EDSML Course Handbook Term 1 - June 2011

BTEC Edexcel Level 7
Extended Diploma in Strategic Management and Leadership

COURSE HANDBOOK June 2011 Intake
TERM 1
CONTENTS
EDSML
1. EDSML Course Structure ........................................................................................................................ 2 2. EDSML Regulations ................................................................................................................................ 2 3. Assessment Schedule ............................................................................................................................. 4 4. Professional Development for Strategic Managers ................................................................................. 5 5. Developing Strategic Management and Leadership Skills .................................................................... 11 6. Strategic Change Management ............................................................................................................. 18 7. Strategic Human Resources Management ........................................................................................... 26 8. Developing Corporate Culture ............................................................................................................... 35 9. Developing Successful Business Teams .............................................................................................. 42 10. Managing Financial Principles and Techniques .................................................................................. 48
2011 College of Technology London Unauthorised reproduction of this document is not permitted. www.ctlondon.ac.uk (v.0611) College of Technology London Page 1
1. EDSML COURSE STRUCTURE

TERM 1:
Modules (80 Credits)
Professional Development for Strategic Managers (Core Module) Developing Strategic Management and Leadership Skills (Core Module) Strategic Change Management (Core Module) Managing Financial Principles and Techniques Strategic Human Resource Management Developing a Corporate Culture Developing Successful Business Teams
TERM 2:
Modules (60 Credits)
Strategic Marketing Management Strategic planning Research Methods for Strategic Managers Creative and Innovative Management Managing Corporate Responsibility in the Wider Business Environment
2. EDSML REGULATIONS
Programme Structure:
Term 1 Term 2 60 credits 60 credits
Progression
Progression from Term 1 to Term 2 The student will be able to progress to the second term if he/she passes five out of the seven modules of term 1 The student has to meet all assessment criteria requirements to be able to pass the module. In the event that all of assessment criteria are not met but the assessor and the IV consider that the student possesses the knowledge to rectify the submission then the assessor may refer the assignment to the student for them to make good. If the student successfully rectifies the shortcomings, the student will pass the module and progress. If not, the student will fail and be required to redo all of the module assessments.
Results
At the end of each term you will have assessments, feedback for which you will get at the beginning of following term. At the end of every level the Universitys Progression Board meets to finalise the results of both semesters of that level. You will receive a transcript of these marks at the beginning of next term.
College of Technology London
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Failure
Absence/ Non-submission: Students who fail to submit set coursework by the required date(s) will be deemed to have failed in the module(s) in question.
Re-sit/Retake Fees
Re-sit any taught module Re-sit/Retake Fee: 360 per module Note: There will be no charge to re-sit tolerated failure modules. Such modules must be re-sit within a term. Students are required to inform Exam Office of the intention of re-sitting by the deadline. Students will receive an email with notification of the deadline.
Unfair Practice: Plagiarism!

Plagiarism is passing off, or attempting to pass off, anothers work as your own. It includes copying the words, ideas, images or research results of another without acknowledgement, whether those words etc. are published or unpublished. It is plagiarism, for example, to copy the work of another student, of a member of staff or a published article without crediting the author. Persons who allow their work to be plagiarised are also guilty. Coursework, dissertations, or creative work are meant to be your own original work. Obviously you will use the work of others. Not only is this inevitable, it is expected. All scholarship builds on the work of others. The important thing to remember is always to acknowledge your sources. Consult your tutors if you have any problems, in particular with the method of citing books and articles, which may differ from subject to subject. There are no penalties for asking for advice and guidance; there are severe penalties for plagiarism! Unfair practice detected first time will be recorded as first offence and any subsequent work submitted and suspected of unfair practice will be automatically referred for an investigation and could lead to the termination of your studies. Please refer to a Student Resources Portal for more information: http://resources.ctlondon.ac.uk. Please ensure you access the student portal for general information, in particular the student handbook and course timetables.
Lateness and Early Leaving

If a student does not arrive by the published start time for a timetabled class, they will be prevented from entering the class and only permitted to enter after the attendance register has been marked for that session. The student should see the lecturer at the end of the session only to obtain a LATE mark on the attendance register. Two late class arrivals will be treated and marked as one absence. Leaving early is considered the same as a late arrival. If you arrive late to your classes, it is your responsibility to ensure the lecturer adds your presence to the attendance register at the end of the class
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3. ASSESSMENT SCHEDULE
COLLEGE OF TECHNOLOGY LONDON EDSML - Extended Diploma in Strategic Management and Leadership - Assessment Schedule
SUMMER INTAKE (June 2011) Module Code Assignment 1 Module name Due Professional Development for Strategic Managers (Core Module) Developing Strategic Management and Leadership Skills (Core Module) Strategic Change Management (Core Module) Managing Financial Principles and Techniques Strategic Human Resource Management Developing a Corporate Culture Developing Successful Business Teams 29-July-11 12-Aug-11 19-Aug-11 26-Aug-11 29-July-11 26-Aug-11 19-Aug-11 Submission Type OTS OTS OTS OTS OTS OTS OTS 12-Aug-11 OTS 26-Aug-11 OTS Assignment 2 Due 12-Aug-11 26-Aug-11 Submission Type OTS OTS Assignment 3 Due Submissio n Type
S. No.
1 2 3 4 5 6 7
PDS DSL SCM MFP SHR DCC DSB
OTS - Turn-it-in submission. Turnitin Tutorial For Students available under Unfair Practice category on the Students Resources Portal. EMS - Email submission. Please email the assignment soft-copy to assignments@ctlondon.ac.uk by 4:00 pm of the submission deadline Refer to the Students Resources Portal (http://resources.ctlondon.ac.uk) for the detailed Submission Type instructions NOTE: THERE IS NO LATE SUBMISSION IF YOU MISS SUBMISSION DEADLINE YOUR ASSESSMENT WILL NOT BE MARKED
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4. PROFESSIONAL DEVELOPMENT FOR STRATEGIC MANAGERS

TERM 1
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Professional Development for Strategic Managers
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Professional Development for Strategic Managers (Core Module) PDS 5 2 assignments Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
Number of Lectures/workshops per week:
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with the methods and techniques to assess the development of their own skills to support the achievement of strategic direction. By the end of the sessions students should be able to: Assess personal and professional skills required to achieve strategic goals Conduct a skills audit to identify learning style Implement a personal development plan
Learning Outcomes:
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B. MODULE INTRODUCTION
This unit is designed to enable learners to take responsibility for their learning and development needs to gain the personal and professional skills needed to support the strategic direction of an organisation. Learners can achieve this through analysing their current skills and preparing and implementing a personal development plan. This unit highlights the importance of seeking feedback from others to improve performance by continuously reviewing learning needs. The development of appropriate personal and professional skills will allow learners to cope with demanding responsibilities and career progression. Learners will conduct a skills audit to evaluate the strategic skills they need to meet current and future leadership requirements and then use it to identify their preferred learning style. This will also inform the structure of a personal development plan. Evidence for this unit needs to be generated continuously throughout the qualification, enabling learners to take ownership of their development needs. Learners will need to demonstrate that they have a regularly updated and realistic personal development plan that fits with their preferred learning style. This unit will also enable learners to evaluate the effectiveness and impact of their learning against the achievement of strategic goals and their chosen career path.
C. UNIT CONTENT
1 Be able to assess personal and professional skills required to achieve strategic goals Personal skills: time management eg using time effectively, analysing time spent to improve productivity, setting SMART (specific, measurable, achievable, realistic, time-based) objectives, prioritising work tasks, dealing with time wasters, effective delegation; stress management; problem solving; decision making; effective communication eg active listening, questioning, handling conflict Professional skills: counselling and mentoring to support staff with their own learning and development requirements; coaching skills; leadership skills; multi-tasking; using occupational standards to identify competencies; continuing self-development to meet requirements for professional bodies eg learning new skills and knowledge, developing in current and future job roles; leading and chairing meetings; delivering effective presentations Achieving strategic goals: importance eg to ensure that staff can perform their job effectively, to provide opportunities to meet individual learning needs, to improve flexibility and adaptability when responding to change, to ensure business success, to create a learning culture; methods eg using conceptual tools to identify own strengths and limitations, developing personal networks, management development and Continuing Professional Development (CPD) programmes 2 Be able to conduct a skills audit to identify learning style Skills audit: to assess skills and competencies against organisational and personal objectives; personal profile using appropriate self-assessment tools, psychometric testing, personal SWOT (strengths, weaknesses, opportunities, threats) analysis listing strengths, weaknesses, identifying opportunities for improvement or career progression, identifying threats to progress; assessment against relevant National Occupational Standards (NOS) and NVQ competence standards; importance of feedback from others eg peers, line manager, customers; methods of feedback eg appraisal, supervision, performance review, mentoring; defining the gap, identifying learning and development needs to meet strategic objectives Identify preferred learning style: methods such as learning style inventories and questionnaires, psychometric testing eg Kolb (converger, diverger, assimilator, accommodator), Honey and Mumford (activist, reflector, theorist, pragmatist), Flemings VAK/VARK model (visual, auditory, reading/writing, kinesthetic), Myers-Briggs Type Indicator (MBTI); criticisms of learning style theories
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3 Be able to implement a personal development plan Personal development plan: importance of having a plan to provide a systematic or structured approach to decisions about what is needed to learn and how to plan to learn it; setting objectives for life and career planning, identifying resources and support needed and available to meet objectives, identifying obstacles to achieving objectives and how to overcome them, reviewing and monitoring plan; the importance of self-review, providing a reflective record of management experience; gaining support from others to achieve goals and work objectives Monitoring and evaluation: importance of keeping a working document; to help manage learning; to evaluate progress of achievement towards goals; to become a critical, self-directed learner; to develop a clear understanding of strengths and areas for development of leadership skills; review on regular basis; compare achievements against original objectives, reflect on learning, record results, agree whether objectives were achieved or not, set date for next review; set new objectives when others have been achieved
D. MODULE SCHEDULE
The module schedule for the 10 weeks will be provided by your lecturer in class
E. LEARNING OUTCOMES AND ASSESSMENT CRITERIA

Learning Outcomes Assessment Criteria
1.1 use appropriate methods to evaluate personal skills required to achieve strategic goals 1.2 apply techniques to assess the professional skills required to support the strategic direction of the organisation 2.1 carry out a skills audit to evaluate the strategic skills needed to meet current and future leadership requirements 2.2 apply appropriate techniques to identify preferred learning style 3.1 construct a personal development plan that meets leadership development requirements identified in the skills audit 3.2 use suitable methods to assess the outcomes of a personal development plan against personal work objectives 3.3 evaluate the impact of own learning against the achievement of strategic goals
LO1 Be able to assess personal and professional skills required to achieve strategic goals
LO2 Be able to conduct a skills audit to identify learning style
LO3 Be able to implement a personal development plan
F. ASSESSMENTS
ASSIGNMENT 1
Perform a Personal and Professional Skills Audit Use feedback from others, NSO and NVQ materials, as well as interviews to identify the relevant skill sets to your job and your personal assets. Assess your performance against these skill areas. Evaluate your skills using a personal SWOT. Produce a simple tabulation of your skills profile. Using a handful of models of learning styles evaluate your learning style.
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Use Kolb, Honey and Mumford, Flemimgs VAK/VARK and Gregorc Mind Styles. Use a tabulation one field must be as evidenced by and demonstrate with a brief description of your behaviour. Be as objective as you can.
Learning outcomes:
1. Be able to assess personal and professional skills required to achieve strategic goals 2. Be able to conduct a skills audit to identify learning style
Assessment criteria
1.1 use appropriate methods to evaluate personal skills required to achieve strategic goals 1.2 apply techniques to assess the professional skills required to support the strategic direction of the organization 2.1 carry out a skills audit to evaluate the strategic skills needed to meet current and future leadership requirements 2.2 apply appropriate techniques to identify preferred learning style Word limit suggested:
ASSIGNMENT 2
Produce a Personal Development Plan Identify gaps for skills development taking into account any personal or professional objectives. Suggest a strategy to close these gaps and relate this strategy to your personal or professional skill strengths.
Learning outcomes:
3. Be able to implement a personal development plan
Assessment criteria
3.1 construct a personal development plan that meets leadership development requirements identified in the skills audit 3.2 use suitable methods to assess the outcomes of a personal development plan against personal work objectives 3.3 evaluate the impact of own learning against the achievement of strategic goals Word limit suggested:
GUIDANCE FOR THE ASSIGNMENT

