ADM710s Administrative management: 2018

1. ADM710sAdministrative management: 2018 Dennis DJ Fredericks

2. the major challenges faced by management in Namibia, Africa and abroad. • Competition and change. (forces like internet tendency to expand sales and manufacturing world wide.) – speed Encyclopedia Britannica vs Encarta (eg.) • Using new technologies/Technology innovation: changing the way companies are managed – information technology which mergers communication systems with computers. (Post office, orders, 800 no’s, fax machines, electronic data, etc) • Increasing number of global organizations. – extension of sales to new markets abroad. Production is becoming globalized. - increased competition. • Deregulation: protection provided by government has been stripped away. • Changing political systems: democracies, Capitalism: open new markets. • Category killers – Mammoth stores drive down costs and prices and attract huge numbers of buyers. Small businesses cannot compete. Managers must be smart.

3. challenges faced by management in Namibia, Africa and abroad. (2) • New global workforce. • A shift to service and knowledge work: What workers do is changing. Human capital skills • Building competitive advantage through superior efficiency, quality, innovation, and responsiveness. • Increasing performance while remaining ethical managers. Because of notable and large number of unethical behaviour has occurred in recent years, there is special attention on ethical behaviour. Management and organisations should display behaviour that is morally accepted. • Managing an increasingly diverse work force. Diversity presents new challenges for managers. Free movement results in increased diversity in workplace • Intellectual Capital: Total of organisation’s knowledge, expertise, relationship, processes, innovations, etc. Companies need to manage their knowledge to keep up in very competitive fast moving markets.

4. Management • Management is a process whereby people in leading positions utilise human and other resources as efficiently and productively as possible • in order to provide certain products or services, • with the aim of fulfilling particular needs and achieving the stated goals of the business.

5. Management/management functionS • Management is a process whereby people in leading positions utilise human and other resources as efficiently and productively as possible • in order to provide certain products or services, with the aim of fulfilling particular needs and achieving the stated goals of the business. • In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. • In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. • Managers will group people into departments according to the tasks performed • /2

6. Management/management functionS (2) • In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance. • Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.

7. transition from non-managers to manager • Is the shift in focus from technical skills to interpersonal and conceptual skills. • Promotion from non-manager level to lower and middle management level is • often the result of high achievement based on technical ability.

8. competency • Refers to the relevant knowledge, skills and value orientation that are required to do the job of a manager. • Manager is considered competent if he/she can apply these in a work situation.

9. Reasons management training and development of SME’s • In economically successful countries SMEs provide as much as 85% of the job opportunities and are therefore importantly economically. • Namibian SMEs need to play a greater role in the economy. • Survival rate of new businesses in Namibia is low. • Improved management skills would increase the capability of black managers and entrepreneurs and • Help them to deal with constraints on business development.

10. political skills • Ability to enhance one’s position, • build a power base, • and establish the right connections. • These managers tend to be better at getting resources for their group than managers with poor political skills.

11. control as a management function, the four main steps involved • In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance. Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached. • Establishing of standards for measuring performance-standards or norms must be set at strategic points within the business to measure performance. • Measuring the actual performance-it is important to observe what is happening and to report on the performance of the specific function being executed. Daily production and problems encountered should be recorded. • Establishing of standards for measuring performance-standards or norms must be set at strategic points within the business to measure performance. • Measuring the actual performance-it is important to observe what is happening and to report on the performance of the specific function being executed. Daily production and problems encountered should be recorded.

12. differentiate between effectiveness and efficiency • Effectiveness can be defined as doing the right thing, whilst • efficiency is doing the right thing the right way, thereby minimising wastage.

13. how HIV is a threat to Namibian companies and the economy • HIV affects mostly the economically active age range of 15-45 years of age. • And it threatens the very workforce that is needed for the economy to thrive. • The funds spent on ARVs also create demands on the government coffers.

14. Technical skills: • the job-specific knowledge required to perform a task. • Common examples include marketing, accounting, and manufacturing. • this means manager need to have certain job specific skills or abilities that are needed for one to operate in a given job. • They are mostly needed at operational levels of management, although they are applicable to all levels at varying degrees.

