Internal Environment of LSO's Flashcards
Developing a positive corporate culture
Element of corporate culture Values and practises Symbols Rituals, rites and celebration Heroes
Ways to develop corporate culture
Employee rewards/recognition to reinforce effort and performance.
Social/informal gatherings
Office set up/businesses environment/space
Recruitment to fit skills and culture
Examples of policies
Dress code/uniform
Occupational health and safety-heavy lifting, hazard clearing
Breaks/Leave- annual leave, paid break, maternity leave etc.
Bullying/harassment/anti discrimination
Phones and social media
What is a policy
A policy is a rule, regulation or guideline that is put in place to ensure not only that both managers and employees act responsibly around the work place but also ensures their safety and well being. An example of a policy is anti discrimination stating that all managers and employees must treat each and every single employee with respect and not discriminate against any one with different coloured skin, religious beliefs or gender.
Step 1-Policy Development
Pressure exists for the policy to be written or changed
The pressures come from any external or internal sources such as government, managers or even social pressures.
Step 2-Policy Development
Research is conducted
When coming up with a new policy their is no point starting from scratch if their is another company that already has the same outline of the policy that could just be adapted for you business.
Step 3-Policy Development
Stakeholders are consulted
This stage allows stakeholders the chance to hear about the new policy and therefore voice their opinion on the matter and perhaps make changes.
Step 4-Policy Development
A draft policy is written and circulated for comment
This stage allows any flaws in the policy to modified.
Step 5-Policy Development
The policy is finalised and communicated to the stakeholders
This is the stage when stakeholders are informed about the new policy. The methods or communicating include, stakeholders receiving their own copy of the policy or holding a meeting
Step 6-Policy Development
The policy is reviewed after a period of to same if needed, the policy may be revised
The best way to test the policy is to see it in action. A manager would need to recall the reasons why the policy was created then they would review the policy and see if it’s achieving its goal.
Why are policies important
Policies are important as they provide clear expectations of behaviour for employees and managers, protection for stakeholders for example customers and shareholders that actions are more likely to be lawful then ethical and consistency in actions of employees and with LSO’s often having thousands of employees this is important for quality and service
Policies that reflect ethics
Some business may have certain policies that could also be said to be of ethical value such as Ethical Sourcing which ensures the safety and well being for all employees
Management Structures
Functional- structure
Divisional-geographic/product/customer
Matrix
Functional structure
Involves grouping employees together according to the tasks or jobs they will perform.
CEO
Marketing/finance/operations/HR/R&D
Divisional Structure
A divisional structure groups employees together according to divisions that may be geographical or customer, product or process focused.
Customer structure
The grouping of jobs and people according to the customers being served for example, whole sale or retail
General Manager client services
Corporate client/private client/government client
Geography Structure
The grouping of jobs and people according to their location for example regional or state, national or international
Global Manager
General manager Asia/general manager Europe/ general manager North America
Product structure
The grouping of jobs and people based on single products or services. An organisation that produces a range of products, such as Cadbury or schweppes may group activities according to whether they produce confectionary products, soft drinks, I’ve cream or dairy products
General Product manager
Confectionary/soft drinks&afraid juices/biscuits
Ethics
They are rules or regulations that are put in place to ensure fairness and honesty, respect for people, conflict of issues and financial management within the confines of a company. All companies have different ethical values but a lot may already be used or altered in some way to fit the business.
Social Responsibility
Is the obligation made by a business to go above and beyond what is required by law to benefit the community and its surrounding environments. Being socially responsible also ensures the wellbeing of all managers, employees, customers and shareholders and provides to the greater good of the society.
Matrix
A matrix structure is similar to both the divisional and functional structure in the way it is set out the only difference is that there is maybe 2 or 3 functional structures within the business perhaps for business with multiple products may have a fictional structure for product A and another for product B.
Board of directors
Product A-marketing/HR/R&D/operations/finance
Product B-marketing/HR/R&D/operations/finance
Fairness and honesty
States That:
Managers must obey laws and regulations.
Customers expect managers to tell them the truth and to not be deceptive.
Employees expect to be dealt with honestly and fairly.
If a promise is made to an employee they are expected to honour this promise.
Respect for people
States that:
Sometimes a business may gain knowledge of an employee acting unethically towards a fellow employee in the workplace. This can place the business in a difficult position as the employee may be be crucial to the operations of the business.
Other times employees may be placed in difficult position by other employees playing a practical jokes on a younger employee.
Conflict of interest
Is when a person takes advantage of a situation or piece of information for his or her own gain rather than for the employees interest
Things such as corruption undermines the integrity of the business if it is left unchecked it may infiltrate the workplace culture.
What begins as a small incident, to which most people turn a blind eye may soon develop into corruption on a grand scale.
If so organisations image can be severely damaged.
Financial management
All financial documentation are fair, honest and upfront and that their are no messing with the book for personal gain.
The social report
May also be referred to as a corporate social responsibility report, social audit or sustainability report.
The report details what an organisation has done and continues to do to address the social and environmental issues that are relevant to the organisation
Measures the success and failure of the organisation fulfilling its social responsibilities.
Functional structure advantages and disadvantages
ADVANTAGES
A defined carrier pathway for employees.
The possibility of a large degree of task specialisation.
Efficient use of resources.
The provision of good opportunities for skill and knowledge development.
DISADVANTAGES
Lack of flexibility and cooperation due to it beuqacratic nature.
A narrow department focus, as opposed to a broader organisation.
Divisional structure advantages and disadvantages
ADVANTAGES Increased flexibility. Focuses on result. An help to develop senior managers. Enhanced horizontal communication.
DISADVANTAGES
Duplication of resources.
Potential to promote divisional rivalry
Divisional goals may take priority over organisational goals.
Matrix structure advantages and disadvantages
ADVANTAGES Increased flexibility. Enhanced teamwork. Enhanced communication. Pooled experience/moreover problem solving.
DISADVANTAGES
Mixed messages(dual chain of command).
Duplication of resources.
Overall objectives can be lost.
Corporate culture
Corporate culture is the shared values, beliefs and behaviours expressed by managers and employees within an organisation. Official corporate culture is often expressed in formal documentation such as objectives, policies, procedures and information published on the website whereas unofficial or real corporate culture are unwritten rules or ways employees behave including they treat fellow employees.