Instructions:
You must following the assessment criteria above to ensure that you meet all of the criteria in order to pass the module. Your assignment should be in report format You must include in your assignment a cover page with your details and your course details using the template provided. Submission deadline: Check and comply with the assessments schedule in your course handbook.
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Submission type: Check and comply with the assessments schedule in your course handbook. References: Ensure that all references are quoted at the end of any question/document submitted; you must apply the Harvard System of Referencing in your work. Referencing guidelines are available on the Students Resources Portal Ensure that font style should be Arial or Times New Roman and font size should be 12 in all Assignments Ensure that (in paragraph) line spacing should be 1.5 and alignment should be Justify Ensure that all work has been proof-read and checked prior to submission. Ensure that the layout of your documents is in a professional format
G. REFERENCES
1. Allen M and Adair J The Concise Time Management and Personal Development (Thorogood, 2003) ISBN 1854182234 2. Gold J, Thorpe R and Mumford A Leadership and Management Development (CIPD, 2010) ISBN 1843982447 3. Megginson D and Whitaker V Continuing Professional Development (CIPD, 2007) ISBN 1843981661 4. Owen J How to Lead, 2nd Edition (Prentice Hall, 2009) ISBN 027372150X 5. Pedler M, Burgoyne J and Boydell T A Managers Guide to Self Development (McGraw-Hill Professional, 2006) ISBN 0077114701
Journals and newspapers 1. 2. 3. 4. Management Today (Haymarket Business Media) People Management (Chartered Institute of Personnel and Development) Professional Manager (Chartered Management Institute) Training Journal (www.trainingjournal.com)
Websites 1. 2. 3. 4. 5. www.businesslink.gov.uk www.cipd.co.uk Chartered Institute of Personnel and Development www.managementhelp.org www.management-standards.org.uk Chartered Management Institute www.mindtools.com Time
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5. DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP

SKILLS
TERM 1
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Developing Strategic Management and Leadership Skills
A. MODULE SUMMARY
Module Code and Title: Developing Strategic Management and Leadership Skills (Core Module) DSL 10 2 assignments Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
Code: Credits: Assessments: Teaching Methods:
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with an understanding of the links between strategic management, leadership and organisational direction, and the skills to be able to apply this understanding. By the end of the sessions students should be able to: Understand the relationship between strategic management and leadership Apply management and leadership theory to support organisational direction Assess leadership requirements Plan the development of leadership skills
Learning Outcomes:
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The main aim of this unit is to investigate how current thinking on leadership influences an organisations planning to meet current and future leadership requirements. Learners will gain an insight into the current thinking on leadership from an organisational perspective. They will examine the links between strategic management and leadership, particularly the skills a leader needs to support organisational direction. The unit will help learners understand the impact of management and leadership styles on strategic decisions in differing situations, through examining the competences and styles of successful leaders. Applying management and leadership theories and models to specific situations will enable learners to assess their impact on organisational strategy. The unit will draw on a selection of established principles, including the influence of emotional intelligence on leadership effectiveness. This will enable learners to assess how organisations can plan to meet current and future leadership requirements. This unit gives an organisational perspective, but it offers learners an insight into how it can contribute to development of their strategic management and leadership skills through assessing requirements for their current or future job roles and measuring these against relevant National Occupational Standards. Learners will develop analytical and long-term planning skills through the use of case studies and research. Finally, this unit will enable learners to research a range of management and leadership development methods and evaluate their in meeting the skills requirements for effective leadership.
C. UNIT CONTENT
1 Understand the relationship between strategic management and leadership Strategic management and leadership: functions of strategic management eg reviewing strategic aims and objectives, improving organisational performance, creating, communicating and implementing change, developing and leading high performance teams, strategic decision making; definitions of leadership eg Mintzbergs 10 Managerial Roles; followership; direct versus indirect leadership; link between strategic management and leadership eg the skills of the leader to achieve the strategic objectives. Management and leadership style: style eg autocratic, bureaucratic, charismatic, laissez-faire, persuasive, participative; influences on style eg culture of organisation, characteristics of the manager/leader; impact of styles on strategic decisions; adapting management and leadership styles in different situations 2 Be able to apply management and leadership theory to support organisational direction Theories: universal theories such as Transformational Leadership, Transactional Leadership (Bennis, Bass), charismatic leadership (Weber, Conger and Kanungo); contingency theory eg Fiedler; situational theories eg Hersey and Blanchard, Vroom and Yetton, tri-dimensional leadership theory (Yukl) Emotional intelligence: influence on leadership effectiveness, drivers; constrainers and enablers; studies on Emotional Quotient (EQ) eg Goleman, Higgs and Dulewicz Applicability to support organisational direction: factors eg efficiency, reliability, innovation, adaptation and human resources in sectors, organisations and subunits; size and stage of development of organisation eg business start-up versus established business; turnaround leadership, cultural issues 3 Be able to assess leadership requirements Assess leadership requirements: generic challenges eg virtual organisations, diversity, globalisation, economic climate, world threats, ethics and corporate social responsibility; e-leadership, mergers and takeovers, restructuring, integrity leadership, diverse teams, partnerships and alliances, regulatory compliance, changes in reporting and control, new technology, interim leadership.
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4 Be able to plan the development of leadership skills Development of leadership skills: different methods of developing leaders through formal learning, selfhelp and developmental activities eg training courses, job rotation, seminars, executive coaching, mentoring, companies own universities, developmental assessment centres, action learning, selfdirected learning, reading articles, partnership with key academics; changing methodology in leadership development programmes; benefits of self-help activities eg learning from mistakes, viewing events from multiple perspectives; developing leaders versus recruiting as needed; creating a learning climate; model for assessing future leadership requirements eg Council for Excellence in Leadership and Management diagnostic tools; leadership competencies eg thinking and acting strategically, emotional intelligence, social intelligence, ability to learn, systems thinking.
D. MODULE SCHEDULE

1.1 explain the link between strategic management and leadership 1.2 analyse the impact of management and leadership styles on strategic decisions 1.3 evaluate how leadership styles can be adapted to different situations 2.1 review the impact that selected theories of management and leadership have on organizational strategy 2.2 create a leadership strategy that supports organisational direction 3.1 use appropriate methods to review current leadership requirements 3.2 plan for the development of future situations requiring leadership 4.1 plan the development of leadership skills for a specific requirement 4.2 report on the usefulness of methods used to plan the development of leadership skills
LO1 Understand the relationship between strategic management and leadership
LO2 Be able to apply management and leadership theory to support organisational direction
LO3 Be able to assess leadership requirements
LO4 Be able to plan the development of leadership skills
F. ASSESSMENTS
ASSIGNMENT 1
Discuss the leadership approach alternatives identified below within the context of the following situation. An under-performing book store chain has been acquired by a large leisure business. A manager (chief executive) for the business has been recruited. The situation is an opportunity to restore value. The staff in the head office as well as all the store managers and staff are de-motivated, the business has consistently been the strongest performer of a declining music and entertainment corporation. The systems are competitive; the service environment is captivatingly pleasant. Despite the high market awareness and some customers exhibiting considerable loyalty, the business still seriously underperforms.
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The objective of the new owners is to make the business an atmospheric exciting place for the book buyer to go, a real planned destination. In the longer term they see it as becoming the most profitable business in their leisure corporation. Delivering this change in performance is the new chief executives task. Contrast and compare Transformational Leadership with a more conventional Contingent style, focus on the charismatic features of Transformational Leadership and the adaptiveness of Contingent. Deduce under which situations one may be preferred over the others Following this discuss and evaluate which approach may be superior. Focus the analysis on relating to the following areas: the strategic management challenge of the business, the objectives, imperatives for leadership success, and where/when you feel the management team might be able to use or adapt the leadership style to achieve further profit maximisation goals possibly concentrating at the store level.
Learning outcomes:
1. Understand the relationship between strategic management and leadership 2. Be able to apply management and leadership theory to support organisational direction
Assessment criteria
1.1 explain the link between strategic management and leadership 1.2 analyse the impact of management and leadership styles on strategic decisions 1.3 evaluate how leadership styles can be adapted to different situations 2.1 review the impact that selected theories of management and leadership have on organizational strategy 2.2 create a leadership strategy that supports organisational direction Word limit suggested: 1500 2000 words
ASSIGNMENT 2
You have been appointed CEO/MD of a chain of full service motor dealers covering several franchises. You have met the chairman; Sir L E Solon-Field who had a reputation as a racing driver in the 1960s. He during the brief meeting with you has charged you with making them Number One before quickly disappearing into his walnut panelled multi secretaried office.
Another gentleman; Bert Dalsavi who holds a post titled Group Chief Executive has informed you that there must be no dismissals, closures or loss of franchises. He passes you a report produced by the worlds leading management consultants containing unimpeachable marketing research, and a set of meticulously developed set of service standards, accompanied by two words; follow these. You leave the meeting and drive to your new office. In the next 2 weeks you visit all the franchises and meet all the managers and staff of the business unit you now lead. Following this you conclude: a. Staffs do not know what they are supposed to do with service yet are technically competent. b. Managers have a cynical perception of the information coming from head office. c. Staff and managers do not know just how serious their underperformance and yet are happy in this ignorance. d. Staff and managers want to keep their jobs and like working together.
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Inspired, you set as your goal industry leading service standards. However you are concerned as to what you should say and do to share your inspiration with the individuals reporting to you. So far you are convinced they see you as an unknown quantity and there is some distance between you and them. Task Where are you? Where do you want them to go? How could you deliver them to the destination? Using your skills, judgement and imagination Produce 3 documents: 1. An audit of your leadership skills and also perhaps your subordinate managers (based on intelligent assumptions). 2. Examine the objective and your resources, select, describe and justify the management leadership strategy you could implement, break down the leadership gaps you would need to close including both your own and those of your managers. 3. Plan the likely changes in leadership style you would probably find yourself having to perform. Fully explain all your choices and decisions using relevant theory.
Learning outcomes:
3. Be able to assess leadership requirements 4. Be able to plan the development of leadership skills
Assessment criteria
3.1 use appropriate methods to review current leadership requirements 3.2 plan for the development of future situations requiring leadership 4.1 plan the development of leadership skills for a specific requirement 4.2 report on the usefulness of methods used to plan the development of leadership skills Word limit suggested: 1500 2000 words

