E2 Flashcards

Question

Accenture’s Technology Vision

Answer 1

Accenture’s Technology Vision report from 2015 identifies five technology trends for companies to be aware of: - The Internet of me: Through personalised apps, the digital experience is very individualised for consumers - Outcome economy: Entities don’t just provide a service but are able to measure the outcome of the service they deliver - The platform (R)evolution: How customers are reached digitally has changed significantly. - The intelligent enterprise: Advances in artificial intelligence and data capture enables companies to turn big data into smart data. - The workforce reimagined: Machines and humans working together.

Answer 2

To survive in the digital age, traditional companies need to accept disruption to remain competitive. Many companies do not want to stop doing what makes them successful, but do not want to be left behind. - Innovation at the ‘edge’ of your company so as not to mess with the core - ‘Black ops’: the idea that a team is working covertly to help transform the business - Copy Google: learn from the best – by focusing on big ideas and partnering to achieve objectives

Answer 3

1. Build - built from within Time allows (not moving too quickly) The disruption is closely associated with the core business Company can hire the right people to build new model 2. Buy - buy someone else who is already doing Time is an issue Disruption is critical to survival Core model needs to change substantially for success 3. Partner - modern, flexibility and speed Not strategically important to 'own' the disruptive factor 4. Invest - more formal or controlling way of partnering. Invest in start-up.

Answer 4

Linked to investing. Accelerators "accelerate" growth of an existing company. A company applies to an ‘accelerator’ company, and if accepted, that company is given a small amount of investment, and access to a network of mentors to help develop the company. Typically there is a timeframe set for acceleration. Incubation. Companies are sponsored onto incubation programmes through trusted sources. May relocate to network and receive mentoring

Answer 5

Customer centric - A customer-centric model focuses on customer value both at point of sale and in terms of after care. EXtra frugal - EXtra frugal organisations aim to provide good quality solutions to customers at a low price. Particular impact in developing countries as it makes new technologies affordable. Extra lean processes to prevent unnecessary cost build up which must be passed to the customer. In terms of costs, this may involve businesses outsourcing. Data powered - - Collecting data well - Interpreting it well - Allowing that interpretation to drive decision-making Skynet It is a model which uses machines intensively to increase productivity and flexibility in production. It is obviously suited to manufacturing enterprises, but not exclusively. Open and liquid - Open organisations are those committed to openness as a defining element in how they create value. - Sharing and open collaboration - Open participation - Co-creation

Answer 6

Not legal - more like expectations between employee and employer Maintaining the psychological contract can be an important consideration in motivation

Answer 7

A simple definition of power is ‘the ability to get things done’. French and Raven 5 categories of power: Legitimate power Derives from the relative position and duties attached to a post within an organisation. The formal authority that belongs to the holder of the position. Referent power The power or ability of individuals to persuade and influence others - charisma and interpersonal skills Expert power Derives from the skills or expertise of the person and the organisation's needs for those skills and expertise. Reward power Depends upon the ability of the holder to give rewards 2.1.5 Coercive power The power to penalise or punish. Coercive power tends to be the least effective form of power as it builds resentment and resistance.

Answer 8

Authority may be defined as the right to do something, or to ask someone else to do it and expect it to be done. Authority is therefore a type of legitimate power. Traditional authority Derives from long-established customs, habits and social structures. Accepted and agreed by society. Rational-legal authority Based on formal rules. Attached to the position rather than to the individual. Charismatic authority Secured by the personality or acts of an inspirational person.

Answer 9

Delegation involves the passing of authority from one party to another. Although authority may be passed, responsibility remains with the original holder of authority. Types of delegation Consultation: manager seeks views and input from others. Explanation: manager provides instruction and guidance. Abdication: manager leaves the task to others. Custom and practice: although authority remains with the manager the norm is that the task is performed by others.

Answer 10

Five primary functions of management: (1) Planning, (2) Organising, (3) Commanding, (4) Co-ordinating, (5) Controlling. (POCCC)

Answer 11

Taylor’s beliefs Industrial management of his day was amateurish Management could be formulated as an academic discipline Best results would come from the partnership between a trained and qualified management and a co-operative and innovative workforce Each side needed the other, and there was no need for trade unions Taylor's principles Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each employee. "Detailed instruction and supervision of each worker in the performance of that worker's discrete task". Divide work nearly equally between managers and workers.

Answer 12

Criticism of scientific approach Trist and Bamforth’s work on business systems showed up problems with the scientific approach. It was based on the introduction of a new approach to coal-cutting in mines, which resulted in a large fall in worker morale and increased absenteeism. Although there were scientific reasons for the new approach, it had resulted in workers no longer working in the same teams, communication becoming more difficult and workers disliking the amount of specialisation within their jobs. The introduction of new reward schemes led to bad feeling. Management ignored the needs of individuals and groups, which were particularly important in close mining communities.

Answer 13

Human Relations Movement - group of six women and segregated them Over the period, changes such as new payment systems, rest breaks of different sorts and lengths, varying the length of the working day, and offering food and refreshments were tried. In almost all cases, productivity improved. ‘The Hawthorne effect’ The women felt important because they had been singled out Relationships made for a more pleasant working environment. Work satisfaction depends to a large extent on: – The informal social relationships between workers in a group and, – The social relationships between workers and their bosses. - The effects of the group should never be underestimated. The “Hawthorne effect” refers to the change in behaviour or performance which is thought to occur when people are faced with new or increased attention.

Answer 14

Contingency theory rejects a general view of what is best for organisations or management. Instead the effectiveness of management practices will be determined by the circumstances.

