Topic 3 Organizing 3.3 Organizational Change and Innovation Change in Organization 01 To survive and grow, businesses nowadays must constantly adapt to changing situations. The transition to a technology-driven workplace is one of the most striking features. Ideas, knowledge, and relationships are becoming increasingly crucial. Organizational change is the process through which an organization alters its working methods or objectives to evolve and respond to new situations or markets. To engage with developing markets, organizations must constantly innovate and upgrade their procedures and operational efficiencies. Companies that resist change or advancement may be forced to leave the market or perhaps eliminated by companies that are moving forward. It is the acceptance of a new behavioral notion by a company. Types of Change Any modification to structural variables such as reporting relationships, coordination methods, employee empowerment, or job redesign. Structure change Entails changes in the way work is done or the methods and equipment that are used. Changing technology Entails alterations in individuals' or groups' attitudes, expectations, perceptions, and behaviors. Changing people The external environment Demographic characteristics Market changes Technological advancements Social and political pressures Competition Economic conditions Organizational Change Factors The internal environment Employee problems Managers’ behavior (conflict) Internal operations Impact of external events
The need for change means a performance gap or disparity between existing and desired performance levels. Initiate change is the stage where the ideas that solve perceived needs are developed. Model of Change Sequence of Events Topic 3 Organizing 01 Environmental forces Internal forces Need for change Initiate change Implement change Lewin’s Change Model (Kurt Lewin, 1951) Generating the desire to change The 3-stage model of planned change: Unfreezing Changing Refreezing Discovering new ways to do things Normalizing the new methods Organizational Development A successful change attempt can be thought of as a three-step process in which personnel are first prepared for change, then change is implemented, and finally the new behavioral patterns become permanent. According to growing modern perspectives, it can also be viewed as a continual process that affirms an organization's ever-evolving essence. Innovation within the organization Everyone must be innovative, including large and small businesses, academic institutions, state, and local governments, and even the military. Innovation is about conceiving, mobilizing, and competing in new ways, rather than just designing new products, services, brand extensions, or technological inventions. Organizational innovation is in general, a process used by organizations to adapt to changing conditions of competition, technical advancement, and market expansion through the development of novel goods, procedures, and systems.
REALLYGREATSITE.COM PAGE 03 Topic 3 Organizing 01 Tutorial Questions 4. How satisfied are you with our company? A. B. C. D. 5. How satisfied are you with our company? A. B. C. D. 1. How satisfied are you with our company? B. False A. True 2. How satisfied are you with our company? B. False A. True 3. How satisfied are you with our company? B. False A. True 6. How satisfied are you with our company? A. B. C. D.
LE 4ADING AND MOTIVATION 4.1 Managing Individual Differences & Behaviour 4.2 Personality & Individual Behaviour 4.3 Motivating Employee 4.4 Power, Influence & Leadership
4.1 Managing Individual Differences & Behaviour: Behaviour, Value & Attitude What we see when we look at an organization is its visible aspects, yet, deep down are different components that managers need to comprehend – components that influence how employees behave at work. Organizational behaviour (OB) provides managers the awareness of important, but hidden, aspects of the organization. 01 | BEHAVIOUR Topic 4 Leading and Motivation 01 Figure 4.1: The definition of behaviour and organizational behaviour (OB) according to P. Robbins & Coulter, 2012.
OB focuses on 3 major areas; i.Individual behaviour; attitudes, personality, perception, learning, and motivation. ii.Group behaviour; norms, roles, team building, leadership, and conflict. iii.Organizational aspects; including structure, culture, and human resource policies and practices. Apart from these 3 areas, OB also looks at organizational aspects; structure, culture, and human resource policies and practices. Topic 4 Leading and Motivation 01 Figure 4.2: Like an iceberg, OB has a small visible dimension and a larger hidden dimension that managers need to understand and study (adapted from Management 11th Edition, 2012) GOALS OF ORGANIZATIONAL BEHAVIOUR Managers need to be able to explain why employees engage in some behaviours rather than others, predict how employees will respond to various actions and decisions, and influence how employees behave.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.3: The goals of OB There are 6 important employee behaviours; employee productivity, absenteeism, turnover, organizational citizenship behaviour (OCB), job satisfaction, and workplace misbehaviour. Figure 4.4: The 6 important employee behaviours that managers need to know
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Values reflect what is most important to an individual and established throughout one’s life as a result of accumulating life experiences. Values affect the types of decisions an employee makes, how an employee perceive her or his environment and their behaviours. Figure 4.5: The effects of values 02 | VALUE Activity 1 Knowing one’s values will help you to understand an individual, thus making teamwork in a group effective. Identify the values that your group members hold on to know them better.
