometimes accept that it's “better to be vaguely right than exactly wrong.”
Excessive focus on perfect data can delay decisions without proportional benefit.
how can the success of a strategy be measured?
1. Two Main Approaches to Measuring Strategic Success
Shareholder Capitalism Approach:
Views shareholder wealth and profitability as the sole measure of success.
Criticised for promoting short-term profit at all costs, contributing to the 2008–2009 global financial crisis.
Stakeholder Approach:
Focuses on balancing the needs of all stakeholders: employees, shareholders, communities, and the
environment.
Encourages triple-bottom-line reporting (financial, social, and environmental performance).
Criticised for increasing complexity and potentially diluting strategic goals.
2. Enlightened Viewpoint:
Michael Jensen’s Perspective: Argues that enlightened shareholder value and enlightened stakeholder theory are
aligned — both aim to sustain long-term value for all parties.
3. Proposed Concept: Responsible Competitiveness
Defined as achieving a balance between economic competitiveness and positive social/environmental impact.
Chapter 3: process perspective
what is the process perspective of strategic management?
The process perspective of strategic management involves three key stages: strategic planning, implementation, and
review. In planning, senior managers set vision, analyze internal and external environments, and choose strategies.
Implementation translates strategies into actions through communication, empowerment, structure, culture, and
resource alignment. All members must be engaged and systems must support strategy. The review stage involves
continuous monitoring of performance, environmental scanning, and corrective action. Though traditional, this
model provides a valuable foundation, but real-world strategy is dynamic, requiring flexibility and ongoing
adjustment.
criticise the process perspective of strategic management
it is a linear process taht doesnt consider the complexity or the environment in which the organisation operates. it
also sees strategy as a top-down function
what are the management levels involved in strategic
management?
Medium to large organisations have three levels of management:
Top management (CEO, board of directors, senior managers)
, Middle management
Lower-level management
Top management is responsible for:
Setting the strategic direction
Analysing the internal and external environment
Formulating organisational strategies
Participating in the strategy review phase
Middle and lower-level managers are responsible for:
Executing and operationalising the strategies
Managing employees to implement the strategic plans
Providing feedback for strategic review
Responsible competitiveness involves:
Aligning strategy with economic, social, and environmental goals
Considering all stakeholders from the beginning of the strategy process
Ensuring all activities support long-term sustainable performance
what is strategic planning, strategic direction and environmental
analysis?
1. strategic planning starts with setting the strategic direction which is expressed through the vision and mission
statement.
2. environmental analysis includes an analysis of the internal and external environments to identify opportunities and
threats and understand the organisations strengths and weaknesses.
what is strategy implementation and what are the drivers of
strategy implementation?
Strategy implementation aligns internal and external environments with the chosen strategy. It is often the most
difficult phase, where many strategies fail.
Strategic Programmes & Projects: Strategic plans are managed as programmes and projects that should eventually
integrate into daily operations.
Key Drivers:
Leadership & Communication: Leaders must clearly explain the strategy, reduce uncertainty, and motivate
staff.
Organisational Culture: A positive culture supports change; a negative one resists it.
Resource Allocation: Effective use of human, physical, financial, informational resources is crucial.
Organisational Structure: Should support implementation through clear authority and responsibility lines.
Organisational Learning: Encourages adaptability, knowledge sharing, and innovation.
Operationalising Strategy: Middle Managers translate strategic goals into medium-term and short-term
goals.
what is strategy review and control, identify the main strategic
control mechanisms and integrate the principles of responsible
management in strategy review and control.
Strategy review and control is the final phase of strategic management, ensuring that strategy implementation stays
on track and adapts to changing environments. It involves monitoring progress, measuring performance, and making
necessary adjustments. Four main control mechanisms are used: Premise control (checks original assumptions),
Strategic surveillance (broad environmental scanning), Special alert control (responds to unexpected events), and
Chapter 1: management theories
Give an overview of the traditional management theories:
1. scientific approach: to improve efficiency, workers must be scientifically selected and trained.