Answer 15

Burns and Stalker draw a distinction between mechanistic and organic organisations. Mechanistic - clear definition of responsibilities and specialisation. Managers are responsible for communication. Culture of loyalty and obedience to the hierarchy. Appropriate in environments where change happens only gradually, if at all. Organic – greater emphasis on importance of individuals and skills and attributes they bring. Employees involved in problem-solving and communication takes place in all directions, not just top-down. Less emphasis on loyalty and obedience. Individuals may be recruited widely. This is likely to be abetter form if rapid change is expected in the business environment.

Answer 16

Interpersonal Figurehead - Representing organisation at functions, conferences etc Leader - Hiring, firing, training, motivating staff, aligning individual and organisational goals Liaison - With peers, as well as subordinates Informational Monitoring environment - Gathering formal and informal information Spokesperson - To internal and external audiences Disseminator - Pass on relevant information to subordinates Decisional Entrepreneur - Initiate projects Disturbance - handler Take decisions when there is a deviation from the plan. Resource allocator - Distribute limited resources to achieve objectives Negotiator - Internally and externally

Answer 17

Early studies of leadership focused on the personality traits or qualities of different leaders List became large and contradictory Criticism of trait theory is that there are always examples of effective leaders lacking in one or more of the supposedly ‘essential’ traits. Leadership is too complex, and too dependent upon the situation

Answer 18

The most important task of a manager will depend on the situation the manager faces. Effective leadership depends on identifying the priority at a particular time and taking action to deal with the priority. TASK/INDIVIDUAL/GROUP

Answer 19

leader’s effectiveness is based on ‘situational contingency’, that is a result of interaction of two factors, known as 'leadership style' and 'situational control'. Lease preferred co-worker. A high LPC score suggests that the leader has a human relations orientation. A low LPC score indicates a task orientation. No ideal leader

Answer 20

Manager-subordinate relationship as based on three main issues: - Task behaviour – the extent of direction given by the leader - Relationship behaviour – the amount of two-way communication - Level of maturity – the willingness of the subordinate to take responsibility for his or her own behaviour The higher the level of the subordinate’s maturity, the less the manager should focus on direction (task). As maturity increases - move down this list Telling - high task, relationship low Selling - high task, relationship high Participating - low task, high relationship Delegating - Low task, low relationship

Answer 21

Key to competitive advantage is the organisation's capacity to create an environment capable of generating intellectual capital. Bennis’ seven qualities of a Leader: - Technical competence: business literacy and grasp of one's field - Conceptual skill: a facility for abstract or strategic thinking - Track record: a history of achieving results - People skills: an ability to communicate, motivate, and delegate - Taste: an ability to identify and cultivate talent - Judgement: making difficult decisions in a short time frame with imperfect data - Character: the qualities that define who we are First 3 are a given - last 4 differentiate you as a leader Bennis states that the leader’s followers need four things - Meaning or direction - Trust in and from the leader - A sense of hope and optimism - Results

Answer 22

Two variables:  Concern for task  Concern for people. Balance between the two is required 1.1 Impoverished–- Manager is lazy, no interest in staff or work. LOW LOW 1.9 Country club – Manager enjoys good relationship with staff and attends to their needs but has LOW HIGH little concern for the task. 9.1 Task manager / authoritarian – Total focus on achieving the task. Little or no concern for staff HIGH LOW 5.5 Middle of road (sometimes called “dampened pendulum”) – Adequate performance. 9.9 Team – High work achievement, through working with committed people who have their personal goals aligned with those of the organisation. HIGH HIGH Issues  High concern for staff is not necessarily ideal  Difficult to place managers accurately on the grid  There are other environmental influences on managers, e.g. industry, organisation culture, state of economy, nature of task and character of the staff  Behaviour may be difficult to change  May be useful to assign managers with different and complementary strengths to a team

Answer 23

Skyrme (1997) set out some principles relating to virtual companies.  Culture issues, such as the need for a high level of trust and mutual support in such entities  Practical matters, such as remembering, when communicating by email, to ensure different topics are covered in different emails (especially if they relate to different groups of people

Answer 24

Courtesy – Accountants should conduct themselves with courtesy and consideration towards all they come into contact with during the course of performing their work. Timeliness – Produce work on time. Arrive on time for work and for meetings. Reliability – Work meets professional standards. Responsibility – Take ownership of work. Respect – Develop constructive relationships. Respect other people’s perspectives.

Answer 25

Scepticism – Accountants should question information supplied to them. Where is it from? Is there supporting evidence? Who supplied it? Why was it supplied? Accountability – The accountant is accountable for his own actions and decisions. He should not pass the buck. Social responsibility – Be aware that work may affect the public. For example, accounting profits may be used by a range of users, including investors, employees, suppliers, customers, HMRC, prospective investors. Independence – Have an independent mind. Produce work that is free from bias and prejudice. Beseen to be independent. (For example, think carefully before accepting hospitality from clients or suppliers.)

Answer 26

Employee alignment is a process of linking organisational goals to employees’ personal goals in order to reach higher employee engagement and satisfaction.

Answer 27

1.2 Peter Drucker – (MBO) Management by objectives (MBO) is a control strategy developed by Peter Drucker back in the 1950s. Drucker advocated the setting of objectives or targets in four areas.  Profitability  Management performance  Worker performance  Public responsibility The general approach to MBO is:  Set objectives, quantify targets (SMART)  Communicate objectives and targets  Organise the work into manageable activities  Allocate tasks  Ensure adequate resources  Communicate clearly  Measure performance against target  Communicate results (this would be in an appraisal)  Review objectives

Answer 28

Kaplan and Norton developed the Balanced Scorecard to ensure that a wide view was taken towards objective setting and to control. The scorecard promotes the idea that financial success is not the only important measurement of an organisation’s performance. The four key measurement areas are:  Financial: “How do we look to shareholders?” (Encourages looking at a few KPIs)  Customer: “How do customers see us?” (Encourages getting customer feedback measuring complaints etc.)  Internal processes: “What must we excel at?” (Encourages improvement of internal operations to ensure competitive advantage)  Innovation and learning: “Can we continue to improve and create value?” (Encourages development of new productions, acquisition of new skills for the workforce). A difficulty is how to measure and track the non-financial aspects.

