CAT T5 revision notes

Chapter 1:The business Environment

An organisation is a social arrangement which pursues
collective goals,which controls its own performance
and which has a boundary separating it from
environment.
Organisations exist for overcoming peoples individual
limitations,enabling specialisation of s!ill,saving
time,sharing !nowledge,enabling people to pool their
expertise and enabling synergy.
A system is a collection of interrelated parts which ta!en
together forms a whole.
Closed system is isolated from its environment and
independent of it.
Few systems are entirely closed."an# are semi-
closed,in that their relationship with the environment is in
some degree restricted.
Open system is connected to and interacts with its
environment.$t ta!es influences from its environment and
also influences this environment.$t obtains inputs and
generates outputs.%usinesses are open s#stems.
!"T is a useful model for analysing the business
environment.The environmental influences are
anal#sed under four categories:
olitical&'egal "ocial
!conomic
Technological
#egal factors will affect all companies.Consider factors
such as compan# law,emplo#ment law,health and
safet#,data protection,mar!eting and
sales,environment,tax law and competition law.
olitical ris$ is an important factor to consider when
loo!ing at new mar!et.(olitical ris! in a decision is the ris!
that political factors will invalidate the strategy and
perhaps severel# damage the firm.Examples are
wars,political chaos.%nvestors will onl# invest if the politic
is stable.
%usiness planning must ta!e into account the forecast
state of the economy.Consider economic factors such
as )ross *omestic (roduct+)*(,,local economic
trends,inflation,interest rates,tax levels,government
spending and business c#cle.
"ocial factors will consider the demographic
change.&emography is the stud# of human population
and population trends.Factors of importance to
organisational planners are
growth,age,geograph#,ethnicit#,social
structure,emplo#ment and wealth of an area.
Technology contributes to overall economic
growth.Technolog# can help in gaining
productivity,reduced costs and introduce new t#pes of
product.(lanners should ta!e into account the
technological factors in an area as it affects
organisations' activities.
"ta$eholders are groups or individuals whose interests
are directl# affected b# the activities of a firm or
organisation.(ublic companies have a number of external
sta!eholders.Example of internal sta$eholders are
managers and emplo#ees.Example of external
sta$eholders are suppliers,customers and government.
Corporate governance refers to how the company is
managed.The Cadbury (eport defines corporate
governance as the s#stem b# which companies are
directed and controlled.The Combined Code on
corporate governance is intended to reduce the possibilit#
of managerial fraud.
Chapter -:Organisation structure
Organisations have one primar# corporate ob)ective and
a series of subordinates ob)ectives.
*usiness functions include production,sales and
mar!eting,accounting and finance and human resource
management.
Organisation stucture is the framewor! for allocating
tas!s,delegating authorit#,coordinating activit# and
channelling communication.
.enri Fayol was an earl# management theorist,who
proposed six principles of organisation:
-&ivision of wor$/specialisation to produce more and
better outputs.
-Authority and responsibilies/A person with
responsibilit# for performing an action should be given a
clear authorit# to do it,a person with the authorit# to
perform an action should be made clearl# responsible for
its outcome.
-"calar Chain/There is a chain of authorit# running from
the top of the organisation hierarch# to the bottom.
-+nity of Command/0ubordinate should receive orders
from onl# one superior.
-+nity of direction/There should be one identified
1chief2 and one overall plan.
-"ubordination of individual interests/0atisfaction of
emplo#ees should be recognised as less important than
the fulfilment of the organisations ob3ectives.
.enr# ,int-berg has categorise five basic component
parts in an# organisation:
4 The strategic apex is made up of the senior
management, who are concerned with ensuring that the
organisation pursues its
ob)ectives and serves the needs of its owners and
sta$eholders through strategic planning and resource
allocation. $t also involves managing the boundaries
between the organisation and its external environment
and sta!eholders.
4 The operating core comprises the people directly
involved in production. Tas!s for the operating core
involve securing inputs
and processing and distributing them as outputs, i.e.
goods and services.
4 The middle line comprises the managers and
supervisors within the organisation, who form a chain of
command that runs
between the strategic apex and the operating core. Tas!s
for the middle line include the organisation, planning and
controlling
of the wor! of the organisation. The middle line acts as an
interface between senior management and
operational employees
and also the organisation and external contacts.
4 The techno-structure comprises the specialist advisors
and anal#sts within the organisation5 the technical support
staff. The
techno/structure offers technical support to the rest of
the organisation, designing and maintaining s#stems to
standardise
wor! throughout the organisation +e.g. financial control
and .6 planning,.
4 The staff support comprises the administrative and
ancillary support staff of the organisation for example,
legal
advice, research and development, maintenance and
securit#.
There are man# influences on organisation structure
such as internal principles of organisation,ob)ectives of
the organisation,tas$ of the organisation,technology of
the tas!,si-e of the organisation,human resources of
the organisation,environment of the organisation and
culture of the organisation.
$nternal infuences on organisation design include span of
control+the number of subordinates reporting to one
superior, and the amount of delegation of
authorit#+centralisation or decentralisation,.These
factors determine whether an organisation is tall+man#
management levels,narrow spans of control,centralised
authorit#, or flat+fewer management levels,wider spans of
control,decentralised authorit#,.
Organisations ma# be departmentalised or
divisionalised in a number of different wa#s,including
functional+b# specialisation,,geographical+b# region or
countr#, and product.brand organisation.
,atrix structure crosses functional and
product.pro)ect organisation,so that staffs are
responsible to their department manager and pro3ect
manager+dual manager,.
/ybrid structure mixes functional,geographical and
product&brand organisation.7or example multinational
compan#.
*urns and "tal$er described mechanistic+also !nown
as bureaucracies are stable,efficient and suitable for
slow/changing environment, and
organic+flexible,adaptive and suitable for fast/changing
environment, organisational forms.
*ureaucracy is a continuous organisation of official
functions bound by rules.%ureaucrac# can be rational
and efficient but its d#sfunctions in fast/changing
environments have been recognised.
Chapter 8:%usiness planning and control
(lanning ta!es place at strategic,tactical and
operational level.
"trategic planning/deciding what business the
organisation should be in,and what its overall ob)ectives
should be.This is a long/range planning+- to 8 #ears,.
Tactical planning/deciding how it should go about
achieving its overall ob3ectives.This is a short/range
plannin+1 #ear,.
Operational planning/deciding what needs to be done
from day to day and tas! to tas!.This is a dail# basis
planning.
(lan must ta!e account of the availabilit# of
resources.(esource planning includes estimates of
re9uirements with regard to personnel+human
resource,,e9uipment or machiner#,materials and
components and finance.
.uman resource plan is prepared on the basis of the
anal#sis of its future human resource and s!ills
re9uirements.Four $ey stages of human resource
planning are auditing,forecasting,planning and
controlling.
-Auditing stage involves the anal#sis of the strategic
environment +trends in population growth, education,
pensions etc, in the light of the organisations strategic
ob3ectives.The strateg# chosen will have implications for
the numbers of emplo#ees and the mix of s!ills re9uired.
-Forecasting stage anal#ses the demand for, and suppl#
of, labour in terms of number, t#pe and 9ualit# of people
that the organisation should emplo# to meet planned
re9uirements and cover expected turnover.
-lanning stage involves policies to recruit, train and
develop the labour force indicated in the forecast.
-Controlling stage involves measuring the effective use
of the human resources and their contribution towards the
achievement of the
organisations ob3ectives.
!lements of human resource plan include recruitment
plan,training and development plan,succession
plan,productivit# plan,retention plan,redundanc# plan and
reward plan.
Contingencies are unexpected events,which ma# or ma#
not happen.Contingency planning+bac!/up plan, loo!s
at how the overall plan will be affected if something
unexpected happens such as the entr# of a powerful new
competitor into the mar!et,an unexpected rise in labour
costs,a decline in 9ualit# standards.
(lanning re9uires coordination.Coordination is one of the
ma3or functions of management.*epartmental plans and
budgets must be coordinated,so that the# are all wor!ing
together to achieve the business plan.At production
level,coordination will ensure that departments !now
what and when the# need to achieve,wor! flows without
holdups or clashes,and without idle time or overwor! for
staff and machiner#,the resources re9uired for the tas!
are available where and when the# are re9uired and there
is no duplication of effort.
(lanning is executed through systems+agreed/upon plan
for carr#ing out an activit#,,policies+general statements
which provide guidelines for management decision
ma!ing, and procedures+chronological se9uences of
actions re9uired to perform a tas!,.
Chapter ::The accounting function
The accounting s#stems are affected b# the si-e0type
and structure of an organisation.
Accounting function will be specificall# affected by
geography because of differences in currencies,legal
and accounting re9uirements,wa#s of doing business and
economic conditions.
!xternal influences of accounting function include
investors,ban!s,suppliers,customers,benchmar!ing and
privatised utilities.
7inancial accounting and management accounting will be
separate sections in an# large accounting
department.Financial accountants manage non/current
asset register,sales ledger,debt collection,credit
control,purchase ledger,pa#roll,financial
accounts,statutor# accounts and sales tax
returns.,anagement accountants manage inventor#
reporting and valuation,materials costing,labour
costing,expense and overheads costing,3ob
costing,budgetar# control reports,budget
coordination,pro3ect appraisal and anal#sis and
investigations.
Accounting wor! can be seen as a mixture of two t#pes of
wor!:handling the financial operations of an
organisation and providing information to managers of
other departments.
Accounting management provides a good example of the
need for close coordination between managers and
sections.Account department coordinate with purchases
department,personnel department,sales
department,credit control department,inventor#
controllers department and senior management in
receiving information for handling financial operations
and provide information in return.
Computerised accounting is the same in principle as
manual accounting.
Advantages of computerised accounting s#stem are
s#stems and pac!ages can be used b# non-
specialists,large amount of data can be processed very
1uic$ly,computerised s#stems are more accurate than
manual s#stems,computer is capable of handling and
processing large volumes of data,computerised s#stems
can analyse data very 1uic$ly to present useful control
information for managers.
&isadvantages of computerised accounting s#stem are
the initial time and costs involved in installing the
s#stem,including the need for staff training,the need for
security chec$s to ma!e sure that unauthorised
personnel do not gain access to data files, it is necessar#
to develop systems of coding and chec$ing,the
potential for a lac$ of audit trail 4 as it is not alwa#s
eas# to see where a mista!e has been made.