Attitudes are evaluative statements concerning objects, people, or events; it refers to our opinions, beliefs, and feelings about aspects of our environment. Attitudes also reflect how an individual feel about something. Attitude is made up of three components: cognition, affect, and behaviour. 03 | ATTITUDE Topic 4 Leading and Motivation 01 Figure 4.6: The three components that made up attitude However, in an organisation, Managers interested in job-related attitudes. The three most widely known are job satisfaction, job involvement, and organisational commitment. Job Satisfaction refers to a person’s general attitude toward his or her job. A person with a high level of job satisfaction has a positive attitude towards his or her job, vice versa. Human Resource Management periodically conduct studies of job satisfaction to track how satisfied employees are at work. Job Involvement is the degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance to be important to his or her self-worth. High levels of job involvement have been found to be related to fewer absences, lower resignation rates, and higher employee engagement with their work. Organisational Commitment is the degree to which an employee identifies with a particular organisation and its goals and wishes to maintain membership in that organisation. Highly committed employee is one who accepts and believes in the company’s values, is willing to put out effort to meet the company’s goals, and has a strong desire to remain with the company.
4.2 Personality & Individual Behaviour Personality is a unique combination of emotional, thought, and behavioural patterns that affect how a person reacts to situations and interacts with others. Managers interested in looking at personality because just like attitudes, it too, affects how and why people behave the way they do; understanding someone’s personality gives us clues about how that person is likely to act and feel in a variety of situations. Understand the personalities of different employees useful for placing people into jobs and organisations in order to achieve effectiveness in an organisation. It is also important to know personality types because they influence the way people interact and solve problems. There are two well-known approaches to identify traits that describe personality, and one of the approaches is the Big Five Model. 01 | PERCEPTION & INDIVIDUAL BEHAVIOUR Topic 4 Leading and Motivation 01 Figure 4.7: The five personality traits in the Big Five Model
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Activity 2 Go to http://www.outofservice.com/bigfive and see how you score on these factors Evaluate Yourself on the Big Five Personality Factors! Activity 3 Based on the personality traits that you learned in this topic, try to identify jobs or occupations that seem particularly suited to three of the traits. 02 | PERCEPTION Perception is a process by which we give meaning to our environment by organizing and interpreting sensory impressions. We behave according to our perceptions. Example; one manager, for instance, can interpret the fact that her assistant regularly takes several days to make important decisions as evidence that the assistant is slow, disorganized, and afraid to make decisions. Another manager with the same assistant might interpret the same tendency as evidence that the assistant is thoughtful, thorough, and deliberate. The first manager would probably evaluate her assistant negatively; the second manager would probably evaluate the person positively. Visual Perception. Managers rely on their visual perception to form their opinions about people and objects around them and to make sense of data presented in graphical form. Our visual perception is often biased because we do not perceive objects in isolation. Our visual perception is sometimes faulty; therefore, managers should not always take what they see at face value. Self-Perception. There is a tendency for human beings to be biased when perceiving themselves. There are two types of bias when people do self-perception; selfenhancement bias and self-effacement bias. Example of the effects of bias selfperception; employees who suffer from extreme levels of self-enhancement tendencies may not understand why they are not getting promoted, while those who tend to selfefface may project low confidence and take more blame for their failures than necessary.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Self-Perception. There is a tendency for human beings to be biased when perceiving themselves. There are two types of bias when people do self-perception; selfenhancement bias and self-effacement bias. Example of the effects of bias selfperception; employees who suffer from extreme levels of self-enhancement tendencies may not understand why they are not getting promoted, while those who tend to self-efface may take more blame for their failures than necessary. Figure 4.8: “Optical illusion” phenomenon linked to visual perception; what you see changes as you look differently at each one. (Credit: fran_kie / Adobe Stock, Neuropsych — October 29, 2022) Figure 4.9: The two types of bias when perceiving oneself
