Saturday, 13 July 2013

MANAGEMENT ROLES

Managers perform certain generic roles in any organisation. 

The extent of these roles will be determined by the type of managerial position they hold within the organisation - 
  • CEO, 
  • Senior manager or 
  • Front-line manager. 

However, the principal aim of any manager's role is to achieve the objectives of the organisation.


The generic management functions which all managers perform may be described as the 'POLC CCM' functions or roles as discussed earlier.


CORPORATE CULTURE

Corporate culture may be formal or informal depending on the expectations of the organisation
Corporate culture may be formal or informal depending on the expectations of the organisation

The corporate culture of an organisation may be defined as 'the system of shared values' that exists within the corporate structure of an organisation. The existence of a corporate culture implies that there is a common set of values and norms that form the basis for all work practices and procedures that are carried out within the organisation. It also implies that there are clearly established ideals and beliefs that all employees, managers and owners of the organisation believe are the keys to the successful operation of the organisation.
These values represent:
  • how employees believe they will be treated by management
  • how managers treat each other
  • how customers will be treated and how customers expect to be treated
  • how the organisation interacts with other organisations and government agencies
  • how the organisation views the wider environment and the level of corporate ethics and social responsibility that is evident in the actions of the organisation
The existence of a corporate culture for an organisation enables the many and varied sections or departments of an organisation to feel a sense of belonging to each other rather than acting as independent units.
Corporate culture is an intangible term, i.e. it can not be touched or seen visibly. However, there are many signs or symbols that tell us about the corporate culture of an organisation

The corporate culture is something that evolves from the initial establishment of the organisation and the formulation of the mission and vision statement. In some instances, stakeholders view the organisation differently from how the organisation perceives itself. There may be, as a result, a difference between what is supposedly the 'official' culture and what the 'actual' culture is within the organisation. Changes to the environment within which the organisation operates may have an impact on the culture of the organisation. The organisation must be flexible and be able to adapt to these changes for the benefit of all stakeholders of the organisation. The corporate culture of an organisation is, however, difficult to alter and a significant change process would have to be implemented to achieve this. Management has a direct role to play in the development or change in the corporate culture. Management will act as a role model for their employees and their behaviour should mirror what the organisation is attempting to achieve through its goals and objectives. Management must provide the necessary infrastructure to train and to educate the employees with respect to this corporate culture and to ensure that they are properly motivated.

Management uses of objectives

Management uses these objectives to clearly define, for its employees and other management levels, the tasks that have to be performed and the targets that have to be achieved. 

These objectives will then be used to measure or to assess the performance of the organisation as a whole, a team of employees or managers, or individual employees or managers. 

As a result of this evaluation, the organisation may revise its objectives for the next time period and then draw up a revised strategy for the organisation to follow.
There are a number of advantages or benefits to an organisation of establishing objectives. These include:
  • Performance expectations of both managers and employees are clearly stated and defined
  • Communication and liaison between managers and employees is made easier by establishing a common set of objectives
  • Planning at all levels - strategic, tactical and operational - is made easier and an evaluation of the planning process may be undertaken
  • The objectives may be communicated to all stakeholders of the organisations (stakeholders being any individual, group of individuals or organisations which have a 'vested' interest in the successful operation of the organisation, i.e. they stand to lose something if the organisation does not succeed) and thus become part of the culture of the organisation
  • A measuring yardstick or standard will be established and the organisation can set itself up as the benchmark for other organisations
  • A system of accountability and responsibility is established within the organisation

GOALS AND OBJECTIVE


VISION STATEMENT

The mission or vision statement is normally determined by the Chief Executive Officer of the organisation in consultation with the board of directors and senior management of the organisation.