Answer 29

Step 1: Identify assessment criteria Identify the criteria against which employees will be assessed. Step 2: Agree performance levels Managers agree performance levels / objectives with their subordinates and put into place a development plan to reach them. The objectives set should be SMART (specific, measurable, achievable, relevant and time bound). Step 3: Monitor and control The performance of subordinates is monitored against their objectives with regular feedback and counselling given as and when necessary. Step 4: Periodic performance reviews (appraisals) Staff appraisals are performed with appropriate training and development agreed with the employee. It is important that the appraisal takes place in a neutral environment and away from office disturbances.

Answer 30

An appraisal could be defined as a “systematic review and assessment of an employee’s performance, potential and training needs” The purpose of appraisals / reviews  Reward review: determine whether the employee deserves a bonus or pay increase – clearly an important motivating factor for any employee.  Performance review: for planning and following up training programmes.  Potential review: to determine an individual’s likely career path and help them to achieve their progression through the company.

Answer 31

Management-led – the traditional approach to appraisals, the employee is assessed by a manager. Self-appraisal – the employee assesses their own performance, identifying any problems and identifying ways of resolving them. Multi-source (or 360 degree) feedback: appraisal considers feedback from a variety of sources including customers and fellow workers. Feedback is critical to the success of any appraisal, informing the appraisee of the results of the appraisal and helping them to achieve their future objectives.

Answer 32

 Confrontation – between the parties involved  Judgement – appraiser takes a biased approach  Informal chat – lacking purpose  Bureaucracy – a form filling exercise – no real worth  Annual event – annual targets may be irrelevant after 3-6 months so rendered meaningless  Focus on recent events – as opposed to the whole period under review.

Answer 33

Performance-related pay (PRP) - must be SMART and within employees control Profit-based approaches - A common problem of such schemes is those individuals who feel too “distant” to influence profits. Promotes short term decisions being made Equity-based approaches - Here, staff are given direct interest in the company’s financial performance via shares or share option schemes. These schemes normally tie the employee into the company for a number of years before the reward can be earned, thus promoting an interest in the long-term.

Answer 34

In the UK, the Advisory, Conciliation and Arbitration Service (ACAS) promotes and facilitates best practice in employer – employee relations.  Conciliation - Parties meet for informal discussion to resolve dispute  Mediation - Provide a mediator to hear dispute and make recommendations  Arbitration - Help appoint an arbitrator who will make a binding ruling

Answer 35

 In writing  Non-discriminatory  Avoid undue delay  Respect confidentiality  Investigate allegations before taking action  Provide all evidence to employee before hearing  Set out possible outcomes  Allow employee to present their case  Allow employee to be accompanied by a colleague or union representatives  Explain consequences of outcome  Summary dismissal only allowed for gross misconduct  Allow, and provide procedure for, appeal Statutory obligations, based on ACAS code Applicable if employer is considering serious action  Write to employee, explaining why action being taken, inviting employee, who may be accompanied, to a meeting,  At meeting, explain problem, invite employee to respond,  After meeting, explain decision, offer right to appeal,  Appeal is to different manager, employee has right to be accompanied at appeal hearing

Answer 36

As with disciplinary process, less formal routes should be tried before the formal route is used. A typical grievance procedure could involve:  The individual sounding out a colleague or an employee representative  The individual raising the issue with their line manager (unless the issue involves the line manager, in which case likely raising with the line manager’s manager or a member of the Human Resources department)  If unresolved, referring the matter to a higher manager and the human resources department  Following the organisation’s internal grievance procedure that would likely involve meetings including both parties and their representatives, and HR staff  If unresolved, investigating alternative dispute resolution processes (arbitration, conciliation)  As a last resort, going to an industrial tribunal.

Answer 37

Mentoring is the long term passing on of support, guidance and advice where a more experienced colleague uses their greater knowledge and understanding of the work or workplace to support the development of a more junior or inexperienced member of staff. Benefits to the organisation:  Improves motivation among employees  Faster career progress  Fewer and more quickly resolved disputes  Accelerated learning on the job  Helps to reinforce organisational culture  Significant impact upon recruitment and retention  More effective succession planning  Increased productivity through better engagement and job satisfaction Benefits to the mentored person:  Knowledge, technical and behavioural improvements  Better management of career goals  Developing wider network of influence  Increased confidence and self-awareness which helps build performance and contribution

Answer 38

Coaching involves the passing on of skills and knowledge in a supportive and collaborative environment. It is, therefore, similar to mentoring, although mentoring usually involves a closer, longer-term relationship.

Answer 39

More specifically, the employer's responsibilities include:  The work environment and work practices are safe.  Providing safe plant and machinery, safe premises, and safe systems of work. This will involve the selection of competent staff and proper supervision.  Providing safe working conditions to employees of a third party who are working on the company’s premises.  Making sure the company's health and safety policy has been communicated to all staff.  Ensuring all employees have received training on safe working practices and undergo periodic fire evacuation training.  Performing risk assessments of all work hazards and the risk to anyone else affected by the company's work activities. These should be carried out continuously, not just as a one off exercise.  Establishing an accident reporting system, which includes monitoring trends to reveal areas where accidents are reoccurring and how the company follows up any accident to prevent reoccurrence.

Answer 40

Employees also have health and safety responsibilities which include:  Taking reasonable care of themselves and others,  Using equipment properly,  Informing the employer of any situation which may be of danger,  To keep their work areas tidy and safe,  To avoid creating hazards,  To co-operate with the employer as far as possible.

Answer 41

The main terms of employment must be supplied to employee within two months of commencing employment.