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Social Perception. How we perceive other people in our environment will shape our behaviour, which in turn will shape the behaviour of the person we are interacting with. Among the factors biasing our perception are stereotypes and first impressions. Stereotypes are generalizations based on a group characteristic. Stereotypes may be positive, negative, or neutral. For instance, believing that women are more collaborative than men or that men are more aggressive than women. First impression tends to have a continuing effect. Indeed, if people are told that the first impression were caused by inaccurate information, people hold on to them to a certain degree.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM For many employees, organizational change can create stress. An ambiguous atmosphere characterized by time pressures, growing workloads, and reshuffle has formed a huge number of employees who are overworked and stressed. Stress. An adverse response people have to extreme pressure placed on them from extraordinary demands, constraints, or opportunities. Stress often linked to constraints and demands. A constraint stops you from doing what you want; demands refer to the loss of something anticipated. There are two situations are required for potential stress to become actual stress; (i) there must be vagueness over the result, and (ii) the result must be important. Stress causes by stressors; personal factors and job-related factors. In an organisation there are various factors that can causes stress; demands to avoid errors or completing tasks in a short period, changes in the way reports are filed, a demanding supervisor, and unpleasant co-workers are a few examples. There are five categories of organizational stressors: task demands, role demands, interpersonal demands, organization structure, and organizational leadership. Apart from that, personal factors also contribute to stress; family issues, financial issues or inherent personality characteristics. Topic 4 Leading and Motivation 01 03 | STRESS & INDIVIDUAL BEHAVIOUR Figure 4.10: The five categories of organizational stressors
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 The personalities of employees also have an effect on how prone they are to stress. For an example, employee who is highly competitive, impatience is more likely facing stress compare with an employee who is patience and less competitive. Activity 4 As a human resource manager in an organisation, you are required to suggest two initiatives that can be implemented to reduce stress among employees in your organisation.
4.3 Motivate Employee Motivation is the process by which a person’s efforts are energized, directed (direction that benefits the organisation), and sustained toward achieving a goal. Motivation often relates to performance. To perform well, however, not only do employee needs a high level of motivation, but they also need to have the skills and knowledge to execute the task. Environmental factors such as having the right information, adequate resources and support that are needed to perform well are also important in determining the level of performance. Motivation can be divided into two: extrinsic motivation and intrinsic motivation. 01 | PERFORMANCE MOTIVATION Topic 4 Leading and Motivation 01 Figure 4.11: The difference between extrinsic motivation and intrinsic motivation Activity 5 List FIVE (5) approaches to keep employee motivated.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM The theories of motivation can be divided into two: need-based theories and process-based theories. The need-based theories also known as the content theories, are motivation theories that emphasised the importance of understanding and satisfying human needs. These theories try to understand the reasons (what) that motivates a person. The process-based theories are theories that try to understand how to motivate a person. These theories are often applied in the workplace. Topic 4 Leading and Motivation 01 02 | THEORIES OF MOTIVATION Figure 4.12: Theories of motivation divided into need-based theories and process-based theories NEED-BASED THEORIES: MASLOW’S HIERARCHY OF NEEDS THEORY This theory was introduced by Abraham Maslow. Maslow suggested that within every individual that are five needs that are hierarchically ranked. The five needs are; physiological needs, safety needs, social needs, esteem needs and self-actualization needs. Maslow claimed that each level in the needs hierarchy must be fulfilled before moving to the next need or higher-level needs. To motivate employees, managers need to know what need level the employees on in the hierarchy.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.13: Maslow’s Hierarchy of Needs (adapted from Maslow, A.H, 1954) NEED-BASED THEORIES: ALDERFER’S ERG THEORY Figure 4.14: The three categories of basic human needs according to Alderfer’s ERG Theory Introduced by Clayton Alderfer; it is an alteration of Maslow’s hierarchy of needs. According to this theory, basic human needs can be grouped into three categories: existence, relatedness, and growth. In contrast to Maslow's hierarchy of needs, Alderfer’s ERG Theory does not rank needs.