Instructions:
You must following the assessment criteria above to ensure that you meet all of the criteria in order to pass the module. Your assignment should be in report format You must include in your assignment a cover page with your details and your course details using the template provided. Submission deadline: Check and comply with the assessments schedule in your course handbook. Submission type: Check and comply with the assessments schedule in your course handbook. References: Ensure that all references are quoted at the end of any question/document submitted; you must apply the Harvard System of Referencing in your work. Referencing guidelines are available on the Students Resources Portal Ensure that font style should be Arial or Times New Roman and font size should be 12 in all Assignments Ensure that (in paragraph) line spacing should be 1.5 and alignment should be Justify
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Ensure that all work has been proof-read and checked prior to submission. Ensure that the layout of your documents is in a professional format
G. REFERENCES
Textbooks 1. Adair J Effective Leadership: How to be a Successful Leader (Pan, 2009) ISBN 0330504193 2. Adair J How to Grow Leaders: The Seven Key Principles of Effective Leadership Development (Kogan Page, 2009) 0749454806 3. Gold J, Thorpe R and Mumford A Leadership and Management Development (CIPD, 2010) ISBN 1843982447 4. Kouzes J M and Posner, B Z The Leadership Challenge, 4th Edition (Jossey-Bass, 2008) ISBN 0787984922 5. Mullins L J Management and Organisational Behaviour, 9th Edition (Financial Times/Prentice Hall, 2010) ISBN 0273724088 Journals 1. Management Today (Haymarket Business Media) 2. People Management (Chartered Institute of Personnel and Development) 3. Professional Manager (Chartered Management Institute) 4. Training Journal (www.trainingjournal.com) Websites 1. www.cipd.co.uk - Chartered Institute of Personnel and Development 2. www.leadershipnow.com - Articles and blogs on leadership challenges 3. www.managementhelp.org - Free management library for articles and blogs on leadership development planning 4. www.managers.org.uk - Chartered Management Institute 5. www.peterhoney.com - Questionnaires and trainer packs 6. www.strategicmanagement.net - The Strategic Management Society
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6. STRATEGIC CHANGE MANAGEMENT

TERM 1
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Strategic Change Management
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Strategic Change Management (Core Module) SCM 10 1 assignment Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with the understanding and skills to support active engagement in the process of strategic change management. By the end of the sessions students should be able to: Understand the background to organisational strategic change Understand issues relating to strategic change in an organization Lead stakeholders in developing a strategy for change Plan to implement models for ensuring ongoing change
Learning Outcomes:
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Alvin Tofflers famous comment There is only one constant today and that is change was made some decades ago, but now change itself is changing at a fast rate. The phenomenal pace of change in countries such as China and India is impacting on older, established economies in the western world. With such change comes uncertainty and insecurity. Organisations, even those in the public sector where steady state was ever the watchword, can no longer sit back. All organisations are being increasingly challenged by change. Consequently, they need to understand the issues that drive the need for change in their own organisations. This means that organisations need to have a proactive approach to strategic change management. Strategic change management is most effective when an organisation actively seeks the participation of all relevant stakeholders. A change management strategy will be effective only if it has the support of all stakeholders. If they are to have a sense of ownership, stakeholders need to have the opportunity to contribute to the development of the change strategy. Strategic change impacts on the human resources structure of the organisation and this often means a restructuring of the workforce or changes in working practices. Almost inevitably, change will generate resistance from some, particularly those who feel that the change will have no positive benefits for them. Other people may resist change simply because they prefer the status quo. Organisations need to ensure that they have strategies in place to manage resistance to change and this should be part of the overall model that they adopt for managing the change. Once in place, progress towards change will need to be monitored. Learners will develop an understanding of the models of strategic change and the role that stakeholders play in this process. They will then examine the need for change in a selected organisation and plan the implementation of a model for change.
C. UNIT CONTENT
1 Understand the background to organisational strategic change Models: John P Kotter's eight steps to successful change; Kbler-Ross five stages transition (grief) cycle; Proscis five building blocks ADKAR (awareness, desire, knowledge, ability, reinformcement) model; McKinseys 7S (strategy, structure, systems, shared values, skills, style, staff) framework; Kurt Lewins change management model - unfreeze, transition and refreeze; Burke-Litwins causal change model; action research; gap analysis Strategic interventions: teambuilding consensus and conflict, game play, contingency theory, autocratic versus participative style, proactive and reactive, creating synergy; human process interventions; technostructural interventions; human resources management interventions; organisational and external environment interventions 2 Understand issues relating to strategic change in an organisation Need for change: reasons for change eg changes in markets, economic downturns, changes in global markets, customer expectations, competitive edge, budget pressures, legislation, size, demographics, mergers, acquisitions, change in mission, restructuring operations, new technologies, major collaborations, rightsizing, new programmes such as Total Quality Management (TQM), re-engineering Factors driving the change: change drivers eg economics, political factors, environmental, financial pressures, new markets, loss of markets, technological advances, transition to a new chief executive, funding cuts, need to be competitive Resource implication: human resources eg restructuring, interviewing and hiring, redundancies, training; physical resources eg equipment, vehicles, buildings; financial resources eg costs of training, redundancy costs, relocation costs; new building, refurbishment of existing buildings 3 Be able to lead stakeholders in developing a strategy for change Systems to involve stakeholders: stakeholder analysis, systems modelling, systems and sub-systems, input transformation-output modelling, multiple cause diagrams, tropics factors, configuration,
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divergence and convergence, functional and divisional structures, cultural web, images of organisations, team development, influencing skills, awareness raising, commitment development Involving stakeholders in the change management strategy: six steps stakeholder circle (identify stakeholders, prioritise stakeholders, map their profiles, develop an engagement strategy, optimise their support, monitor changes); methods of involvement eg dialogue with individuals and groups, meetings, presentations, group facilitation, team building, coaching, delegating, developing and sharing a change plan Resistance to change: types of resistance eg individual versus collective, passive versus active, direct versus indirect, behavioural versus verbal or attitudinal, minor versus major, resistance to the content of change, resistance to the process of change. Strategies: eg open communications, education, involvement, forums, listening to stakeholders, feedback, addressing needs, ownership of the change, change champions, communicate the vision, getting the support of all key power players, focus on the positives, delivering training programmes 4 Be able to plan to implement models for ensuring ongoing change Plan to develop appropriate models for change: choice of appropriate model eg John P Kotter's eight steps to successful change; Kbler-Ross five stages transition (grief) cycle; Proscis five building blocks ADKAR (awareness, desire, knowledge, ability, reinforcement) model; McKinseys 7S (strategy, structure, systems, shared values, skills, style, staff) framework; Kurt Lewins change management model - unfreeze, transition and refreeze; Burke-Litwins causal change model; action research; gap analysis Plan to implement a model for change: organisational development, Business Process Re-Engineering (BPR), learning organisation, Kaizen, delayering and right-sizing, matrix organisations, network organisations, adhocracy, virtual organisation, push and pull strategies, conflict handling, transformational leadership, empowerment, consultation, contextual planning, contingency planning, adjustments, flexibility Develop appropriate measures to monitor progress: eg goal-based evaluation, process-based evaluation, outcome-based evaluation, regular reports, meetings, quality circles, progress reviews, milestones, deadlines
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D. MODULE SCHEDULE

1.1 discuss models of strategic change 1.2 evaluate the relevance of models of strategic change to organisations in the current economy 1.3 assess the value of using strategic intervention techniques in organisations 2.1 examine the need for strategic change in an organisation 2.2 assess the factors that are driving the need for strategic change in an organisation 2.3 assess the resource implications of the organisation not responding to strategic change 3.1 develop systems to involve stakeholders in the planning of change 3.2 develop a change management strategy with stakeholders 3.3 evaluate the systems used to involve stakeholders in the planning of change 3.4 create a strategy for managing resistance to change 4.1 develop appropriate models for change 4.2 plan to implement a model for change 4.3 develop appropriate measures to monitor progress
LO1 Understand the background to organisational strategic change
LO2 Understand issues relating to strategic change in an organization
LO3 Be able to lead stakeholders in developing a strategy for change
LO4 Be able to plan to implement models for ensuring ongoing change
F. ASSESSMENTS
ASSIGNMENT 1
All organisations are being increasingly challenged by change. Consequently, they need to understand the issues that drive the need for change in their own organisations. This means that organisations need to have a proactive approach to strategic change management. This article appeared in the Guardian newspaper recently. BA cabin crew vote this week to end 18 months of strife The agreement includes a two-year pay deal and the return of travel perks for staff who took part in walkouts last year British Airways cabin crew will begin voting on a peace deal this week that could end the airline's worst industrial dispute. The Unite trade union is preparing to post ballot papers to nearly 10,000 crew with a letter from its general secretary, Len McCluskey, recommending a vote in favour of the agreement. The poll on the latest attempt to end the industrial conflict will close on 22 June, 18 months after Unite opened its first strike ballot on the dispute. So far the only indication of support for the deal is approximate, after hundreds of crew attending a meeting at Heathrow airport this month backed a proposal to put the deal to a wider vote. The peace deal being voted on was thrashed out between McCluskey and BA's new chief executive, Keith Williams, after two previous agreements were rejected by Unite. Both sides issued conciliatory
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statements when the agreement was unveiled, with Unite's leader praising the approach of his BA counterpart this month. "There is a change within the management psyche at BA, driven by the chief executive. If we embrace that, we are confident that the future will be good," said McCluskey. Before the deal was struck, BA passengers faced the threat of summer strikes after crew voted in March for walkouts for the fourth time since the dispute began. The agreement includes a two-year pay deal and the return of travel perks for thousands of staff who took part in 22 days of walkouts last year, which cost BA 150m. It also gives the Acas conciliation service a role in arbitrating the cases of staff who were sacked or disciplined during the dispute. Both sides have resisted sounding triumphalist amid hopes at senior levels that the dispute is coming to an end. Speaking after recommending the deal to crew at Heathrow this month, McCluskey said: "I don't think this is about winning or losing. If there is any victory, it is a victory for common sense." BA said it was pleased to have reached a point where "we can put this dispute behind us." Its decision to cut staffing levels on long-haul flights, which triggered the dispute in 2009, has not been reversed. BA is also creating a separate fleet of crew on different pay and conditions, which Unite had initially opposed. Hopes for a resolution to the most high-profile industrial dispute since the 2002 firefighters' strike rose after a change at the top of Unite and BA. Williams replaced Willie Walsh, who became chief of BA's parent, International Airlines Group, while McCluskey assumed control from the joint general secretaries Tony Woodley and Derek Simpson. th Source: Guardian Newspaper 30 May 2011 The dispute has been running for nearly two years and has attracted media attention wordwide. Hopes are high that an agreement can finally be reached and the company will be able to forge better working relationships with staff. A central issue to this dispute is change and how it is managed within BA. In order to demonstrate your understanding of these issues, you are required to write a report that considers the following issues: Analyse the recent history of British Airways and explain why changes have or are happening. Develop an appropriate model for change, incorporating issues related to the changes that have or are happening within BA Make recommendations about developing a strategy for change and how BA can plan to implement the chosen model for change.
In order to successfully complete this assignment, you are required to carry out further research and keep up to date with developments at British Airways.
Learning outcomes:
1 Understand the background to organisational strategic change 2 Understand issues relating to strategic change in an organization 3 Be able to lead stakeholders in developing a strategy for change 4 Be able to plan to implement models for ensuring ongoing change
Assessment criteria
1.1 discuss models of strategic change 1.2 evaluate the relevance of models of strategic change to organisations in the current economy 1.3 assess the value of using strategic intervention techniques in organisations 2.1 examine the need for strategic change in an organisation 2.2 assess the factors that are driving the need for strategic change in an organisation 2.3 assess the resource implications of the organisation not responding to strategic change 3.1 develop systems to involve stakeholders in the planning of change 3.2 develop a change management strategy with stakeholders 3.3 evaluate the systems used to involve stakeholders in the planning of change 3.4 create a strategy for managing resistance to change
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4.1 develop appropriate models for change 4.2 plan to implement a model for change 4.3 develop appropriate measures to monitor progress Word limit suggested: 3000 words

