Definitions of management
The most important part of management will be getting things done through people, but managers will be concerned directly or indirectly with all other resources, including their own [experience, know-how, skill, competences and time]. (Armstrong) The key purpose of management (and leadership) is to provide direction, facilitate change and achieve results through the efficient, creative and responsible use of resources. (Management Standards Centre) Management is a social process entailing responsibility for the effective and economical planning and regulation of the operations of an enterprise, in fulfilment of given purposes or tasks, such responsibility entailing: (a) judgement and decision in determining plans and in using data to control performance and progress against plans; and (b) the guidance, integration, motivation and supervision of the personnel composing the enterprise and carrying out its operations. (EFL Brech)
Decisional Arising from a managers formal authority and access to information, which places him or her in the best position to solve problems relating to the unit or department as a whole
Exercise
Blake and Mouton define (9, 9) teamcentred results-based management as the theoretical ultimate. Identify some situations where 9, 9 may not be the best approach but (1, 9) or (9, 1) may provide a better basis.
Weaknesses Communications are one-way, neglecting feedback and potential for upward communication or team member input Does not encourage initiative or commitment from subordinates: merely compliance
Team members may be able to function slightly better in the absence of instruction Weaknesses Communications are still largely one-way Team members are not necessarily motivated to accept the decision Still doesnt encourage initiative or commitment
May reduce the quality of the decision because of the politics of decisionmaking
Exercise
See if you can plot the various style and contingency theories on a continuum between two extremes of concern for task and concern for people. You may be able to equate extreme concern for the task with authoritarian (or psychologically distant) styles, and extreme concern for people with democratic (or psychologically close) styles, for example. Which theories have a completely different shape and why?
Management vs leadership
Yukl suggests that while management is defined by a formal role and position in the organisation hierarchy, leaders are given their roles by the perceptions and choice of others. Managers have subordinates: leaders have followers. Zaleznik suggests that while managers are primarily concerned with order and maintaining the status quo, focusing on diplomacy and decisionmaking processes in the organisation, leaders are more concerned with introducing new ideas and approaches, focusing on excitement, vision and empathy for people. Katz and Kahn suggest that while managers aim to secure compliance with routine organisational objectives, leaders aim to secure willingness, enthusiasm and commitment. Pedler, Burgoyne & Boydell suggest that leading is more concerned with finding direction and purpose in the face of critical challenges, whereas managing is about organising to achieve desired purposes efficiently, effectively and creatively.
Exercise
Rosabeth Moss Kanter noted that incompatible demands are often made on managers. Be entrepreneurial and risk taking but Dont lose money Invest in the future but Be profitable now Lead and direct but Participate, listen, cooperate Know everything about your business but Delegate more Be single-minded in your commitment to ideas but Be flexible and responsive What mix of skills and qualities might a person need to fulfil these demands?
Exercise
Think of some leaders in your own organisation. Among those whom you might consider to be effective leaders, can you identify any common set of traits? If so, what are they?
Exercise
Try to identify as many organisational stakeholder groups as you can think of. What is their main stake or interest in the organisation? What have they invested in it, and what kind of expectations and demands might they make on the organisation?
Classifying stakeholders
Internal stakeholders. The directors, managers and employees who operate within the organisations boundaries External stakeholders. These include regulatory bodies, pressure and interest groups, professional bodies, and the local community
Managing stakeholders
Exercise
Think of a situation in which you, as purchasing manager, are planning to outsource your firms transportation function. Who are the stakeholders in such a decision? Work through the stakeholder analysis and planning processes to formulate an outline Management Plan for one or two of the key stakeholders.
Exercise
It is easier to be ethical in jobs involving fiduciary relationships such as accountants and engineers, than in those jobs involving competitive relationships, such as the salesmans or purchasing agents. (R Baumhart, cited by David Farmer in Ethical Issues in Purchasing, The Handbook of Purchasing Management, Gower.) What kinds of pressures might cause purchasing professionals to behave in ways that could be construed as ethically dubious?
Stakeholders
Activity/process
Legal restrictions
Activities are regulated by company law, employment law, product liability law etc
Diversity of items
Publicity
Budgetary limits
Supplier relationships
Purposes of communication
To exchange information: giving and receiving information required in order to initiate or facilitate actions or decisions. To build relationships: giving information in such a way as to acknowledge and maintain the relationship between the parties rapport, trust, respect and so on. To persuade: giving information in such a way as to confirm or alter the attitude of another person, securing acceptance, agreement or compliance with the communicators views or wishes. To confirm: giving information that clarifies and fixes previous communication, ensuring that both parties have the same understanding and aids to recollection (including evidence, if required).