Chapter ;:"onitoring business and accounting s#stems
%nternal control system is the whole s#stem of
controls,financial and otherwise,established b# the
management in order to carr# on the business of the
enterprise in an orderl# and efficient manner,ensure
adherence to management policies,safeguard the
assets and secure as far as possible the completeness
and accuracy of the records.The individual components
of an internal control s#stem are !nown as controls or
internal controls.
These are eight t#pes of internal control listed.One wa# of
remembering them is use the mnemonic "A, "OA.
-"egregation of duties.Executive tas!s should be
separated from control tas!s. One of the prime means of
control is the separation of those responsibilities or
duties which would, if combined,enable one individual to
record and process a complete transaction.0egregation of
duties reduces the ris$ of intentional manipulation
or error and increases the element of chec$ing.
0ome functions should be separated whenever possible.
7or example, authorisation, execution and custod#. An
example of segregation of duties concerns the receipt,
recording and ban!ing of cash. $t is not a good idea for the
person who opens the post to be the person responsible
for recording that the cash has arrived. $t would be even
poorer practice for that person to be responsible for ta!ing
that cash to the ban!. $f these duties are not segregated,
there is alwa#s the chance that the person will
misappropriate or steal the cash and no/one would !now.
-hysical controls.These are concerned with the custod#
of assets and records and are also concerned with
ensuring that access to assets and records is onl#
permitted to authorised personnel. rocedures and
security measures are needed to ensure that access to
assets is limited to authorised personnel. 0uch controls
include loc!s, safes and entr#
codes.
-Authorisation and approval. All transactions should be
authorised or approved b# an appropriate responsible
person. The limits for these authorisations should be
specified.$n a purchasing s#stem there should be authorit#
limits,where purchases of amounts exceeding those limits
re9uire higher authorit#.
-,anagement controls."anagement controls are
exercised b# management outside the da#/to/da# routine
of the s#stem.These include the following: overall
supervisor# controls, review of management accounts and
comparison with budgets,internal audit function and
special review procedures.
-"upervisory controls.An# s#stem of internal control
should include the supervision b# responsible officials of
da#/to/da# transactions and the recording of them.
-Organisation as a control.Enterprises should have a
plan of their organisation,defining and allocating
responsibilities and identif#ing lines of reporting for all
aspects of the enterprises operations, including the
controls.There must be a well/defined organisational
structure showing how responsibility and authority are
delegated. An effective plan would
re9uire:
+i, separation of a compan#s operations into appropriate
divisions and sub/divisions,
+ii, appointment of persons to assume responsibilit#,
+iii, establishment of clear lines of responsibilit# between
each division and sub/division and the board of directors,
+iv, overall co/ordination of the compan#s activities.
This will help to prevent friction so that staff wor! together
well. $t also means that no duties go unperformed or
unchec!ed.
-Arithmetical and accounting controls.These controls
are within the recording function and chec! that the
transactions to be recorded and processed have been
authorised,that the# are included and that the# are
correctly recorded and accurately processed.This
includes:chec!ing the arithmetical accurac# of the
records,the maintenance and chec!ing
of totals,reconciliations,control accounts,trial
balances,accounting for documents.
-ersonnel controls.These are procedures to ensure
that personnel have capabilities appropriate to
their responsibilities,since the proper functioning of an#
s#stem depends on the competence and integrit# of those
operating it.The 9ualifications,selection and training of the
personnel involved are important features to be
considered in setting up an# control s#stem.7or example,
a compan# accountant should be suitabl# 9ualified.
%nternal chec$s are part of the internal controls in an
accounting s#stem.The# are designed to chec! that
ever#thing that should be recorded is recorded,that an#
errors come to light and that assets and liabilities
genuinel# exist and are recorded at the correct amount.
%nternal audit is itself an internal control whose function
is to assess the ade9uac# of other internal controls.The
main t#pes of audit are systems audits+evaluation of
internal controls,,transactions audits and value of
money audit or operational audit.
!xternal audit is an independent examination of,and
expression of opinion on the financial statements of an
enterprise.External auditors are re9uired where there is a
statutor# obligation to do so.
One of the main differences between internal and
external audit is the overall scope of the audit. The
potential scope of an internal audit covers the total
conduct of business.This includes the examination and
evaluation of the ade9uac# and effectiveness of the
organisations governance, its ris! management process,
s#stems of internal control structure, and the 9ualit# of
performance in carr#ing out assigned responsibilities to
achieve the organisations stated goals and ob3ectives.
The scope of the external audit is usuall# confined to a
financial and compliance audit to satisf# the statutor#
responsibilities of the external auditor, which re9uires
examination of the accounts and providing an
opinion as to whether the financial statements
produced provide a 2true and fair view'.
True and fair is not defined in compan# law or
accounting standards.The words are used together rather
than separatel# and the term is generall# ta!en to mean
1reasonably accurate and free from bias or
distortion2.
There are three more main differences between
internal and external auditor:
Appointment. External auditors are appointed b# the
shareholders +although the# are usuall# onl# ratif#ing the
directors choice, and must be independent of the
compan#, whereas internal auditors are usuall#
emplo#ees of the organisation.
(esponsibility. External auditors are responsible to the
owners +i.e. shareholders, the public, or (arliament in the
<=,, whereas internal auditors are responsible to senior
management.
Ob)ectives. The ob3ectives for external auditors are
defined b# statute, whereas those for internal auditors are
set b# management. $n other words, management decide
what parts of the organisation or what s#stems internal
auditors are going to loo! at and what t#pe of internal
audit should be carried out.
Chapter >:$ndentif#ing and preventing fraud
Fraud ma# be generall# be defined as 1deprivation by
deceit2. 7raud can fall into one of two main categories:
removal of funds or assets from a business and
intentional misrepresentation of the financial position
of the business.
T#pes of fraud in removal of funds or assets from a
business include theft of cash,theft of inventor#,pa#roll
fraud,teeming and lading+theft of receipts from
customers,,fictitious customers,collution with
customers,bogus suppl# of goods or services,pa#ing for
goods not received,meeting budget performance
measures,manipulation of ban! reconciliations and cash
boo!s,misuse of pension funds and disposal of assets to
emplo#ees.
T#pes of fraud in intentional misrepresentation of
financial position of the business include over/
valuation of inventor#,bad debt polic# ma# not be
enforced,fictitious sales,manipulation of #ear end
events,understating expenses and manipulation of
depreciation figures.
The three broad prere1uisites for fraud are
dishonesty0motivation and opportunity.
&ishonesty is a sub3ective 9ualit#.*ishonest# is generall#
defined as an individuals pre/disposition or tendenc# to
act in wa#s that contravene accepted ethical,
social,organisational and legal norms for fair and honest
trading.
,otivation.$n addition to a general disposition or
willingness to act dishonestl#, an individual will still need a
specific motivation to do so. This is li!el# to involve a
calculation of whether a given action is worthwhile 4 this
will ta!e into account the potential rewards in relation
to the potential sanctions or negative conse9uences of
the action5 the li!elihood of being caught and the li!el#
punishment if caught.The individuals motivation for
fraudulent behaviour ma# be financial +in the case of
theft or fraud for monetar# gain,, a desire to exercise
negative power over those in authorit# or a desire to
avoid punishment +for example, in the case of a cover
up,.Often, the motive for fraud is simpl# dissatisfaction,
based on being passed over for promotion, poor pa# or a
feeling of carr#ing more than a fair wor!load.
Opportunity.Even if a person is willing to act dishonestl#,
and has a motive for doing so, he&she must still find an
opportunity or an opening to do so. This can be a
?loophole in the law or control s#stem that allows the
fraudulent activit# to go undetected or ma!es the ris! of
detection acceptable 4 given the rewards potentiall#
available.
An individual will have high incentive to commit fraud if
he&she is predisposed to dishonesty and the rewards for
the particular fraud are high+motivation, and there is an
opportunity to commit fraudulent action with little
chance of detection or with insignificant sanctions if
caught.
The !e# to devising successful internal controls is to
identify the ris$s clearl#:once the# are !nown,the# can
be managed effectivel#.There are two t#pes of
ris!s:business ris!s and personnel ris!s.
*usiness ris$s include profit levels deviating significantl#
from the industr# norm,mar!et opinion and complex
structures.
ersonnel ris$s include secretive behaviour,expensive
lifest#les,long hours or unta!en holida#s,autocratic
management st#le,lac! of segregation of duties and low
staff morale.
$t is the responsiblit# of the directors to implement
stuctured internal controls to prevent and detect fraud.
Chapter @:$mproving control procedures
The purpose of payroll system is to compute the gross
wages and salaries of emplo#ees and produce
pa#slips,che9ues and&or listings sent to ban!s instructing
them to ma!e pa#ments.3ey controls over pa#roll
s#stem cover setting of wages and
salaries+employees are only paid for wor$ that the#
have done,,recording of wages and salaries+wages
and salaries are correctly calculated and
recorded,,payment of wages and salaries+the
correct employees are paid, and deductions from
pay+deductions have been calculated correctly and
are authorised,.
Controls on purchases cycle will be based around
buying+authorisation,,goods inwards+chec!s, and
accounting+recording,.
Controls on sales cycle will be based around
selling+authorisation,,goods outwards+chec!s, and
accounting+recording,.
The control of cash is of prime importance in an#
business.3ey ob)ectives for the control of cash are to
ensure that all sums are received and subse9uentl#
accounted for,no pa#ments are made which should not
be made,all receipts and pa#ments are promptly and
accurately recorded and as part of wor$ing capital
management.Cash and petty cash must be regularly
reconciled.Ever# pa#ment must be approved b# an
authorised person.A ban$ reconciliation should be
done at least once a month.
Control is enhanced b# an integrated accounting
system. An integrated s#stem automatically lin$s
together the different elements of an accounting pac!age,
such as sales, purchases and stoc!.There are a number of
potential benefits to this:
+i, One entry updates all of the others so there are fewer
data inputs and fewer errors.
+ii, Fewer people need to be involved in the input. This
ma!es it possible to have more restricted access to the
computer s#stem, which enhances overall control.
+iii, !rrors in one module are unli$ely to go
unnoticed because the# will impinge upon other areas.
+iv, Frauds involving 3ust one accounting area are
difficult to maintain because 9ueries will tend to arise in
other areas.