Instructions:
You must following the assessment criteria above to ensure that you meet all of the criteria in order to pass the module. Your assignment should be in report format You must include in your assignment a cover page with your details and your course details using the template provided. Submission deadline: Check and comply with the assessments schedule in your course handbook. Submission type: Check and comply with the assessments schedule in your course handbook. References: Ensure that all references are quoted at the end of any question/document submitted; you must apply the Harvard System of Referencing in your work. Referencing guidelines are available on the Students Resources Portal Ensure that font style should be Arial or Times New Roman and font size should be 12 in all Assignments Ensure that (in paragraph) line spacing should be 1.5 and alignment should be Justify Ensure that all work has been proof-read and checked prior to submission. Ensure that the layout of your documents is in a professional format
G. REFERENCES
Textbooks Blake I and Bush C Project Managing Change: Practical Tools and Techniques to Make Change Happen (Financial Times/ Prentice Hall, 2008) ISBN 0273720457 Cameron E and Green M Making Sense of Change Management (Kogan Page, 2009) ISBN 0749453109 Carnall C Managing Change in Organizations, 5th Edition (Financial Times/Prentice Hall, 2007) ISBN 0273704141 Diamond M A and Allcorn, S Private Selves in Public Organizations: The Psychodynamics of Organizational Diagnosis and Change (Palgrave Macmillan, 2009) ISBN 0230613098 Dunphy D, Griffiths A and Benn S Organizational Change for Corporate Sustainability (Routledge, 2007) ISBN 0415393302 Fullan M Leading in a Culture of Change (Jossey-Bass, 2007) ISBN 0787987662 Goncalves M Change Management: Concepts and Practice (American Society of Mechanical Engineers, US, 2007) ISBN 0791802647 Green M Change Management Masterclass (Kogan Page, 2007) ISBN 0749445076 Helms-Mills J, Dye K and Mills A J Understanding Organizational Change (Routledge, 2008) ISBN 041535577X Herold D M and Fedor D B Change the Way You Lead Change (Stanford University Press, 2008) ISBN 0804758751 Kehoe D Leading and Managing Change (McGraw-Hill Professional, 2008) ISBN 0070137889 Leban B Managing Organizational Change, 2nd Edition (John Wiley and Sons, 2007) ISBN 0470897163 Lewis S, Passmore P and Cantore S Appreciative Inquiry for Change Management (Kogan Page, 2007) ISBN 0749450711 Nelson S Implementing for Results (ALA Editions, 2009) ISBN 0838935796 Stewart Black, J and Gregersen H B It Starts with One: Changing Individuals Changes Organizations (Wharton School Publishing, 2008) ISBN 0132319845
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Journals Academy of Management Journal (Academy of Management) British Journal of Management (John Wiley and Sons) California Management Review (University of California, Berkeley) European Management Journal (Elsevier) Harvard Business Review (Harvard Business Publishing) Journal of General Management (Braybrooke Press Ltd) Journal of Management Studies (John Wiley and Sons) Management Today (Haymarket Business Media) MIT Sloan Management Review (Massachusetts Institute of Technology) Websites www.businessballs.com - Change management articles and links www.changingminds.org - Useful articles on strategic change by leading theorists www.managementhelp.org - Articles on strategic change and further links www.themanager.org - The 7s model of change www.mindtools.com - Lewins change management model www.12manage.com - Articles on the framework for change
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7. STRATEGIC HUMAN RESOURCES MANAGEMENT

TERM 1
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Strategic Human Resource Management
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Strategic Human Resource Management SHR 10 3 assignments Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with an understanding of how the effective strategic management of human resources supports the achievement of organizational purposes and provides the skills to apply this understanding in an organizational context. By the end of the sessions students should be able to: Understand how the strategic management of human resources contributes to the achievement of organisational objectives Develop human resource plans for an organization Understand human resources policy requirements in an organization Examine human resources management in an organisation
Learning Outcomes:
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Strategic human resource management is concerned with the management of human resources in ways that support an organisations strategy and contribute to the achievement of organisational goals. It takes a long-term perspective on how human resources can be matched to organisational requirements and considers broader matters such as the quality and commitment of the human resource to an organisation. Human resource planning provides the mechanisms through which organizations can ensure that they have sufficient staff of the right quality now and in the future to enable their successful functioning. Issues such as the recruitment of staff, the retention of staff, developing staff and succession planning, as well as downsizing and relocation, need to be accommodated in human resource plans. The nature of the changing business environment requires adaptable strategic human resource plans. Organisations have a range of human resources policies that explain how human resources are managed. In many cases, there is a legal or regulatory requirement that insists on the existence of these policies. In other instances, organisations may wish to demonstrate good corporate practice in matters relating to employment. The structure and culture of organisations affects human resource management. The publication of lists of companies that are good employers indicates how structure and culture affect personnel and how the perceptions of other parties are shaped by how employees feel about working for particular organisations. Organisations that are good employers are more likely to attract and keep good staff. By examining human resource management, learners will understand how human resource strategy and policies enable personnel to work in ways that contribute to the overall effectiveness of organisations in both the short and long term.
C. UNIT CONTENT
1 Understand how the strategic management of human resources contributes to the achievement of organisational objectives Human resource management (HRM): definition; characteristics of HRM approach; models of HRM eg contingency model, best practice model, Harvard Framework, D Guest, M Patterson; HRM activities; HRM and personnel management Strategy: organisational strategy; HRM strategy; benefits of HRM strategy for organisations; alignment of organisational and HRM strategies; impact of organisational strategy on HRM strategy; influence of HRM strategy on organisational strategy; human capital management; HRM strategy and organisational performance; creating value; business focus of HRM strategy; efficient human resource management 2 Be able to develop human resource plans for an organisation Business factors: business growth; business decline; business change; labour cost control; capital for labour substitution; location of operations; changing nature of work; impact of technology; increase in productivity; increase in efficiency; business competition; labour market competition; employee development Human resource requirements: identifying personnel requirements (numbers, skill sets, experience, qualifications); match personnel to organizational requirements; internal factors eg labour requirements, skill requirements, workforce profiles; external factors eg demand for labour, supply of labour; government policies eg employment, education, training, industrial, regional; labour market competition Human resource planning: purposes (recruitment, retention, employee development; re-skilling, upskilling, succession planning); outcomes; resources required; criteria for success; milestones; planning horizons (short, medium, long-term); business case eg costs, benefits; setting SMART (specific, measurable, achievable, realistic, time-based) targets
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3 Understand human resources policy requirements in an organisation Human resource management policies: recruitment and selection; health and safety; equality and diversity; pay; rewards, benefits and expenses; working time and time off; training and development; maternity/paternity; bullying and harassment; discipline, dismissal and grievance; performance improvement; change management; intellectual property (patents, copyrights); confidentiality of information; whistleblowing/protected disclosures; smoking, drugs and alcohol; purposes of policies Employment legislation: legal and regulatory requirements relating to pay, discrimination, equality, employment rights and responsibilities, contractual terms and conditions and data protection (up-to-date legislation must be used) Employment Act 2008, Employment Relations Act 2004, Work and Families Act 2006, Employment Rights Act 1996, Sex Discrimination Act 1995/1997, Race Relations Act 1992, Race Relations Amendment Act 2000, Equal Pay Act 1970, Disability Discrimination Acts 1995 and 2005, European Working Time Directive, National Minimum Wage Act 1998, Data Protection Act 1998 4 Be able to examine human resources management in an organisation Structure and culture: theories of organisational structure eg Weber, Mintzberg, Handy; forms of structure and the impact on HRM eg functional, product based, geographical, divisional, matrix; centralisation; decentralisation; theoretical models of culture eg Handy, Hofstede, Schein; organisational culture; relationships between culture and the HRM function Effectiveness: HRM components to be monitored (HRM strategy, HRM policies, HRM operations); contribution of HRM to achievement of organisational goals; costs; benefits; human resource use; efficiencies; inefficiencies; gathering information about HRM performance; developing performance indicators; evaluating HRM performance using performance indicators; quantitative measures eg productivity, output per person, employee retention, staff turnover, cost savings; qualitative measures eg employee attitude surveys, stakeholder perspectives; benchmarking HR performance; HRM service level agreements and standards; utility analysis to evaluate the costs and benefits of HRM activities; proposing improvements
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D. MODULE SCHEDULE

1.1 explain the importance of strategic human resource management in organisations 1.2 assess the purpose of strategic human resource management activities in an organisation 1.3 evaluate the contribution of strategic human resource management to the achievement of an organisations objectives 2.1 analyse the business factors that underpin human resource planning in an organisation 2.2 assess the human resource requirements in a given situation 2.3 develop a human resources plan for an organization 2.4 critically evaluate how a human resources plan can contribute to meeting an organisations objectives 3.1 explain the purpose of human resource management policies in organisations 3.2 analyse the impact of regulatory requirements on human resource policies in an organisation 4.1 analyse the impact of an organisational structure on the management of human resources 4.2 analyse the impact of an organisational culture on the management of human resources 4.3 examine how the effectiveness of human resources management is monitored in an organisation 4.4 make justified recommendations to improve the effectiveness of human resources management in an organisation
LO1 Understand how the strategic management of human resources contributes to the achievement of organisational objectives
LO2 Be able to develop human resource plans for an organization
LO3 Understand human resources requirements in an organisation
policy
LO4 Be able to examine human resources management in an organisation
F. ASSESSMENTS CASE STUDY: OAKS HOTELS