Exercise
You have formulated plans for a new initiative whereby your firm would work with its key foreign suppliers to develop, implement and monitor guidelines on ethical employment and trading practices, as part of a supplier accreditation scheme. How might each of the purposes of communication be relevant to your communication with senior management about your plans?
Active listening
Demonstrating attention: leaning forward, maintaining eye contact Giving encouraging and clarifying feedback: using verbal and nonverbal encouragers (nods, uh-huhs), asking questions, summarising/paraphrasing to check your understanding Keeping an open mind: using your critical faculties to test the speakers assumptions, logic and evidence but not jumping to snap judgements Being patient: waiting for a suitable opening to respond, focusing on the speaker (not on planning your response) Paying attention to non-verbal cues and processes: listening for underlying messages and feelings (and reflecting them back the technique of empathy where appropriate).
Non-verbal cues
Kinesic behaviour (or body language): movements such as gestures, facial expressions, eye contact, body posture Proxemics: how near you stand or sit to others, whether you lean toward or away, what space or barriers are between you Paralanguage: tone of voice, speed, emphasis and other vocal qualities (how something is said, which may be different from the message eg in the case of sarcasm) Object language: personal grooming, dress, furniture, symbols
Barriers to communication
Faults in the communication process Distortion or omission of information by the sender Misunderstanding due to lack of clarity or technical jargon Non-verbal signs (gestures, posture, facial expressions) which contradict or undermine the verbal message, so that the senders real meaning is in doubt Communication overload: the recipient is given too much information to digest in the time available Differences in social, ethnic or educational background, compounded by age and personality differences, creating barriers to understanding (and/or cooperation) Perceptual selectivity: people hear only what they are motivated and willing to hear Lack of communication skills
Exercise
What business case could you put forward for: a proposal to switch from a single supplier to a multiple supplier base? A plan to outsource the firms warehousing and distribution function? An initiative to train and accredit suppliers? A proposal to introduce quality forums to involve staff throughout the organisation in quality problem-solving?
Report-writing style
Organisation. Material in a report is usually clearly structured, especially if it is leading up to a conclusion or recommendation Objectivity. Even in a report which is designed to persuade as well as to inform, subjective value judgements and emotions should be kept out of the content and style Impersonality. In formal reports, impersonal constructions are often used. Instead of I/we found that, for example, you might write: It became clear that, or [Your Name] found that or Investigation revealed that User-friendliness. The report writer needs to recognise the needs and abilities of the report user.
Participants in meetings
Meetings can fail because they are too large (discussion may be superficial and few people will get to participate) or too small (insufficient viewpoints or information). Meetings require a balance of skills and competencies. Cohen, March and Olsen suggest: problem knowers (who understand the problem), solution providers (who generate ideas), resource controllers (who can put solutions into action) and decision affirmers (who have the authority to reinforce the decision).
Planning of meetings
The agenda Meeting space of appropriate accessibility, privacy and so on Seating layout (reflecting the formal or informal nature of the desired interpersonal dynamics) Table space or other facilities for those who wish to take notes Visual aids equipment (flip charts, whiteboards, data projection and so on) Refreshments (especially if the meeting is of long duration)
Exercise
Brainstorm a list of contexts in which meetings are used in your organisation. (Dont forget brainstorming meetings!) What are the advantages of face-to-face communication in each of these contexts?
Exercise
All the guidelines given in this section apply primarily to the leader or manager of the meeting. Using these points, draw up a list of guidelines for participants on how they can make a more effective and efficient contribution to a meeting. (Dont forget obvious points such as turning up on time!)
Exercise
Apply a KSS evaluation to any meeting you recently attended.
Order of specificity May move from a general statement to specifics (illustrations, examples, explanations) or from specifics to a general statement (conclusion or
Exercise
List the presentations you have had to (a) give and (b) attend in the last few months, in the course of your work. Describe each in terms of its size, the composition of its audience, and the purpose and topic of the presentation. Identify which (if any) of these presentations you found particularly effective and memorable, and analyse why.