Chapter A:"anagement information and reporting s#stem
)ood management information is ACC+(AT!:
Accurate
Complete
Cost/beneficial
+ser/targeted
(elevant
Authoritative
Timel#
!as# to use
Three main functions of management where management
information can be useful are as follows:
+i, lanning: management needs to decide what the
ob)ectives of the compan# are and how the# can be
achieved."anagement information is used to help
management to plan the resources that a business will
re9uire and how the# will be used.
+ii, Control: once management puts a plan of action into
operation, there needs to be some control over the
business's activities to ma!e sure that the# are
carr#ing out the original plans.
+iii, &ecision-ma$ing: management at all levels within an
organisation ta!es decisions. *ecision/ma!ing alwa#s
involves a choice between alternatives. $t is the role of
the management accountant to provide information so
that management can reach an informed decision.
A management information system+,%", is a s#stem
to convert data from internal and external sources into
information and to communicate that information,in an
appropriate form,to managers at all levels.
"anagers can assess the significance of information b#
monitoring and measuring against some baseline and
most management reports are made more meaningful
b# the use of comparison.
+i, Comparisons with previous periods. The most
common comparison of a previous period is of one #ears
final figures against the previous #ears.
+ii, Comparisons with corresponding periods. "a!ing
comparisons month-by-month or 1uarter-by-1uarter is
most useful when #ou expect figures to be reasonabl#
even over time..owever, demand for man# products
fluctuates season-by-season.$n this case, the most
useful comparison would be to compare with the same
season last #ear. This is the corresponding period.
+iii, Comparison with forecasts.%usinesses ma!e
forecasts for a number of purposes. A ver# common t#pe
of forecasting is a cash flow forecast. The purpose of
ma!ing this forecast is for the business to be able to see
how li!el# it is to have problems maintaining a positive
cash balance.At the end of the period, management will
compare the actual figures
with the forecast figures and tr# to assess wh# the# differ.
+iv, Comparisons with budgets. A budget is an
organisations plan for a forthcoming period, expressed in
monetar# terms.%udgets can be used to chec! that the
plan is wor!ing b# comparing the planned results for the
da#, wee!, month or #ear to date with the actual results.
+v, Comparisons within organisations. Organisations
ma# also wish to compare the performance of different
departments,sales regions or product t#pe.
+vi, Comparisons with other
organisations+*enchmar$ing,. An obvious wa# of
assessing how a business is performing in its chosen
mar!et
is to compare its results and financial position with
those of its main competitors. The main information that
will be generall# available will be the competitors annual
statutor# financial accounts. Comparisons are generall#
made on an annual basis.
Chapter B:'eadership,management and supervision
ower is the abilit# to get things done.(ower has been
classified into six t#pes:Coercive power+power of
ph#sical force,,resource power+control over valued
resources,,legitimate.position power+power associated
with position in hierarch#,,expert power+power of
expertise,,personal power+force of personalit#, and
negative power+power to disrupt operations,.
Authority is the right to get things done:to as! someone
else to do something and expect it to be done.Authorit# is
thus another word for position or legitimate power.
&elegation of authorit# is the process whereb# a superior
gives to a subordinate part of his or her own authorit# to
ma!e decisions. 0uccessful delegation re9uires the
resolution of the Trust-Control dilemma.
Trust/Control dilemma:
T4C56
Chere TDtrust
CDcontrol exercised b# superior over subordinate
EDa constant,unchanging value
$f there is an# increase in C,the subordinate will immediate
recognise that +s,he is being trust less.
"anagers and supervisors might need to delegate
authority for a number of reasons, including the
following. There are physical and mental limitations to
the wor!load of an# one individual in authorit# and it ma#
be necessar# to delegate to ensure that the wor!load can
be effectivel# managed. "anagers and supervisors ma#
wish to delegate in order that the# are free to
concentrate on the aspects of their wor$ which onl#
the# are competent to do +e.g. detailed planning or
aspects of budgeting,.The increasing si-e and
complexity of man# of toda#s organisations demands
increasing specialisation and effective delegation is one
wa# of developing this. "anagers also need to consider
that delegation provide subordinates with development
opportunities.
"an# managers and supervisors are reluctant to
delegate and attempt to do man# routine tas!s
themselves as well as more important ones. 0ome of the
reasons for this might be as follows:
+i, The# ma# have low confidence and trust in the
abilities of their staff5 +ii, The# ma# believe that the# are
the onl# one capable of doing the tas! properl#5
+iii, The# ma# wish to $eep en)oyable parts of the 3ob to
themselves5
+iv, 0ome managers feel more powerful b# retaining
their decision ma!ing privileges5
+v, The# ma# fear that their subordinates will use the
authorit# poorl#5
+vi, The# ma# not wish to ta!e on the additional burden
of being accountable for any mista$es that their
subordinates might
ma!e while executing the tas!5
+vii, The# ma# believe that their subordinates do not wish
to have broader decision ma!ing responsibilities5
+viii, The# ma# wish to ?stay in touch' with the
department or team and feel that an# act of delegation
removes them from the da# to da# activities5
+ix, The# ma# feel threatened and be unwilling to admit
that assistants have developed to the extent that the#
could perform some of the managers duties. The# ma#
feel threatened b# this sense of redundanc#.
+x, There ma# be poor control and communication in
the organisation so that the manager feels he has to do
ever#thing himself in order to retain control and
responsibilit# for the tas!s5
+xi, There ma# be an organisational culture which has
failed in the past to recognise and reward effective
delegation. $n this climate the manager ma# feel that
delegation is seen as shir!ing responsibilit#5
+xii, There ma# be a lac$ of understanding about what
delegation involves5
+xiii, There ma# be a lac$ of training and development
of managers in the s!ills needed for effective delegation5
+xiv, "anagers and supervisors ma# have had poor
experiences of delegating to others.
To overcome the problems: train the subordinates,
have a s#stem of open communications and ensure
that a system of control is established.
.enri Fayol classified five functions of management
that appl# to an# organisation. The# are planning,
organising, commanding,co/ordinating and controlling.
-lanning involves selecting ob)ectives and the
strategies, policies, programmes and procedures for
achieving the ob3ectives either for the organisation as a
whole or for part of it.
-Organising is about establishing a structure of tas$s
which need to be performed to achieve the goals of the
organisation5 grouping these tas!s into 3obs for an
individual5 creating groups of 3obs within sections and
departments: delegating authorit# to carr# out the 3obs5
and providing systems of information and
communication for the coordination of activities.
-Commanding is about giving instructions to
subordinates to carr# out tas!s over which the manager
has authorit# for decisions and responsibilit# for
performance.
-Coordinating is about harmonising the activities of
individuals and groups within the organisation, who ma#
have different ideas about what their own goals should
be."anagement must reconcile differences in approach,
effort, interest and timing of these separate individuals
and groups.
-Controlling is about measuring and correcting the
activities of individuals and groups, to ensure that their
performance is in
accordance with plans. *eviations from plans are
identified and corrected.
There are two !e# omissions from 7a#ols classification.
-,otivating is not mentioned.$t is assumed that
subordinates will carr# out tas!s when
?commanded,regardless of whether or how far the# ma#
?want to.
-communicating is not mentioned.
(eter &ruc$er has written management process and
grouped the wor! of manager into five categories.
/setting ob)ectives for the organisation.
/organising the wor$.
/motivating emplo#ees and communicating information
to them to enable them to do their wor!.
/the )ob of measurement."anagement must establish
ob)ectives of performance for ever# person in the
organisation,anal#se actual performance,appraise it
against the ob3ectives which have been set,and anal#se
the comparison,communicate the findings and explain
their significance both to subordinate emplo#ees and also
to superiors.
/&eveloping people.
A managers 3ob is not clear/cut and s#stematic in
practice."ore recent descriptions of the manager's role
b# .enr# ,int-berg describe interperonal
roles+figurehead,leader,liaison,,informational
roles+monitor,spo!esperson,disseminator, and decisional
roles+entrepreneur,disturbance handler,resource
allocator,negotiator,.
A supervisor is a person selected b# middle management
to ta!e charge of a group of people,or special tas!,to
ensure that wor! is carried out satisfactoril#. The $ey
features of supervision are as follows:
+i, A supervisor is usuall# a front-line manager, dealing
with the levels of the organisation where the da#/to/da#
wor! is done.The supervisor will deal with matters such as
staffing and health and safet# at the da#/to/da#
operational level,whereas a manager might deal with
them at a polic# ma!ing level.
+ii, A supervisor does not spend all of his or her time on
the managerial aspects of the 3ob. "uch of the time will be
spent doing technical.operational wor$.
+iii, A supervisor is a gate$eeper or filter for
communication between managerial and non/
managerial staff, both upward+conve#ing reports and
suggestions, and downward +conve#ing policies,
instructions and feedbac!,.
+iv, The supervisor monitors and controls wor! b# means
of day-to-day, fre1uent and detailed information:
higher levels of management plan and control using
longer/term, less fre9uent and less detailed information,
which must be ?edited or selected and reported b# the
supervisor.
+v, 0upervisors often carr# out Fayol's five functions of
management +planning, organising, commanding,
coordinating and controlling, at a lower0 more
operational level.
There are man# different definitions of leadership.=e#
themes+which are also used to distinguish leadership from
management, include:interpersonal influence5securing
willing commitment to shared goal5creating direction and
energ#5and an orientation to change.
The terms ?management and ?leadership are often used
interchangeabl#. .owever, there have been man#
attempts to
distinguish meaningfull# between them.
+i, 3otter +-FF1, argues that leadership and management
involve two distinct sets of action. ,anagement is
about coping with complexity: its functions are to do
with logical structure, anal#sis and control, and are aimed
at producing order,consistenc# and predictabilit#.
#eadership, b# contrast, is about coping with change:
its activities include creating a
sense of direction, communicating strateg#, and
energising, inspiring and motivating others to translate
the vision into action.
+ii, 6u$l +1BBA, suggests that while management is
defined b# a prescribed role and position in the structure
of the organisation, leaders are given their roles b# the
perception of others, through election, choice or influence.
'eadership is an interpersonal process. ,anagers have
subordinates7 leaders have followers.
+iii, 8ale-ni$ +1BB-, suggests that managers are mainly
concerned with order and maintaining the status
1uo, exercising their s!ills in diplomac# and focusing on
decision/ma!ing processes within the organisation.
#eaders, in contrast, direct their energies towards
introducing new approaches and ideas. The# create
excitement and vision in order to arouse motivation and
focus with empath# on the meanings of events and
actions for people. 'eaders search out opportunities for
change.