15. Human skills; • these are also called interpersonal skills, • the ability to understand, alter, lead, and control people’s behavior. • and unlike other skills sets, are equally needed across all the levels of management . • Conceptual skills: • the ability to analyze and diagnose a situation and find the cause and effect • the ability to use existing knowledge to acquire new knowledge, • solve complex problems and think strategically. • These skills are mostly utilised at top levels of management.

16. Different powers of management • Power of Reward – power to give or withhold rewards. • Coercive Power – to force other persons to action by means of disciplinary action - Fear • Legitimate Power – stems from position or rank of person. Authority granted to a particular position. • Referent Power – has reference authority if others wants to identify with your personal actions e.g. Charismatic leaders – Personal power: like, respect. • Expert Power – stems from special knowledge or skills with reference to a task.

17. ways in which technology is changing the manager’s job. • Technology is changing the manager’s job in several ways. • Managers will have immediate access to information that will help them in making decisions. • Through the advent of technology advancements, managers may be supervising employees in remote locations, • Reducing face-to-face interaction with these individuals. • Consequently, effective communications with individuals in remote locations as well • As ensuring that performance objectives are being met will become major challenges.

18. factors in the macro environment that can pose a threat • Political instability: markets react to the politics of a country. • The more unstable a country is, the more the economy will be affected. • Another factor is rampant inflation, as it could make purchases expensive and planning for the future difficult. • Natural disasters are another factor • (other factors)

19. Lewin's change management model • Unfreeze: this means challenging current practices and ideas, preparing people to think broader and ready to accept change. (Preparing the organisation to accept that change is necessary, which involves the break down the existing status quo before you can build up a new way of operating.) • The actual change, whereby people look for new and better ways to do what they do. It does not happen overnight and takes time. (People begin to resolve their uncertainty and look for new ways to do things.) • Refreeze. People can easily revert back to old practices, hence refreezing helps people to solidify the new learned habits. (Changes are taking shape and people have embraced the new ways of working).

20. The business environment ; three sub-environments with examples • Micro-environment, • It is the internal environment within the organisation. • which consists of the organisation itself and over which management has almost complete control. • Example is a vision statement, policies, etc. • Market or task environment which surrounds the organisation. • The key variables to any organisation are the consumers, suppliers, intermediaries, competitors and labour unions. • This is the industry an organisation competes in. • Macro-environment • it exists outside the organisation and the market environment. • Society, technology, economy, ecology are some of the exams of the actors in this component.

21. lessons of the Hawthorne Studies/Effect • The researchers concluded that productivity rose because • workers worked harder when they received attention. • Perceived attention is more important than conditions. • This phenomenon, in which change of any kind increases productivity, has been known as the “Hawthorne Effect.”

22. task of management in a free-market economy • Management must manage in such a way that the organization makes a sustainable profit – • Earns the highest possible income with the lowest possible cost.

23. why managers should study Management Theory • Knowing which theory work under which circumstances allows the manager to predict his/her future success with a degree of confidence. • Managers can learn from the past without repeating the same management mistakes • To prevent limited experience as a basis for thought and action. • Equip managers with additional alternatives and answers to build into their decision-making models. • To develop a unified global theory of management. • To utilize the experiences of pioneers.

24. basic principle of McGregor's theory X and Y • Theory Y assumes that people find satisfaction in their work. • Theory Y managers believe that people are creative and will come up with good ideas if encouraged to do so. • They tend to give their employees much more freedom and let them make mistakes. • Theory X—assumes that people are basically lazy and will avoid working if they can. • To make sure that employees work, Theory X managers impose strict rules and • make sure that all important decisions are made only by them.

25. Max Weber: bureaucratic management • Max Weber was a German sociologist whose main concern was the more fundamental issue of how organisations are structured. • He developed a theory of bureaucratic management • that stressed the need for a strictly defined hierarchy which was clearly defined by regulations and authority. • Weber attempted to establish an overall management system based on bureaucracy. • His emphasis was on specialised positions, • structured relationships as well as rules and regulations.