Oaks Hotels is a hotel group in the UK with 20hotels. It has a distinctive brand within the industry and is understandably proud of its growth, which has been steady over the last 10 years. The hotels range from sites that include castles to movie theatres, with the companys motto being We provide excellent standards that make our customers want to return to our hotels again and again. The Oaks Hotels executive board is determined to retain the groups status in the market via a strong cost leadership strategy backed up with strong customer service values and the Board have instructed the senior management (operational management) team to ensure that the motto is reflected in all the hotels policies and procedures.
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The senior management is keen that the management of each hotel remains local and Hotel Managers are expected to run their hotel with this in mind whilst maintaining specific group standards. Current concerns regarding the movement of Eastern European workers are topical for Oaks, as not only does this affect the local labour market but also because the Eastern European workers frequently leave after a few months resulting in high labour turnover in several hotels, mostly in the London area. The one challenge for the group is the need to reduce staff turnover which is not below 56% overall. Each hotel has a Hotel Manager, Housekeeping Manager, Food Services Manager, Reception Manager, HR Manager, Accounts Manager and employs approximately 150 staff with an average of 40 bedrooms. Currently the HR Managers in each hotel are responsible for the recruitment and selection of staff and there is no set recruitment procedure adopted throughout the organisation. This leads to varying levels of staff turnover with some hotels reporting 20% and others nearly 80%. There is a need for a more strategic approach to be taken towards Human Resource Management together with looking at how related activities such as reward, training and performance management are carried out. There is no overall group strategy towards Human Resource Management activities. It is accepted by the senior management that to ensure the ongoing reputation of the group that they need to improve the current recruitment and selection processes to attract high quality staff and encourage higher levels of staff retention through competitive reward strategies and high quality training.
Assignment 1
Assignment brief Explain the importance of strategic human resources management to Oaks Hotels and then go on to assess the purpose of Human Resources Management activities to the organisation and how these can contribute to the achievement of the organisational objectives. Learning Outcome 1. Understand how the strategic management of human resources contributes to achievement of organisational objectives Assessment criteria 1.1 explain the importance of strategic human resource management in organisations 1.2 assess the purpose of strategic human resource management activities in an organisation 1.3 evaluate the contribution of strategic human resource management to the achievement of an organisations objectives Word limit suggested: 1000 words
Assignment 2
Assignment brief The company is planning to open 3 new hotels in the coming 12 months and needs to develop a strong recruitment and selection process in order to attract and retain the high calibre of staff required to reflect the companys motto. As part of the expansion there will be a need to recruit 90 restaurant staff and currently there is no standard job description or person specification so restaurant staff is recruited based only on their
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previous experience working in restaurants. Recruitment has tended to be by word of mouth and personal recommendation and only very occasionally do hotels advertise for staff. It has been recognised that a more formal and structured human resource planning process needs to be developed. Human Resource Planning activities need to link to the wider Human Resource Management policies as indicated earlier in the case study.
1. Explain the purpose of human resource planning and how it can support Oaks Hotels achieve its recruitment needs. 2. Develop a human resources plan based on the recruitment requirements for the technical engineers and then evaluate the plan to demonstrate how it will meet the needs for the organisation. 3. Explain the human resource management policies that will need to be established to support Oaks Hotels in the future taking into account any relevant legislation. Learning Outcomes 2. Be able to develop human resource plans for the organisation 3. Understand human resources policy requirements in an organisation Assessment criteria 2.1 analyse the business factors that underpin human resource planning in an organisation 2.2 assess the human resource requirements in a given situation 2.3 develop a human resources plan for an organisation 2.4 critically evaluate how a human resources plan can contribute to meeting an organisations objectives 3.1 explain the purpose of human resource management policies in an organisation 3.2 analyse the impact of regulatory requirements on human resource policies in an organisation Word limit suggested: 1000 words
Assignment 3
Assignment brief Oaks Hotels is at the stage in their growth where they realise that they must align the overall business strategy with the Human Resources strategy and that the performance of the employees is critical to organisational success. Individual performance needs to be aligned with organisational performance so introducing a more rigorous approach that measures individual performance against organisational performance is required. As the Group HR Manager you need to develop a performance management system for Oaks Hotels that will create this alignment. There is no formal performance management system currently in place and once a year, the performance of all the employees is reviewed by their respective line manager in each hotel. Based on their individual performance, the line manager will decide the amount of increase, if any, that an employee will receive. Each line manager has a budget and once they have completed their reviews, the proposed increases will be forwarded to the hotel manager for his/ her approval. The criteria that are used to measure individual performance are as follows: - Customer satisfaction results for each hotel - Absence - Attendance/ punctuality
College of Technology London Page 32
To enable you to put forward your proposals for a performance management system you need to carryout the following tasks: 1. Carry out a SWOT analysis that links to the culture and structure of the organisation andreflects the company motto. 2. Based on the SWOT analysis, identify and justify 5 performance indicators that will align with the company motto and fit with the culture and structure of CTL Software. The performance management system will apply to all employees in each hotel.
Learning Outcome 4. Be able to examine human resources management in an organisation
Assessment criteria 4.1 analyse the impact of an organisational structure on the management of human resources 4.2 analyse the impact of an organisational culture on the management of human resources 4.3 examine how the effectiveness of human resources management is monitored in an organisation Word limit suggested: 1000 words

Instructions:
G. REFERENCES
Textbooks th Armstrong M Strategic Human resource Management: A Guide to Action, 4 Edition (Kogan Page, 2008) ISBN 0749453753 Holbeche L Aligning Human Resources and Business Strategy, 2nd Edition (Butterworth-Heinemann, 2008) ISBN 0750680172 Saunders M, Millmore M, Lewis P, Thornhill A and Morrow T Strategic Human Resource Management: Contemporary Issues (Financial Times/Prentice Hall, 2007) ISBN 027368163X Journals/newspapers Management Today (Haymarket Business Media)
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People Management (Chartered Institute of Personnel and Development) Professional Manager (Chartered Management Institute) The Economist (The Economist Newspaper Ltd) has articles on human resource related topics from time to time Websites www.businesslink.gov.uk - Business Link information on human resource management policies www.cipd.co.uk - The Chartered Institute of Personnel and Development has a range of material on strategic human resource management www.managementhelp.org - Free management library with links to human resource management articles
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8. DEVELOPING CORPORATE CULTURE

TERM 1
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Developing Corporate Culture
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Developing Corporate Culture DCC 5 3 assignments Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with an understanding of the importance of corporate culture in an organisations success, and the managerial skills to influence the achievement of that culture By the end of the sessions students should be able to: Understand how the characteristics of corporate culture affect the achievement of organizational objectives Propose organizational values that will influence corporate climate Develop strategies to communicate with stakeholders of an organisation who belong to different cultural groups
Learning Outcomes:
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The development of an appropriate culture is vital to the success of an organisation. It could be said that all the best policies, procedures, and technologies are supported by a culture that reinforces consistently what the organization is about. This unit focuses on the importance of understanding culture and climate in a globalised, diverse and repeatedly restructured working environment, and how to develop a climate appropriate to the desired culture. The unit explores cultural issues at national and organisational levels and the differences between culture, climate and values. Learners will find out that establishing an organisation's vision and values is an important step in developing the desired culture. They will have the opportunity to investigate the development of these values, the climate in the workplace and the extent to which they, as managers, can influence it. This unit gives learners the opportunity to explore the dynamic link between an organisations objectives and its desired culture, and how a manager can interact effectively in different cultural settings and influence the development of a desired organisational culture. Learners will explore work that has already been carried out to develop an understanding of both national and organisational cultural dimensions. This understanding will allow them to consider how this affects their interaction with stakeholders from different cultural groups. Although the unit is underpinned by an exploration of relevant theory, the intention is that learners apply their learning to specific organisations and situations. They will develop realistic strategies for interacting effectively with people from different cultures and for contributing to the development of organisational culture. This will include the development of communications strategies for stakeholders that take into account of differences in beliefs, values, customs and language.
C. UNIT CONTENT
1 Understand how the characteristics of corporate culture affect the achievement of organisational objectives Culture: culture as shared values, practices and customs; definitions of organisational culture; culture at ascending levels; sub-cultures; professional cultures Models of organisational culture: Charles Handy power, role, person and task cultures; Johnson and Scholes cultural web; organisational change programmes activities, effectiveness, successful and unsuccessful cases, links to organisational objectives Organisational culture: industry culture; national and supranational culture; models of culture eg Trompenaarss implicit-explicit factors, Scheins three levels National cultures: methods of classifying national culture eg the work of Laurent, Hofstede and Trompenaars Impact on achievement of organisational objectives: areas of differences and potential misunderstandings communications; management, negotiation; buyer behaviour; misinterpreting conflicting cultural signals eg work of Trompanaars and Hampden-Turner 1998; cultural shock, importance of developing cohesive culture in merged organizations 2 Be able to propose organisational values that will influence corporate climate Climate profile: how climate is defined; difference between climate and culture; key aspects of organisational climate eg flexibility; responsibility; standards; rewards; clarity; team commitment; impact of management practices on climate; impact of climate on efficiency and effectiveness Methods of improving climate: recognising that improve may mean change because a particular climate is no longer appropriate; understanding the climate that is required; understanding management styles; effective communications and rationale; continual review Values: values or core values as a part of organisational culture; crisis of ethics in business and the new emphasis on value leadership framework for developing and supporting strong corporate core values
3 Be able to develop strategies to communicate with stakeholders of an organisation who belong to different cultural groups Stakeholders: customers, consumers, employees; shareholders; governments; communities, business partnerships and alliances the increasing need to cooperate with people from different cultural groupings (including beliefs, values, customs and language) Communicating effectively: strategies; identifying potential barriers and ensuring strategies overcome them; developing self-awareness of own and organisational culture; benefits of a diverse workforce; acculturation programmes; intercultural communication skills
D. MODULE SCHEDULE

1.1 explain how models of organisation culture can be used to achieve organizational objectives 1.2 explain the difference between organisational and national culture 1.3 analyse the corporate cultural profile in an organisation 1.4 discuss the impact of an organisations corporate culture in achieving its objectives 2.1 evaluate the existing climate of an organisation 2.2 recommend ways to improve corporate climate in an organisation 2.3 propose a framework of organisational values that meet the specific strategic and operational needs of an organisation 3.1 identify internal and external stakeholders of an organisation 3.2 evaluate the effectiveness of an organisations existing communication strategies 3.3 develop new communication strategies for stakeholders of an organisation that address differences in belief, values, customs and language
LO1 Understand how the characteristics corporate culture affect the achievement organizational objectives
of of
LO2 Be able to propose organizational values that will influence corporate climate
LO3 Be able to develop strategies to communicate with stakeholders of an organisation who belong to different cultural groups
F. ASSESSMENT
This module requires you to consider the importance of understanding culture and climate in a globalised, diverse and repeatedly restructured working environment, and how to develop a climate appropriate to the desired culture. This article appeared in the Guardian newspaper recently. BA cabin crew vote this week to end 18 months of strife The agreement includes a two-year pay deal and the return of travel perks for staff who took part in walkouts last year
British Airways cabin crew will begin voting on a peace deal this week that could end the airline's worst industrial dispute. The Unite trade union is preparing to post ballot papers to nearly 10,000 crew with a letter from its general secretary, Len McCluskey, recommending a vote in favour of the agreement. The poll on the latest attempt to end the industrial conflict will close on 22 June, 18 months after Unite opened its first strike ballot on the dispute. So far the only indication of support for the deal is approximate, after hundreds of crew attending a meeting at Heathrow airport this month backed a proposal to put the deal to a wider vote. The peace deal being voted on was thrashed out between McCluskey and BA's new chief executive, Keith Williams, after two previous agreements were rejected by Unite. Both sides issued conciliatory statements when the agreement was unveiled, with Unite's leader praising the approach of his BA counterpart this month. "There is a change within the management psyche at BA, driven by the chief executive. If we embrace that, we are confident that the future will be good," said McCluskey. Before the deal was struck, BA passengers faced the threat of summer strikes after crew voted in March for walkouts for the fourth time since the dispute began. The agreement includes a two-year pay deal and the return of travel perks for thousands of staff who took part in 22 days of walkouts last year, which cost BA 150m. It also gives the Acas conciliation service a role in arbitrating the cases of staff who were sacked or disciplined during the dispute. Both sides have resisted sounding triumphalist amid hopes at senior levels that the dispute is coming to an end. Speaking after recommending the deal to crew at Heathrow this month, McCluskey said: "I don't think this is about winning or losing. If there is any victory, it is a victory for common sense." BA said it was pleased to have reached a point where "we can put this dispute behind us." Its decision to cut staffing levels on long-haul flights, which triggered the dispute in 2009, has not been reversed. BA is also creating a separate fleet of crew on different pay and conditions, which Unite had initially opposed. Hopes for a resolution to the most high-profile industrial dispute since the 2002 firefighters' strike rose after a change at the top of Unite and BA. Williams replaced Willie Walsh, who became chief of BA's parent, International Airlines Group, while McCluskey assumed control from the joint general secretaries Tony Woodley and Derek Simpson. th Source: Guardian Newspaper 30 May 2011 The dispute has been running for nearly two years and has attracted media attention worldwide. Hopes are high that an agreement can finally be reached and the company will be able to forge better working relationships with staff. A key factor for success will be the development of an appropriate corporate culture . In order to demonstrate your understanding of these issues, you are required to write a report that considers the following issues: Outline the characteristics of the current corporate culture at Britiah Airways . Explain how it could affect the achievement of organisational objectives. Your answer should make reference to appropriate academic reading, theories, models and techniques Carry out some further research into current practices and outline any recent changes that may impact on the corporate culture. Using this knowledge and referring to appropriate reading, theories, models and techniques, make recommendations for new organisational values that will influence the corporate climate Develop strategies to effectively communicate these values with stakeholders of British Airways. Recognise that they will belong to different cultural groups.
In order to successfully complete this assignment, you are required to carry out further research and keep up to date with developments at British Airways. Learning Outcome
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1. Understand how the characteristics of corporate culture affect the achievement of organizational objectives 2. Be able to propose organizational values that will influence corporate climate 3. Be able to develop strategies to communicate with stakeholders of an organisation who belong to different cultural groups Assessment criteria 1.1 explain how models of organisation culture can be used to achieve organizational objectives 1.2 explain the difference between organisational and national culture 1.3 analyse the corporate cultural profile in an organisation 1.4 discuss the impact of an organisations corporate culture in achieving its objectives 2.1 evaluate the existing climate of an organisation 2.2 recommend ways to improve corporate climate in an organisation 2.3 propose a framework of organisational values that meet the specific strategic and operational needs of an organisation 3.1 identify internal and external stakeholders of an organisation 3.2 evaluate the effectiveness of an organisations existing communication strategies 3.3 develop new communication strategies for stakeholders of an organisation that address differences in belief, values, customs and language Word limit suggested: 3000 words