+iv, 3at- and 3ahn +1B@:, point out that while
management aims to secure compliance with stated
organisational ob)ectives, leadership aims to secure
willingness0 enthusiasm and commitment. 'eadership
is the influential increment over and above mechanical
compliance with the routine directives of the organisation.
'eadership offers !e# benefits in a competitive,turbulent
environment:activating commitment,setting
direction,developing people and energising and supporting
change.
There are several classifications of the theories or
2schools' of leadership, including:
+a9 Trait theories 4 these are based on anal#sing the
personality characteristics or preferences of successful
leaders and assume that leaders are born, not made. 'ists
of traits included ph#sical traits, personalit# traits and
social traits.
+b, "tyle theories 4 these are based on the view that
leadership is an interpersonal process whereb#
different leadership behaviours influence people in
different wa#s. "ore or less effective patterns of
behaviour +or st#les, can therefore be adopted.
+c9 Contingency theories 4 these are based on the belief
that there is no 2one best way' of leading, but that
effective leaders adapt their behaviour to the specific and
changing variables in the leadership context: the nature of
the tas!, the personalities of team members, the
organisation culture and so on.
#eadership styles are clusters of leadership behaviour
that are used in different wa#s in different situations.Chile
there are man# different classifications of st#le,the#
mainl# relate to the extent to which the leader is focused
primaril# on tas!&performance or relationships&people.
Ashridge ,anagement College ,odel distinguished
four different management st#les.
/Tells.The manager ma!es all the decisions and issues
instructions which must be obe#ed without 9uestion.
/"ells.The manager still ma!es all the decisions,but
believes that subordinates have to be motivated to accept
them in order to carr# them out properl#.
/Consults.The manager confers with subordinates and
ta!es their views into account,but has the final sa#.
/:oins.'eader and followers ma!e the decision on the
basis of consensus.
6ensis #i$ert also described a range of four
management st#les or ;systems<.
/0#stem 1:!xploitative authoritative.The leader has no
confidence or trust in his subordinates,imposes
decisions,never delegates,motivates b# threat,has little
communication with subordinates and does not encourage
teamwor!.
/0#stem -:*enevolent authoritative.The leader has
onl# superficial trust in subordinates,imposes
decisions,never delegates,motivates b# reward and
though sometimes involving others in problem/solving,is
basicall# paternalistic.
/0#stem 8:articipative.The leader has some
confidence in subordinates,listens to them but controls
decision ma!ing, motivates b# reward and a level of
involvement,and will use the ideas and suggestions of
subordinates constructivel#.
/0#stem ::&emocratic.The leader has complete
confidence in subordinates who are allowed to ma!e
decisions for themselves."otivation is b# reward for
achieving goals set b# participation,and there is a
substantial amount of sharing ideas,opinions and
cooperation.
*la$e and ,outon carried out research into managerial
behaviour and observed two basic dimensions of
leadership: +1,concern for production +or tas!
performance, and +-, concern for people.
*la$e and ,outon's managerial grid
+i, +B.B, 4 the 2team management style' this combines
deep concern for people with a clear concern for
production. This is a high performance manager who
achieves high wor! achievements through ?leading
committed people who identif# themselves with
organisational aims.
+ii, +1.B, 4 the 2country club management style', this
manager is too concerned with people and often gets ver#
little wor! done. The manager is ver# attentive to staff
needs and has developed satisf#ing relationships.
.owever, little attention is paid to achieving results.
+iii, +B.1, 4 1produce2&2tas$ management style', this is
too concerned with production and creates an atmosphere
of low morale. This
approach shows almost total concentration on achieving
results. (eoples needs are virtuall# ignored.
+iv, +1:1, 4 2impoverished management style', 4 this
has no concern for either people or output.
+v, +;:;, 4 2middle-of=the-road management
style',this shows
some concern for people and some concern for
production. The manager adopting this st#le will achieve
ade9uate
performance through balancing the necessit# to get
results while maintaining the morale of people at a
satisfactor# level.
'eaders need to adapt their st#le to the needs of the team
and situation.This is the basis of contingency
approaches.
Charles /andy argued that the abilit# of a manager to
lead and to influence the wor! group will var# according to
three factors.
/The leader
/The subordinates
/The tas$
/ersey and *lanchard's situational leadership
model+1BAA, focus on the readiness of the team
members to perform a given tas!,in terms of their tas$
ability+experience,!nowledge and s!ills, and willingness
to complete the tas! successfull#.
//igh-readiness>(?9 teams are able and willing.The# do
not need directive or supportive leadership:the most
appropriate leadership st#le ma# be delegating>"?9
style.
//igh-moderate readiness+68, teams are able,but
unwilling or insecure.The# are competent,but re9uire
supportive behaviour to build morale:the most appropriate
leadership st#le ma# be participating>"@9 style.
/#ow-moderate readiness+6-, teams are willing and
confident,but lac!ing abilit#.The# re9uire both directive
and supportive behaviour to improve their tas!
performance without damaging morale:the most
appropriate leadership st#le ma# be selling>"A9 style.
/#ow-readiness>(B9 teams are lac!ing abilit# and
motivation&confidence.The# re9uire more directive
behaviours in order to secure an ade9uate level of tas!
performance:the most appropriate leadership st#le ma#
be telling>"B9 style.
Chapter 1F:$ndividual and group behaviour
ersonally is the total pattern of an individualGs
thoughts,feelings and behaviours.
$ndividualGs personall# should be compatible with the
tas!,the organisationGs culture and other personalities in
the team.Chen incompatibilities occur,manager has three
options:restore compatibility+reassigning tas!,,achive
a compromise+encourage individuals to understand and
modif# themselves, or remove the incompatible
personality+weed out them from the team,.
erception is the process b# which the brain selects and
organises information in order to ma!e sense of
it.(erception ma# be determined b#:The context+people
see what the# want to see,,The nature of the
stimuli+our attention tends to be drawn to
large,bright,loud,unfamiliar,moving and repeated stimuli,
and %nternal factor+attention is drawn to stimuli that
match our personalit#,.
%e aware of the most common clashes of perception at
wor!:,anagers and staff,wor$ cultures,race and sex.
Croup is an# number of people who interact with one
another,ps#chologicall# aware of one another and
perceive thenselves to be a group.
$ndividuals behave differentl# in groups due to factors
such as:social influence,group influence and group
process.
"ocial influences include social facilitation+individuals
perform better in the presence of others, and social
loafing+siHe of group increases,individual effort
decreases,.
Croup influences include group conformity+groups
establish group norms to help the group to
function,,group cohesion+sum of all forces that attract
members to group, and group polarisation+distort group
decision/ma!ing,resulting in tendenc# of groups to ta!e
greater ris!s which is ris!#/shift or fewer ris!s which is
cautions/shift,.
Croup process refers to what is happening to and
between group members while group is wor!ing.The $ey
components are stages of group development+group
develop over time,,role differentiation+members find
and adopt a role or set of roles that wor!s for them and for
the group,,communication,tas$ and
maintenance+balance between meeting individual
needs,group needs and tas! needs,,decision-
ma$ing+decision/ma!ing will become less leader/centred
but participative,.
"chein referred culture as 1the wa# we do things round
here2.Charles /andyDs Cods of ,anagement which
popularised 6oger .arrisonGs wor! include four Cree$
Cod as different organisation culture:
-8eus+power or club culture,one man rules the
compan#,few rules and procedures,functional basis,all
decisions are made b# one person so 9uic! to change,best
suited for small business,.
-Apollo+role culture or bureaucrac#,formal
structure,well/established rules,individual learns without
experiencing ris!,ver# efficient in stable environment and
when the wor! is predictable,.
-Athena+tas$ culture,principal concern is to get the 3ob
done,individuals who are important are
experts,performance is 3udged b# results,expensive as
experts demand mar!et price,support matrix structure,.
-&ionysus+person culture or existential,serve the
interests of individuals,rare,non/profit oriented,depends on
the talent of the individuals,members are more important
than management,people are often lower in status for
example secretaries,administrators,chief cler! and more,.
Chapter 11:Team management
A team is more than a group.$t has 3oint ob)ectives and
accountability and ma# be set up b# the organisation
under the supervision or coaching of a team
leader,although self-managed teams are growing in
popularit#.
There are a number of approaches to the organisation of
teamwor!: including multi/disciplinar# teams, multi/s!illed
teams,
self/managed teams and virtual teams.
+a, ,ulti-disciplinary teams bring together individuals
with different s$ills and specialisms so that their
s!ills, experience and !nowledge can be pooled or
exchanged. 0uch teams are t#picall# pro3ect5 customer or
product focused and are a feature of matrix type
structures. "ulti/disciplinar# teams increase wor!ers
awareness of their overall ob3ectives and targets.The# aid
coordination and communication across functional
boundaries. The# help to generate new ideas and
solutions to problems, since the team has access to more
perspectives.
+b, ,ulti-s$illed teams bring together a number of
individuals who can perform any of the group's
tas$s. These tas!s can then be shared out in more
flexible wa#s between group members, according to who
is available and best placed to do a given 3ob at the time it
is re9uired. "ulti/s!illing is the cornerstone of team
empowerment, since it cuts across the barriers of 3ob
descriptions and demarcations, to enable teams to
respond flexibl# to changing demands.
+c, "elf-managed teams are the most highl# developed
form of team wor!ing. The# are permanent structures in
which team members collaboratively decide all the
ma)or issues affecting their wor!: wor! processes and
schedules, tas! allocation,the selection and development
of team members, the distribution of rewards and the
management of group processes+e.g. problem solving,
conflict management, internal discipline etc,. 0elf/
managed team wor!ing has a number of advantages
including, saving managerial costs,improvements in
9ualit# and productivit#, encouraging individual initiative
and responsibilit# and gains in efficienc# through multi/
s!illing.
+d, Eirtual teams 4 the development of $CT has enabled
communication and collaboration among people in remote
locations,via teleconferencing and video conferencing,
locall# networ!ed (Cs and the $nternet. This has created
the concept of the ?virtual team: an interconnected
group of people who may never be present in the
same place at the same time 4 but who share information
and tas!s, ma!e 3oint decisions and fulfil the collaborative
functions of a team with ?ph#sical team.
,ultidisciplinary teams contain people from different
departments,pooling the s!ills of specialists.,ulti-s$illed
teams contain people who themselves have more than
one s!ill.