  • TO PROVIDE SHAREHOLDER PROFIT
  • TO PROVIDE EFFICIENT PUBLIC TRANSPORT
  • TO PROVIDE EXCELLENT CUSTOMER SERVICE
  • TO PROVIDE WORLD BEST PRACTICE
  • TO REACH WORLD WIDE AUDIENCE VIEWER
  • TO CREATE AFFORDABLE CLOTH FOR YOUNG
  • TO PROVIDE EXCELLENT AUDIO ON COMPUTER TECHNOLOGY
  • TO ESTABLISH COUNTRY WIDE OF CONTACTS
  • TO PROVIDE EXCELLENT HEALTH CARE SERVICE
  • TO PROVIDE EXCELLENT UP-TO-DATE INFORMATION


Organisational Objectives



Every organisation, when it is established, has a specific purpose or objective that it wants to achieve. 
In fact, many organisations have multiple objectives that they want to achieve. 
It does not matter whether the organisation is part of the public sector or the private sector, both will have their specific objectives that they want to achieve.

These guiding goals and objectives are normally formulated in the form of a mission or vision statement.
This statement attempts to summarise in a concise and precise manner the essential or core objective(s) of the organisation. 
It is a broad statement relating to what the business intends to do or to achieve both now and in the future. 
It is developed from the history of the organisation, its past performance, the environment within which it operates, the personnel associated with the organisation and their vision of the organisation. 
It is the overriding objective to which all other objectives are directed and is therefore strategic in nature. The mission or vision statement is established as a long-term objective.

Once the mission or vision has been formulated, the next level of management within the organisation will establish their own objectives. The senior management team will formulate the core drivers for their section of the organisation. 
These core drivers should mirror the mission/vision statement. These objectives will be mid-term in nature and will in turn be used by the next level of management when formulating their objectives.

Finally, the last level of management within an organisation - the front-line managers will draw up their objectives based upon the core drivers and the mission/vision. These targets will be typically short-term and operational in nature.

Management structures and Objectives


VERTICAL MANAGEMENT STRUCTURE



HORIZONTAL MANAGEMENT STRUCTURE

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




Management Structure


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

KPIs

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

Evaluaton of organisational performance




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

BUSINESS ENVIRONMENT

Business Environments
Large-scale organisations do not operate within a vacuum, they operate within constantly changing commercial and non-commercial environments. 

These organisations are not static, they are dynamic organisations operating within an open (as opposed to a closed) system. 

It is important for managers within these organisations to understand the environment within which they operate so that they can be about any likely impacts that the environment may have on the organisation. In this way managers can make any necessary changes to ensure the continued success of the organisation and the attainment of its goals and objectives.

Large-scale organisations operate within essentially two broad environments - the internal environment and the external environment. The external environment may be further divided into the task environment and the general environment.

There are three major sectors or contributors to the internal environment which may impact on the organisation - management, employees and the culture of the organisations.

Management obviously has a significant impact on the way that the organisation operates and functions, through the management functions already discussed. The employees may impact on the organisation through the tasks that they perform and the way that they execute those tasks. 

The culture of the organisation is a significant impactor as it incorporates 'the way that things are done within the organisation'. 

The culture of the organisation includes the 'system of shared values' inherent within the organisation, i.e. what people both within and outside the organisation believe the organisation stands for and how it operates, e.g. the quality of its service and the level of the organisation's employee relations. If the culture was to alter then the operations of the organisation would change as well. It is worth noting that the organisation has a fair degree of control over these sectors and the impact that they have on the organisation.