Exercise
Pick a topic with which you are familiar (just in time techniques, negotiation skills or whatever). Take a large blank sheet of paper and write the topic in big letters in a box in the centre of the page. Draw a line branching out from that box, and along it, write whatever relevant sub-topic occurs to you first. If a related idea occurs to you, write it on a sub-branch of this branch. Or start a new main branch. And so on. You may recognise this as mind-mapping. If you have never tried it before, have fun! Just let the ideas flow, triggered by each other. Place them wherever they branch from, without worrying too much. Add any pictures or doodles you wish. This is not only a great planning technique
Exercise
What organisational pattern would you use for the following topics? You are proposing two alternative solutions to a problem, both of which may have supporters in your audience You are presenting to senior management on the need for a total quality management approach throughout your organisation. You are leading a training seminar on contract preparation and management
Exercise
Suggest some advantages and disadvantages (depending on the circumstances) of (a) computerised slides (eg PowerPoint presentations), (b) video, (c) on-the-spot drawing or writing on a flip chart and (d) handouts.
Exercise
Suggest some of the elements in the vocal and non-verbal delivery of a presentation that might create a confident and professional impression.
Organisation metaphor Organisation structure Focus Production focus Work organisation Human resource
Exploit
Exercise
Which of Fayols principles can you see being challenged by more modern approaches (which you may be able to observe in your own organisation)? Think about trends such as project management, teamworking, empowerment and multiskilling say.
Organic organisations
A contributive culture of information and skill sharing, encouraging versatility (rather than specialisation) and teamworking (rather than functional departmentation) A network structure of authority and communication, allowing decentralisation and a range of lateral relationships (crossing functional boundaries) for coordination and self-control Job design that allows flexible definition of tasks according to the needs of the team and changing demands Focus on goals and outputs rather than processes.
Advantages of centralisation
Coordinated decisions (big picture thinking) and closer management control, therefore less sub-optimising behaviour Conformity with overall objectives, rather than sub-unit goals and interests Standardisation of work processes and outputs, eg variety reduction and rationalisation Balance between the competing interests of different functions or divisions Increased flexibility in use of resources, given big picture thinking Economies of scale in costs of management, finance, purchasing, production, etc Better decisions (in theory) arising from the proven ability and experience required to reach senior management positions Speedier decision-making, especially in a crisis delegation can be timeconsuming Effective change management where quick action and strong leadership are required
Drawbacks of centralisation
Lower-level managers experience reduced job satisfaction, which may affect commitment and loyalty. Senior management may not possess detailed knowledge of all the organisations activities, or of operational demands. Centralisation places stressful levels of responsibility onto senior management. Subordinates experience restricted opportunity for career development, which may cause difficulties in skill retention and management succession planning. The referral of decisions upwards to senior management takes time and restricts the responsiveness of the organisation to customer demands and environmental changes. Standardisation of processes and outputs may not capitalise on, or respond to, local variations in conditions or customer demands.
Functional organisation
Geographical organisation
Product/brand/customer organisation
Pools and focuses specialised skills and knowledge Share specialised technology and equipment for efficiency Facilitates the recruitment, training and management of specialist staff Avoids duplicating functions within area/product departments: enables economies of scale Decision-making at the interface between organisation and local stakeholders (with distinctive needs)
Geographical
Divisional structure
Exercise
Draw a chart of your own organisation and identify: which form(s) of organisation it uses at different levels; how it organises its purchasing function.
Hierarchical integration
Vertical integration involves increased ownership or control over the value chain. This may take the form of: Backward (upstream) integration: controlling suppliers or supply chain activities (such as inbound logistics). Forward (downstream) integration: controlling channels of distribution or distribution activities (such as outbound logistics). Lateral or horizontal integration involves increased ownership or control of competitors.
Exercise
Begin to collect specific examples of joint ventures, strategic alliances and other inter-organisational forms, as you read about them in professional journals and the business press. You will then be able to offer named examples, if asked to do so in the exam, which arent the same as everybody elses! As a further useful exercise, try to analyse the ways in which your own organisation collaborates with other organisations. Which category of inter-organisational relationship applies in each case?
Exercise
To what extent is the purchasing function centralised or decentralised in your own organisation? (See if you can analyse this on a task-by-task basis, if there is a mixture.) What advantages and disadvantages can you see in the configuration your organisation has chosen?