Answer 42

Employer Overriding duty of mutual trust and confidence, including taking reasonable care of employees and provide a safe system of working. No duty to protect employee’s property or provide references.  Pay employees  Indemnify employee against expenses and losses incurred in course of employment  Take care of health and safety  Select fit and competent fellow workers  To provide work where employee is paid by reference to work done. Employee Fundamental duty of faithful service  Not to compete with employer  Competence to do job  Obedience  Account for money and property received during course of employment  Exercise reasonable skill and care  Not to delegate duties without permission

Answer 43

Pay - min wage, itemised payslip, stat sick pay, stat mat and pat leave Hours of work - Working time regulations, 48-hour maximum over a 17-week average, employee can opt out in writing. Discrimination - equality, reasonable adjustments for disabled people Direct discrimination is the legal term that applies if a person treats someone less favourably than they would another because of protected characteristic they have (e.g. race, religion, age and sex). Indirect discrimination occurs when an organisation makes a decision, or puts in place a particular policy or practice, which, on the face of it appears to treat everyone equally, but which in practice leads to people from a protected group being treated less favourably than other people.

Answer 44

 If employer breaches contract, e.g. by dismissing employee without giving sufficient notice, employee can claim damages for breach.  Damages usually calculated by reference to difference between actual and contractual notice period.  No minimum period of employment required.

Answer 45

 To avoid a claim for unfair dismissal the employer must act “reasonably”.  Reasonableness includes giving reasons for dismissal in writing.  What constitutes fairness will depend on the size and resources of the employer.  To dismiss on grounds of poor performance, employer must show gave warnings, attempted remedial action  24 months before eligible

Answer 46

Constructive dismissal arises when an employer breaches the terms of the contract such that the employee is forced to resign

Answer 47

 Lack of capability or qualifications e.g. the loss of a driving licence.  Misconduct, e.g. assault, immorality, habitual drunkenness.  Redundancy, provided reasons for selection are fair.  Following fairly applied grievance or disciplinary procedure.  Failing to carry out a reasonable order from the employer.

Answer 48

 If related to trade union activities = automatically unfair.  Pregnancy = automatically unfair.  Unfair selection for redundancy.

Answer 49

Redundancy amounts to fair dismissal if employer (genuinely) ceases or intends to cease trading at that location or needs fewer workers at that location.  Minimum two years’ service since reaching 18 years of age.  Redundancy option not available if employee unreasonably refuses alternative employment

Answer 50

Organisational culture may be defined as the specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation.

Answer 51

In the 1990s, Edgar Schein proposed four levels of culture:  Artefacts: Obvious, visible symbols of an organisation’s culture  Values: What is important in the organisation  Assumptions: The deepest level of cultural awareness that determines behaviour  Norms: Unwritten guidance on how people should behave in a given situation

Answer 52

The iceberg refers to two levels of culture, Formal (visible) and Behavioural (hidden). Formal, visible aspects of culture (above the water) include:  Structure  Mission  Goals  Technology  Procedures Behavioural, hidden aspects of culture (below the water) include:  Values  Attitudes  Style  Feelings  Beliefs  Communication patterns

Answer 53

All teams go through four necessary phases in order to grow and be able to deliver results. (Forming, Storming, Norming, Performing) Forming - Team meets. Agree goals and begins to tackle tasks. Team members independent. Focus on self. Supervisors of the team during this phase tend to need to be directive Storming - Different ideas compete for consideration. Team members open out to each other and confront each other's ideas and perspectives. Tolerance of each team member and their differences needs to be emphasised. Supervisors of the team during this phase may be more accessible but tend to still need to be directive Norming - Members adjust behaviour to each other as they develop work habits that make teamwork seem more natural and fluid. Team members begin to trust each other. Motivation increases. Supervisors of the team during this phase tend to be participative. Performing - High-performing teams are able to function as a unit. Team members become interdependent, motivated, competent and autonomous. Participative supervisors. Adjourning - There is a risk that performing will turn into ‘adjourning’ if the stage lasts too long. This is characterised by a group starting to act on ‘automatic pilot’, and running the risk of groupthink.

Answer 54

 Small size  Together for a limited time  Focused on a single task  Voluntary membership  Informal communication mechanisms, no concern about status  Focused on action with clear plan to achieve goals

Answer 55

Role theory discusses various considerations that influence how individuals carry out their roles and hence how effective the teams are.  Behaviour – the actions associated with a particular role  Signs – visible signifiers of a role, for example a uniform  Set – the team that supports someone in a senior role  Ambiguity – individuals are not sure of their own roles or others are not sure about what the individuals are doing  Conflict – clash between different roles that an individual has  Incompatibility – individuals’ expectations about their roles differing from other people’s

Answer 56

Plant - A creative, imaginative, unorthodox team-member who solves difficult problems. Although they sometimes situate themselves far from the other team members, they always come back to present their 'brilliant' idea. Resource Investigator - Networker for the group. Whatever the team needs, the Resource Investigator is likely to have someone in their address book who can either provide it or know someone else who can provide it. Chairman (1981) / Co-ordinator (1988) - Ensures all members of the team are able to contribute to discussions and decisions of the team. Concern is for fairness and equity among team members. Shaper - Dynamic team-member who loves challenges and thrives on pressure. Possesses the drive and courage required to overcome obstacles. Monitor-Evaluator - Sober, strategic and discerning member, tries to see all options and judge accurately. Team Worker - Ensures interpersonal relationships are maintained. Sensitive to atmospheres and may be the first to approach another team member who feels excluded. Company Worker (1981) / Implementer (1988) - Practical thinker who creates systems and processes that will produce what the team wants. Takes a problem and works out how it can be practically addressed. Completer Finisher - Detail person. Spot flaws and gaps and know where the team is in relation to its schedule. Ensures the quality and timeliness of the output of the team. Specialist (1988) - Brings 'specialist' knowledge to the team.

