Organisational Culture & Committees Flashcards
Research & Development: Research can be of 3 types:
- Pure (New scientific or technical knowledge)
- Applied (specific practical aim or application)
- Development (Use of existing scientific or technical knowledge to produce new products or systems
There are 2 categories of R&D:
- Product research (‘offer’ to the market)
2. Process research (The way or efficiency with which products are made)
The 4 aspects of process research:
- Processes (crucial in service industries)
- Productivity (saves money & time)
- Planning
- Quality mangement
R&D should be closely coordinated with…
…marketing
Customer needs - vital input to new product development
The purchasing mix is: (4)
- Quantity
- Quality
- Price
- Delivery
Purchasing is…
…the acquisition of material resources and business services for use by the organisation
Importance of purchasing: (3)
- Cost
- Quality
- Strategy
Purchasing manager’s responsibilities include: (7)
- Inputs for production
- Inputs for administration
- Cost control
- Liaison with R&D
- Supplier management
- Obtaining information (Availability, quality, prices, etc)
- Maintaining inventory levels
Professionalism & effectiveness of the purchasing function does 3 things:
- Best value for money
- Meeting quality targets
- Minimises inventory-holding costs
Service is…
…any activity of benefit that 1 party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.
The nature of service: (4)
- Intangibility
- Inseparability
- Variability
- Ownership
Implications of service provision: (4)
- Poor service on 1 occasion = widespread distrust
- Complexity
- Pricing
- HR Management
Dimensions of Service Operations: Determinants (10)
- Tangibles (Fixtures and fittings)
- Reliability
- Responsiveness
- Communication (Non-technical language!)
- Credibility
- Security
- Competence
- Courtesy
- Understanding customers’ needs
- Access (Queuing systems)
Marketing is…
…the management process which identifies, anticipates and satisfies customer needs profitably
4 Roles of Marketing:
- Sales support
- Marketing communications
- Operational marketing
- Strategic marketing
Operational marketing activities include: (6)
- Research & analysis
- Contributing to strategy and marketing planning
- Managing brands
- Implementing marketing programs
- Measuring effectiveness
- Managing marketing teams
Marketing orientations towards customers: (4)
- Production orientation
- Product orientation
- Sales orientation
- Marketing orientation
Marketing mix is…
…the set of controllable variables and their levels that an organisation uses to influence the target market
…the 4 P’s are product, price, place and promotion
Product issues include: (8)
- Design
- Features
- Quality & reliability
- Packaging
- Safety
- Ecological friendliness
- What it does
- Image
There are 3 distinctions in products:
- Product class (cars, washing machines)
- Product form (Hearses, 4x4, hatchbacks)
- Brand or make (Nissan, Vauxhall, Rover)
Product life cycle includes 5 stages:
- Introduction
- Growth
- Maturity
- Decline
- Senility
Place issues include: (2)
- Outlets (Intermediaries / direct)
2. Logistics (Warehouses, storage & transport)
Promotion is intended to stimulate customers through 4 behavioural stages:
- Awareness
- Interest
- Desire
- Action
Types of promotion: (4)
- Advertising
- Sales promotion
- Direct selling
- Public relations
Penetration pricing is…
…charging a low price to persuade as many people as possible to buy the product in its early stages
Skimming is…
…setting prices to cream off the highest level of profits even though restricting affordability
For services, there are 3 more P’s:
- People
- Processes
- Physical evidence
Advantages of centralised administration offices: (5)
- Consistency
- Security / control
- Head office
- Economies of scale
- Single location
Disadvantages of centralised administration offices: (3)
- Wait for tasks to be carried out
- Reliance means offices are less self-sufficient
- System faults or hold-ups impact across the organisation
Sources of finance: (7)
- Capital markets
- Money markets
- Retained earnings
- Bank borrowings
- Government sources
- Venture capital
- International money & capital markets
Working capital consists of: (4)
- Cash
- Accounts receivable
- Accounts payable
- Inventory
As a planning medium and tool for monitoring, Financial management makes a variety of strategic contributions: (5)
- Ensuring financial resources are available
- Integrating strategy into budgets
- Establishing performance measures
- Establishing priorities
- Assisting in the modelling process