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 NEED-BASED THEORIES: HERZBERG’S TWO-FACTOR THEORY (MOTIVATION-HYGIENE THEORY) Figure 4.15: Herzberg’s Two-Factor Theory Introduced by Frederick Herzberg, according to this theory, intrinsic factors are related to job satisfaction, while extrinsic factors are related to job dissatisfaction. The intrinsic factors are called motivators, while the extrinsic factors are called hygiene factors. To motivate employees, Herzberg proposed emphasizing motivators.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Equity theory was proposed by J. Stacey Adams, this theory suggested that employees are motivated by fair treatment. Employees compare what they get from a job (outcomes) in relation to what they put into it (inputs), and then they compare their inputs–outcomes ratio with the inputs–outcomes ratios of relevant others. Apparent inequity will negatively affect motivation; employees who perceive themselves to be either under-rewarded or over-rewarded for their efforts will feel discouraged and may result lower productivity, lower quality of output or voluntary resignation. Therefore, the goal is to ensure employees are rewarded equitably. PROCESS-BASED THEORIES: THE EQUITY THEORY PROCESS-BASED THEORIES: THE EXPECTANCY THEORY This theory was introduced by Victor Vroom. Expectancy theory suggests that employee motivation depends on the rewards awaiting; there must be a positive correlation between an employee's efforts and his performance, and a positive performance must be rewarded in a way that will satisfy an important need. PROCESS-BASED THEORIES: THE GOAL SETTING THEORY The Goal Setting theory states that specific goals increase performance; the goal itself acts as an internal stimulus. This theory also suggested that working toward a goal is a major source of job motivation; specific goals increase performance and difficult goals, when accepted, result in higher performance than easy goals.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Job Design. It refers to the way tasks are combined to form complete jobs. Job design can affect employee motivation. Hence, managers should design jobs purposely and considerately according to the demands of the changing environment, the organization’s technology, and employees’ skills, abilities and preferences. There are few methods to design motivating jobs; i) job enlargement ii) job enrichment iii) job rotation. Job Enlargement. Job scope is increased by adding more tasks variety but with the same level of responsibility. Job enlargement is able to reduce boredom among employees and use human resources more effectively. When the jobs are enlarged, employees view themselves as being capable of performing a broader set of tasks. Example of job enlargement; apart from treating patients, a doctor is assigns to updating patient’s record. Job Enrichment. Job depth increased by allowing workers more control over how to perform their own tasks and giving them more responsibilities. Example of job enrichment; additional to treating patients, a doctor can schedule appointments and making follow up with patients. Job Rotation. Employees are moved from job to job at regular intervals. This approach allows the employee to acquire new skills and helps to reduce boredom caused by repetitive tasks. 03 | MOTIVATION THROUGH JOB DESIGN, COMPENSATION & REWARD MOTIVATION THROUGH JOB DESIGN MOTIVATION THROUGH COMPENSATION & REWARD Compensation and reward play a powerful role in motivating employee. The compensation and rewards system offered to employees should include both monetary and non-monetary ideas.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.16: Types of compensation and reward provide by an organisation
4.4 Power, Influence & Leadership Leader can be defined as someone who can influence others using the power that comes from their position. Leaders hold a position of authority. Leadership is what leaders do; a process of leading a group and influencing that group to achieve its goals. 01 | LEADER & LEADERSHIP Topic 4 Leading and Motivation 01 Figure 4.17: A leader roles in an organisation
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.18: Leaders traits according to the Leadership Traits Theories 02 | LEADERSHIP STYLES Leadership style is the way a managerial leader applies his influence in getting work done through his subordinates to achieve organisational goals. The three most common leadership styles are democratic style, autocratic style and laissez-faire style. Democratic Style. A leader who lets employees be involved in decision making (make decisions based upon input from others), delegated authority, and uses feedback as an opportunity for coaching employees, leader draws ideas and suggestions from his group through discussion, consultation, and participation. The advantages: the spirit of teamwork increases, and employees support decisions made by them. The disadvantages: slowing down the decision-making process, reduced accountability towards the decision, and the tendency to make a decision that satisfies all parties although that decision is not the best solution.