Barriers to empowerment
Not all employees desire more challenge or responsibility Not all employees are capable of exercising greater responsibility or undertaking the necessary skill development Managers may struggle to release control and/or to change role and style Empowerment is not a substitute for other rewards: it must be reinforced by recognition and/or financial rewards for exercising increased responsibility Empowerment may be perceived as a poor alternative to promotion or career development
Exercise
Get hold of the official job description for your current position. How true and up to date a picture is it of what you actually do? How might it be improved?
Job description
Competence definitions
The specific activities concerned (elements of competence) To what standard (performance criteria) In what contexts (range statement) With what underpinning knowledge and understanding.
Learning specification
What the role holder(s) or individual(s) must understand (specified as learning outcomes) What the role holder(s) or individual(s) must be able to do (specified as learning outcomes) and Learning methods for each: instruction, coaching, mentoring, reading, internet research, formal training course and so on.
Person specification
Exercise
Draw up a person specification for your job. (i) Select an appropriate set of factors, based on Rodger or Munro Fraser (or a relevant competence framework, if there is one available). (ii) Working through your job description, list under appropriate factor heading the attributes and aptitudes that you consider advantageous or disadvantageous for competent performance of each of your key tasks and accountabilities. Note any requirements set out in the job description itself. (iii) Classify each attribute or aptitude as essential, desirable or contra-indicated. (iv) Check your factors and classifications for completeness, bias, discrimination or unjustified assumptions. Would you be happy to recruit and select someone for
Hard work
Reliability
Exercise
Why might it be difficult to create a customer-focused or entrepreneurial culture in a large formally-structured organisation? Think about the structural mechanisms that would get in the way Think about the kinds of managers and staff such a structure would attract and retain
Exercise
Which cultural type best fits a purchasing and supply department? Does this depend on the its role in the organisation? Might different units within the function suit different cultures?
Uncertainty avoidance The extent to which security, order and control are preferred to ambiguity, uncertainty and change
Feminine: minimise gender role differences Feminine values dominant (modesty, consensus, relationship, quality of
Exercise
What issues might arise, according to the Hofstede Model, if the newly-transferred English purchasing manager of a UK firm operating in Japan proposes to throw out the Rules and Procedures manual, to encourage a more entrepreneurial approach?
Exercise
Why might individualist/collectivist and high/low-uncertainty avoidance cultures differ in their approach to resolving confict? What might you as a manager try to do about this?
Types of decision
Routine: repetitive, programmed (often low-level) decisions, involving the use of pre-established procedures or rules. One example is the re-ordering of stock items which have fallen to a certain level, at a determined order quantity Adaptive: higher-level decisions which require human judgement but can be supported or guided by relatively simple decision tools Innovative: unique, first-time decisions for which there is no existing solution or model, and which require judgement and creativity
Exercise
What style of decision-making is used in your organisation? Individual or group decision-making? Analytical/statistical decision-making perhaps supported by computer software? What are the key factors in the rightness of a decision in your own work? (Costeffectiveness? Cost-reduction?) How, if at all, are messy factors like hunches, cultural values and impacts on stakeholders taken into account?
Sociocultural
Technologic New technology for organisational systems and al processes (eg supply chain management). New technology products (eg downloaded music, plasma TV). New technology marketing (eg e-commerce). Legal Legislation and regulation affecting: contracts; employment; health and safety; the environment and so on.
SWOT analysis
Risk analysis
Analysing costs
Direct costs are those incurred directly as a result of carrying out the plan. Indirect costs are those which may be attributed to the plan, but would have been incurred by the organisation whether or not the plan had been carried out: management time, office space and so on. Opportunity costs are revenue-earning opportunities lost as a result of implementing the plan.
Pareto analysis
Category A items: the vital few. Small in number but high in usage value. (Devote most managerial control effort here.) Category B items: normal items. Medium in number, medium usage value. Category C items: the trivial many. High in number, low usage value. (Devote least managerial control here.)
Ishikawas 7Qs
Pareto analysis Cause and effect diagrams Stratification Check sheets Histograms Scatter charts Process control charts Which are the big problems? What causes the problems? How is the data made up? How often does it occur? What do the overall variations show? What are the relationships we can deduce? Which variations to control and how?
Hierarchy of objectives
Levels of planning
Strategic plans apply to the whole organisation. They focus on the broad, general direction of the organisation over the long term (say, 35 years). Tactical plans apply to particular divisions and functions (or strategic business units). They focus on the tasks and objectives required to pursue the chosen strategies in particular markets, over the medium term (say, 12 years). Operational plans apply to functions and departments. They focus on the specific detail of tasks, targets, resources and actions needed to implement the chosen tactics, over the short term (day to day and up to a year, say).
