B123
Chapter 12
Finance
Accounting concepts & principles
Financial statements are prepared at the end of a period.
The form and content of such financial statements are often regulated by statute or regulations produced by accounting bodies(e.g. the International Accounting Standards Board).
There is often general requirement that these statement should give a true and fair view of the affairs of the organization.
Profit or not-for-profit
Organizations are often differentiated in terms of the sector of the economy to which they belong: pubic or private. They also are classified according to whether or not their primary motive is profit.
Assets & liabilities
Assets – it is something which the organization owns and which has a market value.
Liability – it is a debt that the organization owes to another person or organization.
Net worth – it is the value of the assets less the value of the liabilities as recorded in the books of accounts.
The balance sheet
It is the financial account that shows the book value of the organization’s assets and its liabilities at a particular time, usually on a particular day.
Different types of costs
Fixed Cost , costs are not affected by changes of an organization’s activity ( Rent).
Variable cost , some costs increase or decrease as the level of activity rises or falls (Tel charges).
Direct cost , some times it is possible to attach or attribute a cost to particular activity.
Indirect cost , not all costs can be attributed to particular tasks
Break-even
Break-even (or break even) is the point of balance between making either a profit or a loss.
The accounting method of calculating break-even point does not include cost of working capital.
The financial method of calculating break-even, called value added break-even analysis, is used to assess the feasibility of a project. This method not only accounts for all costs, it also includes the opportunity costs of the capital required to develop a project.
Break even = Fixed Assets / contribution per unit.
Break-even example
A company is manufacturing product X and the selling price is $1,000, while the variable cost for each unit is $40, mean while the fixed cost of the operation will be $60,000. Calculate the break-even in units.
Answer:
BE= FC/contribution per unit sold
Contribution per unit sold= unit price – Variable cost
= $1000-$400=$600
BE in units= 60,000/600= 100 units
Return on capital employed
ROCE = operating profit / capital employed
(Expressed as a %)
ROCE is used to prove the value the business gains from its assets and liabilities. A business which owns lots of land but has little profit will have a smaller ROCE to a business which owns little land but makes the same profit.
It basically can be used to show how much a business is gaining for its assets, or how much it is losing for its liabilities.
Margins & mark-ups
Margins – it describes the profit earned as a percentage of the sales value.
Mark-up – it describes the amount added on to cost to arrive at the selling price as a percentage of cost.
B123
Chapter 14
Managing People
Managing individuals
Human resource (HR) management is of direct relevance to anyone who has to achieve results through the efforts of other people.
It concerns all management decisions and actions that affect the relationship between an organization and its members.
The flow of people
HR policy concerns the flow of people into, through and out of an organisation. This includes:
planning for staffing needs
selecting and recruiting the right people
their induction into the organisation
internal staffing and promotion decisions
the management of employees – including contract staff or, in the not for-profit sector, volunteers
exit from the organisation, whether voluntary or involuntary.
Managers need to make such choices as:
the extent to which they rely on temporary or permanent staff
the flexibility they require from employees in terms of patterns of working hours
the extent to which they invest in employee development and training, or recruit for the skills they need
the extent to which they will meet changes in demand by varying the numbers employed or hours worked.
Recruitment and selection
The process of recruitment and selection is the first means by which an organisation seeks to engage employees with the right set of skills, motivation and potential to meet its needs.
It is also the first stage in forming a relationship with employees.
The selection interview
The aim of the selection interview is to ascertain whether the candidate is interested in the job and competent to do it. It also has other functions:
to explain the work of the organisation, the job and any features such as induction and probation
to set expectations on both sides, including a realistic discussion of any potential difficulties (if appropriate)
to enable the candidate to assess whether they want the job being offered.
Performance management
Quantitative aspects: Some aspects of performance can be measured as quantitative targets:
Timescales
Deadlines
Amounts produced
Costs
Resource usage.
Qualitative aspects: Other aspects of performance may be more subjective and require a qualitative judgment which are associated with problems: such as
ethnicity,
gender,
appearance
personal biases.