Answer 57

The sample was already highly selective - business school and high fliers. While Belbin draws on examples from real organisations, the development of the model is based on the behaviour of subjects in the artificial environment of the business school exercise. Some teams consisting of one Shaper and a group of "yes" men perform well

Answer 58

Vail wrote in terms of human teams being like systems, which needed to have a number of characteristics to perform well:  Clear broad aims  Clear short-term objectives  Commitment to objectives  Task focus by all individuals involved  Strong and clear leadership  Development of new methodologies and inventions

Answer 59

Workers are rational economic beings motivated by obtaining the highest possible remuneration. Taylor established four principles of scientific management:  The need to develop a true science of work whereby a “fair day’s pay” could be determined  The scientific selection and training of workers  Encouraging the workforce to develop themselves and reach their full potential  Co-operation between management and workers

Answer 60

Schein, on the other hand, suggested people don’t just work for money:  Rational-economic man – motivated by money  Social man – motivated by the need to be with friends and colleagues  Self-actualising man – the need to reach one’s potential  Complex man – needs driven by a combination of factors.

Answer 61

Theory X ('authoritarian management' style) The Theory X manager believes:  The average person dislikes work and will avoid it if he/she can.  Most people must be forced, with the threat of punishment, to work towards organisational objectives. Characteristics of the Theory X manager:  Results-driven and deadline-driven, to the exclusion of everything else  Intolerant  Issues deadlines and ultimatums  Distant and detached  Aloof and arrogant  Poor at proper delegating – but believes they delegate well Is a dickhead basically Theory Y ('participative management' style) The Theory Y manager believes:  Effort in work is as natural as rest and play.  People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment.  Commitment to objectives is a function of rewards associated with their achievement.  People usually accept and often seek responsibility. McGregor thought that managers who tend towards theory X generally get poor results. Enlightened managers use theory Y that produces better performance, results and allows people to grow and develop.

Answer 62

Physiological needs – the most basic needs for human existence e.g. food and shelter  Safety needs – more job security, safe and comfortable working conditions  Social needs – a sense of belonging to a team. A chance to meet and socialise with like-minded people  Esteem needs – an opportunity to gain social status and feel self-worth  Self-actualisation – fulfilling one’s potential as they see it ‘a perpetually wanting animal’

Answer 63

Factors that led to job satisfaction (motivators) and those that might lead to dissatisfaction (hygiene factors). Herzberg recommends that:  Attention should be given to the hygiene factors to avoid the symptoms of job dissatisfaction.  In order to increase the motivation of individuals, jobs should be redesigned Three approaches to job redesign are:  Job rotation – swap jobs periodically to break monotony. This will also allow individuals to develop extra skills in different areas.  Job enlargement – increase the number of tasks at the same level under the control of the individual.  Job enrichment – developing the depth of duties through delegation, giving the individual greater variety and responsibility in their tasks.

Answer 64

Hackman and Oldham’s motivating potential score (MPS) is an attempt to measure the extent to which a job exhibits five characteristics: (1) Skill variety – the degree to which a job requires the exercise of a number of different skills, abilities, or talents (2) Task identity – the extent to which a job requires completion of a whole and identifiable piece of work (3) Task significance – the importance of the job (4) Autonomy – degree of autonomy allowed (5) Feedback – the degree to which the individual doing a job obtains information about the effectiveness of the performance.

Answer 65

Feedback on an individual’s performance is an important part of motivation. Feedback can take different forms:  Intrinsic – from within the organisation e.g. remuneration levels or feedback from a manager  Extrinsic – from the environment e.g. from a customer  Concurrent – during the act  Delayed – after the task e.g. at a performance appraisal. Feedback should be clear, frequent and unbiased.

Answer 66

 Language  Misreading body language, tone and other non-verbal forms of communication  Noisy transmission (unreliable messages, inconsistency)  Receiver distortion: selective hearing, ignoring non-verbal cues  Power struggles  Managers hesitate to be open (concealment)  Assumptions  Distrusted source, erroneous translation, value judgment, state of mind of two people  Interpersonal relationships: How we perceive communication is affected by the past experience with the individual.  Organisational relationship (e.g. communication from a superior may be perceived differently than that from a subordinate or peer)  Cultural differences: Effective communication requires deciphering the basic values, motives, aspirations, and assumptions that operate across geographical lines

Answer 67

A large percentage (studies suggest over 90%) of the meaning we derive from communication, comes from the non-verbal cues that the other person gives  Visual  Tactile  Vocal  Use of time, space, and image

Answer 68

Does this really need a card?  Email  Video-conferencing (for virtual meetings)  Social media  Joint work on files held in the cloud

Answer 69

 Most digital communication methods are or can be recorded so that there is a record of the communication (eg email replies, video-conferences can be saved to be revisited later)  Most digital communication methods can be shared widely so that many people can participate in the conversation  Lack of formality may improve communication

Answer 70

 As noted, there is likely to be reduced physical contact in relation to digital communication and therefore a reduction in ‘visual’ clues in communication  The record of a conversation is permanent, so mistakes or unintended messages might be retained  The record of a conversation is comprehensive, so may take unnecessary time to review, or to trace a particular issue  Lack of formality may increase chance of misunderstanding or offence.

Answer 71

Phase I: Preparation phase - Information - Leverage evaluation: Evaluate your leverage and the other party's leverage at the outset - Analysis: what are the issues? - Rapport - Goals and expectations - Type of negotiation: competitive, co-op etc - Budget: costs - Plan Phase II: Opening phase - Logistics: when, where and how? - Opening offers Phase III: Bargaining phase - Subsequent offers - Tactics: - Concessions - Resolutions Phase IV: Closure phase - Logistics: how and when will you close? - Documentation: prepare a closing checklist - Emotional closure

Answer 72

Does this really need a card??