*elbin researched business game teams at the .enle#
"anagement College and drew up a widel# used
framewor! for understanding roles within teams. .e
identified nine team roles:
+i, The plant. The plant is creative, imaginative and
unorthodox, contributing to the team b# solving difficult
problems. The plant tends to ignore details and is often
too pre/occupied to communicate effectivel#.
+ii, The resource investigator. The resource investigator
is extrovert, enthusiastic and communicative5 contributing
to the team b# exploring opportunities and developing
contacts. The resource investigator can be over/optimistic
and loses interest once the initial enthusiasm has passed.
+iii, The coordinator. The coordinator is mature,
confident and a good chairperson5 contributing to the
team b# clarif#ing goals, promoting decision ma!ing and
delegating well. The coordinator can be seen as
manipulative.
+iv, The shaper. The shaper is challenging, d#namic and
thrives on pressure5 contributing to the team b# having
the drive and courage to overcome obstacles. The shaper
can be provocative and sometimes hurts other peoples
feelings.
+v, The monitor evaluator. The monitor evaluator is
strategic and discerning5 contributing to the team b#
seeing all options and ma!ing accurate 3udgements. The
monitor evaluator can lac! drive and the abilit# to inspire
others and tends to be over critical.
+vi, The teamwor$er. The teamwor!er is co/operative,
mild, perceptive and diplomatic5 contributing to the team
b# listening,building relationships and calming tensions.
The teamwor!er can be indecisive in difficult situations
and can be easil# influenced.
+vii, The implementer. The implementer is disciplined,
reliable, conservative and efficient5 contributing to the
team b# turning ideas into practical actions. The
implementer can be somewhat inflexible and slow to
respond to new possibilities.
+viii, The completer. The completer is painsta!ing,
conscientious and anxious5 contributing to the team b#
searching out errors and omissions and delivers on time.
The completer can be inclined to worr# undul# and is often
reluctant to delegate.
+ix, The specialist. The specialist is single/minded, self/
starting and dedicated5 contributing to the team b#
providing specialist !nowledge and s!ills. The specialist
contributes on a ver# narrow front, tends to dwell on
technicalities and overloo!s the bigger picture.
The nine roles are complementar# and %elbin suggested
that an 2ideal' team should represent a mix or balance
of all of them.
The $ey stages of group development as identified b#
Tuc$man are forming0 storming0 norming and
performing. 'ater writers added two stages to Tuc!mans
model 4 dorming and mourning&ad3ourning.
+i, Forming 4 The team is )ust coming together.Each
member wishes to impress his or her personalit# on the
group.The individuals will be tr#ing to find out about each
other,and about the aims and norms of the team.The
ob3ectives being pursued ma# as #et be unclear and a
leader ma# not #et have emerged.
+ii, "torming 4 This fre9uentl# involves more or less open
conflict between team members.There ma# be changes
agreed in the original ob3ectives,procedures and norms
established for the group.$f the team is developing
successfull# this ma# be a fruitful phase as more realistic
targets are set and trust between the group members
increases.
+iii, Forming 4 A period of settling down.There will be
agreements about wor! sharing,individual re9uirements
and expectations of output.Iorms and procedures ma#
evolve which enable methodical wor!ing to be introduced
and maintaned.
+iv, erforming 4 The team sets to wor! to execute its
tas$.The difficulties of growth and development no longer
hinder the groups ob3ectives.
+v, *orming 4 once a group has been performing well for
some time, it ma# become complacent and fall bac$
into self-maintenance
functions, at the expense of the tas!. The role of the
leader would be one of tr#ing to !eep the group focused
on the tas!, but this is sometimes difficult, or indeed ma#
not happen, as the leader has merged with the rest of the
group at the previous stage.
+vi, "ourning&Ad3ourning 4 the group sees itself as
having fulfilled its purpose. This can be a stage of
confusion, sadness and anxiet# as the group disbands and
brea!s up. There is evaluation of its achievements and
gradual withdrawal of group members. The leader can be
important in the evaluation of the groups performance. $f
the group is to continue
and go on to a new tas! 4 it will need to renegotiate aims
and roles and will return to the forming stage.
Team development can be facilitated b# active team
building measures to support team identit#,solidarit# and
commitment to shared ob3ectives.
Goodcoc$ identifies a number of bloc$ages and
building bloc$s in the team building process.The issues
mentioned such as
leadership0membership0climate0ob)ectives0achieve
ment0wor$
methods0communications0individuals0creativity0inte
rpersonal relations0review and control.*uilding
bloc$ is the one that should be done and bloc$age is
the one that should not be done.7or example,in the
creativit# issue,the building bloc! is facilitate generation
of new ideas while the bloc!age is low creativit#.Another
example,in the communication issue,the building bloc! is
facilitating openness while bloc!age is not open.
A team can be evaluated on the basis of
1uantifiable+eg.labour turnover,accident
rate,absenteeism, and 1ualitative
factors+eg.commitment to targets,understanding of
teams wor!,communication between team
members,,covering its operations and its output,and
team member satisfaction.7or example,an effective
team has low accident rate and open communication
between team members.
Chapter 1-:"otivation
,otivation is ver# important for improving performance
of an individual."otivation is a decision/ma!ing process
which the individual chooses the desired outcomes and
sets in motion the behaviour appropriate to ac9uiring
them."anagerGs best interests is to have good motivation
throughout a compan#.
Content theories of motivation suggest that the best
wa# to motivate an emplo#ee is to find out what his&her
needs are and offer him&her rewards that will satisf# those
needs.
Example of content theories is ,aslowDs /ierarchy of
Feeds which stated that individualGs needs can be
arranged in a hierarch#,from the bottom is hysiological
needs+eg.food,,"afety needs+securit#,,#ove."ocial
Feeds+relationships,,!steem needs+status, and "elf
Actualisation+highest level needs,.
Another example is /er-bergDs Two-factor Theory
which highlighted two basic needs of individuals that are
Jthe need to avoid unpleasantnessJ which J/ygiene
factorsJ+eg.salar#,wor!ing conditions, can satisf#
temporaril# and Jthe need for personal growth and
fulfilmentJ which J,otivator factorsJ+eg.challenging
wor!,responsibilit#, satisf# this.
rocess theories as! the 9uestion:Jhow can people be
motivatedKJ.Example is EroomDs !xpectancy Theory
which stated a formula F5E H ! where 7 is the JForce of
motivationJ,L is JEalenceJ which mean the desire of
individual for the reward and E is J!xpectancyJ which
mean the individualGs believe that the behaviour can get
the reward.$n this e9uation,the lower the values of either
valence or expectanc#,the less the motivation.
:ob is a motivator./er-berg suggested three wa#s of
improving 3ob design to motivate emplo#ee:)ob
enrichment+vertical extension,delegate greater
responsibilit# 3ob,,)ob enlargement+horiHontal
extension,widen 3obs, and )ob rotation+se9uential
extension,transfer to different 3ob to increase tas!
variet#,.
,anagement style is also a motivator.There are two
models which illustrate how managersG assumption about
wor!er motivation can affect morale and
performance:,cCregorDs Theory H and Theory
6,OuchiDs Theory 8.
Theory H represents the ?carrot and stic! assumptions
believing that the
average human being has an inherent disli$e of wor$
and will avoid it if possible.,ost people must be
coerced, controlled, directed and&or threatened with
punishment to get them to put in ade9uate effort towards
the achievement of organisational ob3ectives. "anagers
who operate according to these assumptions will tend to
supervise closel#, apply detailed rules and controls
and use 2carrot and stic$' motivations.
Theory 6 suggests that physical and mental effort in
wor! is as nature as pla# or rest. The average human
being does not inherently disli$e wor$, which can be
a source of satisfaction. At present the potentialities of
the average person are not being fully
used."anagers who hold Theor# E assumptions about
people are li!el# to be more democratic and
consultative.
Ouchi proposed a form of 3apanese st#le management
that could successfull# applied in Cestern countr# called
Theory 8.Theory 8 organisations have certain
characteristics:
+i, #ong-term employment 4 not necessaril# lifetime,
but longer than the average in American and European
companies.
+ii, "low-progressing managerial career paths +as in
the Mapanese s#stem, but with a more Cestern
specialisation of s!ills,.
+iii, "oderatel# specialised careers 4 which ma# not
change.
+iv, Collective consensus decision-ma$ing processes
+Mapanese,, but with individual retention of ultimate
responsibility for
defined areas of accountabilit# +Cestern,.
+v, %ndustrial relations characterised b# trust, co/
operation and mutual ad3ustment.
+vi, Concern for the employee 4 close to the
paternalistic attitudes of the old Nua!er companies in the
<=, such as Cadbur#s.
+vii, $mplicit informal controls +such as guiding values,
alongside explicit, formal controls.
Chapter 18:(lanning and organising personal wor!
A )ob description specifies and describes the role and
responsibilities of a particular 3ob. $t is a statement of the
tas!s,responsibilities and relationships involved in a given
3ob. All emplo#ees should have a 3ob description that
specifies tas!s,details responsibilities, sets authorit#
limits, distinguishes accountabilit# and outlines the
organisational relationships that the 3ob entails.The
following sections should be included in a 3ob description:
+i, The identification of the )ob, including the 3ob title,
the department structure and the number of people doing
the 3ob.
+ii, The purpose of the )ob 4 identif#ing its ob3ectives in
relationship to the overall ob3ectives, e.g. to manage the
purchasing section responsible for bu#ing raw materials.
+iii, The position in the organisation 4 indicating the
relationships with other 3obs and the lines of responsibilit#.
Often an organisation chart is included here.
+iv, The principal duties to be performed, with
emphasis on !e# tas!s and limits to the 3obholders
authorit#. A more detailed brea!down might be included
which identifies specific tas!s in terms of precisel# what is
to be done, with some explanation, both in terms of
9uantit# and 9ualit#.
+v, (esponsibilities 4 a statement outlining an#
responsibilities for the resources e.g. staff and budgets.
+vi, :ob re1uirements and physical conditions 4
including details of nois#, dirt#, dangerous conditions or
pleasant office
conditions and also hours of wor!, overtime, unsocial
hours.
+vii, Crade and salary range 4 details of the rate for the
grade, incremental scales, piecewor!, bonuses and
commissions.
Additional benefits such as pension schemes and the
provision of a compan# car would also be included in this
section.
+viii, (eporting structure 4 to whom the 3ob holder
reports and at what level, with possible indications about
future
succession, prospects of promotion or transfer.