Performance appraisal
It is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Methods of assessment
Observation & involvement
Questioning & discussion
Routine statistics & reporting
Your own statistics
Other reports
360 degree feedback
360-degree feedback
In the 360-degree feedback system, assessments are sought from a variety of people with whom the individual interacts –from the line manager, the individual’s own direct reports, their co-workers and colleagues, and their internal and external customers.
The 360-degree feedback method (also known as the multi-rater and multisource feedback method) has increased rapidly in recent years.
The underlying rationale has two elements.
First, it corrects for the bias and the imperfect and incomplete information associated with single-rater feedback.
Second, it encourages self-awareness and personal development by allowing individuals to identify and reflect on the gap between their own perceptions of their performance and those of others with whom they work.
Mentoring
Mentoring is a powerful personal development and empowerment tool. It is an effective way of helping people to progress in their careers and is becoming increasing popular as its potential is realised. It is a partnership between two people (mentor and mentee) normally working in a similar field or sharing similar experiences. It is a helpful relationship based upon mutual trust and respect.
B123
Chapter 15
Monitoring and Evaluation
Monitoring and Evaluation
Management control concerns how organizations can improve their performance by more effective control over people, operations and processes.
Necessarily this involves monitoring and evaluation of performance, analysis and reporting of information at all levels of the organization.
The four E’s
There are many ways in which we can think about organizational performance and these concerns mainly the performance evaluation of the four Es:
Effectiveness is the extent to which an organization achieves its goals.
Efficiency describes how well an organization transforms inputs into outputs. An organization becomes more efficient as it produces more or better outputs for the same inputs.
Economy describes how cheaply the inputs can be purchased. Economy is important when managers are constrained by fixed budgets.
Ethics or ethical acceptability is the extent to which the behavior of an organization and its members is acceptable in terms of the moral standards of wider society in which it operates.
Traditional control process in action
The traditional control process usually comprises four stages:
setting objectives and establishing standards of performance
planning tasks, identifying performance measures, carrying out tasks and measuring performance
monitoring progress by comparing performance against objectives and standards
acting on results of monitoring and taking corrective action.
Double loop learning
This allows not only the goals to be questioned, but also the performance measures used and the repertoire of responses to feedback on performance.
Barriers to double loop learning
Bureaucratic structures often do not encourage managers to think for themselves
It may encourage managers to find ways of obscuring issues and problems.
Understanding quality
In a quality organizational culture, there will be a commitment to satisfying the customer. In this context, the quality is defined as the extent to which the final product sufficiently meets the customer’s requirements. From this perspective, the distinction is not between high-quality and low-quality outputs but between outputs of sufficient quality and insufficient quality.
Ideally, an organization should also be working on supplying more than the customer wanted to insure repeated orders.
Internal quality
A culture of quality is internal to the organization and should involve all staff: where there will be a general recognition that everyone takes personal responsibility for their own outputs. A quality culture will be energetic and focused on the customer.
Benchmarking
Internal
Competitive
Functional
Generic
A relatively new model for operational control is the balanced scorecard shown in Figure 15.9 p. 332.
The scorecard provides answers to four basic questions by assessing four perspectives:
1- How do our customers see us? (The customer perspective.)
2- What must we excel at? (The operational or internal business perspective.)
3- Can we continue to improve and create value? (The innovation and learning perspective.)
4- How do we look to shareholders? (The financial perspective.)
Balanced scorecard
The business excellence model
The business excellence model set by the European Foundation for Quality Management (EFQM) is a tool for self-assessment that helps to quantify quality practices and performance. From self-assessment, organizations can identify areas of underperformance and make efforts for improvement.
The elements to be measured of the model are:
1- Leadership – how senior people inspire and drive an organization in the pursuit of long-term success through total quality management.
2- People management – how the organization realizes the full potential of its employees to support its policy and strategy, and the effective operation of its processes.
3- Policy and strategy – how the organization implements its mission and vision through a clear stakeholder-focused strategy, supported by relevant policies, plans, objectives, targets and processes.