Answer 73

Cialdini identified six weapons of influence: (1) Reciprocity. People tend to return favours and treat others as they treat us. (2) Commitment and Consistency. Cialdini believes people have a desire to behave consistently. (3) Social Proof. People are influenced by peer pressure and “safety in numbers”. (4) Liking. Cialdini believes people are more likely to be influenced by people they like. (5) Authority. People feel a sense of duty or obligation to those in positions of authority. (6) Scarcity. Under this principle, people tend to be more attracted to things with limited availability, or when the opportunity to acquire them on favourable terms is limited.

Answer 74

Conflict is inevitable because:  Individuals and groups battle for status, resources and rewards  Individuals have their own agenda which may not fit with the agenda of others or the organisation Constructive view (i.e. conflict is a good thing and must be encouraged):  Conflict generates ideas to solve problems  Helps define power relationships  Acts as a release valve for emotions Destructive view  Clouds judgement  Leads to dysfunctional behaviour  Distracts attention from organisational objectives  Energy diverted from task at hand  Losers may withdraw from the group

Answer 75

 Friction between individuals and/or groups  Inadequate communication  Withholding information  Distorting information  Tale-telling  Excessive use of ‘work arounds rather than following organisation procedures’

Answer 76

 Previous history  Lack of goal congruence between the individual and the organisation (incompatibility of goals) or between different individuals  Fighting for inadequate resources  I win you lose situations  Different ideologies, for example between senior management and trade unions  Uncertainty over roles or relationships  Lack of genuine, clear communication  Misunderstandings  Unfair rewards  Stress  Cultural differences  Results of change

Answer 77

 Intrapersonal: The conflict is primarily within an individual  Interpersonal: The conflict is primarily between two or more individuals (i.e. at a team level)  Systemic: The conflict is a symptom of a wider organisational issue that needs to be addressed

Answer 78

Horizontal conflict:  Horizontal conflict is the type of conflict that occurs between people/groups at the same level in an organisation  It might arise over, say, allocation of a scarce resource between departments or project Vertical conflict  Vertical conflict is the type of conflict that occurs between people/groups at different levels in an organisation, for example, staff and managers, or managers and the board.  This could be caused by issues of status or ideology. It could also be caused by scarce resources.

Answer 79

The Thomas-Kilmann framework is useful in identifying some of the different strategies for handling disputes and conflict. - Level of cooperation in attempting to satisfy others' interests - The degree of assertiveness in pursuit of ones own interests LOW CO-OP, LOW ASSERTIVENESS Avoiding style – Withdraw from conflict or deny its existence. The goal could be delay, so it may be successful if it allows tempers to cool and protagonists to reflect on their position. However ignoring the conflict may not be possible indefinitely. LOW CO-OP, HIGH ASSERTIVENESS Competing style – The goal of individuals is to ‘win’ by promoting their own interests and not cooperating. This often results in a situation where some people win, others lose and the organisation is damaged. It may be necessary in a crisis, where the issue is critical or assertiveness is required, e.g. where a new manager is setting out his or her stall. HIGH CO-OP, LOW ASSERTIVENESS Accommodating style – The goal is to put the other party’s interests first. However, communication issues may mean that both parties are unhappy with the outcome. It may be necessary if the relationship or task is critical and/or the accommodating party has low power. HIGH CO-OP, HIGH ASSERTIVENESS Collaborative style – The aim is to find solutions that benefit both parties, a win-win situation. It works best if sufficient time is available and the protagonists are open, honest and want to work together. MEDIUM OF BOTH Compromising style – The objective is to locate the middle ground with each party giving up something. What is given up may be valuable however. It works when the relationship is more important than the issue

Answer 80

 Stimulation and orchestration –encouraging conflict as a means of promoting change or stimulating new ideas. This avoids organisations getting stuck, but the risk is that conflict will escalate negatively  Suppression – ignoring conflicts, smoothing things over or suppression by force. Short-term tactic  Reduction – building on areas of agreement and common objectives and involving compromises  Resolution – establishment of consensus to remove source of conflict, using win-win situations and requiring attitude changes

Answer 81

Counselling Coaching Mediation - an informal, confidential process in which an impartial person facilitates discussion and negotiation Team building Physical separation

Answer 82

Environmental strategies  Agree objectives  Strengthen team culture  Improve communication  Improve information flow  Clear roles/responsibilities Regulation strategies  Rules and procedures  Conflict resolution manager or arbitrator  Arena for conflict resolution – meetings etc  Separate the protagonists  Ignore the problem

Answer 83

Cyert and March focussed on a specific type of conflict resolution, the resolution of conflict between key stakeholder groups or of conflicting stakeholder objectives.  Satisficing involves negotiations between key stakeholders to arrive at an acceptable compromise.  Under sequential attention, management focus on stakeholder needs in turn.  Side payments involve compensating a stakeholder group because their objective(s) cannot be met.  Exercise of power involves enforcing a resolution by a senior figure utilising their power to implement a decision

Answer 84

It should acknowledge:  The project stakeholders  The resources necessary to complete the project  A timescale agreed for completion  Quality requirements  The risk attached to the project It is useful to distinguish a project from “repetitive operations” which is the normal day-to-day business of an entity. Distinguishing features include:  A project is normally geared towards a one-off event and follows a plan towards that event  Defined start and end time (i.e. a temporary process)  A project may include non-routine/specialist work  A project will normally have cost/budget constraints  Staff from different functions

Answer 85

“Project management” is the term given to the process undertaken to ensure that a project is completed on time, to budget and to the agreed quality standard.

Answer 86

A project will be deemed successful if it is completed at  the specified level of quality  on time, and  within budget (ie at the right cost). This is known as the project triangle.