Integrating plans
Vertical integration ensures that individual plans are designed to support team objectives, which are designed to support functional plans, which are designed to support organisational objectives. Horizontal integration ensures that the objectives of different individuals, units and functions dovetail with each other. This is essential for co-ordinated effort, reduced waste and the presentation of a coherent face to the outside world.
Information-gathering techniques
Environmental audit, PESTLE and SWOT analysis Competitive/industry analysis (eg using Porters five forces model) Critical success factor analysis: what objectives must be achieved in order to secure competitive advantage Supply, demand and capacity forecasting Scenario planning and modelling
Purchasing plans
Make internally or source from outside? Sourcing policy: single or multiple sourcing, or a combination depending on the materials concerned? Local or international sourcing? Standardisation of products or emphasis on differentiation? Centralise or decentralise purchasing decisions, or a combination of both depending on materials, organisation structure, available systems? What kind of systems to capture, analyse and share purchasing information? How to ensure compliance with relevant law, regulation and policy?
SMART objectives
Specific: precise, clear and well-defined, so people know what they are commiting to and accountable for. Measurable: related to quantified measures (reduce errors/costs by x% over x months) or qualitative measures (increase expressed customer satisfaction) Agreed: at all levels of management and between managers and teams. Objectives should emphasise teamwork as well as individual achievement. Realistic: achievable, given the time and resources available even if the aim is to be stretching, the objective must be possible! Time-bounded: given a defined time-scale over which the objective will be achieved.
Source: Baily, Farmer, Jessop & Jones (Purchasing Principles and Manageme
Types of objective
Quantified output or improvement targets Performance standards, whether quantified or qualitative Projects to be completed Standing objectives: ongoing, continuous targets/standards which are a consistent part of the job
Strategic alignment
Terminology
Authority is the right to exercise power in a particular context. Delegation is the process by which a person or group possessing authority transfers part of that authority to another person or group. Responsibility is the obligation to use delegated powers appropriately. Accountability is the liability of each person who is given authority to give an account of their use of that authority (ie their performance) to the person who delegated it to them.
Exercise
How much power do you have in your organisation and of what sort? How might you go about getting more power, of each of the types listed by French and Raven? What ethical issues do you think might arise in getting and using such power to influence others?
Exercise
Working through the list of reasons why managers might be reluctant to delegate, suggest how each of these barriers to delegation might be overcome.
Manage meetings
Delegate effectively
Exercise
What committed time could you reclaim for work (or other) activity that is important to you? Are you investing in your health, for maximum long-term energy returns? (If not, what areas do you need to give more time and attention to?)
Formal groups
Membership and leadership appointed and approved by the organisation Compliance of the members with the organisations goals and requirements Structured relationships of authority, responsibility, task allocation and communication
Exercise
What groups are you a member of both at work and outside work? What do these groups offer you that you do not have as an individual? How do you contribute to the goals or activities of the group?
Exercise
How might the informal organisation get work done more effectively, sometimes, than the formal organisation? Think about informal communication channels (the grapevine): what are they good at and what problems do they successfully bypass? Think about informal ways of doing things: why are short cuts and tricks developed? Think about the informal influence of natural leaders (as opposed to appointed leaders or managers): what kind of influence do they have and how do their followers respond? You may see the disadvantage in all these effects but consider first how management might harness them to the benefit of the organisation.
Exercise
What types of team are you involved in at work? What are their functions? Why can these functions be more effectively or efficiently fulfilled by a team than by a department, or individuals working alone?
Plant Solves difficult Creative, imaginative, problems, presents unorthodox new ideas. Resource investigator Extrovert, enthusiastic, communicative Coordinator (previously called Chairman) Mature, confident, a good chairperson Explores opportunities. Develops contacts. Clarifies goals, promotes decision-making, delegates well
Lacks drive and ability to inspire others. Overly critical Indecisive in crunch situations. Can be easily influenced
Provides Contributes only on a knowledge and narrow front. Dwells on skills in rare technicalities. Source: Team RolesOverlooks the big at Work, R Meredith Belbin (Butterworth-Heinemann supply picture
Exercise
Which of Belbins team roles do you think best describes your own character and approach to teamworking? How well does Belbins picture describe a team of which you have been a member? Why might a mix and balance of all nine roles be necessary for a team seeking to develop the supply chain?