Human Resource management is…
…the process of evaluating and organisation’s HR needs, finding people to fill those needs and getting the best work from each employee by providing the right incentives and job environment
4 main objectives of HRM:
- Develop an effective human component which will respond effectively to change
- Obtain & develop HR and use & motivate them effectively
- Create and maintain a cooperative climate of relationships
- Meet social and legal responsibilities relating to HR
HR and employee development are strategically necessary to: (4)
- Increase productivity
- Enhance group learning
- Reduce staff turnover
- Encourage initiative
HR planning deals with: (4)
- Recruitment
- Retention
- Downsizing
- Training and retraining
Culture is…
…the collective programming of the mind which distinguishes the members of one category of people from another
…a way of behaving and understanding shared by a group of people
Elements of culture include:
- Observable behaviour
- Underlying values and beliefs
- Hidden assumptions
Edgar Schein’s model describes 3 determinants of culture:
- Observable Behaviour (Behaviour, artefacts (Architecture & interior design) & attitudes (Greetings, formalities, courtesies, ceremonies))
- Values and beliefs
- Assumptions (unspoken rules)
Organisation culture may be defined as:
…the collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we do and think in an organisation
…a pattern of beliefs and expectations shared by the organisation’s member, and which produce norms which powerfully shape the behaviour of individuals and groups in the organisation
…the way we do thins around here
Examples of culture include: (5)
- Beliefs and values (Customer is always right)
- Behaviour (Business dress)
- Artefacts (Communication ‘spaces’)
- Rituals (Compete for rewards)
- Symbols (Car, dress, equipment, office size)
Influences on organisational culture: (4)
- Founder
- History
- Leadership and management style
- Organisation’s environment
Harrison classified 4 types of culture to which Handy gave Greek deity names:
- Zeus (Power)
- Apollo (Role)
- Athena (Task)
- Dionysus (Existential)
Power (Club) culture / Zeus:
Controlled by a key central figure, owner or founder
Power is direct, personal, informal
Small organisations where people get on well
Adapts quickly
Role culture / Apollo:
Classical, logical, rational organisations
Bureaucracy (well-established rules ad procedures)
Stable, slow-changing, formalised, impersonal
Authority based on position & function
Large stable organisation where work is predictable
Task culture / Athena:
No dominant or clear leader - get the job done!
Management directed at outputs
Team-based, horizontally-structured, flexible, valuing expertise
Expensive
Person (Existential) culture / Dionysus:
Serve the interests of the individuals who make it up
Facilitating, administering
Management is derived from the consent of the managed, rather than the delegated authority of owners
(Secretaries, administrators, bursars, registrars or clerks)
Robert Anthony classifies managerial activity as:
- Strategic management (Power culture)
- Tactical management (Task culture)
- Operational management (Role culture)
The Hofstede model describes 4 dimensions on which culture differs:
- Power distance
- Uncertainty avoidance
- Individuality / collectivity
- Masculinity / femininity
Power distance is the extent to which…
…unequal distribution of power is accepted
Uncertainty avoidance is the extent to which…
…security, order and control are preferred to ambiguity, uncertainty and change
Individuality / collectivity is the extent to which…
…people prefer to like and work in indidivualist or collectivist ways
Masculinity / femininity is the extent to which…
…social gender roles are distinct
Purposes of committees: (7)
- Create new ideas (brainstorming)
- Communication
- Participation / problem solving
- Combining abilities
- Co-ordination
- Representation
- Recommendations
Important roles in a committee include:
The chair The secretary (Preparing, minutes, communication)
Types of committees:
- Executive (govern, administer)
- Standing (permanent)
- Ad hoc (complete a task)
- Sub-committees (Relieve routine)
- Joint
- Management
Advantages of committees: (4)
- Consolidation of power and authority
- Delegation
- Blurring responsibility
- Delay
Disadvantages of committees: (6)
- Too large for constructive action
- Time-consuming and expensive
- Delays in routine matters
- Frequent attendance by executive jeopardises operations
- Incorrect or ineffective decisions
- Invite compromise over clear-cut decisions