Contributions of large-scale organisations to the economy



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

Specific management functions

  • Marketing and Public Relations - managers must ensure that the right products and services are produced in the right style, at the right time for the right consumers, and to satisfy all consumer complaints if the organisation is to be successful
  • Banking and Finance - managers must ensure that the organisation has the necessary financial resources to achieve its objectives and then they must control these organisational finances
  • General Administration - managers must ensure that all the necessary paperwork, data entry and analysis are completed in the most efficient manner
  • Distribution - managers must ensure that the products are delivered on time to customers and that delivery charges are kept to a minimum

HUMAN RESOURSES
  1. Recruit 
  2. Select
  3. Appoint
  4. Induct
  5. Train 
  6. Motivate
OPERATION MANAGER
He should be able to Plan, Execute in all Phase of Manufacturing or Service Provision




POLC CCM

There is a wide range of essential functions that must be performed by managers in large-scale organisations. These functions may be categorized into two broad types - generic functions and specific functions





  1. Planning - managers must perform the task of planning at their designated level 
  • Strategic Level, 
  • Tactical Level or 
  • Operational level everything that the organisation must do to achieve its objectives, i.e. the long-term, the mid-term and the short-term plans


  • Organising - managers must ensure that all of the necessary resources, i.e. 
  1.  Natural resources
  2. Human resources,
  3. Capital resources and 
  4. Entrepreneurial or 'street smart' resources are available and are able to be used to perform the required tasks or for the required purposes so that the service can be provided or the product manufactured


  • Leading - managers must lead the way for employees, customers and competitors; they must be at the forefront of trends and fashions and lead by example in the workplace through their technical skill and competencies
  • Controlling - managers must perform a supervisory and control function to ensure that work is performed to the optimal level and that the quality of service provision of product manufacture is at world's best practice level

Distinguishing large-scale organisations



There are many ways that large-scale organisations can be classified and a variety of forms which they may take. The main way of distinguishing between large-scale organisations is by the ownership of the entity and its principal form of operation. Hence, we are able to distinguish between 

government (public sector) and 
non-government (private sector) organisations or, 


put in another way, between publicly owned and privately owned organisations.


By 'publicly owned' we mean that the community as a whole owns the organisation and that it is operated on their behalf by the government. 


Public sector or government organisations may in turn be categorized into three distinct forms - 

General government entities, providing non-market goods and services (e.g. roads, hospitals and the like),

Public trading enterprises, providing market goods and services which meet their community service obligation and finally,

Public financial enterprises providing financial services e.g. government, banks and insurance offices.

Next, we can distinguish between those large-scale organisations which have as their primary or core objective, the 

'profit motive', and those which are nonprofit oriented. 

Also, We can distinguish between large-scale organisations according to the industry to which they belong - 

primary, secondary or tertiary, or as to whether their core function is manufacturing or service provision.


We could also distinguish between 

organisations according to their legal status and the extent of their legal liability (e.g
1.Sole trader, 
2.Partnership,
3.Company,
4.Statutory authority,
5.Government department, and those large-scale organisations which have limited and those which have unlimited liability), and their size in terms of the number of employees, production levels and turnover.

Characteristics of large scale organisations

Characteristics of large scale organisations

So what is a large-scale organisation?Business enterprises can be classified according to certain characteristics.
There are a number of characteristics that may be used to classify a business enterprise as a large-scale organisation rather than as a small or a medium business enterprise.
The following characteristics may be used as a basis of such a classification. Before we attempt this classification, however, we should recall the basic rules of classification - exhaustiveness and exclusivity. The organisations we are attempting to classify as either small, medium or large-scale must all be able to be placed in at least one of the three categories (exhaustiveness) and the organisation being classified must be placed in one, and only one, of the categories (exclusivity).

If we take these characteristics and apply them to a large-scale enterprise then the following will normally be true. However, not all large-scale organisations will necessarily exhibit all of the following characteristics:

  1. HOW MANY STAFFS WORK IN THE ORGANISATION.
  2. WHAT IS THE ANNUAL TURNOVER/REVENUE OF THE COMPANY.
  3. WHAT IS THE VALUE OF THE COMPANY ASSETS.
  4. HOW MANY LOCATION DOES THE ENTERPRISES OPERATION FROM.
  5. HOW MANY OWNER ARE THERE IN THE COMPANY.
  6. WHAT IS THE RELATIONSHIP BETWEEN THE OWNER AND MANAGEMENT OF THE COMPANY.