Symptoms of groupthink
A sense of invulnerability blindness to the risk involved in pet strategies Rationalisations for inconsistent information Moral blindness (might is right) A tendency to stereotype all outsiders as enemies Strong group pressure to quell dissent and rocking the boat A perception of unanimity filtering out or ignoring divergent views Mutual support and solidarity to guard the decision.
Team decision-making
The application of authority by the leader, perhaps after taking members views into account The use of power or influence, eg by a team specialist or charismatic member Majority rule: by voting or the leaders getting a sense of the view supported by the majority of team members By consensus: a process whereby divergent views are examined and persuasive arguments used until there is broad agreement among all members.
Exercise
How do you think a manager could utilise groupthink in an organisational context? Ted Johns suggests, for example, that culture change programmes often encourage groupthink, because the perpetrators want all employees to think and act the same way. Think about the advantages of discouraging dissent, or squeezing out people who dont fit the style or values of the organisation or team.
Theories of motivation
Content theories ask the question: What are the things that motivate people? They assume that human beings have a set of needs or desired outcomes that they pursue. Process theories ask the question: How can people be motivated? They explore the conscious or unconscious process of calculation by which individuals choose certain outcomes and the most advantageous or acceptable paths towards them.
Exercise
Managers and entrepreneurs were found to have a high need for achievement, a relatively high need for power and a low need for affiliation. Why might this be so? What combinations of needs would you expect to find in someone who had reached the position of chief executive in a large organisation? (Hint: think about which needs might already have been satisfied) How would you rate your own needs in McClellands classification?
Exercise
What intrinsic and extrinsic rewards do you value in your own job? Why do you work? What do you get out of your work that you most value? What would you miss most if you didnt work? Try putting each of these satisfactions into (a) Herzbergs categories of hygiene and motivator factors and (b) Maslows categories of needs.
Exercise
Assess the force of your own motivation to study for the CIPS exam, using Vrooms expectancy equation.
Exercise
How do you feel personally about pay as a motivator? Where would you draw the line between extra money and the hardships required to earn it?
Exercise
A company called Successories produces posters, prints, plaques, mugs and memo pads for display or use in the workplace. Each carries a message that is supposed to motivate staff to higher performance. Examples include: Goals. No one can predict to what heights you can soar. Even you will not know until you spread your wings. Attitude. Keep your face to the sunshine and you cannot see the shadows. I can complain because rose bushes have thorns or rejoice because the thornbush has a rose Its all up to me. Quality. The race for quality has no finish line. We cant spell SUCCESS without U. Would this sort of thing motivate you? Would it fit your organisation culture?
Exercise
Which causes of conflict are present in your workplace? What form do they take and what kinds of conflict behaviour do they cause? What is managements approach to handling such conflicts (if any)?
Exercise
What might be the observable symptoms of constructive argument or competition? Perform a quick conflict health check on your department. What observable symptoms can you identify that might suggest the presence of conflict? What might the source of that conflict be, in each case? Is the conflict of a constructive or destructive sort?
A mediator will:
Consider the case of both sides (set out in writing) Hear their evidence and arguments at a mediation hearing Make a formal proposal or recommendation (not binding on either party) as a basis for settlement of the dispute.
Exercise
Suppose that two of your team members are arguing over who gets the desk by the window: they both want it. Suggest a winlose, compromise and win-win solution to this scenario.
Exercise
Consider how conflict could arise, what form it might take and how it might be resolved in the following situations. Two managers who share a secretary have documents to be typed at the same time. The Northern Region and Southern Region sales teams are continually trying to better each others results and the capacity of production to cope with the increase in sales is becoming overstretched. A manager is required to work with a team leader, elected by the work team, on goal-setting for the section. The HR function introduces new recruitment and selection guidelines for the purchasing department,
Purposes of appraisal
To generate and exchange feedback on individual and team performance To appraise past performance in relation to relevant standards in order to determine merit pay awards, or (more generally) to set salary levels for the following period To identify potential in the employee for career development To identify the training and development needs of the individual or team To provide a context for counselling and problem-solving To aid continuous learning, quality/service improvement and innovation
Exercise
How long would it take, and how costly would it be, to recruit, train and develop someone to do your job as well as you? Think about your skills and qualifications, your familiarity with in-house systems and procedures, your contacts and relationships and so on. What jobs in your organisation might involve the longest lead-times for adding or replacing staff?