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.19: The three common leadership styles (adapted from Organizational BehaviourII, 2017) Autocratic Style. A leader who dictates work methods, makes unilateral decisions (makes a decision on their own), limits employee participation, leader assumes full responsibility for all actions, and can freely use threats of punishment and penalty for any lack of obedience. The advantage: decisions can be made quickly. The disadvantages: team members might not be satisfied, weaken the spirit of teamwork, suitable for organisation that has a large number of employees and has unmotivated employees. Laissez-faire Style. Practised based on the assumption that subordinates understand their jobs and duties better, the leader lets the group make decisions (without input from the leader), and complete the work in whatever way employees see fit. The leader depends entirely on his subordinates to establish their own goals and to make their own decisions, lets them plan, organize and proceed, takes minimum initiative in administration and only be there to guide the subordinates if they are in a problem desirable. This leadership style is applied mainly in professional organisations and where the employees are self-motivated. The advantage: increases the chance of career development for subordinates because allows to contribute to organisational activities. The disadvantages: lack of understanding, and lack of unity hence affecting the organisation’s goals, and members lose direction causing inefficiency.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Activity 6 The role of the leader in guiding team members has become increasingly important as more organisations are using work teams. Identify one challenge for managers to overcome to become an effective leader.
4.5 Dynamic Group A group is defined as two or more interacting and mutually dependent individuals who come together to complete specific goals. Groups in an organisation are commonly classified into two groups, formal groups, and informal groups. 01 | GROUP Topic 4 Leading and Motivation 01 Figure 4.20: Groups in an organisation
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.21: Two types of formal group Figure 4.22: Examples of formal groups (adapted from Management 11th Edition, 2012)
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.23: The five stages of group development 02 | DEVELOPMENT OF GROUP According to Tuckman’s Stages of Group Development (1977), groups development involves five stages: forming, storming, norming, performing, and adjourning. Figure 4.24: Tuckman’s Model of Team Development (adapted from Principles of Management, Rice University, OpenStax, 2019)
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 4.25: The characteristics of effective teams 03 | EFFECTIVE TEAMS Team refers to a particular type of group that often consists of a small number of people working together to achieve mutual goals. Forming an effective team involves making decisions about team composition (who should be on the team), the size of the team (number of people on the team), and team diversity (team members of similar backgrounds or of diverse backgrounds). The answers to these questions depend on the type of task that the team need to accomplish. 04 | OBSTACLES TO EFFECTIVE TEAMS Where to begin. This often happens at the start of a project due to unclear objectives and a lack of understanding among team members about the objectives and tasks they need to achieve. Dominating team members. Some team members may have a dominating personality that invades the involvement of other members. This dominant behaviour may harm the team spirit and discourage other members from contributing ideas and energy. Team conflict. Conflicts among team members should be expected. Good teams discuss differing points of view since that will help the team to resolve conflict. Unfortunately, some conflicts occur because of personality issues or feuds that started before the formation of the team.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 05 | SETTLING ISSUES & CONFLICT Conflict is perceived incompatible differences resulting in some form of interference or opposition. (P. Robbins & Coulter, 2012) There are three different views about conflict: Traditional view stated that that conflict must be avoided. The human relations view sees conflict as a natural and expected outcome in every group and in some cases, conflict can be a positive force in contributing to a group’s performance. Interactionist view suggests that not only conflict can be a positive force in a group, but some conflict is necessary to encourage a group to perform effectively. There are three types of conflict: Task conflict relates to the content and goals of the work. Relationship conflict relates to interpersonal relationships. Process conflict refers to how the work gets done. Some conflicts are functional conflicts, and some are dysfunctional conflicts. Functional conflicts. Conflicts that encourage the improvement of the group’s performance. Dysfunctional conflicts. Conflicts that stop the group from accomplishing the group’s goals. Once group conflicts become too frequent and worse, organisations have five conflict management options: avoidance, adapting, forcing, compromise, and collaboration.