Instructions:
G. REFERENCES
Textbooks 1. Brooks I Organisational Behaviour: Individuals, Groups and Organisations, 4th Edition (Financial Times/Prentice Hall, 2008) ISBN 0273715364 2. Brown A Organisational Culture, 2nd Edition (Financial Times/Prentice Hall, 1998) ISBN 0273631470 3. Chaney L and Martin J Intercultural Business Communication, 4th Edition (Prentice Hall, 2005) ISBN 0131860097
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4. Goffee R and Jones G The Character of a Corporation (Profile Business, 2003) ISBN 1861976399 5. Handy C Understanding Organizations (Allen Lane, 2005) ISBN 0713997796 6. Handy C Gods of Management (Souvenir Press Ltd, 2009) ISBN 0285638440 7. Hofstede G Cultures Consequences, 2nd Edition (Sage, 2001) ISBN 0803973233 8. Hofstede G and Hofstede G J Cultures and Organizations: Software for the Mind (McGraw-Hill Professional, 2004) ISBN 0071439595 9. Rollinson D Organisational Behaviour and Analysis: An Integrated Approach, 2nd Edition (Financial Times/Prentice Hall, 2003) ISBN 0582820766 10. Schein E H Organizational Culture and Leadership, 3rd Edition (Jossey-Bass, 2004) ISBN 0787968455 Journals 1. Academy of Management Perspectives (Academy of Management) 2. Business Strategy Review (John Wiley and Sons) 3. Harvard Business Review (Harvard Business Publishing) 4. International Journal of Project Management (Elsevier) 5. Journal of World Business (Elsevier) 6. Management Today (Haymarket Business Media) 7. People Management (Chartered Institute of Personnel and Development) 8. Copies of articles from the above journals can be obtained from the CharteredManagement Institute. Websites 1. www.ccl.org - Center for Creative Leadership a nonprofit educational institution offering research findings in areas of creative leadership 2. www.haygroup.co.uk - Hay Group information on assessing climate in work groups 3. www.hbsp.harvard.edu - Extracts from Harvard Business Review articles 4. www.managers.org.uk - The Chartered Management Institute searchable database which members can use to access journal articles and other publications 5. www.nationmaster.com International statistics on a variety of subjects
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9. DEVELOPING SUCCESSFUL BUSINESS TEAMS

TERM 1
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Developing Successful Business Teams
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Developing Successful Business Teams DSB 5 1 assignments Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with an understanding of the factors needed to create successful business teams and enables them to develop skills for effective management and participation in successful business teams. By the end of the sessions students should be able to: Understand the features of successful business teams affect the achievement of organizational objectives Support team development Monitor the performance of teams
Learning Outcomes:
Many organisations now focus on teams as a key element in their organizational structure. However, successful teams do not happen as a matter of chance. They have to be planned and supported if they are to become successful. Only then will they be able to work effectively as a team and meet their objectives. Planning to establish a successful business team requires an understanding of team dynamics and the importance of leading and developing of a team. Team dynamics are concerned with how teams evolve and the processes that determine whether the team is successful or not. For example, team member satisfaction will be derived not only from the achievement of tasks but also from the quality of team relationships and the more social aspects of teamwork. Building and maintaining a successful business team involves fostering constructive relationships between team members. This requires a commitment to open communication throughout the team. Maintaining levels of motivation in all team members is a crucial aspect of successful business teams. Signs of conflict in a team need to be resolved quickly as they can affect the stability and purpose of the team. Developing individual team members includes assigning personal goals that suit the strengths and skills of the individual, and ensuring that each member feels that their contribution to the team's overall task is valued. Team goals should be the foundation for developing successful business teams. Goals should be
SMART and provide a clear, measurable framework whilst being flexible and adaptable in the light of changing circumstances. Goals need to provide scope for individual and team development whilst enabling organisational tasks to be achieved. Successful business teams monitor their activities, reflect on how they work and look for ways of improving their performance.
C. UNIT CONTENT
1 Understand the features of successful business teams Characteristics of successful business teams: definition of team; types of team eg functional, project, matrix, contract, self-managed team; difference between a group and a team; characteristics of successful business teams eg participative leadership, loyalty, trust, open communication, shared goals and objectives, shared responsibility, shared vision, common purpose, cooperation between members, motivation Team roles in successful business teams: Belbins team role theory; differences between team roles; Myers-Briggs Type Indicator (MBTI); strengths and weaknesses; contribution of team roles to the team; balanced teams Theoretical models: behavioural models eg Blake and Moutons Managerial Grid, McGregors theory X and Y model; contingency/situational models eg Adairs Action Centred Leadership model, Tannenbaum and Schmidts Leadership Continuum, Fielders contingency model; Hersey-Blanchard Situational Leadership model; Transformational Leadership, Transactional Leadership (Bennis, Bass) 2 Be able to support team development Stages of team development: models of developmental stages eg Tuckman (forming, norming, storming, performing), Leigh and Maynards starting, sorting, stabilising, succeeding, stopping, Honeys chaotic, formal and skilful; team leader role in facilitating development at each stage; team building eg team development activities, training, mentoring Motivating team members to achieve given objectives: importance of motivation; importance of negotiation and bargaining skills for motivation; theories of motivation eg McGregors Theory X and Theory Y, Herzbergs Motivation-Hygiene theory, Maslows Hierarchy of Needs, Vrooms Expectancy theory, Alderfers ERG theory, Deci and Ryans self-determination theory; factors that motivate people to perform eg praise, encouragement, recognition, celebration of achievement, clear goals, clear feedback, learning, development Open communication and team development: participative decision making; meetings; team briefings; communication channels; thought-showers/buzz groups; groupthink; building inter- and intra-team and organizational relationships; communication through goals; communication through knowledge; access to information; data sharing; win-win theory; synergy Ways of resolving conflict: causes of conflict eg dissatisfaction with workload, perceived lack of fairness, insufficient sharing of information, perceived lack of appreciation, personal grievances against other team members; conflict resolution methods eg communication channels, open communication importance of addressing issues for the whole team, gathering information, sharing information, listening skills, thought-showers/buzz groups, collaboration, consensus, agreeing the problem, keeping people and problems separate, building trust 3 Be able to monitor the performance of teams Monitoring the performance of the team against given objectives: setting SMART objectives; principle of setting quantified standards; comparison of performance with standards; quantity-based measures (level of production, number of customer enquiries processed, error rate, quantity of scrap, customer feedback, speed of response); qualitative measures (views, opinions, performance data, sampling, timing, proportion of work checked); methods of collecting and interpreting data on performance (work schedules, progress review meetings, milestones, regular reporting systems); importance of contingency plans; making adjustments to plans; importance of continuous feedback relating to objectives (listening, observing, asking others); dealing with problems; taking corrective action, importance of fairness and openness
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Improving performance against given objectives: measuring performance, evaluating performance against SMART objectives, setting and re-setting SMART objectives; benchmarks; targets; corrective action; follow-up actions; model of good practice (Leigh and Maynards Fun, Open, Regular, Challenging and Energising); involvement of team in reviewing performance; good practice in giving feedback (Leigh and Maynards Effective Feedback); importance of celebrating achievements; thought-shower/buzz group techniques, teambuilding activities, training and development
D. MODULE SCHEDULE

1.1 describe the characteristics of successful business teams 1.2 assess the importance of team roles in successful business teams 1.3 analyse the value of using theoretical models when building successful business teams 2.1 explain the stages of team development 2.2 plan how to motivate team members to achieve given objectives 2.3 encourage open communication between team members to support team development 2.4 evaluate ways of resolving conflict between team members 3.1 monitor the performance of a team against given objectives 3.2 recommend how to improve performance against given objectives
LO1 Understand business teams
the
features
of
successful
LO2 Be able to support team development
LO3 Be able to monitor the performance of teams
F. ASSESSMENT
Case Study
Home Crafts is a retail chain which started business in 1990 has grown quickly over the last 6 years and now has 10 shops in the Greater London area. It employs 130 people with the majority employed as Sales assistants who work in the retail outlets. The Company culture is very much about team working, sharing in success and valuing each individuals contribution to ensure the continuing growth and profitability of the organisation. Carol White has been with the company for 3 years and has recently been promoted to Regional Manager and she has management responsibility for the 10 Shop managers. The previous Regional Managerleft the organisation and in the two months prior to leaving, did not actively manage the Shop Managers to the extent that sales targets were not reached, absence levels were high and generally the store performance targets were not being met. Motivation levels are low because bonuses are paid out on the achievement of sales targets and half of the Shop Managers have not achieved bonus for the last 9 months. The more experienced Shop Managers have achieved bonus and this is causing friction within the team. Carol is new to management but she has recently completed her management training and is very keen to put her new knowledge into practice. She also has previous experience in the retail sector and knows the industry well. She knows she has to improve the Shop Managers performance and levels of morale
and motivation because her job could be at risk if she fails to do so. The Shop Managers have received very little training that is regularly provided and Carol accepts that the Shop Managers are not working together and sharing their experiences and knowledge. More experienced Shop Managers are not sharing their experiences or knowledge of the retail sector so the newer Shop Managers sales figures are generally much lower when compared to the more experienced Shop Managers sales figures. This is creating a real divide within the small team which is causing ill- feeling and resentment and generally the team isfeeling very disillusioned. . Based on the case study above, complete the following tasks: 1. Using relevant theoretical models describe and analyse the characteristics of successful teams and their importance to the organisation. 2. As the Regional Manager, (Carol White) what actions would you take to support the development of the team? You answer should include reference to relevant theories and models. 3. What actions would you undertake to encourage and improve levels of performance within the team? Learning Outcome 1 Understand the features of successful business teams 2 Be able to support team development 3 Be able to monitor the performance of teams Assessment criteria 1.1 describe the characteristics of successful business teams 1.2 assess the importance of team roles in successful business teams 1.3 analyse the value of using theoretical models when building successful business teams 2.1 explain the stages of team development 2.2 plan how to motivate team members to achieve given objectives 2.3 encourage open communication between team members to support team development 2.4 evaluate ways of resolving conflict between team members 3.1 monitor the performance of a team against given objectives 3.2 recommend how to improve performance against given objectives Word limit suggested: 2000 words