Exercise
What factors might affect the future supply and demand for labour/skills in your profession (purchasing and supply), field (IT, manufacturing, local government or whatever) and organisation? Is demand for your skills (or other skill areas in your organisation) growing or shrinking and what (if anything) is the organisation doing about it?
Exercise
Why might an organisation wish to promote someone internally rather than recruit an outsider?
Exercise
Find out, if you do not already know, what are your organisations policies and procedures in regard to recruitment and selection. The organisation manual should set them out, or you may need to consult the personnel or HR department. Examine some of the documentation your organisation uses: job advertisements, application forms, selection tests and so on.
Exercise
Does your organisation use systematic formal appraisal? If so, what purposes is appraisal used to fulfil? How clearly communicated are these purposes (a) to the managers carrying out the appraisals and (b) to the staff being appraised?
Types of feedback
Motivational feedback (praise, encouragement) is given to acknowledge, reward and encourage positive behaviour or performance by the team member. Its aim is to boost the team members confidence. Developmental feedback (constructive criticism, coaching or counselling) is given when an area of the team members performance requires improvement, helping the individual to identify the problem and plan for change. Its aim is to increase the team members competence.
Exercise
If you have not already done so, get hold of and review your organisations guidance on performance appraisal. This may be available in a procedures manual or on the corporate intranet or you may have to ask the human resources department. Appraise the system in the light of Chapter 12 in your Reference Text.
Benefits of training
Benefits for the trainee Enhanced skills/competence, offering: psychological benefits (self-esteem, security, achievement) and financial benefits (opportunities for increased performance-related rewards) Opportunities for career development, job enlargement, job enrichment (and potentially job satisfaction) Opportunities to extend own interests, skills and social contacts: meet own developmental needs and enhance employability (value in job market) Increased skills, knowledge, competence, awareness, ethics etc in workforce, offering: enhanced job performance; added value to human assets; enhanced employee commitment and contribution Enhanced workforce versatility and flexibility, offering: more efficient labour utilisation; better adaptation to change; more innovation Less need for supervision, freeing management for proactive roles (or delayering) Greater awareness of quality; harnessing of knowledge for improvement Enhanced employer brand (eg as Investors in People) to attract quality labour
Exercise
Which of the benefits of training to the trainee would you claim for your own CIPS training? What benefits do you think will accrue to your employer?
Training methods
Sitting with Nellie Coaching Mentoring Experiencing different roles
Evaluation of training
Whether specific training objectives have been met (and therefore whether the processes of planning and delivering training have been effective) Whether the training intervention was worthwhile, representing a return on the organisations investment What improvements are required or possible for the future
Transformation vs change
Organisational transformation includes major changes in job definitions, reporting lines and work structures Transformation in the way the system operates involves major changes in communication patterns, working relationships and processes Transformation in employee consciousness involves major changes in the way that things are viewed
Exercise
Brainstorm a list of different changes that may be made in an organisation (or have been made in your own organisation) under the following headings: new technology; re-organisation; working conditions; HR policies; philosophy of management and employee relations.
Exercise
Consider how the internet and e-mail have changed the way you and your organisation do business: communication, data gathering, transaction processing, supplier relationships and so on.
PESTLE Analysis
Factor Political Economi c Description Government influence on your industry. Growth trends; patterns of employment, income, interest/exchange/tax rates etc. Changing composition, attitudes, values, consumption patterns and educational standards of the population Changing tools for design/manufacturing, information and communications etc. Law and regulation on business, employment, information etc. The natural environment: Change management question What are the likely implications of changes in government policy? What are the implications of changes for future demand for your products/services; future supply and cost of resources/labour? What are the implications of changes for customer demands and expectations, and labour availability? What opportunities for development or risks of obsolescence are implied by new technologies? How will the organisation need to adapt its policies and practices in order to comply with forthcoming measures? Which environmental factors will
Sociocultural
Technological
Legal
Ecologic
Transition curve
Exercise
John Hunt (Managing People at Work) notes: Learning also involves re-learning not merely learning something new but trying to unlearn what is already known. List some examples of habits, skills and assumptions that would have to be unlearned in your work, in order to adapt to changes. (Think about the difficulties of using a computer with a different operating system or software than you are used to, for example. What do you not know that you dont know?)