CON 5TROLLING 5.1 The Importance of Controlling
it’s the only way that managers know whether organisational goals are fulfilled or not, and if not, helps the organisation to identify the reasons why. it encourages the implementation of employee empowerment; an effective control system can provide information and feedback on employee performance and minimize the chance of a potential problem comprehensive control and alternative plans will help ensure minimal work interruptions, thus protecting the organisation and its assets. Effective controls ensure that activities are accomplished in ways that lead to the attainment of goals. It is determined by how well controlling helps employees and managers achieve their goals. Control is important because: 5.1 The Importance of Controlling 01 | EFFECTIVENESS & EFFICIENCY OF CONTROLLING Topic 4 Leading and Motivation 01 Figure 5.1: The purposes of control Controlling is the process of monitoring, comparing, and correcting work performance. Organisational control refers to the process by which an organisation influences its sub units and employees to perform in ways that lead to the fulfilment of organisational goals and objectives.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Figure 5.2: The benefits of implementing control in an organisation Figure 5.3: The level of control an organisation needs under different environmental conditions (adapted from Principles of Management, 2019)
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM 01 Topic 4 Leading and Motivation Figure 5.4: The characteristics of effective control (adapted from Buku shila) THE CONTROL PROCESS The control process involves 3 steps: measuring actual performance, comparing actual performance against the standard, and taking management action to correct deviations or to report inadequate standards (standards are specific goals that are created in the planning process) Figure 5.5: The three steps of control process
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM 01 Topic 4 Leading and Motivation Figure 5.6: The two possible courses of action that management can choose upon making the comparison between actual performance and standard.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 After managers have completed the planning process and executed specific plans, they must monitor and maintain the plans. Through the controlling function, managers observe and monitor ongoing organisational activity, compare it to the outcome and action statements formulated during the planning process, and take corrective action if they observe unexpected and unwanted deviations. Thus, planning and controlling activities are closely interrelated. Planning provides controlling by establishing the standards against which performance will be assessed during the controlling process. The control activity provides managers with input that helps them prepare for the upcoming planning period. Control is the tool to measure the progress of an organisation’s goals and enables management to detect the level of quality and weaknesses in planning. If management does not perform control, management will not know whether the organisational goals and plans have been achieved or whether corrective actions are needed. Planning without control will hinder the achievement of organisational goals. 02 | PLANNING AND CONTROLLING LINK Controls can be implemented before an activity begins, during the time the activity is going on, and after the activity has been completed. There are 3 types of control; feedforward control, concurrent control and feedback control. Feedforward control. Able to prevents problems because it takes place before the actual activity begins. These controls require timely and accurate information. Concurrent control. Takes place while a work activity is in progress. Among the approaches of concurrent control is direct supervision; manager is in the work area interacting directly with employees. One of the advantages of concurrent control is management able to correct problems before they become too expensive. Feedback control. Control takes place after the activity is done which organisation corrects the problem once it is discovered. The advantages of feedback control are feedback gives managers meaningful information on how effective an organisation's planning efforts were and feedback can enhance motivation among employees. 03 | TYPES OF CONTROL
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 To gain a profit, managers need financial controls. One of the controlling tools for financial is budget analysis. Budgets provide management with quantitative standards against which to measure and compare resource consumption. 04 | TOOLS OF CONTROLLING FINANCIAL CONTROL MOTIVATION THROUGH COMPENSATION & REWARD There are two ways management deals with information controls: (1) as a tool to help them control other organisational activities, and (2) as an organisational area they need to control. To measure actual performance, managers need information about what is happening within their area of responsibility and about the standards in order to be able to compare actual performance with the standard. Thus, managers need the right information at the right time and in the right amount to monitor and measure organisational activities and performance. Management also relies on information to help them determine whether the deviations are acceptable and vice versa. Information also aids organisations in developing suitable courses of action. The information tools that management uses come from the organisation’s management information system (MIS). MIS gathers data from numerous online systems, analyses the information, and reports data to help in management decision-making. Information is very important to an organisation; hence, an organisation must have comprehensive and secure controls to protect that information. Among the tools to control information are data encryption, system firewalls and data backups.