Instructions:
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G. REFERENCES
Textbooks 1. Boynton A and Fischer B Virtuoso Teams: The Extraordinary Stories of Extraordinary Teams (Financial Times/Prentice Hall, 2008) ISBN 0273721836 2. Clutterbuck D Coaching the Team at Work (Nicholas Brealey Publishing, 2007) ISBN 1904838081 3. Clutterbuck D and Megginson D Further Techniques for Coaching and Mentoring (ButterworthHeinemann, 2009) ISBN 1856174999 4. Dufrene D and Lehman C Building High-Performance Teams, 4th Edition (South- Western, Division of Thomson Learning, 2010) ISBN 0324782195 5. Kehoe D Developing High Performance Teams (McGraw-Hill Professional, 2008) ISBN 0070137900 6. Leigh A and Maynard M Leading Your Team: How to Involve and Inspire Teams,2nd Edition (Nicholas Brealey Publishing, 2002) ISBN 1857883047 7. Martin Hays J Building High-performance Teams: A Practitioner's Guide (Argos Press, 2004) ISBN 098023859 8. McCreary J S Creating the I in Team: Building Superior Teams with Intelligence, Initiative and Integrity (Sunstone Press, 2007) ISBN 0865345384 9. Parker B The Pit Crew Challenge: Winning Customers Through Teaming (Ecw Press, 2007) ISBN 0978222156 10. Runde C and Flanagan T A Building Conflict Confident Teams (Jossey-Bass, 2008) ISBN 0470189479 11. Vogt J W Recharge your Team: The Grounded Visioning Approach (Praeger Publishers Inc, 2008) ISBN 0313355428
Journals 1. Leader to Leader (Leader to Leader Institute) 2. Management Today (Haymarket Business Media) 3. People Management (Chartered Institute of Personnel and Development) 4. Professional Manager (Chartered Management Institute) Websites 1. www.belbin.com - Belbins team roles theory 2. www.businessknowhow.com - 12 tips for winning teams 3. www.businesstown.com - Short article on building winning teams 4. www.leadership-studies.com - Overview of leadership theories and models 5. www.managementhelp.org - Articles and further links on building successful business teams
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10. MANAGING FINANCIAL PRINCIPLES AND TECHNIQUES

TERM 1
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Managing Financial Principles and Techniques
A. MODULE SUMMARY
Module Code and Title: Code: Credits: Assessments: Teaching Methods: Managing Financial Principles and Techniques MFP 15 1 assignment Lectures, Seminars, Case studies. Level: Terms Taught: 7 1
2 hours
Contact Hours:
20 hours
Aim:
This unit provides the learner with the skills to apply financial principles relevant to strategic management in an organisational context, including forecasting, capital appraisal, budgeting, financial appraisal and analysis. By the end of the sessions students should be able to: Apply cost concepts to the decision-making process Apply forecasting techniques to obtain information for decision making Participate in the budgetary process of an organization Recommend cost reduction and management processes for an organization Use financial appraisal techniques to make strategic investment decisions for an organization Interpret financial statements for planning and decision making
Learning Outcomes:
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Organisations operate in a very competitive and continually changing environment where effective decision making is crucial if an organisation is to survive or even be profitable. An important resource for decision making is financial information and it is important for managers to be able to interpret, analyse and evaluate this information effectively. This unit will give learners a foundation in financial principles and techniques relevant to the strategic management process. It encourages learners to explore the nature of cost-based financial data and information, the impact of the budgeting process on the organisation, and the development of cost reduction and management procedures and processes. It also focuses on the management of these costs through the use of forecasting, appraisal and financial reporting procedures. One of the main objectives of this unit is for learners to develop the confidence to apply, analyse and evaluate financial and cost information. Learners will develop the ability to judge the sources, nature, accuracy and completeness of cost-based information and influence others to make decisions that are based on well-researched options. These important decision-making skills will be enhanced further through the use and validation of forecasting techniques, the consideration of financial statements and making judgements on the validity of information sources used in the decision-making process. Learners will also apply strategies associated with determining sound management information with reference to sources of funds, the potential investment of resources and the interpretation of financial statements. Learners will study issues of cost, responsibility and control in the contexts of management accounting and the management process. This unit gives learners the opportunity to enhance their competency in the construction, review and evaluation of cost-based financial information, and introduces them to the analysis and control or reduction of costs in a range of situations.
C. UNIT CONTENT
1 Be able to apply cost concepts to the decision-making process Costs and prices: absorption and marginal costing their nature, similarities, differences and use in pricing; relationship to pricing policy; influences on pricing strategy Cost systems: classifications in terms of object; function, product/service and behaviour; opportunity cost, recording and analysing costs; job costing; batch costing; process costing; contract costing; standard costing; variance calculations; variance analysis and management by exception Responsibility and control of systems: cost centre; profit centres; investment centres; accountable management; planning and control methods 2 Be able to apply forecasting techniques to obtain information for decision making Forecasting techniques: forecasting costs; cash flow forecasts; scatter graphs; linear regression; time series methods; forecasting and price movement; using indices, limitations of index numbers; forecasting problems and limitations; place of qualitative data; recommendations Funds: sources; supporting proposals for obtaining funds internally and externally; gearing ratios; effect of different types of funding on shareholder and market perception; selecting appropriate sources of funds for different projects comparison of costs 3 Be able to participate in the budgetary process of an organisation Target setting: comparison to previous years; links between targets; realism; organisational objectives Process: importance to management; the steps in the process from subsidiary/functional to master budget; relationship to cost and quality control, resource utilisation and profitability; computer-assisted processes
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Budgets: types; flexible and fixed budgets; zero-based budgeting Monitoring process: budgeted and actual figures, accounting for and investigating variances; favourable and adverse variances; the need for prompt and relevant corrective action; behavioural issues relating to budgeting eg management participation authority, performance evaluation
4 Be able to recommend cost reduction and management processes for an organisation Cost reduction: purpose compared with cost control (standard costing and budgetary control); value analysis and value engineering; difficulties with introducing cost reduction programmes; quality and value, Total Quality Management (TQM), measuring the costs of quality Activity-based costing: development of activity-based costing (ABC); use in calculating costs and pricing policy; activity-based budgeting; merits and limitations of these systems 5 Be able to use financial appraisal techniques to make strategic investment decisions for an organisation Investment: definition; capital and revenue expenditure; types and interaction with risk; sensitivity analysis Investment appraisal: accounting rate of return; payback period and cash flows, discounted cash flow net present value and internal rate of return, time value of money and allowance for inflation in money and real rates of discount, taxation and project appraisal; post-audit 6 Be able to interpret financial statements for planning and decision making Statements: estimates and assumptions relating to the profit and loss account; balance sheet and cash flow statement; use of spreadsheets in financial planning; financial resource audits and the use of balanced scorecards Kaplan and Norton Financial ratios: employment of financial ratios internally and externally; financial profiles of organisations; calculation of key ratios reflecting business liquidity; efficiency and profitability Interpretation and limitations of ratio analysis: emphasis on the interpretation of ratios and encouragement of the use of contingency and risk analysis to justify and make strategic portfolio decisions
D. MODULE SCHEDULE