The business excellence model
B123
Chapter 11
Marketing
Marketing
Marketing is concerned with exchange relationships. In commercial (for profit) organizations, products and services are exchanged for money and resources from customers.
Transactional marketing – oriented towards single purchase
Relationship Marketing – oriented towards repeat sales.
Transactional marketing Vs Relationship Marketing
Understanding customer behavior
The traditional model
Understanding customer behavior
Dimensions of decision making
Segmentation
It is a process of breaking down a total market into smaller, more distinct segments that have a similar characteristics.
Two phases of segmentation:
Understanding the customer and the market
Indentifying customer characteristics
The marketing mix
It is a framework developed to help managers to consider all the relevant factors when designing and marketing their products to attract particular segments.
The 4 (or seven) P’s
The four C’s
Three level product analysis
It provides a way of looking at products, and/or services, to analyze key features and benefits.
Features of the three levels:
Core product / service
Actual product / service
Augmented product / service
Branding
It means creating an identity for a product, associating it with buying not just a product but buying into a lifestyle and certain values.
Benefits of branding
A good way of differentiating products.
Customers can immediately identify specific products
Product life cycle
It charts the progress of a product in the market from its introduction to its decline.
The stages in a products growth
Introduction
Growth
Maturity
Decline
The Boston matrix
It is intended to contribute to the management of organization’s cash flow.
Using the matrix
Problem child
Stars
Cash cows
Dogs
Pricing strategies
pricing policy may well have a powerful effect on an organization’s financial viability in the short term, but it is a key element for long-term marketing and corporate strategy.
Prices need to be set at a level that provide profit.
Prices must:
Provide the customer with value for money.
Cover the cost.
Be competitive.
Be consistent with company objectives.
Pricing policies
Penetration pricing: objective is for a new product to establish high volume sales and low production cost, to expand in a new market.
Marginal pricing: to boost the company’s volume and reduce overall cost, price is below full cost but above variable cost, just for a limited period in special cases.
Market-based pricing: the product can be priced as the customer is welling to pay according to the market.
Loss leading: price is below cost to attract initial customers.
Skimming: charging high price for a short term/
Customer decision and marketing communications
Marketing communication can be seen as a process of persuasion.
AIUAPR model
Awareness, Interest, Understanding, Attitude, Purchase, Repeat purchase.
The communication mix
A number of tools used by organization to communicate with their audiences. Together these tools are called as the communication mix.
Push & pull strategies
Companies selling branded products with high level of consumer recognition are likely to focus their communication on advertising to increase the consumer awareness and to create a pull for the products that distributors respond to.
Companies that are not market leaders, adopt push strategy which involves emphasis on promotional activities aimed at the distributor with the objective of encouraging them to push the product to the consumer.
B123
Chapter 13
Leadership, Management and Motivation
Leading for results
Management involves far more than planning, implementation and the exercise of co-ordination and control. If an organization is to operate successfully in the wider environment, effective leadership and management of people, informed by an understanding of what motivates people to work, will be vital to an organization’s ability to meet externally-imposed competitive demands and pressures.
Leadership
Leadership – the ability to communicate a vision, influence others and gain their trust – will be crucial to achieving your objectives as a manager, and in turn, those of the organisation.
What makes a good leader?
Leadership can be described as the way a person guides, shows the way or holds a group together.
Approaches to understanding leadership:
The trait approach
Situation theories
Social process accounts
Transactional leadership
The transactional leader influences others by appealing to their self-interest, primarily through the exchange of valued rewards for services or other desired behaviors.
The relationship between leader and follower is seen as a series of rational exchanges or transactions that enable each to reach their own goals.
Transactional leaders supply all the ideas and use rewards as their primary source of power.
Transformational leadership
The transformational leader – sometimes described as the charismatic, or visionary, leader – inspires followers to do more than originally expected.
Transformational leaders motivate followers to work towards goals that transcend immediate self-interests – to strive for higher-order outcomes.