Q 6UALITY 6.1 Quality Standard 6.2 Quality System
6.1 Quality Standard 01 | QUALITY Topic 4 Leading and Motivation 01 Figure X: The meaning of the quality from two perspectives; the producer’s perspective and the consumer’s perspective. Quality refers to grade of service, product, reliability, safety, consistency and consumer's perception. Quality means "degree of excellence". Quality can be seen as having two meanings – the characteristics of the product or service ability to satisfy a particular need or a product or service devoid of faults. Quality is an attitude of mind. It is in the eye of the consumers, is the total sum of features liked by the consumers while purchasing a product or service. Quality is advanced design and engineering technology. Having precise manufacturing facilities and standardised processes enable organisation to produce quality products consistently. Quality is zero error policy. Organisations that hold onto quality commitments will strive to produce standard products with zero defects.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 It ensures error free products. It helps to give warranty or guarantee of products It enables good customer service It promises timely delivery It helps in getting all the desired features in products and services Quality helps in meeting the changing demands of the consumers It ensures delivery of flawless or zero error products or services It ensures delivery of products or service on time It helps in giving superior products produced with advanced engineering technology Quality helps in meeting or fulfilling the commitment The application of quality for consumers are: The application of quality for producers are: Figure X: The factors that affecting the quality of any product or services 02 | QUALITY CONTROL & QUALITY ASSURANCE There are four stages of quality management (Dale et al, 1994); inspection, quality control (QC), quality assurance (QA) and total quality management (TQM). Inspection. Inspection can be defined as ‘activities such as measuring, examining, testing, gauging one or more characteristics of a product or service and comparing these with specified requirements to determine conformity’ (ISO 8402, 1986). It encompasses the examination, measurement and testing of the characteristics of a product or service and the comparison to specified requirement and to access if the characteristics conform to specified requirement.
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Quality control. Checking and reviewing work that has been done. Quality control is carried out during and at the end of the operations process; it is the regulatory process through which organisations measure actual quality performance, compare it with standards, and act on the difference. It is a management tool aimed at preventing goods and services which do not conform to basic requirements from getting to the final consumer. Quality assurance. Quality assurance is a prevention-based system. It focuses on the prevention of the production of substandard products and emphasises the activities involved in the process of production. The quality assurance philosophy states that quality is created in the design stage and problems related to quality are caused by poor process design. Total quality management (TQM). TQM is the implementation of quality management principles in all aspects of the organization, including customers and suppliers. It is an approach involving continuous improvement by everyone in the organisation. TQM is aimed at the satisfaction of consumers’ needs in an efficient, reliable and profitable way. Figure X: The four stages of quality management and the characteristics of each stage (adapted from Dale et al, 1994)
123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 4 Leading and Motivation 01 Throughout the history of the quality movement there have been several approaches to quality and establishment of several organisations dedicated exclusively to setting standards for quality. Standardized Systems. ISO 9000 is a series of quality management systems (QMS) standards created by the International Organization for Standardization. The ISO 9000 QMS standards are not specific to products or services, they can be used by manufacturing and service industries. An organization that would like to have ISO certification needs to meet all the criteria stated in the ISO standards and pass a thorough audit performed by an ISO auditor. Continuous Quality Improvement (CQI). CQI was established in manufacturing as a different approach to quality and quality systems. It focuses more on the process of quality improvement. CQI lets individuals involved in the day-to-day operations change and improve processes and workflows. CQI implementation attempts to develop a quality system that strives for constant innovation to improve work processes and systems by reducing timeconsuming, low-value-added activities. Six Sigma. Six Sigma was developed at Motorola in the 1980s. Its overall aim was to measure and eliminate waste by attempting to achieve near-perfect results. Six Sigma is a statistically oriented approach to process improvement that uses a variation of tools, including statistical process control (SPC), total quality management (TQM), and design of experiments (DOE). Six Sigma originally was believed to as a system that could be used only in manufacturing operations, however, it has proven to be successful in non-manufacturing processes as well, such as accounts payable, billing, marketing, and information systems.