26. limitations of weber’s approach • Bureaucratic rigidity results in managers being compensated for doing what they are told to do. Not for thinking. (Old outdated rules) • Prescribed universal procedures to be applied in organisations, • ignoring the situation, • complexity and environment in which organisation operates. • Too very high bureaucracy can hinder efficiency. • Limited flexibility and slow decision making.

27. Peter Senge, five disciplines overcome learning disabilities • Become committed to lifelong learning. • Challenging one’s own assumptions and generalisations about the organisation and the world around it. (This is essential to becoming a learning individual and a learning organisation). • Sharing a vision for the organisation. • Encouraging active dialogue in the organisation. • Promoting systems thinking.

28. why the macro-environment cannot be controlled by management • The macro-environment consists of all uncontrollable variables and the implications they hold for management. • The macro environment cannot be controlled due to the uncontrollable variables and the speed with which they take place. • Others are difficult to predict owing to a lack of information or knowledge.

29. Maslow’s hierarchy needs • Self-ActualisationNeeds • Esteem Needs, desire for achievement, self-respect, confidence and • mastery. Self-esteem, recognition, attention, prestige and status. • Belonging and Love Needs, need for belonging to a group, need for companionship, need for love and socialising • Safety and Security Needs (freedom from physical danger) • Physiological Needs (food, water, clothing, shelter, rest, air)

30. limitations (criticisms) of maslow’s theory • People re-order levels of hierarchy (certain periods) of their personal lives: eg, retrenchments. • Difficult – determine level of needs at which staff member is motivated - certain point of time. • Managers supervise many people: difficult to determine on which level each employee’s unsatisfied needs are. • Individuals differ – extend they feel needs sufficiently satisfied - needs satisfiers differ.

31. value of the Maslow’s hierarchy of needs • It highlights important categories of needs. • It makes distinction between higher order and lower order needs. • It stresses importance of personal growth and self-actualisation in the workplace.

32. ways in Management can prepare itself for changes in the business environment. • Information management: In order to be properly informed about environment for decision-making purposes, the information management system should make adequate provision for environmental scanning. • The extent of environmental scanning is determined by the nature of the environment in which an organisation operates and the demands of the environment. • Furthermore, the basic relationship that an organisation has with its environment is important and the source and extent of change will also influence the degree of meaningful environmental scanning.

33. ways in Management can prepare itself for changes in the business environment. 2 • Strategic responses: This can only be done once adequate information and insight into the environment has been obtained. • This may consist of adaptation of the existing strategy or developing a new one. Other options are mergers, takeovers or joint ventures. • Structural change: Another type of response to environmental change is to adapt an organisation’s structure.

34. Strategic planning • Strategic planning – process of proactively aligning the organisation’s resources • with threats and opportunities caused by changes in the external environments. • Focus of Strategic planning is to change the future.

35. components of the Strategic Planning process • Formulate vision: Is not about what institution do but what they could be in future • Formulate a mission: Mission statement aligns the organisation with its dream i.t.o. its: Product; Market; and Technology • Scan external environment for Opportunities and threats: The organisation should be constantly aware of key forces in their external environment that may change. Should be on the lookout for new trends that may develop inthe business environment. • Scan the Internal environment for Strengths and weaknesses: Gives management a clear picture of unique strengths that the organisation may possess that they can use to outwit their competitors.

36. components of the Strategic Planning process 2 • Formulate long term goals: Mission statement is normally broad and has to be translated into measureable long-term goals for everyone to understand – can use balanced scorecard(BSC) for this purpose • Choose strategy/strategies: Guided by mission and vision. Strategic planners must decide on core idea about how the organisation can best compete in the marketplace. Generic Strategies: low-cost leadership/differentiation/focus. Once chosen a generic strategy it should decide on a more grand strategy: Growth, decline or corporate combination strategies. • Implement strategies through functional tactics, annual objectives, policies. • Institutionalised SP through structure, leadership and culture, rewards system, resource allocation, and training.

37. benchmarks that a company can use to benchmark performance. • Comparison with organisation’s performance in the past – improvement does not necessarily mean its strength – have to benchmark as well • A comparison with competitors – egg one hotel with another i.t.o. occupancy rate, customer satisfaction etc • A comparison with industry ratios

38. Explain the following combination strategies: Joint Venture • Long term strategy that requires commitment • of resources and services by two or more legally entities. • Separate entities to a combined undertaking for their mutual benefit. • Strategic Alliance • Two or more businesses join resources for a certain period of time. • Not in competition but provide similar products/services directed toward the same target audience.