Fayol’s management processes
Forecasting and planning.
Organizing.
Leading.
Coordinating.
Controlling.
Mintzberg’s management roles
Interpersonal
Informational
Decision making
Management by objectives
It provides a framework for supervision in pursuit of agreed goals.
The essence of MBO is that instead of telling people exactly how to do their work, managers provide staff with tasks and assignments which have targets or objectives to be reached.
Using SMART framework to set objectives
Specific
Measurable
Agreed
Realistic
Timed
Maslow’s Hierarchy of needs
Expectancy theory
The psychological contract
It represents the mutual beliefs, perceptions, and informal obligations between an employer and an employee.
It sets the dynamics for the relationship and defines the detailed practicality of the work to be done. It is distinguishable from the formal ritten contract of employment which, for the most part, only identifies mutual duties and responsibilities in a generalized form.
Employee empowerment
Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs.
Employee empowerment helps employees own their work and take responsibility for their results. Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists.
Reasons for involvement & empowerment
They can bring about enhanced commitment from employees.
They can encourage all workers to pull in the same direction.
Increased competition, instability, uncertainty in the global economy mean that managers can no longer have the capacity to issue command which simply require unquestionable implementation.
The cost of maintaining hierarchies are increasing
B123
Chapter 10
Strategy and the Organization
(17)
*
*
Topic 1 – Strategy & the Organisation
The organizational context
Our lives, whether we are managers or not, are lived in organisations. These range from micro- to macro-organisations, that is, from systems as small as the smallest family unit to those as large as the government or state.
We can think of these organisations as embedded or nested sets of systems, with influence .owing in both directions, but not in equal amounts.
Clearly, a government will have more influence on an individual than the individual will have on a government, except in exceptional cases. Influence takes place through the interaction of systems and individuals. We can easily adapt this idea to the situation of an individual manager, the employing organisation and the wider community.
(17)
*
Just as individuals are influenced by systems which are shaped by culture, politics and economics, so managers and organisations are influenced by the wider environment.
This external or far environment needs to be understood if organisations are to be successful. It is not under the control of the manager or organisation. Managers need to analyse it, understand what its implications are, and make appropriate plans.
The near environment of suppliers, buyers, customers, competitors and other stakeholders can be influenced by managerial action.
Only the internal environment of the organisation itself can be controlled directly – although, as many managers will agree, even this has its challenges!
(17)
*
The fundamental principle of strategic management is a Western cultural one – that we are controllers of our own destiny and can make things happen.
In the quest for improving an organisation, current practices are constantly scrutinized along with what is happening in the far environment where both threats and opportunities may exist. This necessarily involves scrutiny of the near environment too.
Importantly, the near and far environment can also be viewed from the perspective of time. This is particularly vital in planning: identifying trends over time and ascertaining whether these trends constitute threats or opportunities which might indicate the need for organisational change.
(17)
*
Developing an organisational vision
The terms ‘mission’ and ‘vision’ are often used interchangeably, although ‘mission’ is usually focused on the tangible goals of the organisation, while ‘vision’ may include quite abstract elements.
An organisational vision is a framework that includes the guiding philosophy, core values, beliefs and purposes from which the mission statement is developed.
The purpose of developing an organisational vision is to encourage management teams at the corporate level, the business unit or the brand level, to think in detail about what they are trying to create.
Examples: San Diego Zoo: To become a world leader at connecting people to wildlife and conservation.
Also: Save the Children: Our vision is a world in which every child attains the right to survival, protection, development and participation.
Cleveland Clinic: Striving to be the world’s leader in patient experience, clinical outcomes, research and education.
(17)
*
An organization’s Mission
An organisation’s mission statement sets out what the organisation wants to be. It should be the starting point for setting objectives and making strategic decisions. It contains the organisation’s value proposition – its reason for being – and therefore influences the entire organisation’s thinking.
(17)
*
Typical format of a mission statement
Good mission statements are concise and to the point, and capture the essence of the organisation by stating: its purposes (why the organisation exists, for example, to meet a specified need); its business statement (for example, to build homes); and its values (for example, a commitment to affordability and quality). There is no strict format, however.