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Pros and Cons of Real Estate Investment Advantages of Real Estate Investing Disadvantages of Real Estate Investing REAL ESTATE INCOME GRADUALLY INCREASES REAL ESTATE IS IMPACTED BY RENT CONTROL REAL ESTATE GENERATES STEADY CASH INFLOWS REAL ESTATE REQUIRES MAINTENANCE REAL ESTATE PROVIDES A DEPRECIATION TAX SHIELD REAL ESTATE INCOME IS SUBJECT TO TAXATION Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s. REALLYGREATSITE.COM PAGE 03 Topic 1 Fundamental of Management 01
Types of Real Estate Investments A short-term property market can be competitive if it is in a popular vacation spot saturated with offers. You need to spend time and effort to make sure your property creates steady cash flow. A short-term property can be profitable under the right management. But don’t think that it will generate passive income without much effort. Before you invest your money, you have to take a look at several components that determine whether your property will create a profit or not. Basic rules of a good marketing plan include crisp images and possibly videos, detailed property descriptions, and good communication with your guests. You can also list all of the amenities in the area such as stores and restaurants, along with cultural and historic landmarks that could be of interest to your guests. Long-term rental properties are, as their name suggests, properties that you rent out for longer than a few months. This can include houses, apartments and even mobile homes. The term “long-term” can vary from one real estate agent to another; some agents may classify a property as longterm if it is rented out for a year or more while others may consider anything less than three years as shortterm. The specifics of what makes a rental property long-term vary depending on your local market. From keeping your books to maintaining and marketing, running your property is a real job that requires the right approach and a fair amount of experience. 01 | SHORT-TERM RENTALS 02 | LONG-TERM RENTALS Topic 1 Fundamental of Management 01
You need to spend time and effort to make sure your property creates steady cash flow. A short-term property can be profitable under the right management. But don’t think that it will generate passive income without much effort. Before you invest your money, you have to take a look at several components that determine whether your property will create a profit or not. Basic rules of a good marketing plan include crisp images and possibly videos, detailed property descriptions, and good communication with your guests. You can also list all of the amenities in the area such as stores and restaurants, along with cultural and historic landmarks that could be of interest to your guests. Long-term rental properties are, as their name suggests, properties that you rent out for longer than a few months. This can include houses, apartments and even mobile homes. The term “long-term” can vary from one real estate agent to another; some agents may classify a property as long-term if it is rented out for a year or more while others may consider anything less than three years as short-term. The specifics of what makes a rental property long-term vary depending on your local market. Types of Real Estate Investments 01 | SHORT-TERM RENTALS 02 | LONG-TERM RENTALS Topic 1 Fundamental of Management 01
Table Table Table Table Table Topic 1 Fundamental of Management 01 Template Table
List a frustration your target market has Students and teachers have limited tools for creative presentations. It is difficult to present across multiple devices. List a potential competitor and their offering Wrode Co.'s design platform Beal and Harlow's template library Problem Existing Alternatives List how your business can solve a customer's problem Provide schools with a wide range of options for creative presentations. Make presentations accessible across all devices. Solution Write about what makes your product special so you can convince a stranger to become your customer. Provide a short, catchy, easy-to-remember description of your product. Unique Value Proposition High-Level Concept List a metric by which you measure the success of your business By 2025, we reach 1 million users on the platform. By the second quarter of 2030, we see 200% growth in revenue year over year. Key Metrics List personas of the people that you expect to use your product Students Teachers List specific characteristics of your early adopters University students - technologically savvy and rushing to meet deadlines Young professionals - recent graduates who work in creative fields Customer Segments Early Adopters List what sets you apart from competitors Largest offering of presentation templates Award-winning engineering and design teams Unfair Advantage List the ways you plan to reach your audience Mobile App Website Channels What are the fixed and variable costs to launch your product or service? Consider the cost at each stage from setting up a website, hiring employees, production, marketing, and bringing them to consumers. Cost Structure How will you generate income? Show a pricing model of your product or service and include other revenue sources, such as sales and subscription fees. Revenue Streams 1 2 5 7 3 8 4 9 Lean Canvas 123 ANYWHERE ST., ANY CITY | +123-456-7890 | WWW.REALLYGREATSITE.COM Topic 1 Fundamental of Management 01