Benchmarking; auditing
Strategic alignment
Exercise
Consider the business case for equitable non-discrimination policies. What benefits can you foresee in the areas of: recruitment of high-quality staff; retention of high-quality staff; compliance; corporate image and branding?
Exercise
The Employers Forum on Age estimated that age discrimination is costing the UK economy up to 26 billion per year. Why might organisations practise age discrimination? (Think about seniority and salary schemes; skills; cultural values.) To what extent might these reflect stereotypes or short-term thinking?
Exercise
What system does your organisation use for measuring the jobs people do and determining their relative value for the purposes of determining pay structures and levels? Find out what job evaluation technique is used (if any). How easy would it be to compare the value of your job with that of any other member of your organisation?
Exercise
What sources of information about health and safety can you access in your workplace? Who (if anyone) keeps copies of the above regulations? How is health and safety information (including the organisations policies and procedures) made available to employees? Consider the corporate intranet (if any), as well as notice boards, manuals and HR department sources.
To carry out risk assessment, generally in writing, of all work hazards, on a continuous basis To introduce controls to reduce risks To assess the risks to anyone else affected by their work activities To share hazard and risk information with other employers, including those on adjoining premises, other site occupiers and all subcontractors entering the premises To initiate or revise safety policies in the light of the above To identify employees who are
To provide fresh and appropriate training in safety matters To provide information to employees (including temporary workers) about health and safety To employ competent safety and health advisers.
HEALTH AND SAFETY (CONSULTATION WITH EMPLOYEES) REGULATIONS 1996
To consult all employees on health and safety matters (such as the planning of health and safety training, changes in equipment or procedures which may substantially affect health and safety at work, or the health and safety consequences of introducing new technology)
EU employment directives
Subject Implemente d in UK? 1979 Relevant UK legislation
Safeguarding employees rights in transfers of undertakings and businesses Employers obligation to inform employees of conditions relevant to the contract or employment relationship Organisation of working time Establishment of European Works Councils or procedures for informing and consulting employees Parental leave
Transfer of Undertakings (Protection of Employment) Regulations 1981 [TUPE] Employment Rights Act 1996
1993
1996 1999
Working Time Regulations 1998 Transnational Information and Consultation of Employees Regulations (1999) Maternity and Parental Leave etc Regulations 1999
1999
Recording and storing inventory, work-in-progress, equipment repair and maintenance and supply chain data, and other production/operations records Recording and storing personnel data such as employment histories, personnel and salary data Recording and storing market data, customer profiles, customer purchase histories, marketing research data, and other marketing records Recording and storing business intelligence data, competitor analysis data and other strategic records Use of all of the above to implement, control and monitor plans, strategies, tactics, new products, new business models or new business ventures.
Databases
A database is a centralised collection of structured data, organised in such a way that: relevant, accurate and up-to-date information is held within the system and can be regularly monitored and amended to maintain its quality; different users are able to access and interrogate it according to their information needs; the right of different users to update or amend records is controlled and coordinated (to avoid confusion).
Interrogating a database
Identifying the best suppliers (for purchase decisions) or customers (for targeted marketing effort or key account status) Developing the supplier or customer base by identifying potentially valuable contacts and relationships to pursue Relationship/loyalty management, by using known information to personalise, target and streamline communications and transactions Continuity of knowledge/service/relationship
Forms of teleworking
Homeworking: traditional outworkers such as home typists and telesales workers Freelancing: working on a self-employed basis for a number of clients, from a home office, or using client offices Mobile working: using laptop computers, the internet and mobile phones to work on the road Call-centre working: working in specialist centres providing tele-sales, marketing research, help-line services, data entry and so on.
Elements of e-sourcing
Electronic (or e-) catalogues Bidding E-auctions Reverse auctions Market exchanges
Exercise
What IT systems and tools do you use daily in your work? How far do they achieve the above effects?
Exercise
Why might an organisation adopt EDI?
Exercise
What data might an organisation wish to store in its database for (a) purchasing and (b) marketing?
Exercise
For what applications do (a) you as a private individual and student and (b) your organisation use the internet?
Exercise
The only way to appreciate the impact of the internet is to get online and browse! Check out some online trading, shopping and logistics sites, such as eBay (auction site), amazon.com (online retail), Fedex or DHL (supply logistics), or the B2B channels listed by your Internet Service Provider or search engine.