2. bureaucratic management: emphasises a fair and structured orgainsational environment, very rigid, less adaptive
3. administrative management: technical skills are second to administrative skills in ensuring business success
4. human relations approach to management:
5. operations management
6. quality management
7. information management
8. systems aproach
9. contingency approach
how did traditional theories evolve to become responsible
management?
responsible management is a contemporary approach which provides solutions to problems the traditional
approaches caused. Responsible management is the management of an organisation that is built on the principles of
sustainability, responsibility and ethics.
Sustainability: management practices should embrace the TBL.
Responsibility: focus on stakeholder engagement with the aim of optimising stakeholder value.
Ethics: consuct all business activities in an ethical manner and create moral excellence within the
organisation.
what are the drivers of responsible management?
1. responsible consumers: consumers make their purchasing choices based on responsible products, this forces
organisations to act more responsibly
2. responsible sourcing: people want to work for companies that stand for more than just profit that align with
socially responsible practices, companies that engage in responsible practices have lower operational risks and higher
employee retention
3. responsible employees:
4. new markets and the business case
5. glabalisation:
6. advances in technology and transparency
7. increasing corporate power
8. global business risks
,what is the relationship between strategy and responsible
management?
1. Broad perspective: any aadvantages a business could reap from activities related to society and the environment.
2. narrow perspective: refers to the field of strategic management and how responsible business can support the
strategic management process and create responsible competitiveness.
Chapter 2: strategic management
what are the universal principles of strategic management?
1. strategy is about positive change: achieving superior performance, creating competitive advantage, stakeholder
wealth and value for all stakeholders and surviving in difficult times e.g. Discovery introducing Discovery Bank
2. strategy takes a long-term view: focused on wealth creation and sustainability over the long-term
3. strategy is complex: associated with high levels of uncertainty and risk
4. strategy has an internal and external focus: its about mobilising resources and capabilities inside the organisation
to persue opportunities outside of the organisation and respond to opportunities and threats quickly.
5. strategy is deliberate and emergent: The realised strategy often ends up being different from the intended
strategy.
6. strategy involves various thought processes: it incorporates rationality, analytical, creativity and strategic thinking
7. strategy happens at different heirarchical levels: corporate, business and functional level
what is strategy and why is it important to the organisation?
strategy: long-term direction of the organisation, the means by which an organisation achieve their objectives and
achieve competitive advantage. It is important as it provides a framework to guide decision making processes.
what are the characteristics of strategic decision making?
Strategic decisions made by strategists are shaped by both cognitive/rational aspects and political processes:
1. Cognitive and Rational Aspects: Cognitive functioning involves mental abilities such as learning, problem-solving,
and decision-making. Strategists are expected to be logical and objective in their approach. Two key decision-making
models:
Rational model (optimising): Used when strategists aim to find the best possible solution. Suitable for high-
risk, uncertain situations.
Bounded rationality (satisficing): Due to limited information and processing capacity, strategists settle for the
first acceptable solution. Suitable for low-risk decisions.
2. Political Processes: Strategic decisions are not always objective. Power dynamics, personal influence, and
persuasion affect decision-making. Strategists, are influenced by personal background, culture, values, and the
pursuit of power/status. As a result, strategic decision-making includes both rational and subjective elements
what are the guidelines to strategic decision makers to help
them make more responsible strategic decisions?
Guidelines for Fast and Responsible Strategic Decision-Making
To improve speed and quality of decisions:
Develop multiple alternatives to reduce the impact of internal politics.
,Use real-time information via operational data and informal communication rather than relying solely on formal
reports.
Trust experienced, ethical advisors instead of only junior staff or consultants.
Aim for consensus where possible, but not at the cost of inaction. If needed, allow the majority to decide.