(17)
*
An organization’s Mission
Mission statements typically contain one or more of the following four components:
The organisation’s philosophy
specification of the product/market domain
the organisation’s key values
critical factors for success in the marketplace.
Example: Cleveland Clinic: To provide better care of the sick, investigation into their problems, and further education of those who serve.
(17)
*
STEEP Model
It helps you construct a long-term forecast for your unit, your organisation, and for yourself.
S – social
T – technological
E –economic
E – environment
P – political
(17)
*
The PEST & PESTLE Model
PEST is useful for forecasting demand by studying current and past patterns, how these are likely to be affected by a possible future changes in the organization’s environment including Political, Economic, Social & Technological changes.
PESTLE which includes Legal & Environmental factors separately.
(17)
*
Porter’s five force model
Much strategy is concerned with establishing and maintaining competitive advantage.
This model identifies five types of competitive pressures within a sector
Established competitors
New entrants to the market
Substitute products
The bargaining power of suppliers and that of customers.
(17)
*
Porters value chain model
There are five primary activities that are strategically important for the organisation
Inbound logistics
Operations
Outbound logistics
Marketing & sales
After sales services
(17)
*
SWOT Analysis
It is used to assess the competitive position of a product or service.
S – strengths
W-weakness
O – opportunities
T – threats
(17)
*
Approaches to strategy
Market based approach: starts by analyzing the environment outside the organization – the customers, suppliers and competitors – and then tries to fit the organization and its resources to its environment.
Resource based approach: shifts the emphasis from the external to the internal context: the focus is placed on the resources that an organization possesses, or needs to possess, as the basis for a sound strategy.
(17)
*
Porters model of generic strategies
Competitive scope: This defines the range of products or markets over which an organization chooses to compete – the range can be narrow or broad.
Competitive advantage: This refers to the advantage (or the plus) that an organization has over its competitors.
(17)
*
Sources of competitive advantage
Cost leadership: Here the organization is the low-cost producer in its sector. Low-cost production should not be confused with low pricing, although low costs are usually reflected in low prices to the consumer. It is when the organization can achieve and sustain cost leadership by producing goods or services at a lower cost than its competitors (while maintaining quality).
Differentiation: an organization following a differentiation strategy seeks to offer extra advantages to its customers. It identifies particular elements in the product that are important to the customers and looks to make product more attractive by contrasting its unique qualities with other competing products. These elements can be either the product’s specifications or quality or style or even packaging….
(17)
*
Ansoff Matrix
It is a way of presenting the strategic options that are open to an organization in relation to its products or services, together with the risk associated with those options.
4 options:
Market penetration (present/present) This option is to seek extra sales for the product in the present market.
Market development (present/new) Alternatively, the organization can seek to find new markets for the current product.
Product development (new/present) Rather than seek new markets, the organization may modify the product and seek customers for it in the present market.
Diversification (new/new) It requires a new product to be marketed in new markets. This option is the most high risk of the four because it requires the development of both product and market
(17)
*
*
Take Home Exam for Final Assignment 2020-2021/Fall
B123: Managing in the Workplace
Cut-Off Date : 23rd of January 2021
Cut off Time : 2:05 PM
Total Marks : 100 Duration : 48 Hours
Contents:
Warnings and Declaration…………………………………………………………….………………………………………………………………. 1
Question1 ………………………….…………………………………………………………………………………………….………………………..…. 2
Question 2 …………………………………………………………………………………………………………………………….……………….…..…. 2
Question 3 ………….…………………………………………………………………………………………………………………………………………. 2
Question 4 ………….…………………………………………………………………………………………………………………………………………. 2
Plagiarism Warning:
As per AOU rules and regulations, all students are required to submit their own THE-Final work and avoid plagiarism. The AOU has implemented sophisticated techniques for plagiarism detection. You will be penalized for any act of plagiarism as per the AOU’s rules and regulations.