Time,li!e an# other resource,needs to be managed,if it
is to be used efficientl#+without waste, and
effectivel#+productivit#,.The $ey principles of time
management are goals0action
plans0priorities0focus0urgency and organisation.
/.ave goals.To be useful,the goals need to be ",A(T:
"pecific
,easurable
Attainable
(ealistic
Time/bounded
/Action plans."a!e written action plans that set out
how #ou intend to achieve #our goals.
/riorities."et priorities from #our plan.A piece of wor!
will be high priority if it has to be completed b# a
deadline,if other ta!s depend on it,if other people depend
on it and if it is important.
/Focus.Cor! on one thing at a time until it is finished
where possible.
/+rgency.&o it nowO *o not put of large,difficult or
unpleasant tas!s simpl# because the# are large,difficult or
unpleasant.
/Organisation.Eou might use an A*C& method of in-
tray management.
Act on the item immediatel#
*in it,if #ou are sure it is worthless
Create a definite plan for coming bac! to the item
&elegate it to someone else to handle
Eou might also organise your wor$ in batches of 3obs
re9uiring same activities and ta$e advantage of your
natural wor$ patterns.
ersonal wor$ planning includes the following basic
steps.
/#oading.Allocating wor! to people and machines.
/Tas$ se1uencing.*etermining the order in which
activities are performed.
/Time scheduling.*etermining exactl# when each
activit# will be performed.
/Establishing chec$s and controls to ensure that
deadlines are being met and that routine tas!s are still
achieving their ob3ectives.
lanning aids include lists and chec!lists,precedence
networ!s,action plans,timetables,diaries or personal
organisers and charts.
Chapter 1::Constructive relationships
%nterpersonal s$ills are s!ills used in interactions and
relationships between two or more people.$nterpersonal
s!ills include:
+i, %uilding rapport or a sense of ?being in tune with
another person, which draws them into a relationship.
+ii, %uilding trust and respect, so that the relationship is
maintained and co/operation facilitated.
+iii, ,anaging conflict in such a wa# that the
relationship is preserved.
+iv, ersuading or influencing another person to do what
#ou want them to do or to share #our beliefs.
+v, Fegotiating or bargaining in order to reach mutuall#
acceptable or compromise solutions to problems.
+vi, Communicating assertively, so that #ou uphold #our
rights and get #our needs met 4 without violating the
rights or ignoring the needs of others.
+vii, Communicating informatively, so that #ou give +and
receive, relevant and timel# information.
+viii, Communicating supportively, so that #ou
encourage the other person and gain their commitment.
Communication is the transmission and exchange of
information.Effective communication is a two way
process.
"ignals or messages are sent b# the communicator and
received b# the other part# who sends bac! some form of
confirmation that the message has been received and
understood.
!ncoding and decoding are important elements within
the communication process&c#cle5 words are merel# the
s#mbols or ?stand/ins for #our ideas and intentions in
communicating. $n other situations, a gesture,
pictures,s#mbols or numbers will be the most appropriate
to use. Chatever codes are used, it is important that the#
are understood b# both parties.
Feedbac$ is another important element in the
communications c#cle. $t is the reaction of the receiver
that indicates to the sender that the message has +or has
not, been received and enables him or her to assess
whether the message has been understood and correctl#
interpreted. The communications process&c#cle is often
represented diagrammaticall# as follows:
The choice of an appropriate media.medium for
communication depends on a number of factors such as
speed,complexit#,need for a written record,need for
interaction,confidentialit# and cost.
There are three main directions of communication flows
in an organisation.
-Eertical.
+i,&ownward communication is very common,and
ta!es the form of instructions,briefings,rules and policies
and the announcement of plans,from superior to
subordinate.
+ii,+pward communication is rarer but very
important for the organisation.$t ta!es the form of
reporting bac!,feedbac! and suggestions."anagers need
to encourage upward communication to ta!e advantage of
emplo#ees experience and !now/how,and to be able to
understand their problems and needs in order to manage
better.
-/ori-ontal:between people of the same ran$+peer
groups&colleagues,in the same section or department,or in
different sections or departments.
+i,Formally:to coordinate the wor! of several
people,and perhaps departments,who have to cooperate
to carr# out a certain operation.
+ii,%nformally:to furnish emotional and social support to
an individual.
/&iagonal.This is interdepartmental communication
b# people of different ran$s.*iagonal communication
aids coordination,and also innovation and problem/
solving,since it puts together ideas and information of
people in different functions and levels.This also supports
matrix structure.
There can be man# barriers to effective
communication including the following:
+i, &istortion 4 this is the term used for a process through
which the meaning of a message is lost in the coding or
decoding stages.
+ii, Foise 4 this refers to general interference in the
environment of communication which prevents the
message getting through clearl#.
+iii, ,isunderstandings, due to lac! of clarit# or poor
explanation.
+iv, Fon-verbal signs e.g. gestures or facial expressions
which contradict the verbal message.
+v, 7ailure to give feedbac$.
+vi, Overload 4 a person being given too much
information to digest in the time available.
+vii, eople onl# hearing what the# want to hear
+viii, &ifferences in social, cultural or educational
bac!ground.
+ix, oor communication s$ills on the part of either the
sender or the recipient or both.
There are man# wa#s in which the communication
system in an organsation could be improved. *epending
on the problem,
some measures might be as follows:
+i9 !ncourage0 facilitate and reward effective
communication. 0tatus and functional barriers can be
minimised b# improving opportunities for formal and
informal networ!ing and feedbac!. This means creating a
culture where effective communication can ta!e place.
+ii, Cive training and guidance in basic communication
s!ills, including consideration of recipients, listening and
giving feedbac!.
+iii, ,inimise the potential for misunderstanding.
"a!e people aware of the differences in culture and
perception and teach them to consider others viewpoints.
+iv, Adapt technology systems and procedures to
ma!e communication easier5 ma!ing it more effective
through clear mobile phone reception for example or b#
ma!ing it faster b# providing laptops for e/mailing
instructions or decisions, ma!ing it more consistent
through regular reporting routines and ma!ing it more
efficient through reporting b# exception.
+v, ,anage conflict and politics in the organisation so
that no basic unwillingness exists between business units
or departments.
+vi, !stablish communication channels and
mechanisms in all directions5 regular staff or briefing
meetings, in/house newsletters or 3ournals. <pward
communicating should be particularl# encouraged, using
mechanisms such as internal meetings, suggestion
schemes, open door access to managers and regular
performance feedbac! sessions.
Communication methods include variet# of media
involving written0oral and non-verbal
communication.Each of these ma# be appropriate for
different applications and re9uires a different mix of s!ills.
Eerbal communication uses words+spo$en-oral
communication or written-written
communication,.Fon-verbal communication+bod#
language, uses a variet# of signals such as facial
expression,gestures,movement,positioning,contact,postur
e and sounds.
$t is important to adapt the content and style of
communication to #our purpose and the li!el# response
of others.*ifferent communication styles
include:informing,influencing,negotiating,assertion and
conselling.
Assertive behaviour is a considered response to a
problem which see!s to satisfy the wants and needs of
all parties involved in the situation and to perserve
the relationship between them.
Fegotiating is a process of:
+i,urposeful persuasion:each part# attempts to
persuade the other to accept its case,b# marshalling
persuasive arguments.
+ii,Contructive compromise:each part# accepts the
need to move closer towards each others position,so that
the# can explore common ground and areas where
concessions and compromises can be made while still
meeting the !e# needs of both parties.
Iegotiation is a problem-solving techni9ue. $ts ob3ective
is that both parties reach agreement, so that the# both
go awa# with a decision they can live with without
damaging the relationship between them.
Counselling can be defined as a purposeful relationship
in which one person helps another to help himself. $t is
a wa# of relating and responding to another person so that
that person is helped to explore his thoughts, feelings and
behaviour with the aim of reaching a clearer
understanding.
Conflict ta!es place in organisations because the#
function b# means of ad3ustments and compromises.
(eoples views often conflict because individuals and
teams have their own goals0 interests and priorities
which ma# not alwa#s be compatible. $n addition there can
be personality clashes. Conflict can arise when there
is change because change ma# be seen as a threat to be
challenged or resisted. ower and resources in
organisations are limited and people compete for them
/ this can also lead to conflict. There ma# also be
differences and incompatibilities of wor$ methods0
timescales and wor$ing style so that individuals or
teams frustrate each other with apparent lac! of
coordination. oor communication can often lead to
conflict.
=e# approaches to managing diagreements and
conflicts include communicate +understanding the
problem and the personalities involved, encouraging those
involved to discuss the problem,,negotiate +exploring
possibilities for mutual satisfaction, win/win,,separate
+wal! awa# from potential conflicts or ph#sicall# separate
#ou in different areas, duties or departments, and using
formal grievance procedures where necessar#.
Chapter 1;:(erformance appraisal
Appraisal+evaluation, is part of the s#stem of
performance management,including goal
setting,performance monitoring,feedbac! and
improvement planning.
Appraisals have three main purposes.These are often
misunderstood. The first is to measure the extent to which
an individual ma# be awarded a salar# increase compared
with his or her peers. This is the reward review
component.The second purpose of an appraisal is to
identif# an# training needs and, if appropriate, to provide
training and development to enable an individual to help
the organisation to achieve its ob3ectives. This is the
performance review component. 7inall#, appraisals are
also important to aid an individualGs career development
b# attempting to predict wor! that the individual ma# be
capable of in the future. This is the potential review
component.
Emplo#ees often 9uestion the value and usefulness of the
time and effort ta!en up b# an appraisal..owever, it
establishes $ey results that an individual needs to
achieve within a time period while also comparing the
individualGs performance against a set and established
standard. The emplo#ee is not the onl# beneficiar# / the
organisation benefits through identifying employees
for promotion,noting areas for individual improvement,
and b# using the s#stem as a basis for human resource
planning.
A typical appraisal system would consist of the
following steps.
0tep 1:%dentification of criteria for assessment,perhaps
based on 3ob anal#sis,performance standards and person
specifications.
0tep -:The preparation b# the subordinates manager of
an appraisal report.$n some s#stems both the appraisee
and appraiser prepare a report.These reports are then
compared.
0tep 8:An appraisal interview,for an exchange of views
about the appraisal report,targets for improvement and
solutions to problems.
0tep ::(eview of the assessment b# the assessors
own superior,so that the appraisee does not feel sub3ect to
one persons pre3udices.7ormal appeals ma# be allowed,if
necessar# to establish the fairness of the procedure.