1.1 explain the importance of costs in the pricing strategy of an organisation 1.2 design a costing system for use within an organisation 1.3 propose improvements to the costing and pricing systems used by an organisation 2.1 apply forecasting techniques to make cost and revenue decisions in an organisation 2.2 assess the sources of funds available to an organisation for a specific project 3.1 select appropriate budgetary targets for an organization 3.2 participate in the creation of a master budget for an organisation 3.3 compare actual expenditure and income to the
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LO1 Be able to apply cost concepts to the decision-making process
LO2 Be able to apply forecasting techniques to obtain information for decision making
LO3 Be able to participate in the budgetary process of an organization
LO4 Be able to recommend cost reduction and management processes for an organisation
LO5 Be able to use financial appraisal techniques to make strategic investment decisions for an Organization
LO6 Be able to interpret financial statements for planning and decision making
master budget of an organisation 3.4 evaluate budgetary monitoring processes in an organization 4.1 recommend processes that could manage cost reduction in an organisation 4.2 evaluate the potential for the use of activitybased costing 5.1 apply financial appraisal methods to analyse competing investment projects in the public and private sector 5.2 make a justified strategic investment decision for an organisation using relevant financial information 5.3 report on the appropriateness of a strategic investment decision using information from a postaudit appraisal 6.1 analyse financial statements to assess the financial viability of an organisation 6.2 apply financial ratios to improve the quality of financial information in an organisations financial statements 6.3 make recommendations on the strategic portfolio of an organisation based on its financial information
F. ASSESSMENT
TASK 1
Quantum Limited has estimated the following costs for its product known as the Beta, based on planned production and sales of 46,000 units in the coming period: Cost per unit Prime costs Production overhead all fixed Non-production overhead: variable costs Fixed cost Total cost per unit 520 280 065 170 1035
Actual production and sales in the period were as follows: Production 46,000 units Sales 45,600 units (at 1200 per unit) There was no finished stock at the beginning of the period. Variable costs per unit and total fixed costs in the period were as planned. Variable non-production overheads vary in total with the number of units sold. Required: (a) Prepare a profit statement for the period using both absorption costing and marginal costing techniques. Using the results from your calculations, Explain the importance of costing method used in the pricing strategy of an organisation (AC1.1)
(b)
(c) Based on the two costing methods Design and explain which costing system should be used within the organisation in order to improve financial performance (AC1.2)
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(d) Propose improvements to the costing system and pricing systems used by the organisation (AC1.3)
TASK 2
Scenario: Introduction Amber Plc is a manufacturing company producing a product called the ban. The marketing department is investigating the effect of advertising on the sales of the product. The market department has recorded expenditure on advertising and resulting sales for six months as follows: Month January February March April May June advertising expenditure 20,000 40,000 50,000 60,000 30,000 40,000 Sales 170,000 240,000 260,000 300,000 220,000 250,000
Using regression techniques forecast the sales revenue of the company when advertising expenditure is: a) 50,000 b) 100,000 Based on the forecasted sales above, make recommendations to the management of the company regarding their attitude towards advertising expenditure (AC 2.1) c) The management of the company has observed that the companys cash position is deteriorating and this is going to continue for the next few years. Assess the sources of funds available to this business (you are required to critically discuss short term, medium term and Long term sources of business funds, including their advantages and disadvantages) (AC 2.2)
TASK 3
Budgeting is a very important activity for Businesses, especially, manufacturing organisations. Organisations need to set budgetary targets at the beginning of the year. Required: (a) Explain the factors considered by organisations when selecting appropriate budgetary targets for: sales volume, production units and Labour costs. (AC 3.1)
(b) Alpha Limited produces three different types of chocolates. -milky bar -egg chocolate -bendy bar For the coming accounting period, budgets are to be prepared using the following information:
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Budgeted sales: -milky bar -egg chocolate -bendy bar
2,000 units at 100 each 4,000 units at 130 each 3,000 units at 150 each
The three products use the same raw materials. The standard usage of the raw materials is as follows: Sugar (per kg) Product milky bar egg chocolate bendy bar Standard cost of raw material Chocolate paste (per kg)
5 3 2 8
2 2 1 4
Inventory of finished goods are as follows: milky bar 500 units 600 units egg chocolate 800 units 1,000 units bendy bar 700 units 800 units
Opening inventory Closing inventory
Inventory of raw materials are as follows: Sugar (kg) 21,000 18,000 Chocolate paste ( kg) 10,000 9,000
Opening inventory Closing inventory
Labour: each labour hour is paid at the rate of 6 per hour milky bar 4 egg chocolate 6 bendy bar 8
Standard hours per unit
Prepare the following budgets as a way of participating in the creation of a master budget in a manufacturing organisation. (AC 3.2) (1) Sales budgets (quantity) (2) Sales budgets (total revenue) (3) Production budgets (units) (4) Material usage budget (quantity) (5) Material purchases budget (quantity and total cost) (6) Labour budget (total hours and total cost)
TASK 4
Omega plc manufactures wooden toys. It uses a standard costing system to control costs. The cutting department cuts the shapes, which are sold as toy animals. The process is very labour intensive and requires highly skilled labour to minimise the wastage of the expensive hardwood used. The standard cost card for a set of toy animals is given below. Hardwood 01 cubic metres at 160 per cubic metre 1600 Direct labour 30 minutes at 9 per hour 450 Fixed overhead 30 minutes at 4 per direct labour hour 200 Total cost 2250
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Fixed overhead absorption rates are based upon budgeted monthly fixed overheads of 26,000 and a budgeted monthly output of 13,000 sets of animals. All stocks are recorded at standard cost. In the most recent month 14,000 sets of animals were made using 1,600 cubic metres of hardwood. Purchases for the period were 1,800 cubic metres of hardwood at 150 per cubic metre. 8,000 direct labour hours were worked and paid at 925 per hour. Actual fixed overheads were 23,000 for the month. Required: (a) Compare the actual expenditure and income to the master budget of the Organisation and calculate the following variances from standard cost for the most recent month: (AC 3.3) (i) Raw material price (ii) Raw material usage (iii) Labour rate (iv) Labour efficiency (v) Fixed overhead expenditure (vi) Fixed overhead volume (vii) Fixed overhead capacity (viii) Fixed overhead efficiency (b) Explain how variances can be used to evaluate budgetary monitoring processes in an organisation. (AC 3.4) You are required to explain how variances can be used to monitor and achieve the budgetary targets set by the organisation.
TASK 5
For this part of the assignment, choose an organisation in the manufacturing sector. Using this organisation: a) explain how Value analysis (value engineering) could be implemented as a cost reduction process in the organisation (AC 4.1)
b) Evaluate the potential for the use of activity-based costing in that organisation (AC 4.2) In order to meet outcomes 4.1 and 4.2: You are required to describe the processes Explain how they work And explain what steps must be taken before they can be implemented in a manufacturing organisation.
TASK 6
Scenario: Introduction Amat PLC is a manufacturing company which make a product called XL. The company is appraising two investment proposals (project A and project B). Project A involves a contract to supply its product to a leading supermarket chain while project B involves a contract to supply to an organisation in the public sector. The product has performed well in test marketing trials conducted by the research and development department. The data below shows information relating to the two contracts:
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PROJECT A: Initial investment Selling price (current price terms) Expected selling price inflation Variable operating costs (current price terms) Fixed operating costs (current price terms) Expected operating cost inflation(fixed and variable costs) 2 million 20 per unit) 3% per annum 8 per unit 170,000 per annum 4% per annum
The research and development department has prepared the following demand forecast as a result of its test marketing trials: Year Demand(units) 1 60,000 2 70,000 3 120,000 4 45,000
It is expected that all the units produced will be sold, in line with the companys policy of not keeping any inventory of finished goods. The scrap value of the machinery is expected to be 200,000 at the end of the four years when the production of product XL is planned to end. The companys cost of capital is 10% and has a target accounting rate of return (ARR) of 30% per annum. The company pays tax at the rate of 30% and has capital allowance at the rate of 25% .The Company requires all projects to payback within 3 years. PROJECT B: All the information remains the same except the following: 1) Initial investment cost 1million and the scrap value will be 100,000 2) The selling price will be 15 per unit 3) Year Demand(units) 1 50,000 2 60,000 3 110,000 4 40,000
Required: (a) Calculate the following values for the investment project A and project B and apply them to assess the viability of the project (AC 5.1)
i) ii)
Net present value (NPV) Internal rate of return (IRR)
iii) iv)
Accounting rate of return (ARR) based on the average investment cost; and Discounted payback period
(b) Based on the results of the calculations in 5.1 above make a justified strategic investment decision for the organisation. Based on each method, make a decision on the financial viability of each project (AC 5.2)
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(c) report on the appropriateness of a strategic investment decision using information from a post audit appraisal In this part of the assignment you are required to write a report and give an overall decision on which project should be accepted. Explain the basis of your decision (AC 5.3)
TASK 7
The users of the Financial accounting information include: Shareholders Potential investors Finance providers and The general public. All the users of the Financial accounting information need information about the financial performance of the company. The management, for example, are always eager to know how the company is performing financially. This enables them to make important strategic decisions. Shareholders can also decide whether to sell their shares or to buy more shares in a particular company. Again, finance providers (e.g. banks) can decide whether or not to lend to the company. Assume that you are a financial consultant and have been approached by the management who have requested you to compare the financial performance of Tesco Plc for the 2009 and 2010 financial years. Required Write a report to the management assessing the financial performance of Tesco Plc for the two financial years in the following areas: 1. Profitability 2. Liquidity 3. Gearing 4. Investor ratios Your report should seek to achieve the following: a) Analyse the financial statements of the company to assess its financial viability for the 2009 and 2010 financial years (AC 6.1) b) Apply the financial ratios to improve the quality of financial information in the organisations financial statements (AC 6.2) In this part of the assignment you are required to assess the ratios and comment on which year the company is performing better. c) Make recommendations on the strategic portfolio of the organisation based on its financial information (AC 6.3) You are required to explain in which year the management have performed better in terms of strategic choices and decisions. Learning Outcome 1 Be able to apply cost concepts to the decision-making process 2 Be able to apply forecasting techniques to obtain information for decision making 3 Be able to participate in the budgetary process of an organization 4 Be able to recommend cost reduction and management processes for an organisation 5 Be able to use financial appraisal techniques to make strategic investment decisions for an organization
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6 Be able to interpret financial statements for planning and decision making Assessment criteria 1.1 explain the importance of costs in the pricing strategy of an organisation 1.2 design a costing system for use within an organisation 1.3 propose improvements to the costing and pricing systems used by an organisation 2.1 apply forecasting techniques to make cost and revenue decisions in an organisation 2.2 assess the sources of funds available to an organisation for a specific project 3.1 select appropriate budgetary targets for an organization 3.2 participate in the creation of a master budget for an organisation 3.3 compare actual expenditure and income to the master budget of an organisation 3.4 evaluate budgetary monitoring processes in an organization 4.1 recommend processes that could manage cost reduction in an organisation 4.2 evaluate the potential for the use of activity-based costing 5.1 apply financial appraisal methods to analyse competing investment projects in the public and private sector 5.2 make a justified strategic investment decision for an organisation using relevant financial information 5.3 report on the appropriateness of a strategic investment decision using information from a postaudit appraisal 6.1 analyse financial statements to assess the financial viability of an organisation 6.2 apply financial ratios to improve the quality of financial information in an organisations financial statements 6.3 make recommendations on the strategic portfolio of an organisation based on its financial information
Word limit suggested: 2500 - 3000 words

Instructions:
G. REFERENCES
Textbooks 1. Atrill P and McLaney E Management Accounting for Non-specialists, 3rd Edition (Financial Times/Prentice Hall, 2002) ISBN 0273655914 2. Berry A and Jarvis R Accounting in a Business Context, 4th Edition (Cengage Learning EMEA, 2005) ISBN 1844802515
3. Brookson S Managing Budgets (Dorling Kindersley, 2000) ISBN 0751307718 4. Cox D and Fardon M Management of Finance (Osborne Books, 1997) ISBN 872962238 5. Drury C Management Accounting for Business, 4th Edition (Cengage Learning EMEA, 2009) ISBN 1408017717 6. Glynn J, Perrin J, Murphy M and Abraham A Accounting for Managers, 3rd Edition (Thomson Learning, 2003) ISBN 186152904X 7. Harris R and Sollis R Applied Time Series Modelling and Forecasting (John Wiley and Sons, 003) ISBN 0470844434 8. Lumby S and Jones C The Fundamentals of Investment Appraisal (Thomson Learning, 2000) ISBN 1861526075 9. Monden Y Cost Reduction Systems: Target Costing and Kaizen Costing (Productivity Press, 1995) ISBN 1563270684 10. Makridakis S, Wheelwright S C and Hyndman R J Forecasting, 3rd Edition (John Wiley and Sons, 1998) ISBN 0471532339 11. Pettinger R Investment Appraisal: A Managerial Approach (Palgrave Macmillan, 2000) ISBN 0333800591 12. Secrett M Mastering Spreadsheets, Budgets and Forecasts, 3rd Edition (Financial Times/Prentice Hall, 1999) ISBN 0273644912 13. White G I, Sondhi A C and Fried D The Analysis and Use of Financial Statements, 3rd Edition (John Wiley and Sons, 2003) ISBN 0471375942 14. Yoshikawa T, Innes J and Mitchell F Strategic Value Analysis (Financial Times/Prentice Hall, 2002) ISBN 0273654292 Websites 1. www.aat.co.uk - Association of Accounting Technicians 2. www.bized.co.uk - Learning materials and a wide range of company information 3. www.cimaglobal.com - Chartered Institute of Management Accountants 4. www.cipfa.org.uk - Chartered Institute of Public Finance and Accountancy 5. www.companies-house.gov.uk - Companies House 6. http://corporate.marksandspencer.com - Example of company website containing information on its published accounts 7. www.guardian.co.uk - Example broadsheet newspaper website 8. www.icaew.co.uk - Institute of Chartered Accountants in England and Wales 9. www.icsa.org.uk - Institute of Chartered Secretaries and Administrators 10. www.thetimes100.co.uk - Company case studies
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EDSML Course Handbook Term 1 - June 2011

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EDSML Course Handbook Term 1 - June 2011

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BTEC Edexcel Level 7

Extended Diploma in Strategic Management and Leadership

1. EDSML COURSE STRUCTURE

College of Technology London

Unfair Practice: Plagiarism!

Lateness and Early Leaving

College of Technology London

PDS DSL SCM MFP SHR DCC DSB

College of Technology London

4. PROFESSIONAL DEVELOPMENT FOR STRATEGIC MANAGERS

College of Technology London

Professional Development for Strategic Managers

Number of Lectures/workshops per week:

College of Technology London

Professional Development for Strategic Managers

College of Technology London

Professional Development for Strategic Managers

E. LEARNING OUTCOMES AND ASSESSMENT CRITERIA

LO2 Be able to conduct a skills audit to identify learning style

LO3 Be able to implement a personal development plan

College of Technology London

Professional Development for Strategic Managers

GUIDANCE FOR THE ASSIGNMENT

College of Technology London

Professional Development for Strategic Managers

College of Technology London

5. DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP

College of Technology London

Developing Strategic Management and Leadership Skills

Code: Credits: Assessments: Teaching Methods:

Number of Lectures/workshops per week:

College of Technology London

Developing Strategic Management and Leadership Skills

College of Technology London

Developing Strategic Management and Leadership Skills

E. LEARNING OUTCOMES AND ASSESSMENT CRITERIA

LO1 Understand the relationship between strategic management and leadership

LO3 Be able to assess leadership requirements

LO4 Be able to plan the development of leadership skills

College of Technology London

Developing Strategic Management and Leadership Skills

College of Technology London

Developing Strategic Management and Leadership Skills

GUIDANCE FOR THE ASSIGNMENT

College of Technology London

Developing Strategic Management and Leadership Skills

College of Technology London

6. STRATEGIC CHANGE MANAGEMENT

College of Technology London

Strategic Change Management

Number of Lectures/workshops per week:

College of Technology London

Strategic Change Management

College of Technology London

Strategic Change Management

College of Technology London

Strategic Change Management

E. LEARNING OUTCOMES AND ASSESSMENT CRITERIA

LO1 Understand the background to organisational strategic change

LO2 Understand issues relating to strategic change in an organization

LO3 Be able to lead stakeholders in developing a strategy for change

LO4 Be able to plan to implement models for ensuring ongoing change

College of Technology London