39. Explain the following combination strategies: 2 • Merger • Bring separate businesses together to form lager ones (Walmart) - Greater market share. • Two companies together are more valuable than two separate organisations

40. costs related to Aids • Loss of trained manpower • Implications for recruitment, training and induction of replacement personnel • Loss of labour productivity • Loss of efficiency and effectiveness • Direct and indirect health costs • Interruption in the production process • Higher cost of employee benefits

41. forces as explained by Michael Porter • the possibility of new entrants or competitors • the bargaining power of clients and consumers • the bargaining power of suppliers • the availability or lack of substitute products or services • the number of existing competitors.

42. importance for a clear vision • It portrays the dream that the organisation has for the future. • It promotes change. • It provides the basis for a strategic plan. • It enhances a wide range of performance measures. - outperform competitors. • It helps to keep decision making in context. Vision provides focus and direction. • It motivates individuals and facilitates the recruitment of talent. • It has positive consequences. - Higher level of job satisfaction, commitment and loyalty.

43. importance of Job Design • Increase the value of the position to the organisation. • Engages the worker • Reduces individual and organisational risk. • Leads to greater organisational effectiveness and efficiency and better results from employees.

44. (MBO) as a goal setting approach at individual level • MBO is based on belief that integration of individual and organisational goals. • Joint participation of subordinates and superiors in translating broad goals into more specific individual goals has impact on employee motivation. • You are motivated to perform more efficiently if you participate in selecting your own goals. • Everybody has a clear understanding of the strategic goals • as well as their own roles and responsibility in achieving those goals.

45. organising • Organising process of creating a structure for the organisation that will enable • Its people to work effectively towards its vision, mission and goals. • Structure organisation in such a way that it aligned with its plans and goals.

46. Downsizing - Delayering • Downsizing: Aiming at reducing the size of the workforce. (Cost effective/competitive). • Delayering: Process of reducing the number of layers in the vertical management hierarchy.

47. reasons why organising is necessary. • Allocation of responsibilities – who is responsible for what activity • Accountability – responsible employee expected to account for outcome of work directly under his control • Establish clear channels of communication- for effective communication • Resource deployment – organising helps manager to deploy resources • principle of synergy enhances the effectiveness and quality of the work • Division of work – workload divided into activities • Departmentalisation–related tasks and activities are grouped together for specialization • Coordination – structure is responsible for creating a mechanism to coordinate

48. personal and psychological barriers that impede the delegation • Manager fears that his performance evaluation will suffer if subordinates fail to do their jobs • Manager feel that subordinate will not do job as well as he can do it – I can do it better myself. • Managers are inflexible and disorganised/sometimes they feel it takes to long to explain • Fear that subordinates will do job better than they can – I like to do this myself. • Envy of your staff member’s ability. • Fear of failure. • I better not give him too much authority for this task or I will loose control.

49. why managers might find it difficult to delegate. • Delegation requires planning and planning takes time. • Don’t want to spent time on explaining to someone – rather do it themselves. • Managers lack confidence in the abilities of their subordinates. • When managers feel the pressure for high-level performance in a short time frame. • Dual accountability: Managers accountable for their own and actions of subordinates. • If stakes are high managers prefer to performs certain tasks themselves. • When managers are insecure about their value to the organisation and may refuse to share information.

50. how managers can improve their delegation skills. • Match the employee to the task: staff member should have the skills and capabilities needed to complete the task. And should benefit from the experience. • Be organised and communicate clearly. Manager and staff member must have clear understanding what is expected, what deadlines exist and what special skills are required. Improved communication remove obstacles. • Transfer authority and accountability with the task: Give authority to succeed at accomplishing and held person accountable for the results. • Choose the level of Delegation carefully. Manager cannot just walk away from task or person. Maintain some control of process and results pending the level of delegation. • Create a culture of continuous learning. • State the outcome that subordinate must deliver. • Make staff member aware of the extent of their contribution in achieving the goals of the organisation.