0tep ;:The preparation and implementation of action
plans to achieve improvements and changes agreed.
0tep >:Follow-up:monitoring the progress of the action
plan.
Few techni1ues of appraisal aim to monitor the
appraisees effectiveness from a number of
perspectives,including self-appraisal+individuals carr#
out their own self/evaluation,,upward
appraisal+subordinates appraise the superior,,customer
appraisal+feedbac! from customers, and @IJ-degree
appraisal+collecting feedbac! on an individuals
performance from superior,subordinates,peers,customers
and himself&herself,.
The process of appraisal interview are:
+i,repare. At the preparation stage it is important that
the appraiser ensures that the time and place planned
for the interview are appropriate and that there will be no
interruptions.The appraiser should ensure that he&she has
all of the information needed to be able to conduct the
interview effectivel# e.g. he&she should review the
employee's history and an# previousl# agreed targets
or ob3ectives. Other sources of feedbac$ should be
consulted if necessar# e.g. liaison
with other wor! teams or consultation with other
department managers if the appraisee has been involved
in more than one area of the business. 7inall# it is
important that the appraisee is given time to prepare
and to underta!e their own self/appraisal before the
interview and to gather an# information that the# ma#
need.
+ii,%nterview. $t is important that the interview is seen as
a two way process and exchange. The appraiser must
be able to demonstrate effective listening s$ills. The
employee should be encouraged to share views
freely and to review his&her wor! performance ob3ectivel#
and honestl#. An# problems or development needs
should be identified.
+iii,Cain commitment. At this stage it is important to
agree a plan of action that both parties can agree and
commit to. There ma# be actions for both parties and it is
important that these are recorded accuratel#. <suall# at
this stage all of the associated appraisal
documentation is completed and development plans
are put in place.
+iv,Follow-up. This is an important stage of the appraisal
interview process and involves ma!ing sure that an#
agreed actions
are carried out and that progress is monitored. $t also
involves ma!ing sure that both parties are $ept
informed of progress.
$n order for appraisals to be effective a number of barriers
need to be overcome.Appraisal barriers can be
identified as follows.
-Appraisal as confrontation."an# people dread
appraisals,in this !ind of climate:
+i, There is a lac! of agreement on performance levels.
+ii, The feedbac! is sub3ective.
+iii,The feedbac! is badl# delivered.
+iv,Appraisals are based on 1#esterda#s performance2
not on the whole #ear.
+v, There is a lac! of attention to appraisees
development needs and potential.
-Appraisal as )udgement.The appraisal is seen as a one/
sided process in which the manager acts as 3udge,3ur# and
counsel for the prosecution.This put the subordinate to
defensive.
-Appraisal as chat.The appraisal is conducted as a
friendl# chat,without purpose or outcome.
-Appraisal as bureaucracy.Appraisal is a form/filling
exercise,to satisf# the personnel department.$ts
underl#ing purpose,improving individual and
organisational performance is forgotten.
-Appraisal as unfinished business.Appraisal should be
part of a continuing future/focuser process of performance
management,not a wa# of 1wrapping up2 the past #ears
performance issues.
-Appraisal as annual event."an# targets set at annual
appraisal meetings become irrelevant or out/of/
date.7eedbac!,goal ad3ustment and improvement
planning should be a continuous process.
Chapter 1>:Training and development
The main purpose of training and development is to raise
competence and therefore performance standards.$t
is also concerned with personal development,helping
and motivating emplo#ees to fulfil their potential.
Training offers some significant benefits for the
organisation.
+i9 %ncreased motivation. Training programmes can
increase commitment to the organisations goals, b#
satisf#ing emplo#ees self/actualisation needs.
+ii,Change management. Training can help
organisations manage change b# letting people !now wh#
the change is happening and give them s!ills to cope with
it.
+iii, &eveloping corporate culture. Training
programmes can be used to build the corporate culture or
to direct it in certain wa#s.
+iv, "taff retention. Training can lead to internal
transfers and promotions.
+v, (ecruitment and succession planning.
+vi, %ncreased organisational flexibility. Training
ensures that people have a variet# of s!ills.
+vii9 Fewer accidents and better health and safet#.
+viii, #ess need for supervision 4 properl# trained
people can get on with the 3ob and managers can
concentrate on other things.
+ix, *etter )ob performance resulting from improved
s!ills.
Training offers man# benefits for the individual.
+i, sychological benefits. The emplo#ee feels
reassured that he or she is of value to the organisation.
$ncreased s!ill,!nowledge and competence also enhances
self/esteem and confidence.
+ii, !nhanced portfolio of s$ills. Even if not specificall#
related to the current 3ob, training can be useful in other
contexts,and the emplo#ee becomes more attractive to
emplo#ers and more promotable.
+iii, Training can also provide the necessar# s!ills and
competence that an emplo#ee needs for future
promotion.
+iv, "ocial benefit. (eoples social needs can be met
through training and the# can also develop a networ! of
contacts.
+v, The )ob itself. Training can help people to do their 3ob
better, thereb# increasing 3ob satisfaction, promotion and
earning
prospects.
$n order to ensure that training meets the real needs of
the organisation,larger firm adopt a systematic
approach to training.This has the following steps.
0tep 1:$dentif# and define the organisation's s$ill
re1uirements.
0tep -:&efine the learning re1uired.$n other
words,specif# the !nowledge,s!ills or competences that
have to be ac9uired.
0tep 8:&efine training ob)ectives/what must be learnt
and what trainees must be able to do after the training
exercise.
0tep ::lan training programmes.
+i, Cho provides th training.
+ii, Chere the training ta!es place.
+iii, Chat methods of training will be used.
0tep ;:%mplement the training programme.
0tep >:,onitor0review and evaluate training..as it
been successful in achieving the learning ob3ectivesK
0tep @:)o bac! to 0tep - if more training is needed.
A thorough anal#sis of training needs should be carried
out as part of a s#stematic approach to training,to ensure
that training programmes meet organisational and
individual re9uirements.Once training needs have been
identified,the# should be translated into training
ob)ectives.0ome training needs will emerge in the
course of wor! and wor$place changes.
+i, $f forthcoming legislation or regulation is li!el# to
affect #our wor! role,#ou will need to get
information on the provisions and their
implications for #our wor!.
+ii, $f new technology or e1uipment is introduced in
#our organisation,#ou ma# need to learn how to
use it.
+iii,$f #our organisation is see$ing accreditation for its
training scheme,or is see!ing a %ritish or
$nternational 0tandard+sa#,for 9ualit# s#stems,$0O
BFFF,,it will have certain training re9uirements
imposed on it b# the approving bod#.
$ndividuals can incorporate training and development
ob3ectives into a personal development plan.A
personal development plan is a clear developmental
action plan for an individual which incorporates a wide set
of developmental opportunities,including formal training.A
systematic approach to personal development
planning will include the following steps.
0tep 1:0elect an area for development.Eou might carr#
out personal "GOT
analysis+0trengths,wea!nesses,opportunities,threats,.
0tep -:0et a
",A(T!(+specific,measurable,agreed,realistic,time/
bounded,evaluated and reviewed, learning ob)ective.
0tep 8:*etermine how #ou will move towards #our
ob3ective:
+i, (esearch relevant learning resources and
opportunities.
+ii, !valuate relevant learning resources and
opportunities for suitabilit#,attainabilit# and
cost/effectiveness.
+iii, 0ecure an# support or authorisation re9uired
from #our manager or training development.
0tep ::7ormulate a comprehensive and specific action
plan,including:
+i, The ",A(T!( ob)ective.
+ii, The learning approaches #ou will use,described
as specific actions to ta!e.Each action should
have a realistic time scale or schedule for
completion.
+iii, A monitoring and review plan.
0tep ;:0ecure agreement to #our action plan+if re9uired
to mobilise organisational support or resources,.
0tep >:%mplement #our action plan.
There are a variet# of training methods.These include
off the 3ob training and on the 3ob training.
On the )ob training methods include
observation,information and advice from colleagues,3ob
instruction b# colleagues,coaching b# colleagues,wor!
experience,mentoring b# a colleague and experiential
learning.
Off the )ob training methods include formal training
courses,self/stud# courses,visits and tours and research
assignments.
Ealidation of training means observing the results of
the programme and measuring whether the training
ob3ectives have been achieved.!valuation of training
means comparing the actual costs of the programme
against the assessed benefits which are being obtained.$f
the costs exceed the benefits,the programme will need to
be redesigned or withdrawn.
There are different schools of thought as to how people
learn.The wa# in which people learn most effectivel#
differs according to individual ps#chological preferences,
which have been categorised as distinct learning
st#les.(eter /oney and Alan ,umford have drawn up a
popular classification of four learning styles.
-Theorists
+i, refer to understand principles.
+ii, Ta!e an intellectual ?hands/off approach.
+iii, 'earn best from programmed and structured training
which allows time for anal#sis.
+iv, 'earn best from teachers who share their preference
for concepts and anal#sis.
-(eflectors
+i, refer to thin$ things through first.
+ii, Observe phenomena, thin! about them and then
choose how to act.
+iii, Ieed to wor! at their own pace.
+iv, 7ind learning difficult if forced into hurried
programmes.
+v, (roduce carefull# thought out conclusions after
research and reflection.
+vi, Tend to be fairl# slow, +non/participative unless to as!
9uestions, and cautious.
-Activists
+i, refer to try things 2hands-on' and re9uire training
based on ?hands/on experience.
+ii, *eal with practical, active problems and do not have
patience with theor#.
+iii, Are excited b# participation and pressure, such as new
pro3ects.
+iv, Are flexible and optimistic but tend to rush at some
things without undue preparation.
-ragmatists
+i, refer to wor$ with real tas$s and problems.
+ii, Onl# li!e to stud# if the# can see its direct lin! to
practical problems.
next steps
+iii, )ood at learning new techni9ues in on/the/3ob
training.
+iv, Aim is to implement action plans and&or do the tas!
better.
+v, "a# discard good ideas which ma# onl# re9uire some
development.
/oney and ,umford +building on the wor! of =olb, have
produced a simple model called the learning cycle,
which shows how individuals can turn ever#da# wor! into
learning opportunities. This is !nown as experiential
learning or ?learning b# doing.
The diagram shows the four stages in the learning c#cle.