Answer 87

The 4-D model describes the four stages of a project:  Define the project and its goals  Design the project to address the goals  Deliver the project with adequate resources  Develop the process

Answer 88

The Project Management Institute (PMI) published this guide in an attempt to document and standardise generally accepted project management information and practices. PMBOK recognises five basic process groups and nine knowledge areas typical of almost all projects.

Answer 89

Initiating - identify a need Planning - develop a proposed solution Executing & Controlling - Perform the project Completion - Closing

Answer 90

(1) Project Integration Management – processes for ensuring that the elements of the project are properly co-ordinated. (2) Project Scope Management – processes for ensuring that the project only includes the work required to complete the project successfully. (3) Project Time Management – processes for ensuring completion of the project on time. (4) Project Cost Management – processes for ensuring that the project is completed within the approved budget. (5) Project Quality Management – processes for ensuring that the project will satisfy the necessary quality standards. (6) Project Human Resource Management – processes to ensure that staff are appropriately trained and motivated. (7) Project Communications Management – processes to ensure that information is distributed in a timely and structured way. (8) Project Risk Management – processes concerned with the identification and management of risk. (9) Project Procurement Management – processes for acquiring goods and services.

Answer 91

PRojects IN Controlled Environments, is a project management methodology covering the management, control and organisation of a project. Standard approach for project management in the UK. - Starting up a project – creates and evaluates the business case for a project. - Directing a project – the project manager will generally oversee the project, ensuring there is good communication between the stakeholders at all stages of the project. Initiating a project – this stage will identify how the project will be managed, with the Project Initiation Document (PID) forming the contract and terms of reference for the project as a whole. Planning – plans relating to project deliverables are continuously produced throughout the project to ensure a consistent approach. Project deliverables are the quantifiable goods and / or services that will be provided upon the completion of the project. Controlling a stage – creation of documents which help to manage the day-to-day operations. Managing product delivery – controls the work done by specialist teams. Managing stage boundaries – the project manager obtains feedback throughout the project and takes action as necessary. To formally complete or close a stage, the manager may need to obtain authorisation or sign-off from the Project Board. The end stage process is sometimes formalised through use of an ‘End Stage Assessment’. Closing a project – the final sign off by the customer, stating that the project objectives have been met

Answer 92

Y - Effort X - Time A project will normally pass through several phases in its life. Gido and Clements identified four phases of large projects: Phase 1 – Identify a need –a feasibility study should be undertaken to decide whether or not to go ahead with the project. There are three basic types of feasibility study that can be undertaken: (1) Technical or Quality feasibility study (2) Social or Ecological feasibility study (3) Financial (Cost/ Benefit) or Economic feasibility study If the project does go ahead, a Project Initiation Document (PID) will be produced, forming the contract between the relevant parties. Phase 2 – Develop a proposed solution – given the needs above. This will include setting targets for costs and timings. The project may be subdivided into different activities, which can then be arranged in an appropriate sequence. Phase 3 – Perform the project/Implementation – Actual performance can then be measured against any budgets/standards set, with appropriate remedial action taken. Phase 4 – Completion/project closure – Including a thorough evaluation and documentation of the project’s performance. This will allow future projects to benefit from any mistakes made this time around.

Answer 93

A workstream is the progressive completion of tasks completed by different groups within a company which are required to finish a single project. Particularly associated with a matrix structure. This is because in a matrix structure, the team may be structured across different departments so that team members are working horizontally with different departments and vertically with leaders. Workstreams list the work that has to be done by each ‘stream’ within the matrix in order to bring together the whole project. Different ‘streams’ will be allocated owners, who must manage that stream under project leader

Answer 94

Psychologists say our brains can normally comprehend around eight items simultaneously. Divide and conquer. The WBS provides a visual summary of the project and its key tasks, allowing the total cost to be seen and allowing jobs to be allocated to appropriate staff. The benefits of using a WBS include:  Summarising all the activities comprising the project, including support and other tasks.  Establishing the authority and responsibility for each part of the project.  Estimating the project cost, split into its components.  Can also help identify which part, or which activities in the project carry the highest risks.  Allows an entity to arrange for work to be carried out in a sequence that ensures that jobs that must be completed first, are in fact done prior to less critical jobs.  The WBS assists in the overall monitoring and control of the project because it provides a checklist of all the tasks to be carried out and the materials needed for each.  There may be other breakdown schedules, such as ‘product breakdown schedule’ or ‘cost breakdown schedule’.

Answer 95

A Gantt chart is a graphical representation of the duration of tasks against the progression of time, providing a useful tool for planning and scheduling projects. A Gantt chart normally uses two bars, one showing the planned duration and the second showing the actual duration. To create a Gantt chart:  List the activities on the left side of the page.  Estimate the time required for each step  Using an appropriate horizontal timescale, draw a time bar for each activity.  Add a key to distinguish planned and actual times

Answer 96

Critical path analysis It involves breaking down the project into a sequence of tasks, estimating the duration of those tasks and arranging the tasks into a logical sequence. Activities start and finish with a numbered circle/node or event. The activity itself is represented by an arrow. The name of the activity is written above the arrow and the duration below the arrow. The project should have one overall starting event and one finishing event.

Answer 97

“deluxe” version of network diagrams Where the project is complex and where there is uncertainty surrounding the activities and duration of activities needed to complete the project. For each task, a best possible time, worst possible time and most probable time is used to determine an expected completion time. Expected time = (o + 4m + p)/6 where ‘o’ is the optimistic estimate, ‘m’ is the probable estimate, and ‘p’ is the pessimistic estimate. These expected times are then used to establish the critical path and the standard deviation of completion times for the entire project.