4. Balancing Accuracy and Practicality
Strategists must sometimes accept that it's “better to be vaguely right than exactly wrong.”
Excessive focus on perfect data can delay decisions without proportional benefit.
how can the success of a strategy be measured?
1. Two Main Approaches to Measuring Strategic Success
Shareholder Capitalism Approach:
Views shareholder wealth and profitability as the sole measure of success.
Criticised for promoting short-term profit at all costs, contributing to the 2008–2009 global financial crisis.
Stakeholder Approach:
Focuses on balancing the needs of all stakeholders: employees, shareholders, communities, and the
environment.
Encourages triple-bottom-line reporting (financial, social, and environmental performance).
Criticised for increasing complexity and potentially diluting strategic goals.
2. Enlightened Viewpoint:
Michael Jensen’s Perspective: Argues that enlightened shareholder value and enlightened stakeholder theory are
aligned — both aim to sustain long-term value for all parties.
3. Proposed Concept: Responsible Competitiveness
Defined as achieving a balance between economic competitiveness and positive social/environmental impact.
Chapter 3: process perspective
what is the process perspective of strategic management?
The process perspective of strategic management involves three key stages: strategic planning, implementation, and
review. In planning, senior managers set vision, analyze internal and external environments, and choose strategies.
Implementation translates strategies into actions through communication, empowerment, structure, culture, and
resource alignment. All members must be engaged and systems must support strategy. The review stage involves
continuous monitoring of performance, environmental scanning, and corrective action. Though traditional, this
model provides a valuable foundation, but real-world strategy is dynamic, requiring flexibility and ongoing
adjustment.
criticise the process perspective of strategic management
it is a linear process taht doesnt consider the complexity or the environment in which the organisation operates. it
also sees strategy as a top-down function
what are the management levels involved in strategic
management?
Medium to large organisations have three levels of management:
Top management (CEO, board of directors, senior managers)
, Middle management
Lower-level management
Top management is responsible for:
Setting the strategic direction
Analysing the internal and external environment
Formulating organisational strategies
Participating in the strategy review phase
Middle and lower-level managers are responsible for:
Executing and operationalising the strategies
Managing employees to implement the strategic plans
Providing feedback for strategic review
Responsible competitiveness involves:
Aligning strategy with economic, social, and environmental goals
Considering all stakeholders from the beginning of the strategy process
Ensuring all activities support long-term sustainable performance
what is strategic planning, strategic direction and environmental
analysis?
1. strategic planning starts with setting the strategic direction which is expressed through the vision and mission
statement.
2. environmental analysis includes an analysis of the internal and external environments to identify opportunities and
threats and understand the organisations strengths and weaknesses.
what is strategy implementation and what are the drivers of
strategy implementation?
Strategy implementation aligns internal and external environments with the chosen strategy. It is often the most
difficult phase, where many strategies fail.
Strategic Programmes & Projects: Strategic plans are managed as programmes and projects that should eventually
integrate into daily operations.
Key Drivers:
Leadership & Communication: Leaders must clearly explain the strategy, reduce uncertainty, and motivate
staff.
Organisational Culture: A positive culture supports change; a negative one resists it.
Resource Allocation: Effective use of human, physical, financial, informational resources is crucial.
Organisational Structure: Should support implementation through clear authority and responsibility lines.
Organisational Learning: Encourages adaptability, knowledge sharing, and innovation.
Operationalising Strategy: Middle Managers translate strategic goals into medium-term and short-term
goals.
what is strategy review and control, identify the main strategic
control mechanisms and integrate the principles of responsible
management in strategy review and control.
Strategy review and control is the final phase of strategic management, ensuring that strategy implementation stays
on track and adapts to changing environments. It involves monitoring progress, measuring performance, and making
necessary adjustments. Four main control mechanisms are used: Premise control (checks original assumptions),
Strategic surveillance (broad environmental scanning), Special alert control (responds to unexpected events), and