Declaration of No Plagiarism by Student (to be signed and submitted by student with THE-Final work):
I hereby declare that this submitted THE-Final work is a result of my own efforts and I have not plagiarized any other person’s work.
Question 1: (25 marks) (word count: 500 words)
Apply the two approaches to strategy “
Market based approach” and “Resource based approach”
to a two different products or services- one example for each strategy. (15 marks)
Also explain in your own words the difference between “Transactional marketing” and “Relationship Marketing” (10 marks)
Question 2: (25 marks) (word count: 500 words)
Explain using
your own words
and
examples
the difference between “Transactional leadership” and “Transformational leadership” (15 marks)
Apply Using SMART framework to set objectives for any product/service you choose. (10 marks).
Question 3: (25 marks) (word count: 300 words)
A- A company is producing a product for selling price of $5000, while incurs the following costs:
Rent: $1500, shipping $1000, raw material $2200, packaging $300, insurance $2000, fixed salaries $1500, manufacturing electricity $1000, advertising 3000
Calculate the break-even in unites. Show your calculations. (15 marks)
B- Choose a company from your local market and identify the fixed and variable costs as examples from the chosen company. (10 marks)
Question 4: (25 marks) (word count: 500 words)
Choose a company and apply and identify the quantitative and qualitative aspects for performance evaluation. (15 marks)
Also identify and apply the 4 Es to the chosen company. (10 marks)
End of Assessment
BUS110 / THE-Final 1 of 8 2019-2020/Second
B123/ THE-Final 1 of 1 2020-2021/Fall
B123
Chapter 13
Leadership, Management and Motivation
Leading for results
Management involves far more than planning, implementation and the exercise of co-ordination and control. If an organization is to operate successfully in the wider environment, effective leadership and management of people, informed by an understanding of what motivates people to work, will be vital to an organization’s ability to meet externally-imposed competitive demands and pressures.
Leadership
Leadership – the ability to communicate a vision, influence others and gain their trust – will be crucial to achieving your objectives as a manager, and in turn, those of the organisation.
What makes a good leader?
Leadership can be described as the way a person guides, shows the way or holds a group together.
Approaches to understanding leadership:
The trait approach
Situation theories
Social process accounts
Transactional leadership
The transactional leader influences others by appealing to their self-interest, primarily through the exchange of valued rewards for services or other desired behaviors.
The relationship between leader and follower is seen as a series of rational exchanges or transactions that enable each to reach their own goals.
Transactional leaders supply all the ideas and use rewards as their primary source of power.
Transformational leadership
The transformational leader – sometimes described as the charismatic, or visionary, leader – inspires followers to do more than originally expected.
Transformational leaders motivate followers to work towards goals that transcend immediate self-interests – to strive for higher-order outcomes.
Fayol’s management processes
Forecasting and planning.
Organizing.
Leading.
Coordinating.
Controlling.
Mintzberg’s management roles
Interpersonal
Informational
Decision making
Management by objectives
It provides a framework for supervision in pursuit of agreed goals.
The essence of MBO is that instead of telling people exactly how to do their work, managers provide staff with tasks and assignments which have targets or objectives to be reached.
Using SMART framework to set objectives
Specific
Measurable
Agreed
Realistic
Timed
Maslow’s Hierarchy of needs
Expectancy theory
The psychological contract
It represents the mutual beliefs, perceptions, and informal obligations between an employer and an employee.
It sets the dynamics for the relationship and defines the detailed practicality of the work to be done. It is distinguishable from the formal ritten contract of employment which, for the most part, only identifies mutual duties and responsibilities in a generalized form.
Employee empowerment
Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs.
Employee empowerment helps employees own their work and take responsibility for their results. Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists.
Reasons for involvement & empowerment
They can bring about enhanced commitment from employees.
They can encourage all workers to pull in the same direction.
Increased competition, instability, uncertainty in the global economy mean that managers can no longer have the capacity to issue command which simply require unquestionable implementation.
The cost of maintaining hierarchies are increasing
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download