Answer 98

This is a graphical aid that shows the amount and timing of the requirement for a resource during a project. By showing those periods where the resource is heavily in demand, it will be easy to determine where that resource can be reallocated from quieter time periods. Some diagrams show another bar representing resource availability

Answer 99

This would set out the standards that should be adhered to in order to deliver the project at the standard required.

Answer 100

Specialised software which could, for example, calculate the critical path and resource deficiencies quickly, with automatic recalculations should any of the parameters change. Advantages:  Time saved performing routine operations  Quick and easy to change data/parameters and see how the changes affect the end result  Improved control over resources  Improved communication.

Answer 101

Buffering involves the inclusion of defined quantities of time within a project schedule to ensure the overall delivery date is met.  A feeding buffer may be added to non-critical tasks that feed to critical tasks.  A capacity buffer may be used in a multi-project programme to reduce the likelihood of a project being adversely affected by resource usage by another project.  A resource buffer may be added to key resources to ensure they are available when required

Answer 102

Risks might arise through:  Delays (for example, material/labour/transport issues?)  Price rises (for example, basic price rises or movements in exchange rates if importing materials)  Quality issues (for example, actual products not matching samples)

Answer 103

Risk management can be thought of as a five-stage process: (1) Identify the risk (2) Assess their likelihood (3) Plan and respond to the risk (4) Take measures to manage the risk (TARA), including:  Transference: by passing on the risk to another party e.g. insurance  Avoidance: removal of the factors which give rise to the risk  Reduction: of the risk  Absorption: accept the risk (5) Review the approach taken for future reference

Answer 104

Scenario planning enables allowances to be made for the risks associated with a project. It involves considering different sets of circumstances that may occur, and devising a plan to deal with each.

Answer 105

Do nothing - After considering all options it may be decided that things should be allowed to continue as they are.7 Add resources - If capable staff are available and it is practicable to add more people to certain tasks it may be possible to recover some lost ground. It may be possible to subcontract some of the work. Work smarter - Consider whether the methods currently being used are the most suitable. It may be possible to use prototyping. Re-plan - If the assumptions that the original plan was based on have been proved invalid, a more realistic plan should be devised. Reschedule - It may be possible to recover some of the lost time by changing the phasing of certain deliverables. Introduce incentives - If the main problem is team performance, incentives such as bonus payments could be linked to work deadlines and quality. Change the specification - If the original objectives of the project are unrealistic given the time and money available, it may be necessary to negotiate a change in the specification.

Answer 106

Aims to identify opportunities for continuous improvement by learning from past mistakes. Level 1 – Emphasises the importance of staff having basic project management knowledge throughout the organisation Level 2 – Common standards and processes should be developed, so that the benefits can be repeated in future projects. Level 3 – Use of a singular methodology throughout the organisation Level 4 – Recognises the importance of benchmarking as an aid to improvement Level 5 – Continuous improvement and feedback

Answer 107

At the beginning of a project, the project manager should produce a document that:  Defines the project  Records the project justification and objectives  Sets out the expenditure and time-table budgets  Documents the organisation and responsibilities of the project team  Outlines the quality control standards being used

Answer 108

The project progress report is intended as an opportunity for the stakeholders of the project to get feedback on the project while there is still time to improve it. The progress report should mention:  What has been accomplished on the project to date?  What is still left to do?  Status against plan in terms of cost, timetable, and scope.  Status and progress of resolving issues identified to date.  New issues that have arisen since the last report.  Corrective action plan.  Expected achievement of milestones before next report.  Next report date.

Answer 109

At the end of the project, the project manager will write up his completion report. The purpose of this is to:  Ensure that the project is completed and has met its original objectives.  Obtain feedback from the client and staff on project performance with a view to improving future performance.  Meet with the project team and customer to report on project successes and failures.  Obtain customer sign-off.

Answer 110

The post-completion audit is a more formal audit of the project as a whole, produced after the completion of the project. This focuses on whether the stakeholders’ expectations were met and a more detailed analysis of the costs and time spent. The findings should be formalised in a report, covering the following:  An executive summary, giving a brief overview of the project  Any areas of unsatisfactory performance  Degree to which the original objective was achieved  A breakdown of actual costs and time taken versus budget  Any difference from company or client expectations should be reviewed and analysed to prevent re-occurrences in the future  Client feedback  Recommendations as to any improvements which could be made to future projects

Answer 111

Project stakeholders - Stakeholders are all the people who have an interest in the process and/or end results of the project. Project owner - The project owner is the person for whom the project is being carried out and as such he/she is interested in the end result being achieved and his/her needs being met. Project sponsor - The project sponsor is the person or organisation who provides the resources for a project. They have the authorisation to give the project the go-ahead and appointing the project manager. They also approve the original project plans and any changes to those plans, including the project budget. Part of the project sponsor’s role may include the establishment of a steering committee, who would oversee the entire project through to its implementation. Project manager - The project manager is the leader of the project team, taking the ultimate responsibility for ensuring that the project meets its objective. The project manager has responsibilities for:  Managing the expectations of the different stakeholders  Delivering the project on time and within budget  Defining, planning and co-ordinating the project  Allocating and securing resource commitment  Monitoring and tracking project progress, controlling costs Project customers/users The end user. This may or may not be the same party as the project owner. Project champion Projects may have a project champion, an informal role, but someone who ‘champions’ the project and ‘campaigns’ for it within the organisation.

Answer 112

The role of the management accountant increasingly includes involvement in cross-functional project teams. The management accountant can contribute to project team in a number of ways, including:  Analysing and interpreting information to facilitate project decision making (this is of increasing importance with the rise of big data use)  Liaising with the project sponsor to justify additional project resource requirements  Cost-benefit analysis of the project proposal as part of the feasibility study  Budget and forecasts  Ensuring accurate recording of project costs (and revenues if applicable)  Monitoring against budget and investigating variances