.aving a concrete experience 4 this is about being full#
involved in an action or interaction, utilising #our current
!nowledge and s!ills. This is followed b# reflection and
reviewing the experience 4 this is about loo!ing bac!
after the event, describing it and reflecting on how
effective #ou were and what #ou could do differentl# or
better. (eople often use personal development 3ournals to
write about events and interactions to help
reflect on these issues. Concluding from the
experience +=olb referred to this phase of the c#cle as
abstract conceptualisation, 4 this is about forming
general principles or theories that suggest how #ou might
do something different next time in order to achieve
different results. lanning the next steps +active
experimentation in =olbs terms, 4 this is about planning
specific opportunities to appl# and test #our conclusions in
action. This provides a new experience with which to start
the c#cle again.
Chapter 1@:.ealth and safet# in the wor!place
/ealth and safety is important because employee
should be protected from needless pain and
suffering,emplo#ers and emplo#ees both have legal
obligations to promote health and safet#
wor!ing,accidents can cost employer
money,businesss corporate image may suffer if its
health and safet# record is bad,businesss employer
reputation may suffer if its health and safet# record is
bad.
There will be costs to employer if there are accidents or
illness,for example productive time lost b# the absent
emplo#ee,a proportion of the cost of emplo#ing first aid
and medical staff,cost of disruption to operations,cost
of an# damage to e1uipment,cost of an#
compensation payments,costs of increased
insurance premiums,possible reduced output from the
emplo#ee on return to wor! and cost of recruiting and
training a replacement for the absent emplo#ee.
%ndividuals have responsibilities for health and safet#
at wor!,for example be alert to potential haHards as #ou
go about #our wor!,ta$e responsibility for #our own
behaviour in the wor!place in order to protect #ourself and
others,cooperate with your employers' health and
safet# measures,$eep yourself informed about health
and safet# issues relevant to #our wor!place,underta$e
regular training as necessar#,warn people who ma# be
at immediate ris! as a result of haHardous conditions or
behaviours,ta!e steps to minimise ha-ards,ta!e steps to
mobilise appropriate response procedures,inform
appropriate people of identified haHards and the need
for corrective action which might be be#ond the scope of
#our own authorit#.
Organisations ma# have dedicated
departments0managers or staff in charge of health
and safet#.These ma# include specialists such as:first aid
officer,securit# guard,emplo#ee consellor,emplo#ee health
and safet# representative,fire prevention officer and
health promotion officer.The role of these people is to
ma!e and implement relevant policies and
procedures,to listen to emplo#ee concerns and to
respond to an# problems and emergencies.
+Organisations responsiblities,
=e# components in health and safety policy:ris!
assessment,having appropriate s#stems and
procedures,minimising haHards,the provision of
information,training provision,responsibilities and on/going
monitoring.
On-going ris$ management include carry out ris$
assessment of all wor! haHards,introduce controls to
reduce ris!s,access the ris$s to an#one else affected b#
their wor! activities,share ha-ard and ris$ information
with other emplo#ers,revise safety policies,identify
employees who are especially at ris$,provide
appropriate training,provide information to
emplo#ees about health and safet#,employ health and
safety advisers.
Common health and safety ha-ards include office
e9uipment,electrical e9uipment,electric shoc!,mechanical
e9uipment,chemicals,heav# lifting and computer.
The main cause of fire in the wor!place are electrical
tools which create spar!s,smo!ing,flammable
materials,flammable substances and poor
house!eeping.To prevent fire,emplo#ers should provide
fire extinguishers,install fire detectors and fire alarm
s#stems,provide emergenc# exits and ensure protective
e9uipment are regularl# maintained.
!mergency procedures are important to ensure that
people are aware of the scope and limits of their
responsibilit# and also ensure ever#one is clear about
what to do and where to go in the event of an
emergenc#.$t should include how to raise the alarm,what
to do,where to go to reach safet#,names of nominated
first aiders in each department or area,essential actions
such as emergenc# factor# shutdown and so on./ealth
emergencies include wor!place in3ur#,electric shoc!,heat
exhaustion,fainting,poisoning and illness suffered b#
individuals.)eneral rules for dealing with emergencies
include respond swiftl# but calml# to alarms,avoiding
personal danger,remove source of danger if possible,call
for help,administer first aid if trained,help others to avoid
danger and follow an# accident,emergenc# and
evacuation procedures.
Accident reporting procedures re9uire the person
to:report the accident to someone in authority,record
the details of accident in an accident boo$ and get
signed statements from an# witnesses to the accident.
Chapter 1A:0ecurit# in the wor!place
"ecurity is important to protect the employees,to
protect the assets,to prevent unauthorised access and
to protect confidential and sensitive information.
"ecurity ris$s can be identified as vulnerable items
and people+items that are valuable and
movable,valuable information in portable form,securit#
devices,staff in front line,staff with custod# of assets,L$(,
together with vulnerable points in premises+public
areas,point of entr# and exit,unattended areas,ill/lit areas
which mean dar! areas,areas where at/ris! items and data
are concentrated,points of items exchange,.
$n the principles of security,effective securit# is a
combination of dela#,chec!ing and alarm.&elay is the
lines of defence before vulnerable areas and items can be
reached+eg.outer doors to the main building,reception
area,guarded offices,loc!able filing cabinets and
safes,.Chec$ing is the procedures for authorised access
to vulnerable areas or items+eg.identification of authorised
staff,chec!ing&signing in&escorting visitors,challenging
authorised individuals,personal passwords,chec!ing
authorisation before access to files allowed,.Alarm is the
procedures for alerting those responsible for responding to
securit# breaches+eg.electronic securit# alarms,individual
alertness and response,computerised warning of file
access attempts,.
(rocedures or devices of controlling access include loc$
the doors and windows5swipe cards ma# allow onl# for
authorised individuals to trigger the opening of
doors5combination loc$s ma# be used to control the
opening of the door5video and entry phone systems
ma# be used so that entrants can be identified b# those
inside5using loc!s for cabinets0cupboards and
drawers5some items should be !ept in a strongbox or
safe5computers and computer files can be protected
using electronic password and access codes.
$n a compan#,the security procedures manual ma#
include procedures forKidentifying regular
staff+eg.re9uirement to wear an identit# badge,,vetting
non-staff members+deal with people who visit the
compan#,,non-business visitors+eg.re9uirement to
ensure that these visitors are escorted at all
times,,protecting the building+eg.ensure certain doors
and access points are !ept loc!ed at particular
time,,protecting the organisationDs assets+eg.loc!
awa# calculators and laptop computers in secure
drawers,,protecting documents and
information+eg.loc!ing awa# files and
ledgers,,protecting the procedures+eg.do not discuss
the oganisationGs securit# procedures to
others,,explaining what to do in the event of
security breach+eg.instructions about how to deal with
intruders,.
%nformation is an item at ris$ of security
breach.(eople ma# see! to sabotage or steal information
from organisation for sale value,competitive advantage
and pure nuisance value+steal for no reason,.Certain
types of data may be particularly at ris$:information
integral to businessGs standing and competitive
advantage,personal and private information relating
to emplo#ee and customers,information related to
security of the organisation,information integral to the
outcome of dealings which would be affected b# public
!nowledge+eg.exam 9uestions,.
'egal issues in securit# focus on emplo#ee privac# and
data protection.&ata rotection Act BLLM
protects:individuals+not corporate bodies,,in regard to
the gathering,storage and use of personal
data+information about a living individual,including facts
and expression of opinion,.
(is$s to data and ways to minimised it include:/uman
!rror+individuals loss,damage or incorrectl# input or store
data.This can be reduced b# chec!s and
controls,s#stematic procedures and emplo#ee training and
supervision,,Technical ,alfunction+s#stems,e9uipment
or software fails,resulting in loss,damage,corruption or
inabilit# to access data.This can be minimised b# regular
s#stem testing and the use of bac!up
s#stems,,Catastrophic !vent+natural disaster can
disrupt organisational activit#,brea! communication
s#stems and destro# data storage and transmission
facilities.Contingenc# plans ma# be made,including off/site
bac!up storage of flies,emergenc# power generators and
ade9uate insurance for an# loss or damage to data and
associated s#stems,,,alicious &amage+individuals
deliberatel# attempt to disrupt the organisationGs activites
b# damaging or tampering with data.This can be
minimised b# controlling access,both ph#sicall# using
loc!s,securit# chec!s and electronicall# using
passwords,strong encr#ption of data,anti/virus
software,,%ndustrial !spionage or "abotage+individuals
deliberatel# attempt to steal or damage data,with a view
to commercial gain.This can be minimised b# controlling
access,both ph#sicall# using loc!s,securit# chec!s and
electronicall# using passwords,strong encr#ption of
data,anti/virus software,,&ishonesty+dishonest
individuals ma# wish to access information,or steal
funds,for personal gain.This can be minimised b# a range
of chec!s and controls,.
*asic principles of data security include do not leave
paper files or computer dis$s where the# are generall#
accessible5loc$ safes,strongboxes and filing cabinets
when #ou have finished with them5use passwords,where
advised,to secure computers and computer files5do not
share password or !e#s with unauthorised people5do not
copy or transmit confidential information without specific
authorisation and appropriate securit# measures5select
appropriate communication channels and media to
protect confidentialit#5avoid careless tal$ about
sensitive wor!/related matters with,or in the hearing or
unauthorised people5respect the privacy of others.
To enhance data security,man# organisations ensure
that minimum of two copies is alwa#s held.The bac$ing-
up of data is a critical re9uirement for s#stem
securit#.%ac!/up copies should be stored in a different
place from the original file and isolated from the
operations staff.assword can also be used and for
password to be effective,passwords should be changed
regularl#,difficult to guess,confidential,hidden.Another
wa# is having user profiles.A user profiles can prevent
people accessing the s#stem at all without a password,it
onl# allows certain people to access the s#stem.
Eirus is a computer program that infects computer
s#stem and replicates itself within it.The best way to
deal with viruses is to avoid infection in the first
place.Anti-virus software should be used as upgrades
are released regularl# to deal with new
viruses.Organisations must guard against the introduction
of unauthorised software as man# viruses have spread on
pirated versions of popular computer games or possibl#
the internet.Organisation should also chec$ any dis$
received from outside is virus-free before the data on
the dis! is downloaded.An# flaws in a widel# used program
should be rectified as soon as the# come to light.*o not
open email attachments without virus chec!ing.
6our responsibility for wor!place securit# is limited.Eou
have a dut# to follow rules and notify an appropriate
person of an# securit# problems.Eou should also protect
yourself and donDt be a hero if there is securit#
breaches,report the security ris$s or breaches
immediately.